How Has the Recession Impacted You?

[Mike]

Our home has decreased in value about 60% from its peak in 2005. I was the victim of downsizing about 3 years ago, and I'm making less than I did before. I'm faithful that God will provide, but we're having to do without many things we once had. While we're locked into mortgage payments (because we can't sell our home) that are tough to withstand with lower household income, we're managing to muddle through this "season".

And I think it's a blessing greater than any riches we could have.

Keeping our cars - We used to have two pricy lease cars. While I was always against renting an apartment because no value was retained, somehow I justified paying leases for cars and having nothing to show for it at the end. I have a 2005 Pontiac Grand Prix, my wife has a 2005 Chrysler Town & Country, and we take care of repairs as needed.

Home/appliance repairs - I was in the terrible habit of replacing defective appliances or having contractors do home repairs. My father handed down little in the way of "no-how" handyman ability. I've spent time learning and repairing things I never would have thought I could. We've saved a terrific amount of money and are more self-sufficient.

Less costly vacations - No more annual trips to Disney World, whisks off to Chicago in high-rent hotels, and other vacations. We have "stay-cations" and more intimate down-scaled trips as a family.

How have you been forced to adjust your lifestyle?

 

[Acebopata]

Tis the Lord alone, and not thy Ressession, that affects me, for thy Ressession is no match for thy lord Jesus!

 

[tim-from-pa]

The Lord's been taking care of us. I earn less due to my well-paying job going overseas (which ironically the plant that it went to is closed already so I don't know where it ended up), but I managed to get a modest pension from my old workplace, plus I found a job that pays basically 60% of what I used to make. In the meantime my wife works for two doctors --- one part time from the home and the other in an office, and we have investment gain from inheritances, investment contributions, and a hefty severance pay when I got laid off my old job. We already saved enough for both kid's colleges before this happened.. So instead of each of us have 2 large incomes, we basically now have 5 mediocre incomes and it works out about the same.

Property values of course is lower, but we intend to retire here anyway since we went through the trouble to build this house to our specs--- it's been paid off since 1998. Besides, it's family (farm) land from my wife's side, and don't want to give up that inheritance. I compare this to biblical inheritance and don't want to treat it lightly. The Lord would not have given us this birthright unless He intended us to have it.

Most importantly, we tithe. I actually increased my giving after my layoff to spite the devil, and figured it was not going to waste if it was going to God. Of course I get Satanic attacks for our faith from every angle even by so-called brothers regarding our living philosophy, our inheritance or theology. But then again, we are not hurting at this point. It seems some are hurting (maybe even complain about their mishaps on forums) but the same are going to tell those who are doing just fine how to live when they are in shambles themselves. It does not take a spiritual Einstein to see something is then amiss.

 

[jasoncran]

like mike my house is overvalued and i am locked in, but God has been good. tim while i dont give like i should and its a long story.its good that you do give and trust God.

pray for me to give.

 

[Danus]

Well, the worst thing for me was firing my butler ....Actually I am Mr. cheapy McCheap...other than my wife loosing her job of 20 years about 3 years ago, I did not even know we had a recession. I'm worse than a Jewish-Scotsmen when it come to a dime. I did try to get a mortgage reduction after finding what I thought was a loop hole, but no such luck. However, I'd say it's been a good thing for us. My wife is back working now.

For many years one of my prayers was that God might allow my wife and I to share some of the same wisdom when it comes to our money, and so he has. I was the saver and she was the spender, but now we are both savers.

We have been vacationing cheaper by taking our girls on weekend excursions camping. I'm even looking into getting a pop-up camper and just letting that be our new way to vacation. Before loosing her job, my wife would never even think of doing these things, but we've had fun.

 

[reba]

:toofunny Danus... your funny


The economy cost me my job at the store/cafe but then my health has improved. We are retired but have a 100+ year old house 2+ acres to maintain We have cut back in small ways not too bad...


Side note when you know it is time to downsize your home ... dont look at an old farm house wiht a big porch light snow and Christmas lights the heart wins ....

 

[Rhea]

No impact here. We've always lived below our means and been savers and saved vigorously when we were both working so that when I left work to care for my dying mother-in-law the only impact was that we saved less. After her death I continued to stay home to enjoy more time with the kids.

The house is inexpensive, the mortgage payments only 10% of our income and to be paid off in 7 years, not that it matters since we had no plan to sell and move. But if we had to for work (I'd miss the land!!) then we have plenty of equity. We own all the cars (and motorcycles and tractors) but one outright, and that one's only a year away. We have no other debt than that.

We've always enjoyed inexpensive stuff, our vacations are epic, but generally just tent-camping coast to coast, so at $15 a night we can go a long way.

If it got worse and my husband lost his job, we would probably take the kids out of private school and paid lessons, but otherwise be able to continue for quite a while on savings, making a more working farm to provide most of the food if necessary.

 

[Christ_empowered]

My mental illness kind of interfered with me building a solid work history and/or finishing school, so now that the economy has tanked, I seem to be locked into perpetual unemployment and dependence on my parents until I can finish a degree (luckily, I have lots of credits). No job=no insurance, so now I have to order my psychiatric medications from online pharmacies based in India.

 

[Ashua]

My mental illness kind of interfered with me building a solid work history and/or finishing school, so now that the economy has tanked, I seem to be locked into perpetual unemployment and dependence on my parents until I can finish a degree (luckily, I have lots of credits). No job=no insurance, so now I have to order my psychiatric medications from online pharmacies based in India.

Pretty much in the same boat as you. Not enough "experience" to do anything and yet no one wants to give me "experience" in the first place. Pretty neat considering I am more trainable than most people.

I wouldn't put much stock in college saving you. It is not about what you know. It is about who you know.

 

[Christ_empowered]

I kinda think you're right about college. Unfortunately, I don't know what else *to* do--I kind of feel like if I can get that sheet of paper, SOMEBODY has to give me a chance, right? Maybe not.

 

[felix]

I wasn't even aware there was a recession back in 2008. I was too busy and too joyful with my first child, my new born daughter back then in 2008. I realized the full impact of recession only after seeing some documentaries in 2009 and 2010.

I have a strange felling that something terrible is about to occur, much greater than 2008 recession as both US and Europe is suffering from debt and literally in ASX alone, 'everyday', more than 10~30 billion is getting wiped off in stock market in the past week. For two weeks in August 2011 alone, $4.8 trillion got wiped off. Hope there will be good and peaceful years ahead.

 

[stovebolts]

I can't say that day to day the recession has had a large impact on our lives.

I took a huge pay cut and lost some pretty nice perks, like the company car I had because my job required me to travel, but because we were living well below our means, where the recession hit us was in our retirement fund and of course driving around in a 2002 Chevy rather than a 2008. Thankfully, our 110 year old house was almost paid for and we were smart enough to get a fixed loan with a huge down payment rather than a variable loan.

Another thing the Recession did, was cause us to momentarily freeze all of our spending until we could re-balance our monies and the Camaro went into limbo, as did various other remodeling projects around the house. Also, our company went on a huge "WFR" (Work force reduction) and it caused me some worries that I wouldn't have a job, which caused us to cut back on on little things, like eating out etc.

Thankfully, we did get our house paid off, but it was just in the nick of time when we went through another very large income loss, and now with the post office entertaining no Saturday deliveries, I'm sure my wife will be looking for another job when that goes into effect.

A month ago eggs cost around a buck and a half. Last week they were at a buck 90. We survived the recession ok, but now inflation is eating at the other end.

Ironically, our land went up in value, so our property taxes increased, but as far as our house, that's not anything that I ever really cared about. It's paid for, I don't ever plan on selling it, and I'll never mortage it.

 

[stovebolts]

I have a strange felling that something terrible is about to occur, much greater than 2008 recession as both US and Europe is suffering from debt and literally in ASX alone, 'everyday', more than 10~30 billion is getting wiped off in stock market in the past week. For two weeks in August 2011 alone, $4.8 trillion got wiped off. Hope there will be good and peaceful years ahead.

I get that same feeling. Along this line, we have received notice just last week from investors telling us to move our funds into low risk investments as the markets re balance.

What I find odd though, is you used the term "wiped out". It's not like money is being destroyed, it's simply transferring hands. In other words, it went from my account, into somebody else account. I don't like it when I pay somebody to take my money I mean, I can deal with a lower return on my dollar, but when I put a dollar into an account and the next day I only have 80 cents... well, you can see why were moving into lower risk funds.

Which raises the question... whoever is getting this money, what are the doing with it?

 

[Rhea]

I get that same feeling. Along this line, we have received notice just last week from investors telling us to move our funds into low risk investments as the markets re balance.

I've been hearing for quite a few years now (at least since 2004) that the expected "bottom" is a 2014 or 2013 thing - just based on the way wall street tends to go.

What I find odd though, is you used the term "wiped out". It's not like money is being destroyed, it's simply transferring hands.

In the case of Wall Street, it is "wiped out". If your stocks fall by 20% it's a lowered value of an asset, and no one got that money. Just as when your house value falls, there isn't a check going to anyone - it's just worth a whole lot less than you were counting on it being worth.

Which raises the question... whoever is getting this money, what are the doing with it?

But those who are getting the money from increased productivity (workers' labor) is not the workers. Then ones getting that extra profit are hiding it in hidey holes and letting the economy tank. And then making voters think they should double-down and give even more to the people who are hiding it overseas and in gold.

 

[Gazelle]

I hope this isn't OT... but regarding the recession, and the monies that have been going to help the suffering...

Which raises the question... whoever is getting this money, what are the doing with it?

Good question. We have far fewer millionaires than we did 3 years ago. Plus, the poorest populations have higher (by 16% did I read?) unemployment. So, who got the money?

Ok that's about all I know on this. lol

 

[Mike]

It's not taking long for this to get off target. I don't think anyone is doing this, but I'm concerned that this thread could turn into a "Look at me. I was smart with money." kind of thread. I kinda put it out there to see how people have adjusted.

And it certainly isn't an End Times discussion.

Just sayin'

 

[tim-from-pa]

It's not taking long for this to get off target. I don't think anyone is doing this, but I'm concerned that this thread could turn into a "Look at me. I was smart with money." kind of thread. I kinda put it out there to see how people have adjusted.

And it certainly isn't an End Times discussion.

Just sayin'

OK I'm missing something here. The question asks how the recession impacted us, so I would expect that it's going to be a bunch of stories how people managed their money and fared. Actually, I'm happy that most people here sound like they are doing quite well, actually. It kept my spirits up in these hard times.

 

[Rhea]

We have far fewer millionaires than we did 3 years ago.

But more Billionaires.
And the Millionaires have been going back up for 3 straight years. They just had a very bad 2008.

And I see what you're saying Mike, but I, too feel relieved to know that many folks have strategies that enabled a (so far) bearable experience.

I think the posts have been good in outlining what strategies seemed to work, at any rate.

 

[Mike]

I'm not saying I don't like to hear people are doing well. Of course I LOVE to hear this. Again, I'm not saying anyone is doing this, but the potential is there for people to pile on about how they were living below their means, doing the right thing, very sensible with their money, yadda yadda yadda. And then people feel awkward saying they were taken off guard and knocked back a few steps.

There were many jobs lost in this time, and one wouldn't have had to been reckless with money to have taken a hit if that happened. I don't think there's any shame in saying someone didn't see it coming, it was a blow to the family finances, but they're making the best of a hard thing and taking the steps to recover.

Paul said he knew what it was like to live with and live without and that the answer is to be content in all circumstances. I don't give our net worth that went out the window much thought at all. It is what it is. Our house increased in value about 40% from the time we built it in 2000 until about 2007 and then it plunged. We had planned on selling, but that's not an option now. We have a lot of company. Our story's not unique.

My hope is that during this time my children witness faith in action; that we model our trust that this too shall pass but it's just money. It's all good.

 

[Danus]

My hope is that during this time my children witness faith in action; that we model our trust that this too shall pass but it's just money. It's all good.

I'd say this is about how I fell about it. Actually the recession has been a good thing in terms of knocking folks down a notch or two. Sometimes people need their towers knocked over.

Not too long ago anyone could get a loan and they did. People would get a loan for a house they could not afford and then turn right around a get an equity loan on top of that and they'd buy junk on top of that. All the while thinking this stuff made them somebody.

It did not matter how smart, or how much money you made either. I know people making 200+ K a year that could not even balance a check book, who bought vacation homes and boats and junk. Poof! most of it's gone, and I know people making 30K who are doing fine. Might had to tighten the belt a bit, but still have good credit and manage their money.

The rock band Styx had a great song back in the day called; " The Grand Illusion "
Remember that song? This is a great song and it sums up what we are talking about. Jesus himself could have song this back in the day. I think. [video]http://youtu.be/ZW8TlrYhBxk[/video]