Yes I am better off than in 2001. By saving, investing, and relying more on self-employment and less on employment, I have more than doubled my net worth. If employers won’t adaquately compensate me for using my talents, I will use those talents to generate income outside of my regular work and keep all the profits less taxes. I will add that I consider splurging a vice rather than a virtue. That alone has made the bulk of the difference for me.
This poll is a bit misleading, in my view. A lot can happen in 7 years. Seven years ago I just got out of college, so after 7 years of work under my belt, of course I’m better off financially. The question is, should I be further along than I am now? I say yes.
Most definitely not. My mother is doing way way way worse than before. She could afford an apartment with cable before now not. My mom has been using her credit cards to pay her insurance, bills and rent! It’s so sad! When you get older you’re supposed to get paid more and work in a more relaxed environment but not so with my mom (my mom is nearly 60). She’s working FIFTY hours a week to support HERSELF ONLY. At this rate she will never have her dream of having a house made a reality and will probably die working.
Part of the problem is that a bunch of rich people moved into our safe poor traditionally cheap neighborhood and raised rent exponentially for our 1 bedroom apt. I can’t feel sorry for foreclosed people, you at least get to rent. Where do renters go then? They become homeless… which me and my mom are about to become.
Another problem is that my mom had breast cancer and her medicine is something like $100 a month and her health insurance was raised (it’s something ridiculous now: $700 for her only). We can’t change the insurance because we have experience in the past with her slipped disc and no other insurances taking her up (yes it does happen despite what companies say). My mom can’t get a better paying job with a large company because they discriminate against her English (she’s lived here for 20+ years and she has 18+ years of experience and is extremely competent). I am a linguist and I can understand every word… she usually has a bunch of mean uneducated unworldly coworkers that make fun of her accent even in the lower paying jobs.
I’m a student so I pay for my own expenses from financial aid and I’m doing my best to help her out but I’m still having trouble. (Funny… my dorm is the same price as when I will move out, pay my mom’s rent and commute an hour to school every day.)
It makes me incredibly angry that society forces people into this class-lowering cycle. If we become homeless, people will get angry about parking our car/living in our car in a parking lot or street… people get angry if we use public showers… if we can’t use those we can’t get jobs and thus become even poorer! Cardboard box time!
People keep saying to cut costs… but how can you cut costs like food or medicine? Are we supposed to starve or is my mom supposed to let her cancer run amok? My mom’s essential expenditures (rent, food) exceed her income. My mom rarely buys things like clothes, etc. I’m close to putting a gun in my mouth at this point.
In 2004 while everybody was buying houses they couldn’t afford, I downsized to a 980 square foot townhome, paid off my credit cards, my two cars, and saved for a down payment on a bigger home. In addition, I continued to educate myself and made myself more marketable to prospective employers. I have never been better financially.
We are better off than in 2001 because of what we did, and didn’t, do. Government policies had very little to do with it. We did: live below our means, fund our work 401(k) plans, invest in a few diversified taxable mutual funds, drive our cars for many years after the loans were paid off, denied ourselves expensive trips, ate at home rather than going out, have both of us work.
What we didn’t do was: take out a home equity loan, have any credit card debt, get a complicated “no interest now” mortgage loan that had the incredible increasing interest rate, make risky investments or get involved in “get rich quick” schemes.
The result? We have paid off our mortgage, I have retired from my job early and am going back to college for a masters degree, we will never have to take out a loan for anything ever again and we are doing well. And we still live beneath our means, because you just never know what tomorrow will bring.
Yes, we’re better off. We lived below our means, saved our money and didn’t take on any debt. We didn’t buy anything we couldn’t afford. I’m 53 and still haven’t ever bought a new car – and proud of it – even though I could afford one. A 2 or 3 year old model is just as nice, is about 50% – 60% of the original sticker, and probably has some warranty left on it.
In 2001 I was working as a purchasing mamager for an oil and gas company in Ohio. I decided that I could do more with my mind, my talents, than the job I had. So I quit, moved back home to NYC, and lived with my parents while I went to law school. I paid for my daily expenses by working part-time as a security guard, and later also worked for a small law firm as a clerk.
I graduated in 2006, and now I make more than three times what I was making before I was in 2001. I took a huge chance quitting a decent-paying job and changing careers, but it paid off for me.
My family and I are so much better off than 2001. At that point, in the summer of 2001, we took enormous personal risk, quit my job in sales, and started a new division which launched September 1, 2001- not exactly a good time to start a business.
But we perservered, and now that business has grown from $50k in sales to $20 million. The American Dream is alive and well my friends, but it takes risk- and I’m afraid that too many people don’t want to take it and then blame the government when they don’t make it themselves.
After losing my job in Jan 2003, Got a PMP certification. Took a 20% salary cut but moved to a job and learnt a new IT skill. Lost another 2 jobs in 2006 and 2007. Took up contract job, travelling, working away from home. Last year and half, the money has been good, and I am much better off than 2001 or even 2006. There is the pressure of finding assignments when a contract ends and the fact that contracting does not offer any benefits like Medical, 401, vacation.
It’s not a fair comparison. Now you have 8 years more experience, and 8 years more of wealth accumulation. Of course you have more and better stuff than you did 8 years ago. (Unless you’re retired, in which case you are really getting hammered and I feel for you.)
Let’s say you currently have 10 years experience as a widget maker. The real question is if you would have been better off in 2001 as a widget maker with 10 years experience, or in 2008 as a widget maker with 10 years experience, after adjusting for inflation. I am willing to bet that you would be better off in 2001, where at least you could afford food and gas.
I have to say that my individual income has more than doubled since 2001 and our household income has tripled. I have stayed mobile, willing not only to move jobs, but move cities, relocate. Also, concentrated the last few years on paying off credit cards that were maxed out from college. When we moved to the DC burbs from Atlanta in the summer of 2004 it was the height of the housing farce. Being the son of a banker and real estate father, i knew what we were witnessing could not support itself. You saw this coming in the 80’s when they allowed mortgage brokering to compete with traditional savings banks. So though our family had the hard pull of wanting to buy a home up here in DC metro, we knew that even the cheapest homes were truly unaffordable. Now my friends and neighbors are underwater, the toys are sold or are for sale, boats, jets skis, harley’s…. all being sold. Yet in MD because of the new foreclosure laws many have a new 150 reprieve. All the while we have almost no debt and should be debt free with the sole exception of college loan by December of this year. Also as a Vet i qualify foir 100% VA home loan ofd 419K a RE agent and banker/brokers dream candidate with no debt and 140K + income. Yet i still will not buy. In a nut shell why trying to clean up from youthfull financal bvad decisions, we were trying to clean up credit to keep up with the jones, the whole time the jones were using credit from artificial wealth. Now the Jones, they are no more. If you are better off or worse off, I wager 100% of the reason is simply choices.
Unfair question. Hopefully people have earned money, experience, & life lessons. Money wise I am about the same. Was always frugal. Careerwise & futurewise worse, having tried to talk to non-listeners. Emotionally, less anxious due to dropping nonlisteners or mending them.
Uh…Better off than what? I am better off than many people in this world, but I do consider myself rich or secure. I take it day-by-day and will not spend a nickel that I do have to.
I just wish I could go back in time to a couple of years ago. I would change my purchasing decisions on about 99% of what I bought.
Our family is much, much better off. Since 2001, my husband has finished college and we got out of CA, which drastically helped our cost of living. Plus, even though we have had two more children since then, we are now living more prudently and keeping successfully to a budget.
Bull Crap…. I’m and most of my friends are in deep do-do and it’s not because of over spending, hell milk is close to the price of gas!!! Does that make the common man in bettwer shape thane 8 years ago? BS! everything is much more expensive
I guess I’m a bit confused to the lead title of this story. You state many say yes but perhaps you should re-title and say… “Surprisingly Many Say Yes… but Many More Say No”. The truth, I am doing ok but I live in Wyoming where our economy is booming. That said, many people here are still working hard to make ends meat. The cost of gas… food and the rest that goes with everyday living is shrinking budgets and there is just little or no room to get a head. I’m middle class and we are surviving. I think its funny but it is certainly no surprise that an economic site would spin the true sediment of how Americans view themselves and the economy. Face it… the backbone of America is in tough times. I’m proud to be apart of the backbone and I hope the demographic that subscribes to your magazine and reads these type of articles wouldn’t just look at the return on their portfolio as an indicator of how thing are going out here.
I am better off than I was in 2001. In 2001, the Seattle economy had gotten hit very hard by both the dot.com bust and the layoffs at Boeing after 9/11. I was unemployed for several months in 2001, but I eventually found a temporary job. The temporary job turned into a full-time job one year later. I have been with the same company since then and have steadily received raises and promotions. I definitely learned from my experience in 2001 just how quickly savings can disappear if you become unemployed. Therefore, I have made sure that I have a good size emergency fund on hand in case I end up unemployed again. Hopefully, I will survive this recession! If not, at least, I know that I am ready.
Yes, I am in a worse position now. I am retired, on a fixed income and health insurance, property insurance and property taxes have eaten up all my available extra money. I lived frugil and had savings,but it is all gone, due to inflation!Bridget,
i continue to save and live within my means, my savings grow in CD and my my 401k though struggling but grwing as well
Since this isn’t a scientific poll it means nothing.I think that the people who visit your website are responsible and want to learn how to handle their money more responsibly.The people you want to hear from are the ones who are losing their jobs and homes and I don’t think posting on this web site is their top priority.
In 2001, I was still working. This time I received a lay off notice as did 54 of my other co-workers and we work at a state owned and operated hospital where jobs were lost due to lack of funding by state and reimbursements. We are one of two hospitals in our community to lay off 10% of their work force. We are in dire straits here, in paradise…
duuuhhh… polls are woefully unscientific. please send a SASE postcard to everyone in america, then get back to us. honestly, i have only recently begun watching t.v. news (info-tainment, really) again and i have to say that CNN and Headnline News are, if not as vitriolic as FOX, they are similarly out of touch and irrelevant. i am so ashamed of what passes for professional journalism it makes me sick.
I’m 61 years old. After being downsized from a major Nashville firm at exactly age 55 and being a single mom with two high-school/college-aged children, at age 56 I finally graduated magna cum laude from TSU as a minority student (I paid major college or wedding expenses for my children, one at UT Knoxville, the other at Western KY.) I looked around at job opportunities, and pursued and gained four professional certifications of CAP/CPS, and PP/PLS. Then I prayed for a blessing.
I am currently, and absolutely unexpectedly, employed by my target company in a position I didn’t dream I would have.
I budget and never stray from it; contribute to my company-matched 401K; utilize an envelope system for small things that fall bi-monthly, quarterly or yearly such as hair cuts or car tags. These items also are included in the montly budget, so the money is there. Being a single parent required I never borrow from the envelopes – a lesson well learned.
I transferred higher debt credit cards to long-term 3.99% cards, and I am paying one additional mortgage payment per year toward principal; I should pay off a 15 year mortgage in what – 9-10 years? As I pay off the credit card debt I will pay two additional mortgage payments toward principal per year.
I’ve worked hard, studied hard, learned some invaluable lessons along the way (and made some stupid mistakes), but I am truly blessed.
We’re in for some tough times – not necessarily doom and gloom – but still tough times. I believe in the Dave Ramsey’s and Suze Orman’s. Pay attention, pay down debt, cut unnecessary expenses. On a personal note, I have my cuticles cut periodically but do my own nails, get a $15-20 haircut and color my hair.
I’m not as fortunate as some, but also know I’m certainly more fortunate than many others. It could all fall to pieces tomorrow and I know that too – but I’ve learned my lessons and I believe the blessing would prevail.
Finally, give back. Pay it back. Pay it forward. Support a local charity with a gift of time; help a neighbor. To whom much is given much is required.
There seeems to be no “downturn” in North Texas. In my profession (architecture – usually hit the hardest) I find myself even busier than during the so-called “boom” just several years ago, unlike the 2001 recession when I was retrenched. This is reflected in the firm’s numbers which are at all time highs, and my own income which is doing the same. Work stateside has not slowed for us, and international projects have only accelerated. I personally see this economic instability as a great opportunity to buy into the market at severely depressed prices and have been dumping money there at every dip. Any turbulence in the economy is more of an “inconvenience” than a “recession” in this part of the country.
Yes I and my family are better off. Our family company has grown every year and although we are not anywhere near rich, we don’t live paycheck to paycheck and actually manage to get some in savings every month. We do this by being wise with our expenses.
I am much better off than in 2001. My 65th birthday is coming up and I plan to work as long as I am able. I have my own business serving companies in the mining, energy and heavy industrial sectors. Most are doing very well after many years of lean times. I had some lean times myself and sympathize with the innocent victims of an economic downturn. It seems those now whining the most are those that lived the furthest beyond their means until recently. Our open market system punishes excess, rewards moderation and is far more dependable than politicians in the long run.
I graduated from college in 2002. A major contributor to my improved financial standing is that I’ve progressed in my career). I have also gained discipline when it comes to shopping. I paid off my car, continue to pay off my student loans, and started saving as soon as my income rose to a comfortable level. Even with the stock market plummeting, I’ve been contributing to my 401k, up to my employers max match. I could be even better off if I wasn’t helping immediate family when one of them lost a job.
I know several people who have lost their house to foreclosure. They are now broke because they tried to keep up with their payments. How come no one else in this situation has written in.
I know some others who have stopped making their mortgage payments and are now living with free rent until the banks ask for their keys. I guess if you bought with no down payment, those in this category may also be doing much better.
Our family is better off since 2001. As a computer programmer in a medium-size city, I find that the demand for my services is greater than the supply. I have left my job at a large corporation and started working at a smaller company where I have more control over the value I produce. Finally, we have grown our family by an additional two children, which is an investment in the future that is guaranteed to pay off.
Well we ought to be better off. The government’s been spending at record rates, and all that money has to go somewhere.
We’re nowhere nearly as much better off as we should be, though. While a few of us have been profiting off Big Government largesse in the form of war spending and tax breaks, that money’s been largely squandered, rather than invested. Who benefits from the Iraq war except the oil business and the war business?
Meanwhile, except for big business, the economy languishes, wages are down, inflation is up, and our grandchildren are saddled with the debt we charged. Nice picture.
If you’re better off in the Bush economy, you got there at the expense of your neighbors and all those grandkids. Nice people, these Americans.
Am I better off than I was in 2001?
If I still had the same mindset I had in ‘01 I would say no, My credit was trashed, All of my bills were delinquent. Collectors calling and threatening to repo my car and other things. And I had no sense of hope for the future. In 2003 I hit bottom. When I did it woke me up and made me realize that I needed to change how I was doing things with my money. I began looking for anything I could find about how to handle money the right way and stop being a slave to my money and use it for the tool it truely is. Now, Everyone claims the economy is completely tore up, and while I see alot of indictors of a slowdown mostly caused by panic, I’ve had a paradigm shift and because I look at this stuff differently now, and do things much smarter than I did before, I havent felt the pinches of the economy nearly as much as I probably would have before. Altho my income is down slightly do to the slowdown, it hasnt affected my lifestyle much other than I’m not able to stuff as much money away in savings as I was when things were really jumping. I still put away more than I probably need to, but.. The important thing is I have enough of a cushion built up combined with a simplistic lifestyle that I’ve been pretty much shielded from the “bad” stuff in the current economic situation. In the end, my personal economy improved becuase of what I did to repair it, not what Washington D.C. did or didnt do. All those that think McCain or Obama are gonna fix this financial mess and “save” you are going to be in for a rude awakening. Neither one of them CAN really do anything. They can SAY they will but most of the people that are hurting today were hurting 7 years ago and many will still be hurting 7 years from now, regardless of WHO gets elected or WHAT they promise to do about the economy.
I am better off today than in 2001. Being in the financial industry, I was able to view this period as a buying opportunity with many company stocks being undervalued as a result of 9/11.
The additional financial knowledge I obtained during this period has also allowed me buy a larger home, save plenty of money for my 401K retirement, since I’m not counting on Social Security being there for Generation “X”, and taught me to appreciate just how good Americans have it in today’s constantly changing world.
Easy we finally graduated from college. Since we got ourselves through on part-time work and student loans making a full-time salary improves our lot. We’ve avoided lifestyle inflation: one car, no cells, no cable and we have two kids. We live on a budget and put money in savings every month. We have no cc debt and are working on the student loans. We took the job in the lower cost of living area.
Of course many people are going to say they are better off–things were going well for much of the time between 2001 & 2008, so a recession would have to be pretty devastating to wipe out seven years of overall gains (that doesn’t mean just the stock market).
I am far, far better off now than then: I bought a home, I stashed a lot away into savings, I’ve been promoted at work, I paid off my car, etc. Sure, my portfolio hasn’t done anything positive in the last 6+ mo., but that’s small in comparison.
I am better off because I have more knowledge that I had a few years ago. Being better off does not necessary mean I am making more money, because I am not, but I am not loosing any either. I saw the housing downturn comming and prepared for it by saving and cutting all unecessary expenses beginning about 3 years ago.
How did I do it? I got out of the technology/telecommunication business and went into medical sales. From 2000-2005 I worked in several firms that either went out of business or were bought out with my job being cut loose. I am currently pursuing a Masters in Health Administration and it is helping me be more successful in what I’m doing now. I found a great company to work for and I feel my loyalty is well-placed.
I’m better off than in 2001 because: (1) God’s tithe comes first; (2) no short-run debt (if you don’t have cash to buy or pay in full at month’s end, don’t buy at all til you do); (3)save minimum 10% of net pay per month & don’t touch it;(4)realized acquiring “stuff” is useless and stopped. TALK ABOUT FREEDOM!
OK things are just ducky, I guess for some but not me!
I have stayed on the side lines and saved for a house some day and to my shock the prices just kept rising in to the stratosphere here in NH/MA boarder area. I got laid off from my job 2 miles from my apartment now I have to drive 20 miles each way (making less)to work and the wife 18 mi. Housing around here isn’t going down hardly at all. I can’t buy or even rent near my work so now $120 a week for gas. And for the icing on the cake I get to watch my tax dollars go to all the people that made this mess, lord forbid Wall Street take a hit! GO BEN GO!!! So much for free market. I guess that only works when they are making obscene money
Personally I’m in about the same financial position as 2001. But our small companies owners are doing GREAT. Us employees haven’t had a raise in 4-5 years but the owners have multiple homes, trips to Pebble Beach, multiple VERY high end cars (Vanquish, Land Rover, etc) and I just replaced my 4yo laptops keyboard for the 2nd time. Just trying to help cause I wouldn’t want them to not be able to afford the truckloads of imported wine that delivered to the shop.
Paul, It’s a bit like comparing apples and oranges. In 2001 people were coming off the dot com bust and a lot of people lost big money in the market that was never recoverable. This coupled with the psychological effects of 9/11 and greater job loss makes the recession of 2001 (IMO)feel a lot worse. Even though there is the potential for things to be a lot worse this go-around, it seems the housing market is the biggest drag on the economy and the thinking may be it can be endured over time. I know I feel a lot better off for these reasons.
Well, I can definately say that I am better off today then in 2001. But finances are simpler than people want to admit. I am not rich and do not have millions saved in the bank. I am 41 so I still have time on my side. I give a lot of advice to my employees and others I come in contact with about finances and money. Some listen and I am sure others walk away and live like they always have. I am not a daily trader, but I do believe that if you live below your means and adhere to the basic principles of saving/budgeting, you will always be able to support yourself.
The biggest mistake most Americans make is not living below thier means. But the Corporations and Government do not want you too anyways.
Steps to success:
1. Live below your means.
2. Start a one year subscription to a financial magazine like “Money” and read all 12 issues cover to cover. I guarentee that it will change your outlook on finances and your money.
3. Save as soon as possible and as much as possible within reason.
4. Live below your means.
This advice has changed a few peoples lives and helped them take control of thier finances and have more freedom. One statement I always say to people is this:
“You always here people complain when they do not have enough money. But you never hear anyone complain about having too much money! So, save as much as you can and hope you end up with too much, instead of not enough.”
Oh, and I may be cold, but my opinion in todays society is that if you are complaining about all of the prices of goods and services going up and cannot pay your bills, you are over extended and have not been living below your means. There is never an excuse for not being able to pay your bills. It is someones fault and the buck starts with the individual who created the dept in the first place.
Savings = Less Risk, more security, more freedom!
Debt = Increased Risk, less security, less freedom.
We’re way better off. First of all, you have to plan for cyclical downturns. That means saving for that rainy day and simultaneously living within your means, no matter what your means are. Don’t spend more than you make — ever.
We live very simply. Always have. Our cars are 9 and 6 years old. We are not part of the consumer mentality. We only buy what we need — not everything we want. Also, our salaries are much higher, we have the house paid for, healthy savings and investments. We rarely eat out. But we love to go to theatre and movies. There are trade-offs.
It didn’t happen overnight — but it was a gradual process.
We live in a resort area, but do not earn a living off the resort. So we are better off in two ways: Greatly reduced summer traffic and crowds and a great reduction in the run-away development of our already over-crowded area. From our selfish standpoint, this really, really needed to happen. It’s also a nice breather for our overstressed environment.
And if you polled Forbes readers you could probably do BETTER than 42%. Whooppee!
Unscientific? – depends on what your goal is. It certainly can’t pretend to be a poll of the average American.
this may not be a popular view with some of my colleagues but I do think that one reason the economy is perceived as being in such dire straits is that there is a natural tendency among the media to focus more on the bad news than the good
Is that not the truth? Very few if any people that I know are struggling like the media is portraying it. I think we are fine if we just keeping working hard and making sure we are thinking about the future, not the present.
Oh yeah, and I hope CNN does not fire you for your beliefs!
I am way better off. In the last 7 years, i have been promoted 5 times to a corp officer, my income has increased more than 10x, and i have 2 more children. At the same time, my housing situation has also improved dramatically. in 2001 we sold our 1st house for 75% more than we paid for it, then bought a more expensive house and sold that for 100% more than we paid for it! we also bought a vacation home. How did this happen? hard work, a great company that rewards results, a strong local economy and a republican controlled government that stands for lower taxes and gets out of the way of succesful people.
Am I better off? If you looked at the salary number alone (something the government would do for a report) in 2001 vs 2008 then yes, I’m better off. If you factor in inflation to the 2001 vs 2008 figure then no, I’ve been slowly sinking and I actually make less then I did in 2001.
We are definitely better off today than in 2001. We employ the same techniques today as we did back then – if we don’t have it then we don’t spend it!! Our house has never been used as an ATM, we don’t have credit card debt or car payments.
It isn’t that hard to do the right thing. What was really hard was watching friends, family and neighbors freely spend money while we didn’t. It will be even more difficult in 15 years when they are still broke and we are retired, but I think that we’ll adjust!!!
I’ll be REALLY glad to see the cliche’ – you’ve just made money on your home – disappear out of the mainstream vocabulary. Hello! If you haven’t sold your home, you haven’t made a dime and you still have to pay back all those dimes that you did spend…
Common sense always wins in the end.
We’ve kept doing better every year since 2001, and are poised to retire next year at age 50 with a net worth just over $3 million. There’s no great mystical secret as to how we’ve done it, it’s really very simple: we’ve been married longterm (i.e., no expensive alimony or child support to previous spouses), with no kids, and we live way beneath our means while diligently and systematically saving and investing about 35% of our after-tax income. We bought a house that was much less expensive than the bank said we could afford, and we got a 15-year fixed rate mortgage. We’ve lived in the house just over 5 years and, due to extra principal payments every month, have paid off almost 40% of the mortgage. There’s no deep-dark secret way to be comfortable; you just have to resist the relentless media assault on self-esteem and the feeling that the Joneses have more than you do. Most times, the Joneses are in debt up to their eyeballs and then some. Appearances can be deceiving!
I am better off than 2001, mainly because I have been working on the same position so long. It is hard to replace me, comparing in 2001.
By the end of the last 2001 recession I had lost my job. I had to sell my house and move to a new city for work. I wasn’t financially drained from the event because I took action.
Fortunately after the last recession I wasn’t in a position to properly afford a house in the inflated California market… and I chose not to take on a risky Mortgage. I am therefore today ahead of many others.
This 2008 recession isn’t over yet. In a year or two I can tell you how I made out during this one.
We stayed employed and paid all the bills on time. We live a little below our means and save in an employer matched 401k and would retire early if we could get affordable health care. So we work and spend on vacations, until we retire.
I am most definately better off than ever before in my life.
Economic downturns are tough on everybody, but working smart during the good times helps you get through the bad.
I have been very lucky, I know that. But I made choices based on long term security over short term. in 1997, at age 45, I made a choice to go into the IT field. At my age, with only an associate degree, it was difficult so I worked contract to obtain the experience with database development that business alaways needs.
Just recently I accepted a permanent position finally at a fairly good salary but keep in touch with all the technical staffing firms I worked with in the past just in case.
This work has paid off. As a contractor, I made better money when I worked but was often between contracts. I kept my expenses on the low side of my earnings to cover things.
Now as gas and prices keep going up, I can easily make my bills and still save money.
Work smart and use your head economicaly. I know it is too late for some who made bad choices with ARMs and such, but learn, pick yourself back up, curse the politicians for being who they are, rant about big business CEO’s and get back to working for you and your family as best you can
7 years ago I live in a nice 2 BR apartment in California, making about 65K a year. I recently moved to Washington State, to a better job, making over 100K and have also bought a very nice 4 BR home. I simply could not foresee owning a home in California so I made myself available to relocate somewhere else, more affordable. Prices in Washington were not all that much lower than in California but what I got for my money here would have never happened in California. I think people should consider uprooting rather than staying somewhere where they’re stuck in financial ruts.
Much better off than 2001! My mantra is WORK HARD, PLAY HARD. I carry it from my H.S. football team and it’s paid off through the years.
Paul, I was an jr equity analyst on Wall Street and surpassed the expectations of management from 2000-2005, so I continued to earn a nice salary. It wasn’t easy as I had to work long hours, six days a week on multiple projects. Around 2006 I decided to get an MBA at the best school in the Mid-West, the University of Notre Dame. I am currently fortunate to be working at a premiere regional bank who is currently prospering in these difficult times. The best advice I can give readers is work hard, continue to learn new skills everyday, through education or on the job training, and be really good at something. Warren Buffet said “If you’re the best software designer, salesman, whatever, you’re going to do well in this economy. Invest in yourself.”
Keep your head up America! The best is yet to come!
It’s not rocket science- we have no consumer debt. She has a job in healthcare and I am an economist/financial planner. A house is a house and not an ATM. If you can’t afford it, don’t buy it. Now that we are in a recession, we’re looking at buying another rental and durable goods when they are cheap. Sounds like the story of the ant andf the grasshopper.
In 2001, my company went through rounds of layoffs and I didn’t get a raise for years. I took night school classes and got a 4 year college degree in the meantime.
Now I’m making 50% more than my old salary and have more job security. My company, in the IT industry, has not had layoffs during this recession. Sure, the pay raises aren’t keeping up with inflation, but that just means you have to consume less. Hard for many Americans to swallow, but I learned lessons from visiting Europe!
Much better off. I make more money. Live in the same house in a good community. My savings have grown three fold and I’m on track to retire in 10 years.
The 24×7 press coverage drives this “crisis of the moment” mentality! If you step back and take stock of the big picture there is no comparison between now and then.
Growing up in the inner city I am very much aware of poverty. We have and still have what we called “projects” for those that couldn’t afford rent or a mortgage. Back then very few residents of the projects owned cars and if they did it was a well used one. I drive by those same projects today and you can’t find a parking spot! Many of the cars are newer than mine!!! Again, we’re much better off.
Yes, we are much “better off”. Since 2001, we have increased our household income 40% by working hard. We paid off our unsecured debt in 2002 and have redirected a large % of our income to retirement and other savings since that time. We built a new house in 2005 and in 2007 were blessed with a beautiful and healthy baby girl.
I am much better off financially than I was in 2001. Since I graduated from college in 2003 I’ve read a lot about personal finance and a lot of my success has come from following advice and studying general trends on sites like http://www.money.com. My wife and I have never carried credit card debt and during the times when rates were lower we bought a home within our means at a low fixed rate. Our school debt was low to begin with and we consolidated that immediately into low fixed rates. The rising cost of gas has not affected us since I started carpooling back in May and we drive fuel efficient cars anyway. Financial success takes thought, patience, discipline, and an appreciation for things. Our country has been so well off for so long I think we take far too much for granted.
Definitely better off that in 2001. My wife and I (she is a stay at home mom) have managed to pay off all of our consumer debt, have a house payment that is only 16% of our total take home pay and save for our two kids college, out retirement (401k and two Roth IRAs). We DO NOT have a consumerist lifestyle, but we are happy and beleive that we have a bright future away from debt.
The only issue with saving is that the Fed is killing the value of the dollar and our governments are spending us into oblivion. If the government would cut it out, many more people’s future would be bright.
Since 2001 I have had three jobs, one of which was being in the Army. Working for the government or as a contractor, always has its perks. However, in 2001 I was in bad financial hardships, going through a divorce, and racking up credit card bills to deal with losing 1 income. So I buckled down, had to negotiate with the companies, go them paid off, and now am living comfortably. I actually just purchased my first home, and first new car. These times are tough but you just have to make concessions that maybe you didnt have to back 7 years ago. Its inflation, its expected, and I dont believe it is controllable.
Personally, yes, I am. I work in IT, and this downturn has been not nearly as bad in my industry as the one in 2001. I stuck it out and did not leave the field during that time, as many of my co-workers did. As a result, there are few with the years of experience that I have and I have prospered as a result.
Yes I am better off. I am making more money and I owe a lot less. Easy credit has almost ruined the country. Credit card companies try to get you in debt and keep you in debt. Credit should be a lot harder to get and people should save more. We are better off eating at home and not at McDonald’s. This is a blessing that should make everyone change the way they handle their money.