What Makes You Feel Poorer?

[yakers]

There was a nice line on another post about a person 'not feeling poorer' that resonated with me. So far in this downturn I have felt some apprehension in the declining IRA (which I am not drawing from but not adding to) but have not felt poorer in life activities. My wife did want a new car and I managed to keep her old one going but I feel good, not poor about that.
Now my older son has had his hours cut back at his job with the county in CA and his wife is a teacher who has seen others cut back and has more to do with less so I see some damage there.
But for myself I am not living poorer. What do the retirees here have to encounter that they feel poorer?

 

[Bikerdude]

What do the retirees here have to encounter that they feel poorer?

Only having 76% of the money I had 1 year ago.

 

[73ss454]

Heh, you must have a pension.

 

[unclemick]

Only having 76% of the money I had 1 year ago.

Yep - pretty close to 76% here too - hand grenade wise.

And with the current unpleasantness - there is the psychic pull/memory of my er cheap bastardhood early days of ER - but I'm not getting any younger - time and inflation and a newer SUV - I wish I hadn't given away my 260,000 mile 1994 GMC little Sonoma 4 banger - with rusty fender.

Sniff sniff - you can't go home again - er something.

heh heh heh - plus I'm thirty pounds heavier! Yikes! No remodeling - a couple less 2008 trips than 2006/2007. 2009? who knows subconsciously will probably spend less.

 

[Bikerdude]

Heh, you must have a pension.

You are correct. I would feel even poorer had I not.

 

[HFWR]

Not living in a refugee camp, drinking stump water, and eating gruel...

 

[dex]

But for myself I am not living poorer. What do the retirees here have to encounter that they feel poorer?

I am not living poorer. But I have the feeling of the "poor effect" (opposite of wealth effect). That is the the feeling of:
- loss of options - (sell house lose $ - so option to move not there)
- loss of $ = waste of all that hard work that went into it
- distraction from other aspects of life
- fear - increase in crime, affects on other people

PS - I had such little income in 2008 that Georgia will be giving me a $15 low income credit. At least I'm getting some of the money I paid in taxes back.

 

[Dawg52]

Only having 76% of the money I had 1 year ago.

Same here.

 

[unclemick]

Not living in a refugee camp, drinking stump water, and eating gruel...

ok ok - so I paid full retail for new C.E. Schmidt overalls(Tractor Supply) for the New Orleans trip - I have to dress up for their favorite Chinese buffett in Slidell.

And then it's a coin toss for for my favorite seafood Muffaletta place.

heh heh heh - maybe I can be poor with a granola bar every other meal.

 

[HFWR]

Same here.

YouTube - Quiet Riot - Bang Your Head (Metal Health)

 

[HFWR]

ok ok - so I paid full retail for new C.E. Schmidt overalls(Tractor Supply) for the New Orleans trip - I have to dress up for their favorite Chinese buffett in Slidell.

And then it's a coin toss for for my favorite seafood Muffaletta place.

heh heh heh - maybe I can be poor with a granola bar every other meal.

Snazzy!!

 

[FIREd]

Since I have never used my house as an ATM, I never felt rich or poor based on increasing or decreasing home value. I still pay the same mortgage every month and receive the same benefit in return (a place to live). Also home equity represents less than 20% of my net worth. But watching my retirement accounts tank and our retirement date postponed by a few years definitely makes me feel poorer.

 

[bbbamI]

I've set up a budget that we need to follow since DH's last day at w*rk will be tomorrow. It's a decent budget; not too stringent, but a budget nonetheless. There will be no more expensive toys or purchases on a whim. It will take a little time to get used to that.

This doesn't necessarily make me feel poorer, but it does make me realize that I have to be more guarded with the money we have now.

If I start to feel poor, I'll go back to w*rk.

 

[REWahoo]

I've set up a budget that we need to follow since DH's last day at w*rk will be tomorrow. It's a decent budget; not too stringent, but a budget nonetheless. There will be no more expensive toys or purchases on a whim.

Welcome to my world.

 

[bbbamI]

Welcome to my world.

It's comforting to know I won't be in it alone....

 

[audreyh1]

A year and a half ago, I felt "flush". We had a low withdrawal rate and enough assets that we could help out family members in a financial emergency if needed.

Now I feel "safe enough" for our living expenses, but the extra cushion is gone. If some special need came up, we could be looking at some tough tradeoffs.

Yep - I feel poorer - no way around that.

Audrey

 

[yakers]

There will be no more expensive toys or purchases on a whim. It will take a little time to get used to that.

This doesn't necessarily make me feel poorer, but it does make me realize that I have to be more guarded with the money we have now.

If I start to feel poor, I'll go back to w*rk.

Well that about sounds right for me. I do have a pension. Our house value is much reduced but it is a residence not an ATM. Our IRAs are down maybe 25% but we are not drawing them down till 2010. This year we are living off our pensions and a stock (UST) I sold last year. DW's IRA is in Wellesley and mine is in a target retirement fund. I retired in March of 2008 so I can only compare retired life to work life and that certainly allowed for more activities on a 'whim'. But if I do not have the money I had when working I do have a lot more time and that is a trade I will happily make, at least so far. I am trying to get past the psychological effect of looking at reduced IRAs and feeling fear, doom & gloom by asking myself what has actually changed in my life. Since retirement is new to me I thought I would check in and see what has actually shown up in retiree's lives.

 

[RonBoyd]

PS - I had such little income in 2008 that Georgia will be giving me a $15 low income credit. At least I'm getting some of the money I paid in taxes back.

 

[RonBoyd]

... but I feel good, not poor...

 

[antmary]

I am 63 years old. Many years ago I decided, and planned for, that I would work/play for the rest of my life - stay engaged in a positive way. That includes art, gardening, and helping others. It also included a modicum of financial security. We don't have a bundle of liquid assets, but we do have two homes that are paid for. We live in one and rent out the other.

Without giving myself totally away, I must say that I have achieved this. I "work" about 4 hours most days, and have a nice connection with my "customers." Business is good, and so is life. Helping others seems to be an antidote for despair and depression. Having a relationship with what we eat is priceless (vis a vis a garden!).

Feelings of poverty have come when I have:
*Wondered from my spiritual path
*Had to worry about rent as a single mom (long time ago)
*Felt powerless
*Felt isolated
*Felt sorry for myself

Strangely, I have never felt "poor" when I have been connected in a functional way with friends and family; money is for supporting that reality. Enough is good.

Antmary

 

[Rambler]

Poor? nah, still working. Poorer? Yup, by a big bundle with lots of zeros...could have almost funded a nice retirement with the amount my port has declined. ...but still working and still adding. FIRE originally targeted for sometime between June and December now on indefinite hold, 2-3 yrs if the market starts to recover. Watching my pennies though, so I have more to throw in the [-]black hole [/-]market.

R

 

[Independent]

There was a nice line on another post about a person 'not feeling poorer' that resonated with me. So far in this downturn I have felt some apprehension in the declining IRA (which I am not drawing from but not adding to) but have not felt poorer in life activities. My wife did want a new car and I managed to keep her old one going but I feel good, not poor about that.
Now my older son has had his hours cut back at his job with the county in CA and his wife is a teacher who has seen others cut back and has more to do with less so I see some damage there.
But for myself I am not living poorer. What do the retirees here have to encounter that they feel poorer?

In terms of "living poorer", we're not traveling this year, but I'm not sure how much of that is financial concerns and how much is medical.

We were invested very defensively, so our financial assets did just fine. We've never considered the house an ATM, and we live in a non-bubble area, so no problems there.

My concern is our three kids, all of whom are just getting started. One lost a lot of money by buying a house near the top. One is recently graduated and unemployed. The third is working, but relies on an architect's income - I see that as more risky than a lot of jobs. So I'm like you, I see it hitting my family more than me.

 

[cashbalancetrouble]

There are so many things right now making me feel poorer, I hate to think of them all. I feel your angst over your kids. Mine live with XW who is going thru forclusure. Always spent like the support would never end, while I always saved like it didn't. Kids tried college but only to be with friends. First one's student loans sunk XW as cosigner along with her own bad habits.

So I won't steal your thread with saying the things that make me feel rich, so you might want to start that feel good topic. I do know that I am better off than most and if times continue to get worse as I expect, I will still be better off than the majority because of my past preparedness. I don't like to measure how much I lost but how much I have. I know inflation will stay low and deflation will rule if you just stay with that old rule of staying within your means. Having a paid off house means it will always retain relative value to all other property and increase because I know how to take care of it.

And my garden growing in the basement will be ready for moving outside in about 6 weeks.

 

[HFWR]

And my garden growing in the basement will be ready for moving outside in about 6 weeks.

Cash crop? O0

Yeah, there are plenty of poor bah-studs in worse shape than me. Or, as the saying goes, "I might be slow, but I'm ahead of you..."

I've been in dire straits before; this, so far, is a piece o' cake, comparatively speaking.

 

[freebird5825]

My current income is roughly half of what is was while w*rking. Basic expenses have obviously increased across the board. Still doing OK.

I feel poor exactly 3x a year - right after I pay my property taxes - school in Apr and Oct, county in Jan.
I really have to conserve my immediate cash flow after these events. I can still make my bills easily as long as I budget tightly. It takes about 2 months of penny pinching to catch up and replenish my bank account to my comfort level.
Property taxes are guaranteed to increase with NY's fiscal issues. I'm w*rking the worst case numbers in my head right now.

On the bright side...feeling a little "rich"...I was actually able to do a little fun shopping for myself recently. I caught some excellent sales online. I got some new stretch jeans, some fruit flavored decaf loose tea, and a 3 Tenors CD I've wanted for a while. I also shopped for dh2b's upcoming birthday.