Are people financially worse off then a year ago ?

amother

Tanzanite

Mon, Oct 14 2024, 6:44 am

amother Lemonchiffon wrote:

Also grateful for the ANCHOR NJ refund that will be landing in my checking account a day before Sukkos. All spent already, but it couldn't have come in at a better time, TYH!
!

This 100%. Dh was saying it was like Hashem was giving us a gift to make yom tov.

It is confusing.

Stores are packed like the clothing is being given away. There are more restaurants open than I can possibly name (no clue if they are full). And ppl just seem to be buying. My kids don’t notice that anyone is making do with less.

My dh is in a blue collar field. And the ppl he is doing business for still behave like money doesn’t matter.

amother

↑ Lemonchiffon

Mon, Oct 14 2024, 7:01 am

amother Denim wrote:

The stores are PACKED. With regular people, not formerly wealthy people. And, no, 99.9% are really not selling their yachts.

First of all, the middle-to-high end stores give out vouchers to kollel families, so you may be seeing that.

Also, wherever you go will be packed now. If you're shopping in these stores, or even just passing them by, you'll see people shopping for YT. BH, this means the retailers are hopefully earning the money they need to this super-busy season to make it the rest of the year.

But if you go to the lower-end stores, or the gemachs like I did, you'll find they're packed, too. With people who look well-dressed but are obviously struggling now like so many of us. There are also plenty of people looking for YT clothing in Target, or buying from China. Just because you don't see this segment of society, doesn't mean it isn't there.

amother

↑ OP

Mon, Oct 14 2024, 8:59 am

This topic is fascinating to analyze, and I don’t believe it can be attributed solely to inflation.

Since the onset of Corona, an unprecedented amount of wealth has been created within the Jewish community, particularly in the U.S.

Businesses that were previously successful have seen explosive growth, especially in the nursing home and real estate sectors. This surge has had a ripple effect, benefiting multiple professionals related to that sector, like mortgage brokers, real estate brokers, lawyers.. who all together in turn increased their spending on large events/BBQ's/ parties, vacations which then as a consequence benefits a whole different group of professionals and service providers.

Now, however, with this heavy gray cloud that no one seems to be open or proud to address, ( I believe it should be broadcasted far and wide ) to encourage those who are still doing well to set aside money instead of indulging in extravagant purchases like $10,000 handbags or $40,000 watches. The pressure to "keep up with the Joneses" forces now struggling families or also previous lower income homes to stretch their budgets stupidly further so they don't stick out as the now strugglers.

In my opinion, even if someone can easily afford it, spending $40,000 on a handbag, it should be shunned upon and not impress people. It's disgusting what has become norm and accepted. ( And no, I am not jealous and could get away financially by buying myself one"

We are, thank God, a middle-class family, and we have never subscribed to this ostentatious lifestyle. As times get tougher, we hope to ride out the storm with no huge compromises due to not having accustomed ourselves to this new, insane spending norm.

I’m surprised that none of the replies come from those who don’t feel any strain in their monthly budgets. I would love to hear that perspective.

amother

↑ Brass

Mon, Oct 14 2024, 9:09 am

amother OP wrote:

Sure, certain industries haven't slowed down. But this doesn't negate that incomes haven't remotely kept up with inflation. During Covid the government was handing out massive stimulus checks and supporting businesses. That's over (for now).

Credit card debt is surging. Car repossessions are surging. Bankruptcies are sky high. Evictions are exploding. People being late on rent is surging. 401K hardship withdrawals are at an all time high.
More young adults are now staying at home and living with parents since the 1940's.

There is almost no data that is showing any strength now especially for the middle class.

amother

Chambray

Mon, Oct 14 2024, 9:21 am

amother Tanzanite wrote:

My dh is also blue collar and bh his customers are still spending. But he doesn't feel like he can raise rates so our income isn't keeping up with inflation. And I'm job hunting and it's a frustrating process right now.

My dd got the envelope from a local tzedakah and read "people on your block cant afford YT" and said huh, there's no one on our block who can't afford YT. I just laughed because WE can't afford and are getting help.

I daven I can start earning soon

amother

Iris

Mon, Oct 14 2024, 10:05 am

amother OP wrote:

During COVID, I think also it was inflated wealth from government overspending and loans. These business loans made firms appear more successful and growing than the reality.

We don’t need to feel a strain monthly but we are Dave Ramsey followers so we are in baby steps. We don’t live wealthy and we aren’t wealthy. We drive a car with paint peeling and have one car. We’re middle class workers with standard middle class jobs. We do live in Israel so tuition isn’t a thing, which helps. But we’re still very very blessed to be saving every month toward our financial goals.

amother

Wheat

Mon, Oct 14 2024, 11:07 am

amother OP wrote:

I don't think people should refrain from making purchases because it's causing people to raise their own standards. Don't spend based on someone else's income. It should be common sense, but seems not to be.

I would think that people would scale back to make sure they have a cushion in case finances take a downturn. Another poster on this thread said they could spend without thinking and now are pinching pennies. If you don't have enough to put aside in case of harder times, you don't have enough to spend on all the extras.

amother

SandyBrown

Sat, Nov 16 2024, 5:42 pm

My husband owns a business that sells a necessity, not a luxury item at all. This past year, he has not been doing so well. Our expenses are thru the roof and we are flying into debt. Our mortgage is high (not a very large house) but we expected my husband's business to cover it. Our tuition went sky high. What I don't understand is how people are buying less of what is a necessity no matter how the economy is doing. Why would a business that sells a basic be doing worse than it was a year ago?

As far as people mentioning that the clothing stores were packed before yom tov- I was in such a store before yom tov and I met an acquaintance. She mentioned to me that they have a voucher to that store and that's the only reason why they are there. So, I believe that a nice percentage of the crowds in these stores were there on vouchers and coupons, etc...

amother

Daylily

Sat, Nov 16 2024, 7:33 pm

amother SandyBrown wrote:

Because people are rethinking and evaluating even necessities.
I don't understand why that's so hard to understand.

amother

Dahlia

Sat, Nov 16 2024, 8:00 pm

I’m surprised that none of the replies come from those who don’t feel any strain in their monthly budgets. I would love to hear that perspective.[/quote]

We are better off financially this year. Bh for good and happy reasons our expenses went up a lot, too. Regarding the rise in food prices and life in general, we didn’t really change our habits for day-to-day purchases. But I’m the type who is looking for things to go on sale before adding it to my online cart where it sits for days while I decide if it’s a necessity…