Comments on: Are You Better Off Now?

By: Red Mike

Red Mike — Mon, 08 Sep 2008 17:51:20 +0000

Much better off. My salary is more than double what it was in 2001 and my networth is 4 times what it was.

My salary and net worth are also higher than they were this time last year.

By: foo

foo — Fri, 05 Sep 2008 04:27:25 +0000

Not much better off, really.
Keeping 2001 as 100%:

1998 19% graduate school financial assistantship
1999 53% graduate school financial assistantship + internship
2000 24% graduate school financial assistantship
2001 100% salary
2002 111% salary
2003 112% salary
2004 188% salary + inheritance
2005 233% salary + home appreciation
2006 231% salary + home appreciation
2007 134% salary + slight home appreciation

By: John N

John N — Thu, 28 Aug 2008 13:24:07 +0000

During the past 7 years, I enrolled and completed an MBA and took a lateral move at my company (no promotion/raise). Annual raises have been about 3-3.5% per year, although my costs are increasing at a faster rate. Just last year, my medical insurance went up 56% (and it was *only* that much because I switched my family to a high-deductible plan) and my food costs are up 40% over last year. Granted my kids are growing (and eating more) but still, the costs are rising.
On the plus side, over this time, I have consistently maxed out my 401(k) contribution, and two Roth IRAs.

I’m still saving for the future, but I’m slowly sinking.

By: Stacey

Stacey — Tue, 26 Aug 2008 22:04:25 +0000

Our net worth is higher (it’d better be or something would be REALLY wrong!–in fact it will soon reach a milestone.) However, debt is MUCH higher due to new house & its renovations, along with carrying the “small” mortgage on our unsold prior home.

However, income is significantly higher so we are able to continue to save and pay down the debt…just not fast enough for my liking! (Won’t B**** about taxes as the topic’s been beaten to death last week!!) But the expensive years for our 3 sons’ college education are around the corner (5-14 years left to save.) We’ve done a good job saving so far, but the downturn in the market makes the finish line much harder to reach. No 6-8% returns to help the compounding process along…Yeah, I know, we’re buying stocks “on-sale”….somehow, I’m not as warm and fuzzy as I was when seeing the higher balances on the 529 statements…

By: terry

terry — Tue, 26 Aug 2008 20:45:29 +0000

My best year financially was 1980, and it has been all slowly downhill since.

By: JLP

JLP — Tue, 26 Aug 2008 20:38:49 +0000

We are definitely better off now than we were in 2001. Income has increased substantially over the years and we paid off most of our debts (we still have an outstanding car loan and I financed our TV because it was 0% for 2 years, which was a no-brainer in my book).

I’m sure there are people who are worse off but the media has done a wonderful job of making things sound much worse than they really are.

By: Moneymonk

Moneymonk — Tue, 26 Aug 2008 19:51:50 +0000

As long as I keep focusing on generating more money, I will always be fine

By: Julia

Julia — Tue, 26 Aug 2008 18:57:59 +0000

Yes, way better off! In 2001, I was 2 years into a mortgage and suddenly having to pay it myself because of divorce. Since we hadn’t gone out to buy the biggest/best house we could afford, it was still manageable.

Nowadays, I am married to a wonderful man. Thanks to finding personal finance blogs, I got the idea to start paying off the house early as it was our only debt. It really motivated me to be more frugal. We cut off cable, ended subscriptions, switched to powdered milk, drove less, got rid of a storage unit. Once the house was paid off, and our lifestyle was even more frugal, money just started flowing like mad. I save as much as possible. I know that the economy has the potential to get extremely bad, which is why I feel so much more secure having no debt, a paid off house and a lifestyle that doesn’t require a big paycheck every month.

By: Amanda

Amanda — Tue, 26 Aug 2008 17:35:39 +0000

Yes – I’m better off, but like you, I was in college 7 years ago.
I think it’s easier for twentysomethings with no children to feel pretty good, despite the threatened economy, because most of us don’t have responsibilities like children and some aren’t homeowners either.

By: Miguel

Miguel — Tue, 26 Aug 2008 16:26:58 +0000

Definately yes! Not that I was doing too badly in 2001. In the past 7 years:

- Turned 40
- Celebrated 15th wedding anniversary
- Sold property; bought property; realized big gains (despite current mkt), though also incurred a rather scary looking amt of mortgage debt
- Advanced in career; made some career shifts to improve long-term prospects & keep skills relevant, as well as gain more personal freedom
- Cashed out substantial appreciation on stock options
- Made several extended overseas trips (things we always wanted to do and finally got off our rear ends and did em)
- Increased charitable giving by 10x; Joined charitable boards
- Greatly improved extended family relationships

Other than basically working like an insane dog these past 7 years, I don’t have much to complain about. The past 7 years have been important wealth building years. I am very concerned about the country’s economic future, but feel that the past few years have provided an oppty to prepare.

Next few years, I hope to have the oppty to reach full career and personal potential, as well as devote more time to building on personal/family relationships. Add to that, taking better care of my health (at wife’s insistence), so that I can stay around to enjoy the fruits of my labor for another few decades.

It seems like I spent my 20′s and 30′s laying a foundation based on education and hard work, but not feeling like there was a lot of economic progress. Durinig my late 30′s, & 40′s, basically the past 7 yrs, all the prep work finally generated a lot of momentum. I read something somewhere that said during your 40′s is when you’d better make your F-you money. I’d have to wholeheartedly agree with that sentiment.