How is the economy effecting you, personally?

[Toni]

I have not been affected that much. Like others, however, at my age, cuts in Medicare could hurt me.

I was irritated recently when an appliance repairman came to fix my leaking washer and told me it was a drainage problem with the hose, and I needed a plumber, since there was nothing he could do, then dropped a $129 visit charge on me and asked for a 20% tip, even though he had done nothing to fix my problem.

I’ve always assumed there would be a service charge for any visit by a repair person—it’s usually mentioned when the appointment is set up. I cannot imagine being asked for a tip! I’ve never heard of such a thing. I think any service person I know were offered such a tip, they’d be shocked and possibly embarrassed or even offended.

Same thing re: tipping at a fast food place. I’ve never heard of such a thing—but then, I don’t do fast food very often, either.

 

[Elixir]

Anyone know when the recently passed Inflation Reduction Act is expected to start taking effect on food and gas prices? Can't come soon enough for me!

I think we're s'posed to call it a success if the rate of inflation goes down.
Is your gas under $8/gal? Eggs less than $15/dozen? You're golden.
Prices actually go down? HA!

 

[bilby]

Prices falling would be disastrous economically, as it would basically slam the brakes on the economy.

Nobody wants to spend money today if it will buy more tomorrow, so deflation basically eliminates discretionary spending.

The only exception is high tech stuff where your current version is being replaced because it's obsolete, and perishables which are being replaced because they're rotting.

Any economic measures that get inflation back down to around 2-3% are a success. Any measures that get inflation below zero - ie cause prices to fall - are disastrous.

https://en.wikipedia.org/wiki/Deflation#Deflationary_spiral

 

[Rhea]

But, I've seen many affluent people abuse the rule and I don't have it in me to do that.

Sorry, I did not mean to imply that, nor would I want to abuse rules. But without knowing the rules, many people would end up hurt by them for things that were NOT abuses of the rules.

Glad you know the rules already - they are complicated! For others reading, it pays to know the rules, especially if your senior parents move in with you, and you combine households, without knowing that is a bad thing to do.

 

[hurtinbuckaroo]

Anyone know when the recently passed Inflation Reduction Act is expected to start taking effect on food and gas prices? Can't come soon enough for me!

I think we're s'posed to call it a success if the rate of inflation goes down.
Is your gas under $8/gal? Eggs less than $15/dozen? You're golden.
Prices actually go down? HA!

I paid $3.09 for gas last week. Egg prices would have been fine if avian flu hadn’t killed 60 million birds.

 

[Toni]

The one thing that kills the savings of older adults in long term care, so if either of us ever need, ( dog forbid ) assisted living or nursing home care, we're fucked. Medicare only covers 2 or 3 weeks of rehab. If you're dirt poor, you can get Medicaid, but the rest of us must use our savings or income to pay for long term care.

@southernhybrid If this is a risk for you, I would strongly recommend seeing a medicaid attorney (attorney specializing in Medicaid laws). We got that advice and went to one for my mother and it was incredibly helpful. Medicaid “looks back” 5 years, and so you have to be sure you have not been “giving away” your money during that time, or they will ask for it back, and you won’t have it. A terrible financial surprise. You are permitted to protect certain assets like your home and a certain percentage of your savings. But you need to find that out early, or you end up giving it all to medicaid and not being able to use the intended benefits.

Example, when I had to quit work to take care of her, if she had used her funds to help our household get by, that would have been “giving away money” and we owuld have had to pay it back when she entered skilled care. But at the attorney’s advice, we wrote up a contract where she paid me for in-home care at a reasonable market rate and she was able to use her own money to stay out of skilled care for an extra 4 years without having a government debt at the end.

There are so many rules that are intended to help seniors stay home longer, but if you don’t know them, you end up with a painful and huge debt instead of a good home care period.

I am well aware of these rules. In fact, in Georgia, unless it's changed in recent years, it's 3 years that M'caid looks back. But, I've seen many affluent people abuse the rule and I don't have it in me to do that. My mother never would have wanted that either. It makes sense if your assets are fairly small, like under 100K.

Nursing homes are expensive and without some of the residents paying the private pay rate, they would be out of existence. Of course, since our system is nearly all profit driven these days, that's another big problem with long term care. Some nursing homes and assistant living facilities limit the number of M'caid residents they will take. I've seen this in my former job.

I’m glad this came up. I had assumed it was 3 years in my current state but nope: 60 months.

After hubby retires, we will have somewhat less monthly income from SS and my small pension. We have a good amount of money in a retirement account. What we have talked about is after hubby retires and we start to take distributions from the retirement account is to guve each of our kids a gift of cash, basically in case we do need to tap into the principle of the retirement acct instead of living on the earnings. We are hoping to never need long term care….

We should be ok without ever needing to use Medicaid but one never knows….

 

[Ford]

We should be ok without ever needing to use Medicaid but one never knows….

When I hit financial "rock bottom" and was doing my barely above minimum wage part time job in 2020, a co-worker (who had also lost her good job) tipped me off that I probably qualified for Medicaid. She said "dude, it's actually pretty awesome."

Mind you, I only used it for prescriptions (I have a few) and regular visits to the cardiologist, but she was not wrong. If you're broke enough to qualify (and I was), it is surprising to hear "oh...well then...your co-pay is zero." Bloody socialism...

 

[Rhea]

I’m glad this came up. I had assumed it was 3 years in my current state but nope: 60 months.

After hubby retires, we will have somewhat less monthly income from SS and my small pension. We have a good amount of money in a retirement account. What we have talked about is after hubby retires and we start to take distributions from the retirement account is to guve each of our kids a gift of cash, basically in case we do need to tap into the principle of the retirement acct instead of living on the earnings. We are hoping to never need long term care….

We should be ok without ever needing to use Medicaid but one never knows….

It’s true, one doesn’t.

My mother wanted to give us kids money when she got sick, partly to give us face to face what she felt was our inheritance, partly to pay us back for housing her and helping her; but we learned from the lawyer that she should not, or we all would have had to pay it back, boom, as soon as she needed skilled care, if that need happened in less than 5 years, which it did. Instead we learned how to manage the funds legally to give her in-home care for another 4 years, so that when it ran out she would be eligible for the medicaid and a place in skilled care. Without that legal advice, we would have tried to give her time at home, but been utterly unable to do skilled care when she got to needing it. I cannot imagine that disaster.

 

[Toni]

We should be ok without ever needing to use Medicaid but one never knows….

When I hit financial "rock bottom" and was doing my barely above minimum wage part time job in 2020, a co-worker (who had also lost her good job) tipped me off that I probably qualified for Medicaid. She said "dude, it's actually pretty awesome."

Mind you, I only used it for prescriptions (I have a few) and regular visits to the cardiologist, but she was not wrong. If you're broke enough to qualify (and I was), it is surprising to hear "oh...well then...your co-pay is zero." Bloody socialism...

My mother became disabled at the age of 42. My parents, who were never well off, divorced several years later. My dad had to cover Mom’s insurance for a while but eventually she needed Medicaid and Medicare. It was difficult to get my older sibling who had her powers of attorney to swallow pride and apply for Medicaid for Mom. None of us kids had the wherewithal to cover Mom’s insurance after she got put into a high risk category. There literally was no choice. Fortunately, she was actually very stable medically and had relatively few medical needs. Eventually she needed to go to a nursing home—she really wasn’t safe at home living with my sibling and my sibling needed and deserved a chance to live their own life. It was a Medicaid bed, by necessity. For a very brief time, I suffered under the delusion that I could get a job good enough to pay fir Mom’s care. And then I started looking. Nope. There was literally no way.

 

[Ford]

We should be ok without ever needing to use Medicaid but one never knows….

When I hit financial "rock bottom" and was doing my barely above minimum wage part time job in 2020, a co-worker (who had also lost her good job) tipped me off that I probably qualified for Medicaid. She said "dude, it's actually pretty awesome."

Mind you, I only used it for prescriptions (I have a few) and regular visits to the cardiologist, but she was not wrong. If you're broke enough to qualify (and I was), it is surprising to hear "oh...well then...your co-pay is zero." Bloody socialism...

My mother became disabled at the age of 42. My parents, who were never well off, divorced several years later. My dad had to cover Mom’s insurance for a while but eventually she needed Medicaid and Medicare. It was difficult to get my older sibling who had her powers of attorney to swallow pride and apply for Medicaid for Mom. None of us kids had the wherewithal to cover Mom’s insurance after she got put into a high risk category. There literally was no choice. Fortunately, she was actually very stable medically and had relatively few medical needs. Eventually she needed to go to a nursing home—she really wasn’t safe at home living with my sibling and my sibling needed and deserved a chance to live their own life. It was a Medicaid bed, by necessity. For a very brief time, I suffered under the delusion that I could get a job good enough to pay fir Mom’s care. And then I started looking. Nope. There was literally no way.

I swallowed a lot of pride that year. Working with people who had no other way. Giving the above mentioned co-worker a ride home so she didn't have to take the bus (for the non-US folks, taking public transport here is often "for the poors.") One of my best buds at the mask factory where I worked later that year was literally homeless. It's a helluva reality check when you say "I have a little house, it's not much, but it's home" and then your friend tells you they're living in a shelter.

When I think about some of the people around me at my current job who complain about the delivery fees for their $18 dollar sandwich I can't help but mutter "are you fucking kidding me?" under my breath.

 

[Toni]

We should be ok without ever needing to use Medicaid but one never knows….

When I hit financial "rock bottom" and was doing my barely above minimum wage part time job in 2020, a co-worker (who had also lost her good job) tipped me off that I probably qualified for Medicaid. She said "dude, it's actually pretty awesome."

Mind you, I only used it for prescriptions (I have a few) and regular visits to the cardiologist, but she was not wrong. If you're broke enough to qualify (and I was), it is surprising to hear "oh...well then...your co-pay is zero." Bloody socialism...

My mother became disabled at the age of 42. My parents, who were never well off, divorced several years later. My dad had to cover Mom’s insurance for a while but eventually she needed Medicaid and Medicare. It was difficult to get my older sibling who had her powers of attorney to swallow pride and apply for Medicaid for Mom. None of us kids had the wherewithal to cover Mom’s insurance after she got put into a high risk category. There literally was no choice. Fortunately, she was actually very stable medically and had relatively few medical needs. Eventually she needed to go to a nursing home—she really wasn’t safe at home living with my sibling and my sibling needed and deserved a chance to live their own life. It was a Medicaid bed, by necessity. For a very brief time, I suffered under the delusion that I could get a job good enough to pay fir Mom’s care. And then I started looking. Nope. There was literally no way.

I swallowed a lot of pride that year. Working with people who had no other way. Giving the above mentioned co-worker a ride home so she didn't have to take the bus (for the non-US folks, taking public transport here is often "for the poors.") One of my best buds at the mask factory where I worked later that year was literally homeless. It's a helluva reality check when you say "I have a little house, it's not much, but it's home" and then your friend tells you they're living in a shelter.

When I think about some of the people around me at my current job who complain about the delivery fees for their $18 dollar sandwich I can't help but mutter "are you fucking kidding me?" under my breath.

Yeah. As an adult there have been plenty of times we didn’t have money but we always did have a roof over our head and food.

I’ve come to realize just how lucky I’ve been.

 

[crazyfingers]

I'm retired and our investments have lost about 15-20% in the past year. I'm not concerned. There is plenty for me and my wife to live out aour lives just fine including helping the kids. The big thing is that it's so hard out there for the younger ones to get ahead. It's the first generation who will not be as well off as their parents.

 

[Loren Pechtel]

There's a poster I've seen several times: "Earn 10,000 Spend 9000 -- Happiness. Earn 10,000 Spend 11,000 -- Torment."

Frankly I've never understood how highish-income Americans manage to spend as much money as they do. Cocaine?

I've seen it happen far too often.

I think the best illustration is a woman we know. 3 cars. She was finishing up the loan on the last one and so was looking for another car. Just because your budget now has some extra available doesn't mean you need to go find something to spend it on! Everything is evaluated on "can I afford this?" rather than "should I spend this?"

 

[Loren Pechtel]

I go in about once every two weeks for a major load, and the price changes are fairly breathtaking every time. I find myself cutting back on stuff I used to buy pretty regularly. For example, I used to like to pick up a pre-cooked rotisserie chicken on my big shopping trip, and it would be about $5.99 (this was only about two years ago). Last time I was in the store it was $9.99! So, no more of that for now.

Tip: Costco chickens are bigger than the average bird and are still $5.

Yes, it's a membership store but I have eyes that keep changing and are very intolerant of a less-than-perfect prescription. My savings on glasses pay for the membership.

 

[Loren Pechtel]

I have not been affected that much. Like others, however, at my age, cuts in Medicare could hurt me.

I was irritated recently when an appliance repairman came to fix my leaking washer and told me it was a drainage problem with the hose, and I needed a plumber, since there was nothing he could do, then dropped a $129 visit charge on me and asked for a 20% tip, even though he had done nothing to fix my problem.

Tip a repairman?! It's really getting out of hand.

And the Republicans could sure make a mess with Medicare cuts. I think they're sensible enough to not appreciably cut current benefits, though.

 

[Don2 (Don1 Revised)]

I go in about once every two weeks for a major load, and the price changes are fairly breathtaking every time. I find myself cutting back on stuff I used to buy pretty regularly. For example, I used to like to pick up a pre-cooked rotisserie chicken on my big shopping trip, and it would be about $5.99 (this was only about two years ago). Last time I was in the store it was $9.99! So, no more of that for now.

I should have commented on chicken earlier. I just bought one yesterday at $8.99. But they've been getting smaller and smaller where I shop. Is this a thing in your region as well?

I don't buy cheese anymore (always a favorite with me), either. For fast food, I'm starting to use the coupons that come in the mail, which I didn't used to do. No coupon, no fast food is my current motto. I'm fairly well off, so I'm not headed for the life on the streets anytime soon, but I am a bit worried about where inflation is headed over the next few years, as retirement is looming.

Retirement not quite looming for me yet...but I am definitely considering impact. My investments took a hit, plus this quick rise if it continues, prices will be so insane at retirement. So, I hear you.

 

[thebeave]

I go in about once every two weeks for a major load, and the price changes are fairly breathtaking every time. I find myself cutting back on stuff I used to buy pretty regularly. For example, I used to like to pick up a pre-cooked rotisserie chicken on my big shopping trip, and it would be about $5.99 (this was only about two years ago). Last time I was in the store it was $9.99! So, no more of that for now.

Tip: Costco chickens are bigger than the average bird and are still $5.

Yes, it's a membership store but I have eyes that keep changing and are very intolerant of a less-than-perfect prescription. My savings on glasses pay for the membership.

There is a Costco near me that I drive by pretty regularly. Its very popular and it seems the traffic is bad around it, and the parking lots are full. I've been in a few times as a guest, and the checkout lines were pretty horrendous with long waits. I guess if I had big family, it would be worth it to put up with all that to save some money, but I just shop for me. The Lucky store, also near me, has no traffic or crowds when I do my big weekend shopping trip and I can get in and out quickly (which is important to me). I will probably continue to shop there, but if the prices hikes get too unbearable, I am going to have to start using coupons, watch for sales, etc. One thing I keep forgetting is that I'm considered a senior (60+) now, and am eligible to get some senior discounts at quite a few places (including Lucky, I think). At least there's some benefits to getting old.

 

[thebeave]

I go in about once every two weeks for a major load, and the price changes are fairly breathtaking every time. I find myself cutting back on stuff I used to buy pretty regularly. For example, I used to like to pick up a pre-cooked rotisserie chicken on my big shopping trip, and it would be about $5.99 (this was only about two years ago). Last time I was in the store it was $9.99! So, no more of that for now.

I should have commented on chicken earlier. I just bought one yesterday at $8.99. But they've been getting smaller and smaller where I shop. Is this a thing in your region as well?

I don't buy cheese anymore (always a favorite with me), either. For fast food, I'm starting to use the coupons that come in the mail, which I didn't used to do. No coupon, no fast food is my current motto. I'm fairly well off, so I'm not headed for the life on the streets anytime soon, but I am a bit worried about where inflation is headed over the next few years, as retirement is looming.

Retirement not quite looming for me yet...but I am definitely considering impact. My investments took a hit, plus this quick rise if it continues, prices will be so insane at retirement. So, I hear you.

Not sure if they are getting smaller, but they did switch packaging from a rigid plastic clamshell style container to a plastic bag style container about the same time that the prices shot up. Maybe there's a reduction in chicken size that went along with that. I'll have to check it out. I am noticing that a lot of items come in smaller packages now, which I guess is an underhanded way of making you think you're not paying that much more than you used to.

 

[ZiprHead]

The rottisserie chicken at the local Kroger is $7.99. The organic version is $9.99.

 

[Loren Pechtel]

I go in about once every two weeks for a major load, and the price changes are fairly breathtaking every time. I find myself cutting back on stuff I used to buy pretty regularly. For example, I used to like to pick up a pre-cooked rotisserie chicken on my big shopping trip, and it would be about $5.99 (this was only about two years ago). Last time I was in the store it was $9.99! So, no more of that for now.

Tip: Costco chickens are bigger than the average bird and are still $5.

Yes, it's a membership store but I have eyes that keep changing and are very intolerant of a less-than-perfect prescription. My savings on glasses pay for the membership.

There is a Costco near me that I drive by pretty regularly. Its very popular and it seems the traffic is bad around it, and the parking lots are full. I've been in a few times as a guest, and the checkout lines were pretty horrendous with long waits. I guess if I had big family, it would be worth it to put up with all that to save some money, but I just shop for me. The Lucky store, also near me, has no traffic or crowds when I do my big weekend shopping trip and I can get in and out quickly (which is important to me). I will probably continue to shop there, but if the prices hikes get too unbearable, I am going to have to start using coupons, watch for sales, etc. One thing I keep forgetting is that I'm considered a senior (60+) now, and am eligible to get some senior discounts at quite a few places (including Lucky, I think). At least there's some benefits to getting old.

The traffic is bad around the part of ours that has the gas station, but approaching from the other direction I have no problem. Rarely is the checkout line longer than at the local grocery. Weekend might make a difference, though--I do avoid Costco on the weekends.