How is the economy affecting you.

[divemaster127]

I was just curious if we could get some stories of how the economy is affecting you.  I will be the first over the years I always thought my job with the military was recession proof being we are government.  But 2 days ago 1 of my team members was axed with no prior warning nothing. I also found out the goverment is being very slow paying their bills all the sudden.   So I guess I am a little more worried about the future than I was.  What changes are you guys making.  I sold my racing setup so I could start getting some dedicated machines but now I have kind of started rat holing the money for now.  As you guys know the profit from arcade related things is very poor so I sure can't depend on that.
dm

[Ginsu Victim]

It hasn't affected me yet, but I can't get into my views on the economy without joining the politics and religion board.

[Zero_Hour]

Hiring Freeze is currently in effect. No pay raises of any sort any time soon. As an added bonus, I get 10 furlough days between now and the end of June (that's a mandatory unpaid day off for the uninitiated), which cuts my pay 10% during that period. The FY10 budget for my institution has the potential to make my job nonexistent come July. My wife is in much better shape professionally, and is up for promotion around the same time I may be up for unemployment. We didn't spend too much on our house, so even if I'm out of work we'll make mortgage and bills without too much pain.

Technically it's affecting me. But not in a way that I currently "feel" - yet.

[divemaster127]

I just found out a bit ago our 401k's are stopping for now & 2 people were put on 4 day work weeks.

[Blanka]

Today I heard the Netherlands does best at the moment just after Finland and Poland from a European perspective. Italy does worst apparently. It affects me little, as I work in construction, and that is one of the most affected businesses. On the other hand, prices go down as well. I think they can fix wages for 2009 and still keep the buying power on the same level. In July we will have a big gas-price reduction (they promise) and raw materials and food are much cheaper then last year too.
Roads are quieter though, but mostly because of less traffic of trucks to Germany and the rest of Europe I guess.

[Dartful Dodger]

I feel like I'm living in opposite world.  People working for big solid companies(and the government) are losing their jobs while people in small companies can't take a vacation because there's to much work.

Last month we lost a bid on a job.  The owner of the company told me it was sort of a mixed blessing. We have more work than we can handle now, if we won the bid we'd have to hire more people and with the way the economy is, he wasn't sure if there would be work for those people after the project was over.  

Our contact for that job told us we were their second choice.  A HUGE software company won the bid.

We are a 10 person production house and we are going after the same jobs as this major software company.  I think that's what really scares me about this.  I liked the big fish in a little pond feeling, but now I feel like we're swimming in the ocean.  

If we become to big we might topple over like these other companies.

[mountain]

I found out a month ago that my employer was reducing it's contribution towards our medical benifits, "due to the economic downturn"... My contribution is jumping from $250 a month to $685! The per year deductable went up over 200%, the co-pays went from $15/$15 to $25/$50. Oh yeah, we also lost our vision and dental entirely. WTF!

Time to start my own side business I guess 

[ChadTower]

My contribution is jumping from $250 a month to $685! The per year deductable went up over 200%...

 

[mountain]

My contribution is jumping from $250 a month to $685! The per year deductable went up over 200%...

 

Yeah, that what the whole company said! 

[ChadTower]

That's the type of jump that makes people have to drop coverage.  Blech.  I'd hate to see that happen here in MA - we aren't allowed to drop health coverage.  Being without health insurance is punishable by a heavy fine come tax return time.

[mountain]

Yeah, we had people drop it. It also forced people to stop contributing to their 401K. I told our Director of human Resources that the loss of productivity, due to moral being dropped several notches, is going to cost the company more money in the long run. All I got was a blank stare... 

That's the type of jump that makes people have to drop coverage.  Blech.  I'd hate to see that happen here in MA - we aren't allowed to drop health coverage.  Being without health insurance is punishable by a heavy fine come tax return time.

Wow! I didn't know that

[divemaster127]

I had no idea.  My health coverage also went up. the prescirptions when up & went from 0 deductable to $500.00.  Every year the premium goes up & insurance covers a little less

[ChadTower]

Wow! I didn't know that

You will.  The current pres and congress are watching it closely and want to roll it out as the eventual "national health care" solution.

[knave]

My benifits are/have changing drastically. New co-pay new priemiums...our Union and the management have been deadlocked for over a year. now a temp soulution has been imposed upon us untill a real contract is negotiated. The state had to prod the negotiations so that theywould go back to the table...it got BAD.

Good news is that I have a job...cant say the same for many of my friends...lots of layoffs.  Those that had houses are now under water and those who prieviously rented just bought bargains. Mixed bag. We'll see what the future brings.

[JMB]

On the plus side with my 401k tanking and my home value dropping I will have to give my cheating wh@re wife less in the divorce.  Got to love living in a no fault state. 

[daywane]

work 2 or 3 weeks then plant shut down for 8 to 10 working days.
At first we were allowed to use vacation days for the shut down but not now.
It makes it harder to pay bills on time.
I am paid weekly
Unemployment pays Bi Weekly
and first week back no paycheck.
I worked all last week, all this week and next week then off 10 working days.
So this time around is a good one.
3 pay checks to stock up before the dry spell.
My gas bill for the car is Way down
Food not a real problem. I am a hunter and froze 3 deer this year
also heat with wood so I guess we are OK just big life style changes
I saw this coming and prepaired.
I work in the Auto Industry.
I kept tabs on all the lay offs in auto, also uper-managment was dropping like flies and not replaced.
That's when I put in the baby bear wood stove, and really started watching the deer trails. Big massive garden this spring
Maybe as big a 1 acre.

[knave]

On the plus side with my 401k tanking and my home value dropping I will have to give my cheating wh@re wife less in the divorce.  Got to love living in a no fault state. 

I know what you mean bro.  

[pinballwizard79]

I formerly worked in lending up until apx 2 years ago.

Now I work in the Fire, Burglary, CCTV &  card access industry. Quite a contrast yes but I calculated my move for a reason. This industry is not immune but more more "rescission resilient" than others. When times are good we focus on new construction residential & commercial locations. When times are bad we slow down but the market shifts to existing residential/commercial locations. The worse the economy gets the more stores/houses get robbed & as insurance continues to rise so does the ROI on fire protection.

The GF is a buyer & forecaster analyst. Needless to say she isn't forecasting much these days & we do worry for her job but her role is important as it would suck if they let her go & bought a billion dollars of copper & spent 7 million dollars a year to warehouse it.

Honestly I think the worst is far from being over for the wealthy. The common folk will return to normal far sooner as again we "shift" models. Rather than working in a slate tile factory we will work in linoleum factories. Instead of working as a union employee @ GMC we will see TATA Motors open factories here & etc.

You do know the American auto companies are using our bailout money to open foreign factories right?

Many US cars are made in Canada & Mexico now, soon to be Brazil........tell the US auto companies to shut down the Mexican/Canadian factories & halt building efforts on new foreign factories & focus on employing US citizens, maybe that will work.

[Level42]

Many US cars are made in Canada & Mexico now, soon to be Brazil........tell the US auto companies to shut down the Mexican/Canadian factories & halt building efforts on new foreign factories & focus on employing US citizens, maybe that will work.

Protectionism never works.

I'm in the same business, fire alarms. Boss told us at x-mas time 2008 that seeing the orders they had at that moment for 2009, it would _already_ be a better year than 2008....

We are dragging along. Construction plans that are now finishing up (we're usually in the last phase of a project) were planned at least 2/3 years ago. So I expect that we get the dip much later.

Talked with my boss on the phone last week and he told me he was going nuts because his desk was full of requests for prices on projects....

I think the reason might be that we, as a rather small company, are usually cheaper than the big one's. So, for the projects that are going on, price is more than ever an important factor.
We do have to see if the big one's will start a price war...let's hope not.

Even if we had no new projects at all, we can still keep afloat on the amount of work in periodic inspection and maintenance. We gathered so many new customers over the last 4 years even when some will go bust we still have a pretty large base.

Then again, I've been through a couple of bad times. I've worked for a company that went bankrupt and at I was a victim of the "internet bubble burst" when I worked in the IT business. I always managed to get a new job very soon and I'm not overly worried.

I do expect a salary increase. I got a diploma so I am now officially allowed to design fire alarms and we made agreed on a rise when I would succeed in getting the diploma.

We are actually still looking for new employees.

[RayB]

I'm Canadian. None of our banks have failed. We're still affected of course, but it's more of an indirect and delayed after-effect from what the US is experiencing. Exports and tourism are down. Home values have reversed in some of the more inflated areas (Vancouver) but nothing drastic. Elsewhere home values have plateaued. Some are predicting 20% decrease over next year or two. Jobs are being shed, but again, not as bad as in the US.

As for auto companies, quit your whining. There aren't that many plants here, and the auto makers are asking our government for bailout cash too. *We're* worried they'll just take it and close down the plants anyways, so the Americans can have the jobs!

I've lost about $2k from my RRSP (a retirement investment fund), but interest rate cuts have seen me pay about $200 less each month on my mortgage. Yay!

[pinballwizard79]

There are not that many plants here either...........anymore.

[patrickl]

I think the reason might be that we, as a rather small company, are usually cheaper than the big one's. So, for the projects that are going on, price is more than ever an important factor.

Indeed, that's how I survived the previous "crisis" too. I actually had more work since clients couldn't afford the big companies, but they still needed their problems fixed. They found out we do better work as well, but when the money flows back in it's tough fighting the sales people of these big companies.

I haven't noticed much of this recession yet. Apart from my pension investments probably being worth half of what they were worth before.

[Mauzy]

Well, I know Im not affected directly by whatever you want to call the "economic downturn" as I still live with my parents, but dad runs the local Best Buy which has mother worried. His store is one of the highest profiting in the region, but crazy things can happen when your livelihood depends on people buying luxury items. Living in a town with the University of Illinois which has about (last I heard) 30,000 students in attendance definitely eases the tension within the county. They also contribute a lot to the local economy not just through the University but through all their vital college kid needs (Apple computers, TVs, video games...etc) but all that will go out the window soon too. We feel confident that Best Buy can stay afloat, but its still scary. I know my parents are saving money everywhere they can "just in case" though.


My grandparents have it WAY worse. All their retirement money was in the market. They've lost more than half their value with no time to get it back. At least my parents have another 10-15 years to rebuild the retirement.

[shmokes]

On the plus side with my 401k tanking and my home value dropping I will have to give my cheating wh@re wife less in the divorce.  Got to love living in a no fault state. 

If your wife is a cheating whore, what good is living in a no fault state?  Cheating is grounds for divorce in any state.

[shmokes]

My wife is a graphic designer and her firm his in panic mode.  They're having a very difficult time finding clients.  We're pretty worried for her job, which is the only one between the two of us.  I'm only halfway through law school right now.  Keeping fingers crossed.

[Sprucemoose]

As with most people my 401K tanked and my employer stopped matching contributions.  No salary increase in the past 2 years.  Health insurance rates went up significantly.  In addition to all this there are layoffs scheduled for tomorrow.  My stress levels are high.  This is all coming from an industry that is supposed to be mostly "recession proof" aka mobile phone industry. 

These all seem monumental until you put things in perspective.  Wife and I just saw Slumdog Millionaire and after being reminded of how bad things can get we realized that we are blessed to have a roof over our heads.  Things can always get worse.  We'll just roll with the bunches and try to plan accordingly.

[danny_galaga]

Well, im a mailman. theres definitely less mail and they've basically frozen recruitment. post in australia is a bit like US post, its a government enterprise. its run like a private enterprise, but the only shareholder is the government. so there might be less mail, but my job is quite safe.

did i mention theres less mail? 

[ChadTower]

So far, same as everyone else's 401k.  I haven't even looked.  Not like I had a huge amount in there anyway.  Job is stable, company is still meeting projected goals, both industries my employer is in are recession resilient.  No cost of living increase in 2009 but that usually doesn't track inflation here anyway.  Pay down around 13% because some if it is tied to company performance.  Won't know any benefits changes for a couple months.  Wife just finished her requirements for her MA teaching license but that field has been devastated and will only get far worse in the next year.  Not sure how she's going to find work but we don't depend on her income for anything truly important.  We're okay so far - small house with matching mortgage, I drive an old car, and have always been adamant about keeping as much liquid savings as we can afford.  Hopefully we won't have to prove whether or not that's enough.

[JMB]

If your wife is a cheating whore, what good is living in a no fault state?  Cheating is grounds for divorce in any state.

Grounds for divorce yes, it just means there are no consequences to her actions.  I end up having to pay her for screwing me over.

[shardian]

Our company switched insurance companies from one of the best, to one of the worst. To stave off our anger, they started an account to pay our out of pocket expenses, which would be funded from the company savings of making the switch. While cool and all, only the first year's company contribution is guaranteed. Still, it has already helped me out of $700 out of pocket.

Business is down a bit here. I think my job is safe, but overtime and contract work has started to dry up. I have endured my wife bitching about my job and pay for 3 years now. Every day I see another place I was 'going' to work for close up shop, and every day I am thankful that I ended up where I am.

The contract work dry up is mainly what hurts me. I try to do a few side jobs thru the year to supplement my base income by 10-20%. Losing that means I can balance my budget...but that is it.

[Cakemeister]

My 401(k) is down 50%, like everyone else.

Although the only debt I currently have is the smart car, (house is paid off) I'm trying to find ways to cut costs. Trading my gas guzzler Infiniti for the scooter last year was one. My next project will be installing a radiant barrier in my attic. I bought the foil and this project will start next week. The savings should pay for the cost of the foil ($300 plus some tools) in just a few months. There is a tax credit available for this project as well.

I also tutor high school kids in math and science for a few extra bucks. I pay for all my arcade-related projects with that money.

My daughter will be starting college next fall so I have to find a way to pay for it.

Health insurance and other benefits from work have held steady, cost wise, which is fortunate. The wife is working more (part time registered nurse) and we're trying other ways to save money, such as eating out less, buying certain items in bulk (toilet paper, etc).

On the upside there is a pretty good buyer's market for real estate.

[shardian]

My daughter will be starting college next fall so I have to find a way to pay for it.

Why? Loans, grants, work study, scholarships...

I never asked my parents for a dime for college. I think my mom bought my books once or twice because she wanted to. I understood from day one of high school that college wasn't a right, but a privilege.

I say all that now, but I'm sure I'll change my tune once my daughter is a high school senior. 

[ark_ader]

Doing alright, but the banks in the UK are squeezing more money out of those with credit cards by changing the APR by as much as 10%.

I always do better in a recession as I work harder.

[Cakemeister]

Why? Loans, grants, work study, scholarships...

I never asked my parents for a dime for college. I think my mom bought my books once or twice because she wanted to. I understood from day one of high school that college wasn't a right, but a privilege.

I say all that now, but I'm sure I'll change my tune once my daughter is a high school senior. 

Everyone is different. What may be the best solution for one may not be the best solution for another.

Your parents did what they thought best for you, and I do what I think is best for my kids. Your parents obviously wanted you to have to work hard so that you would value college rather than treating it as a privilege and a constant party. I don't want my daughter to have a mountain of student loan debt when she gets out of school, so I am paying for it.

[shardian]

Your parents obviously wanted you to have to work hard so that you would value college rather than treating it as a privilege and a constant party.

Hehe, that's funny. I guess that's what they told themselves huh? No, my parents didn't pay for my college because my dad blew money like it was going out of style. I had the intelligence to realize early that I didn't want to be a worthless mooch like my sister turned out to be.

The nest egg my parents left me upon HS graduation: a $500 savings account, and 2 $50 savings bonds from my Grandma.  

I learned alot of lessons from my family though - no matter how unintentional they were. Earning your own way thru college is one of them. Everyone I started college with dropped out by their Sophomore year, because they were only there since their parents put them there.

My own wife had her college paid for by her mom, with minimal help from a Scholarship. She has not finished, and really has no desire to do so. Why would she feel a desire to finish - its not like SHE has anything invested in it?

[Level42]

What is a 401k ?

[shardian]

What is a 401k ?

A simple way of saying you'll never retire and be well off like your 'cadillac pension' grandparents.

Real answer: A retirement fund you pay into on your own (sometimes with a small employer match), that is tax deductible...until they rape you on taxes by accessing it later in life. The average American lost 30-50% of the value of their 401k the last year.

I laugh till I cry (it doesn't take long) when I go back and read the estimates that said I would 'average' 10% a year on that money.

[CheffoJeffo]

Let me get this straight ... a father makes a choice to pay for his child's education (e.g. a good thing) and gets grief over it ?

I'm not sure whose lawn I should be getting off of with that one ?  

[Cakemeister]

Why not cosign on the loans and then make payments, rather than lump summing it all at once?

Interest rates may be down, but it's a sucker move to hand over $20k in one shot to a university every year, when you can recover back at least some of that by investing the money in CDs.

Depending on what interest rates are for the loans, that's probably what we'll end up doing.

[ahofle]

Let me get this straight ... a father makes a choice to pay for his child's education (e.g. a good thing) and gets grief over it ?

I'm not sure whose lawn I should be getting off of with that one ?  

Exactly.
My parents put me and my 2 brothers through college and we all made it through to graduation and are appreciative of the better jobs we were able to obtain as a result.  I plan to put my kids through college as well.  I think instilling in your kids the importance of education is way more important in motivating them than making them foot the bill.