Huge Surge in Household Net Worth

The industry I'm in (CATV & Internet) profited greatly off of the pandemic, and I benefited as well.

 

Before I opened the thread I assumed most of this was tied to the explosion in home values. If you own a house your net worth has probably gone up like 30% minimum in the last 3 years.

 

You gotta be worth about 3 times as much now as you were a few years ago just to survive.

 

slight exaggeration maybe? just a little?

 

Yeah that doesn’t fit the narrative of the OP.

 

I don't doubt it but I imagine there are so many factors that many don't fall in that group. Wife is a PT. I work public service for a city. Her pay has been pretty stagnant while mine has gone up considerably percentage wise however my public worker salary means the actual dollar amount it has gone up doesn't offset inflation. Investments have been stagnant if not somewhat of a decline after the brief recovery to start the year. We aren't hurting but we arent better off by any means at this point.

Anecdotal I know.

 

I know that you're exaggerating although in any event the real significant variable is income rather than net worth.

 

The period during the end of COVID was the Great Resignation. Lots of people moving jobs and getting paid. My wife did, as a former boss of hers hand selected her to help open a Phoenix location that came with a nice pay jump. I got an offer for a new position, but wasn't sure I wanted it, but parlayed that into a nice pay jump at my current job. Our pay raises far outpaced any inflation. Throw in the jump in the house value, and we're beating the average from the OP article.

 

M2

Money supply m2 increased about 50% during that period. Roughly corresponds to the wealth increase. Kind of makes sense.

 

When I retired 6 years ago my house, both vehicles and my boat were paid off. My wife and I both had pensions, social security, medicare and I had an additional medical insurance supplement coming in every month from the county. I figured when I passed my sons would be inheriting what I had saved and invested. For the first 3 years we were able to live with very little taken out of our life savings. Not so any longer, every couple of months we are having to draw on those savings. Hopefully I won't live to be 100. Excuse me while I go outside and smoke a cigarette.

 

I am trying to figure out why you are pulling from your reserves. Flat, cars, and a boat all free and clear. Even with inflation, you had to have a decent budget of what you guys call disposable income. Math is not my specialty. New shingles? Vacations? Monetary gifts to your children? I am curious.

 

Food and gas will getcha.

 

Good. Campaign on that.

Recycle Reagan's old campaign slogan! Lol!

 

Car repairs, home repairs (A/C, replacing appliances, etc…), taking trips, food, gas, insurance, taxes, clothing… everything has gone up.

 

Agree. And primary home equity is not very useful unless you are willing to downgrade. And with the current interest rates, moving or even tapping into that equity is very expensive. In other words, net worth going up under these circumstances is all smoke and mirrors.

 

Yeah alot of folks think there primary residence is a good investment, until they have to pay for a major expense. Most people are better off investing in stocks or bonds than real estate. Even if you pay for your house 100%, you still have taxes, insurance and repairs and like you said, unless your willing to downgrade, you wont make anything. Its a money pit.