Economy in Recovery

It’s great to hear on the news that the economy is finally in recovery – but I started to wonder how I had personally been affected by it over the last while – nearly two years.

Signs of a depressed economy –

I have a very stable job, and wasn’t worried about losing my income, so I can say that in that regard, I didn’t feel the pressure of a downed economy.  I thought that I would see greater impacts on my friends and family who are skilled tradesmen, working in Alberta and Saskatchewan.  Yet, everyone I know continued to work throughout the entire recession.  That must be a lucky thing for the people I know – because there certainly were tons of reports of people who lost their jobs.

How was I affected?

I could tell when the recession began, because around mid-2008, my investments started to take a nose dive, and they have just started to recover now that the the recession has lifted.  But I wasn’t that seriously affected.

During this past year, I used the Home Buyer’s Plan to use my RRSP investments as a down payment on my first home.  The market was great for first time buyers, and I bought a beautiful home for a great price. 

I would say that was a positive aspect of the recession for me.  But on the other hand, I had to use my investments, which were significantly reduced to purchase the home.  So, in reality, I lost money on my investments.

Despite all of that, I still managed to put down a decent downpayment, and bought a dream home.  If I had lost my job, or been harder hit, I certainly wouldn’t have been able to take advantage of lower house prices.

Things were cheaper to buy –

I noticed that everytime I went shopping – everything was on sale.  Recession prices were fantastic.  I don’t think I’ve paid full price for a single item in the last 2 years!  I almost feel like I came out on top – only because I was still making the same salary – but everything else was so much cheaper.

When we bought our house, we needed all kinds of furniture to go with it.  And we got a great deal with recession prices.  It almost feels like the higher prices that will come from this recovery will hurt more than the recession did.

What does the recovery mean to me?

In the recession, everything was cheaper.  Groceries, a tank of gas, vacations.  We could buy just about everything for less, and it left more money in our pocket.  With the recovery, everything will be a bit more expensive – but I think that the cost of things will be balanced with a greater sense of calm by everyone. 

People will feel more confident and secure with their finances, knowing that the crisis is behind us.  And what does that mean for me?  Well, I do own a small business that hinges on people’s ability to spend disposable income.  So, with people feeling better about spending money – I’m sure my business will flourish.

Until the next turn of the wheel, that is.