How will this downturn affect your future decision making?

[The Elkster]

I'm curious to know how people feel after going through such a major downturn. Once things turn around, will this have a lasting affect on your future spending and saving habits? Will it affect how you feel about job security, job loyalty? Will you be more inclined to consider job opportunities outside AB?

Thanks for taking the time to respond.

[Okotokian]

edit. sorry

[Canehdianman]

My wife and I work in stable, non-O&G fields, but we have already been saving a lot.

I'm looking forward to upgrading to a new house in the next few months, so I'm hoping that house prices keep dropping like they have been.

I don't have any sympathy for a few of my friends who were working up north making 150k+ a year for the past few years with nothing saved to show for it. They are now trying to sell their quads, boats, trucks, etc... to pay the bills.

Tough lesson to learn.

[The Elkster]

Not looking to make this a thread knocking anyone. Everyone makes mistakes and most people have learned the hard way more than a few times whether in finances or life. C'est la vie.

[Tfng]

No change, I'll continue to invest in my retirement and live within my means. I stuck with the same company through the boom and didn't bounce around chasing an extra dollar an hour.

My job is oilfield related and it's been dead slow with the odd busy week. I'm still working. Luckily they pay us whether there's work or not. They realize it will get busy again and a solid crew of experienced guys can be hard to get so they're keeping us on. I don't know how long it will last but they'll have to lay guys off if this goes on for two years.

I also would like to upgrade my house. Starter homes have been holding their value and selling. More expensive homes have not been moving and prices are starting to drop. It might be a good time to upgrade.

[^v^Tinda wolf^v^]

The recession of 2008 changed my spending habits and thankfully I stuck to my guns on the situation. Loyalty is a two way street, if I get stabbed in the back there is no loyalty. As long as I receive the money I earned when it's supposed to be paid I have no issues other wise. I was told long ago not to trust my last employer by more than one person with significant experience working with him and they were right on the money so it was of no surprise when he chose his buddy's to stay that had worked for him in the past. The entire time I worked for this employer he did his best to make my life a living hell. Anyways the past is the past and I can only recommend considering your options if you work for a vengeful employer.

[JustMe]

I think you raise some good points... However, I don't think the statement, "Once things turn around," is overly applicable. As the Saudi minister said in his statement the other day, "The short term is now the long term." So I guess, the real question may be, "Now that the oil patch has dried up for many for the foreseeable (3-5 years) future, what are you going to do to ensure a lasting income of any sort? "

Like you, I'm not trying to step on any toes, but I think it's time many face reality instead of thinking this is all going to be gone in the morning....

Originally Posted by The Elkster

I'm curious to know how people feel after going through such a major downturn. Once things turn around, will this have a lasting affect on your future spending and saving habits? Will it affect how you feel about job security, job loyalty? Will you be more inclined to consider job opportunities outside AB?

Thanks for taking the time to respond.

[dmcbride]

Originally Posted by JustMe

I think you raise some good points... However, I don't think the statement, "Once things turn around," is overly applicable. As the Saudi minister said in his statement the other day, "The short term is now the long term." So I guess, the real question may be, "Now that the oil patch has dried up for many for the foreseeable (3-5 years) future, what are you going to do to ensure a lasting income of any sort? "

Like you, I'm not trying to step on any toes, but I think it's time many face reality instead of thinking this is all going to be gone in the morning....

Saudi has said that numerous times, They can't leave the taps wide open for ever. More than 5 years at this price and they will be broke.

http://www.telegraph.co.uk/business/...ustry-buckles/

[JustMe]

How many of us have the wherewithall to survive those 3-5 years without a job? Not me...

Originally Posted by dmcbride

Saudi has said that numerous times, They can't leave the taps wide open for ever. More than 5 years at this price and they will be broke.

[dmcbride]

Originally Posted by JustMe

How many of us have the wherewithall to survive those 3-5 years without a job? Not me...

I here you, it would be nice if our country could come together and build some energy infrastructure. Now is the time to do it.

As for the op.

We were planning on building a new house, but have decided to wait until 2019.

[JustBen]

Doesn't really impact me that much. As always, watch where my money is going. Right now, I just look at it as a sale on toys and investments. I'll make sure I have enough money to buy them the next time everything goes to pot.

[Okotokian]

How has it impacted me?

I've always been pretty careful with debt. I've had mortgages and car loans of course, but nothing extravagant and no big toys or luxury vehicles. Presently I owe nothing but what is on my Visa Card at the end of each month. It's a good feeling. But now I'm even questioning some cash purchases I've been contemplating. I'd like to buy a couple large items, but I'm thinking "What if I lose my job? I might need that money. I can make do for anther year or two..." And I might need that money to help out my son, who is also in the industry and vulnerable.

I'm coming up on retirement soon, so I'd really like to hang on for another year or two. I could get by if I lost my job now and I never worked again, but I want the retirement I've planned for, which will take a few more dollars. It has me working harder than ever, taking work with me on vacation, etc. etc. trying to be as valuable as possible and hang on. It's a scary time.

[Sakotackdriver]

Originally Posted by The Elkster

I'm curious to know how people feel after going through such a major downturn. Once things turn around, will this have a lasting affect on your future spending and saving habits? Will it affect how you feel about job security, job loyalty? Will you be more inclined to consider job opportunities outside AB?

Thanks for taking the time to respond.

It doesn't matter what province you live in! The Government does what it wants! We can complain until we are blue in the face! Bottom line is we are puppets. We have no control! My best advice is fend for yourself and hope for the best.

[winged1]

Originally Posted by The Elkster

I'm curious to know how people feel after going through such a major downturn. Once things turn around, will this have a lasting affect on your future spending and saving habits? Will it affect how you feel about job security, job loyalty? Will you be more inclined to consider job opportunities outside AB?

Thanks for taking the time to respond.

I was brought up financially conservative. Every purchase I've made has been scrutinized for value. The wife has tried to break my habits, but I've resisted. Have gone through numerous cycles and see it as opportunity rather than loss. In regards to employment, I've traveled extensively across western Canada. I lean toward jobs of increasingly shorter duration so I have more personal time. That means no corporate pension, but I've been investing towards that scenario ever since I started working.

[RavYak]

Hasn't affected my finances much at all even having been laid off. I have always been crazy tight with my money and live off only what I need and saved everything else I earn.

The down turn has affected my career though and I may have to decide to take another career path or to move to find work. There are just too many people here looking for the same jobs that either do not exist anymore or are in much lower demand.

I am one of the fortunate ones to have education and experience in a variety of fields. For those that do not now is the time to reconsider your options. If you have RRSP might want to consider the LLP and go back to school for a bit while things are slow. I have a feeling its going to be a few years before AB starts rocking again.

[mercury001]

Came to Alberta during the 1980's recession; time to retire on this one.

[79ford]

Meh, nothing really changed here. I grew up in BC so a resource slowdown is old news. Probably buy a house this time around, i was going to buy one on the last dip but chickened out.

I guess i have learned that the steady eddy is better than the booming stuff where money is just flying during the good times. Lots of times i was tempted to jump ship for other things that paid alot more money but now all those employers are hacking and slashing.

[The Elkster]

" think you raise some good points... However, I don't think the statement, "Once things turn around," is overly applicable. As the Saudi minister said in his statement the other day, "The short term is now the long term." So I guess, the real question may be, "Now that the oil patch has dried up for many for the foreseeable (3-5 years) future, what are you going to do to ensure a lasting income of any sort? "

Like you, I'm not trying to step on any toes, but I think it's time many face reality instead of thinking this is all going to be gone in the morning...."

You have to do some more independent research. For example you may want to check on what SA has done in the past decade....basically maintained flat production. SA is not the reason we are in this mess. They are not flooding the market. SA is saying what will serve their purposed namely to drive others out of the market. They want it crushed as quickly as possible so investment gets cut and balance is regained. One doesn't do that by talking about future declines and the potential for the price to shoot back up.

And their strategy is working now that people are buying into the lower for longer idea. Financing for new drilling simply did not stop when there was the possibility of a quick turnaround. Now that budgets have truly been slash around the world people are going to learn just what it takes simply to maintain current production levels and todays spending is not it. As background I have been involved in reservoir work for +15 years. I am not a welder or lawyer or financial analyst practicing armchair O&G analysis.

There are only a handful of countries that are able to jack their production.

Russia
Brazil
Iran
Iraq

Not exactly bastions of stability and make up a fraction of global production. Counter to that almost every other country making up probably 75mmbbl/d is for the most part battling terminal declines which is going to come to light as we move along. Doesn't take much of a net decline on 75mbbl/d to rebalance the market. The US jacked production the last 5 years (+5mmbl/d) but that is largely played out. Take a look at a drilling map. Its mind boggling to see how much of their shale plays were drilled up in just 5 years with long horizontal drilling. But all you hear from the US is all roses and popcorn farts.

Anyways take what you will I don't really care. But if your interested in getting the whole story you may want to look past the headlines. Hard to get all the info but you can definitely see the trends. LOTS of misinformation being put out there. US shale companies are shameless promoters. If you want proof compare past broadcast news claims (no repercussions) to their SEC filings (legally binding).

Now back to our regularly scheduled program.

[ForwardBias]

I was in my early 20s when the recession hit in 2008. I learnt alot about being an adult and finaces. I had made some poor choices with my money, and barely made it through. I made a plan if things ever got better and stuck to it. I was lucky to have that plan and had a really good run the last 8 years. Although people are warned about the boom/bust cycle of our economy I understand how easy it is to get wrapped up in it. I hope things get better and more people can learn from it.

[Ranch11]

I'm more worried about the dollar. We were gonna buy a bunch more cows and land, but I'm afraid when the dollar turns around, the cow market won't be worth much, leaving us strapped.

[Twisted Canuck]

Originally Posted by Okotokian

How has it impacted me?

I've always been pretty careful with debt. I've had mortgages and car loans of course, but nothing extravagant and no big toys or luxury vehicles. Presently I owe nothing but what is on my Visa Card at the end of each month. It's a good feeling. But now I'm even questioning some cash purchases I've been contemplating. I'd like to buy a couple large items, but I'm thinking "What if I lose my job? I might need that money. I can make do for anther year or two..." And I might need that money to help out my son, who is also in the industry and vulnerable.

I'm coming up on retirement soon, so I'd really like to hang on for another year or two. I could get by if I lost my job now and I never worked again, but I want the retirement I've planned for, which will take a few more dollars. It has me working harder than ever, taking work with me on vacation, etc. etc. trying to be as valuable as possible and hang on. It's a scary time.

This is pretty much where I am at as well. I sold our rental property (a house I built in 2006) for a lot less than I would have liked to get for it, but those who get out early generally do better than those who hold out in a falling market. Everything currently paid for other than a very manageable mortgage (my equity is about 2/3 of value). I have money in the bank, and owe nothing. I'm going to keep working as long as their is work (construction industry, primarily residential), but if it dries up, I'm still good. I just inherited a substantial amount, and could retire now and manage even though I'm not quite 50, but I'd like to leave it untouched and invested. Another 6 years of moderately good income, put my last couple kids through school, and done. We have always been pretty careful with spending, no toys (quads boats and holiday trailers with a big truck to pull them was never something I wanted to get tied into), few holidays. Don't feel like I missed out, and sure glad to not be under financial stress now going into this economic mess.

[Johnny199r]

Ive always had this strange fear of someday going broke. I've been a crazy saver my whole life as a result. I've been trying to save money for retirement since my first part time job at 16 years old. So I'm doing ok.

[Domestique]

I've increased my HELOC and I am out spending, spending, spending. Interest rates have never been lower, If I was to Buy a GIC or 5yr bond and save it I wouldn't get any return anyhow so what the heck I plan to go down in flames. Afterall, my government does not want me to save, there is zero incentive to save, so why should I? The savers are not helping the economy anyhow, I am looking out for the greater good with my plan.

[Twisted Canuck]

Originally Posted by Domestique

I've increased my HELOC and I am out spending, spending, spending. Interest rates have never been lower, If I was to Buy a GIC or 5yr bond and save it I wouldn't get any return anyhow so what the heck I plan to go down in flames. Afterall, my government does not want me to save, there is zero incentive to save, so why should I? The savers are not helping the economy anyhow, I am looking out for the greater good with my plan.

Best of luck to you, seems like a solid plan with a predictable outcome. The savers here aren't trying to 'help the economy' by spending ourselves into huge debt, we are trying to take care of ourselves because this bankrupt government isn't going to do it for us. Unless we are Syrian refugees, but that's a different topic.

[deerhunter]

It's a buyers market. I just bought another 2 more rental home in St. Paul this week.Paid cash for them and have tenants waiting to move in June 1. This gives me 3 properties I rent out. I don't overcharge and I keep them well maintained.
I can't get this return from a bank, plus property will rise again.
Life is good

[Twisted Canuck]

Originally Posted by deerhunter

It's a buyers market. I just bought another 2 more rental home in St. Paul this week.Paid cash for them and have tenants waiting to move in June 1. This gives me 3 properties I rent out. I don't overcharge and I keep them well maintained.
I can't get this return from a bank, plus property will rise again.
Life is good

I thought of going this route, but opted to sell my rental as I don't plan on retiring in GP, and I just got tired of the hassles with renters. I managed 15 rental units for my old man back in Lethbridge when I was younger, and decided that I'm quite content getting 5-10% return with my portfolio manager at the wheel (those numbers for the last 5 years). No hassles. Rentals are a good way to get ahead, though, I've done it for years. Just not any more.

[Opa]

We put our nickels away over the years, investing as much into TFSA each year as is allowable. Some astute investments from our TFSA's has made us some good coin. We owe nothing to anyone, preferring to pay cash for everything that we buy. I did, however, have the good fortune of inheriting a sizeable farm, the cash rent from which pays our living expenses plus. YD still works to get out of the house, the earnings from which are her play money. Most of my time is spent hunting big game all fall, coyotes in the winter, going up to a couple of buddies trapline, and fishing the rest of the time.

[The Cook]

Was going to retire in August this year after 30 years in the salt mines but the economy has me thinking maybe one more year. Could always sell the house in Canmore to a wealthy yank or european who seem to be buying up the valley, but I kinda like living here so that would be the last option.

[Johnny199r]

Originally Posted by The Cook

Was going to retire in August this year after 30 years in the salt mines but the economy has me thinking maybe one more year. Could always sell the house in Canmore to a wealthy yank or european who seem to be buying up the valley, but I kinda like living here so that would be the last option.

House in Canmore? Awesome place to live and awesome place to sell if you ever wanted to.

[The Cook]

Originally Posted by Johnny199r

House in Canmore? Awesome place to live and awesome place to sell if you ever wanted to.

Bought it back in the day when a house in Canmore was just a house and the population was about 1200.