Discussion in 'Off Topic' started by Amp Mangum, Feb 12, 2020.
I wouldn't be running out if de wouldn't be holding out
When I was younger I strived hard, but worked paycheck to paycheck. Now after two decades of busting my hump I now proudly live direct deposit to direct deposit.
But, on the serious side...this "study" leaves a lot to be asked...as in where are these >100k earners living? Kids? Debt? Home ownership? Mortgage rate? My wife and I make a pretty darn good living, but sometimes find ourselves saying "Well, Ill wait til payday to get X item" because we are a little short. But its because we put money into savings/retirement. So, not exactly sure what kind of point this article is making...people are bad at budgeting? People aren't saving properly? People aren't paid enough?
Thats only 1 out of 3. The next 1 (2) is living from welfare to welfare check. The last (3) is going to post how f%^Ked up the other two are.
I usually have a whole lotta month left at the end of the money.
And I'm one.
I can qualify that though, I make double house payments, double car payments, 401K, extra vision insurance and am paying off a knee replacement. It may pay off one day if I don't keel over first.
BooG nails it again, lots of variables there.
Many would mock my salary (as a whole, hell, I dont even know what I earn, especially with coaching etc), but I do fine. I dont live extravagant, and dont seek to, and I slowly add to retirement etc.
But Im single and not having to pay for kids, not living in a city and so on
It doesn’t matter how much you make, it’s no surprise that Americans suck at saving, suck at budgeting, and love to spend. Heck, look at the example our government sets for us!
When I worked retail, I did tons of credit apps for the in-house card, and I saw plenty of $8-10k/mo people who couldn’t qualify for a $2k credit card. Seemed ridiculous but if you’re carrying $100k in cc debt, I can see why they got declined.
Well just because you make a lot of money does not mean you are good with your personal finances. Just because you don't make a ton of money does not mean you are financially ignorant. Where you live and how large your family is and what stage of life you and the rest of your brood are play heavily into the liquidity of your finances. Working at a bank I saw both ends of the spectrum. It is not just about living over ones means. There are tons of factors which come into play.
In the end you have no idea why they did or did not get that card. I think it is easier to assume they were ignorant and reckless but that is not always the case. I knew lots of people who ran sole proprietor businesses who had their personal finances hamstrung by the business. I saw other people loose the business and have to declare personal bankruptcy as a result. I saw lots of divorced individuals who had their finances worked over by a former spouse. Medical bills of a loved one also prevented lots of people from getting mortgages etc.... It is not always about bad choices sometimes it is about life happening in a way you did not plan for.
Lots of people try to budget but then one life event like a major car repair, house repair, medical bill etc starts the debt snowball. The rise in the cost of living working against stagnant wages can turn what was workable budget into a deficit over time. It is almost never one thing. It is complex and multifaceted.
Boogs is right. $100k in SF or NYC is damn near poverty wages. If these people are just spending, the numbers are bad. If they are overpaying on debt (I know they aren't) then these numbers are good. Almost half have no money set aside for emergencies, but what is that? Needing a tire? Needing a transmission? Needing a kidney? Those are wildly different amounts to have sitting in the bank.
On a slightly related note, if you live to a ripe old age, and you have survivors, i.e. spouse, children, grandchildren, or a mixture of those, and you still have assets including money, make sure you have a good solid will and trust in place.
If you don't have survivors, try to spend it all as best you can before you exit stage left and leave what's left to a good reputable charity.
Letting the sorry money grabbing government to get a hold of any thing they don't deserve and haven't earned would be a dang shame.
My wife and I are DINKs and we have to watch our budget. I dont know how you family guys do it...
I don’t ever think you can make enough.
I have always tried to live within my means and am damn near genius in the task.
Just wish some of that genius was in the actual making of money.
Are you in the TSER program where you contribute the mandatory 6% and theoretically it’s matched with the 9%. I say theoretically because the end is based on different formulas. Years ago, I punched some numbers into the ORBIT calculator and learned I will bring in more in retirement than I do while working when it’s all said and done.
“I knew lots of people who ran sole proprietor businesses who had their personalfinances hamstrunk by the business.”
... can somebody tell me what “hamstrunk” means?
You’re correct, no clue why they got declined and yes life happens. My comment wasn’t very clear either, the store card and $100k in cc debt were two different things. The later is someone I know and doesn’t see $100k in cc debt as an issue.
Understood thanks for the clarification. I know people like that, the $100K person. Debt is a way of life for them.
Typo should have been hamstrung. I corrected it.
Wife (teacher) and I (chef) don’t make a ton but we have always lived below our means. We don’t carry balances on our CC, buy cars that last and drive them till wheels fall off, don’t eat out a lot, squirrel money away for retirement and take care of the stuff we have. I plan to be a millionaire by the time we retire. Not there yet though....
One of the odd things that’s going on right now os folks are seeing huge value in their homes and 401k plans, and so they decide that they don’t need to save and maybe some cc debt is okay. When the market turns, and it always turns, they’ll learn a tough lesson.
It's all those darn Hot Deals threads!
They only learn a tough lesson if they turn those unrealized losses into realized losses. I did not sell my 1st home during the bust. I bought before the boom. Instead I rented it. It is worth more now than at the height of the old market and the renters will have paid it off for me by 2027 while I make a monthly profit. The same concept is true with my 401K. I did not sell a thing. In fact during the dump I pushed as much money as I could into the market. I am young enough to have the luxury of time so I took advantage of the Bear market to buy low. Everything I have held is bounced back + because I did not lock in the loss. People buy and sell at the wrong time because they panic and do not understand how to invest for the long term.
I live paycheck to paycheck. Not that those times a super lean or I run out of money. Past food I really don't spend much money, but then I have a wife and kid takes up the slack. I honestly do not spend much money at all and have no idea what is in the check or savings account. My wife takes care of all the bills and budgeting and is very good at it.
And the teachers hate it when you point out that they will make more in retirement than they did while teaching.
I keep thinking “it’s time to move that 401 to cash...” , then I look up and have gained another 10%! Maybe next quarter.
People of all income levels live beyond their means...
The system encourages it, practically to the point of insisting...
this is telling:
Here's the thing, if you're broke, then not wasting money at the store, buying things 'second hand', etc should be your normal way of living. Then, if you make more money, and yet you continue to live the same way you'll find that you can suddenly save money. Do that for years and years and look at that, you're no longer living in debt and struggling. You're just living with a nice safety net. Now maybe you can buy something not on credit, because you've actually earned it.
I hate our broke ass neighbors complaining about not having money or being in debt, etc yet somehow their kids are wearing name brand everything. A 10 year old with Under Armor t-shirts/shorts/etc. Is your child a professional athlete being endorsed by that company? Are they such an elite performer that their game is being adversely effected by not having top rated gear? No? Just trying to keep up with the Jonses and your kids couldn't be caught dead in a t-shirt from costco (or walmart)? yea, that's probably it. So shut up, and deal with the debt you keep piling on yourself. Being set back by things health issues, accidents, etc, yea that sucks. Being set back by years and years of bad choices made by you for you? Zero sympathy.
Hey don't knock Costco clothes. I get a lot of my clothes there and the Jones never comment.
In the end I consider myself lucky as much as smart. I have been able to work my way out of tough times and am now in as strong a position as I have ever been financially but that does not mean it will be that way forever.
I had to take one of my dogs to the vet yesterday to have some tumors removed from her neck. It was not cheap and after paying the bill I said to my wife there was a time when we would have really had to dig into our savings to take care of something like that. Our savings would have taken a hit. I commented we are lucky to be able to not have to do that anymore.
Penny certainly appreciated it. #boykinlife #livingherbestlife
A big change in financial security for my wife and I was when we finally built a 50% cash cushion in our savings account. We can live for six months with no income. Surprise auto repair? No problem. Need a roof? Ok. We don't owe anything except for the mortgage, and that's scheduled to end this decade.
All my gym stuff comes from costco, I'm pretty familiar with the brand.
"amazon basics" are actually pretty nice too, I get all my sweats and sweatshirts from them.
When you only get to eat what you can shoot it changes your spending and savings habits.
and by that I mean straight commission and/or self employment.
you’ll never live month to month again if you can help it.
I worked on a draw against commission at one time at Montgomery Wards in the electronic department. We were guaranteed $7.50 an hour but if you did not make that amount X your hours you started the next pay period in the hole. I am sure how that was even legal but I was young and dumb and needed a job. I think I made $30K in the 10 months I was there. I was never in the hole.
I also worked a straight commission sales job for CompUSA at one point where I was paid once a month. I got 12 paychecks a year. I had to really budget based on good and bad months. I sold a lot of computers to the Federal Govt so my commission fluctuated based on the Govts fiscal year. After that I went to the stability of a small business which I eventually bought and owned. I have worked on commission one way or another most of my working life.
Honestly they have pretty quality stuff at cheap prices. The secret to Costco is not SPAVING, spending to save, by buying too much stuff in bulk. I mean do I really need 300 kitchen trash bags?
Ding Ding Ding!!!!!!!
Thus endeth the lesson...……………...I'm old.....I'm spendin mine......
Some people don't make much, but do just fine by living within their means.
Some people spend much more than they make regardless of how much they make, which is why we often read about high-earning celebrities in bankruptcy.
Yup as you get older you have to move into protect against loses so you can spend it! If I was close to retirement age right now I would be looking to move stuff out of the market. Lock in the gains and move to fixed assets. There is going to be a bust sooner rather than later. If I was really smart I would know when and I would pull my money at the height and put it back in at the low but I am not that smart.
Celebrities go bankrupt for the same reason people who win the lottery go bankrupt. Too often when you get that large a windfall monies "value" gets lost. Also they have so much that they turn it over to someone else and too often that person has no fiduciary responsibility to the client and they contribute to the loses more than they create gains.
I really haven’t worried too much about our income for a long time now. When I was young I did the payday to payday thing. Getting married to my wife fixed that. She watched after our money as I was gone a lot with the Army. She pays things off, pays things early, and doesn’t pay interest on credit cards. They get paid off at the end of the month. We aren’t rich by any means, but by watching what we spend and how we spend we’ve managed to save some over the years. I will be the first to give her the credit she deserves! What we have today is entirely because of her. But we built a house that we could pay for, drove vehicles that we could pay for, vacations that we could pay for and Christmas that we could pay for. I’d buy her something for her birthday and she’d return it the next day because she didn’t need it. It’s all about how you view your money. We view ours as a tool. Something to get you something else.
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