Almost two thirds of Americans now say they are living paycheck-to-paycheck, a new survey has found - with nearly five percent of those struggling earning over $100,000 a year.
2,500 is not a mansion. When I was building homes, I occassionaly had clients which were him & her professionals, no kids, 10,000 sq ft plus wine celler and home theater.
I had a conversation with some random man. I initiated because he was young, fashionanly dressed, and arrived in a new car.
After the 2nd beer he admitted that he needed to bring hom $5,000/mo because that was the bare minimum to service his debt. He admitted it keeps him awake at night wondering how it might come crashing down. He had no wife, he had a bevy of women. But no stability.
That was early 1990s. Since then I have met many in the same boat. Just talk to people. Most will freely admit that they live far beyond their means. They are why guys like Dave Ramsey will never run out of business.
My bottom question has always been why; why do you feel compelled to spend so lavishly? Very few will say its to 'keep up with the Jones'. That is a myth.
Most often it is because they think they deserve it. Self-idolization, empty inside, seeking material gains.
Very sad. How whole generations would forfeit a godly upbringing.
A HS educated employee asked me back ion the 90s how a couple could struggle financially on $100K/yr. EZ, I said - private school or college for 2 kids, country club dues, 2 Benzes instead of Fords, housee too big, expensive vacations, etc. He got it quick.
I have a friend who is still working at 68 and has made over $100k for many years. He owns nothing that he is not making payments on. He is convinced that trying to live on my income would be "poverty " for him and is afraid the soon he will be unable to physically continuing his career. Expensive cars, eating in restaurants everyday, until recently buying expensive clothes, refinancing his condo until he is 90, going out to the casinos, all add up. Everything I have is paid off, my daily food bill is less than one lunch for him, I but things iuf I want them and have spent quite a bit on prepping, especially last year. When I try to explain the facts of life to him, he can't understand, though he is an intelligent and educated man. Someone else referred to this as a financial learning disability.
Read "The Millionaire Next Door" ---- https://smile.amazon.com/Millionaire-Next-Door-Surprising-Americas/dp/1589795474/ref=sr_1_1?crid=SMPWJLFC7Q4B&keywords=the+millionaire+next+door+book&qid=1675373208&sprefix=the+milliona%2Caps%2C131&sr=8-1
I'm an engineer, 6 figure salary, work with lots of other engineers making the same, I've always been amazed at how many of my coworkers live paycheck to paycheck.
I still remember the day I had to move from my nice barracks to a crappy barracks because the Motor T CO was promoted over my CO and he forced his hand. Okay. That sucks. But I remember that every thing I owned fit into the two duffel bags laying there. That really sucked. So in the following 40 years I climbed out of that pretty well. My main three pieces of advice: 1) Get the best education you can while young, 2) Live below your means at all times, and 3) Invest what you can - Invest early, invest often.
Most kids don't see their parents living within their means. Plus, how many kids hear, "We can't afford that, right now. We will have to save for it."?
I read this as a Bull Shit story. I only make a little less than 56K a year. I have 6 acres paid for in Central Florida and 78 acres with a cabin in VA. while still putting away some savings, them dumb bastards don't have a clue. Apparently.
I had a Pastor who was in his former life a construction company owner tell me to never pay interest on a depreciable item. He said that a vehicle was the worst offender in this category. I understood this rule, as I always had a car loan. When my wife and I finally paid off our cars and started to pay on our debt, it was amazing, the way it felt. And we actually had money left over and I was able to carry 50 or 100 dollar bill in my wallet as a just in case. I have had to use that a couple of times and it was fantastic to have it and need it instead of having it given to me. And perhaps the most important thing about being in a position to give money to people in need is, I have never missed money that I have given away.
When I was young, I was taught to budget EVERYTHING, period. Learn to cook. Learn to do basic sewing. Learn basic vehicle maintenance. Learn to perform basic household maintenance and repairs. (These were actual required courses we had in HS in my day.) Plan to have enough CASH (not credit card room) in the bank or in a jar to pay all of your expenses for a full month - always (except when I had to bail out a buddy so he didn't get thrown in the Brig for AWOL.) Build on that one month buffer every year and add at least half a month to it every year. If you shack up or get married, budget so both of you are able to live on ONE INCOME and save every last penny of the other one - sooner or later, you will have another mouth to feed and be responsible for, and that extra income will be gone. Making a budget is a real drag, and for the first few months will seem oppressive - the end of the year is a relief when looking at the cushion you have, and know the worry about missing a few days from work without pay isn't going to kill you.
If you understand that money is a tool and not a means, you can enjoy God, family and friends.
"...........it would kill them to live on what my wife and I live on." I would wager it's not the dollar amount but more you and your wife's ability to live a happy and productive life on less than the think they "need for survival" that burns them like a five alarm fire.
Throw in that at least some of them live in a blue state/city with high taxes and fees and so forth. The price of a nice house on some land in most of the red states will buy a small fixer-upper in a place like Los Angeles or Seattle.
In most cases, it's not an income problem, it's an outlay problem.
ReplyDeleteWinner winner chicken dinner!!!
DeleteBut I NEEEEEEEEEEDS that new Lexus, and 2500 sq ft mcmansion, and officially licensed sportsball gear, and, and...
2,500 is not a mansion. When I was building homes, I occassionaly had clients which were him & her professionals, no kids, 10,000 sq ft plus wine celler and home theater.
DeleteI had a conversation with some random man. I initiated because he was young, fashionanly dressed, and arrived in a new car.
DeleteAfter the 2nd beer he admitted that he needed to bring hom $5,000/mo because that was the bare minimum to service his debt. He admitted it keeps him awake at night wondering how it might come crashing down. He had no wife, he had a bevy of women. But no stability.
That was early 1990s. Since then I have met many in the same boat. Just talk to people. Most will freely admit that they live far beyond their means. They are why guys like Dave Ramsey will never run out of business.
My bottom question has always been why; why do you feel compelled to spend so lavishly? Very few will say its to 'keep up with the Jones'. That is a myth.
Most often it is because they think they deserve it. Self-idolization, empty inside, seeking material gains.
Very sad. How whole generations would forfeit a godly upbringing.
Someone was never taught to live within their means, I have no sympathy.....
ReplyDeleteA HS educated employee asked me back ion the 90s how a couple could struggle financially on $100K/yr. EZ, I said - private school or college for 2 kids, country club dues, 2 Benzes instead of Fords, housee too big, expensive vacations, etc. He got it quick.
ReplyDeleteMoney is a medium of exchange.
ReplyDeleteThe basics of living can be done with or without it.
I have a friend who is still working at 68 and has made over $100k for many years. He owns nothing that he is not making payments on. He is convinced that trying to live on my income would be "poverty " for him and is afraid the soon he will be unable to physically continuing his career. Expensive cars, eating in restaurants everyday, until recently buying expensive clothes, refinancing his condo until he is 90, going out to the casinos, all add up.
ReplyDeleteEverything I have is paid off, my daily food bill is less than one lunch for him, I but things iuf I want them and have spent quite a bit on prepping, especially last year.
When I try to explain the facts of life to him, he can't understand, though he is an intelligent and educated man. Someone else referred to this as a financial learning disability.
some guy on the internet told me that his taxes were greater than my income
ReplyDeleteRead "The Millionaire Next Door" ---- https://smile.amazon.com/Millionaire-Next-Door-Surprising-Americas/dp/1589795474/ref=sr_1_1?crid=SMPWJLFC7Q4B&keywords=the+millionaire+next+door+book&qid=1675373208&sprefix=the+milliona%2Caps%2C131&sr=8-1
ReplyDeleteI'm an engineer, 6 figure salary, work with lots of other engineers making the same, I've always been amazed at how many of my coworkers live paycheck to paycheck.
ReplyDeleteI still remember the day I had to move from my nice barracks to a crappy barracks because the Motor T CO was promoted over my CO and he forced his hand. Okay. That sucks.
ReplyDeleteBut I remember that every thing I owned fit into the two duffel bags laying there. That really sucked. So in the following 40 years I climbed out of that pretty well.
My main three pieces of advice: 1) Get the best education you can while young, 2) Live below your means at all times, and 3) Invest what you can - Invest early, invest often.
They don't teach personal finance in school because the government likes you to be a wage slave living in perpetual servitude.
ReplyDeleteAlso because most teachers are morons who would be broke themselves without their pensions.
Most kids don't see their parents living within their means. Plus, how many kids hear, "We can't afford that, right now. We will have to save for it."?
DeleteYes and especially yes.
DeleteCorrelating something from 4000 responses, from a company that lends money sounds fishy to me.
ReplyDeleteI read this as a Bull Shit story. I only make a little less than 56K a year. I have 6 acres paid for in Central Florida and 78 acres with a cabin in VA. while still putting away some savings, them dumb bastards don't have a clue. Apparently.
ReplyDeleteI pray everyday for our country. Is this administration ov
ReplyDeleteI had a Pastor who was in his former life a construction company owner tell me to never pay interest on a depreciable item. He said that a vehicle was the worst offender in this category. I understood this rule, as I always had a car loan. When my wife and I finally paid off our cars and started to pay on our debt, it was amazing, the way it felt. And we actually had money left over and I was able to carry 50 or 100 dollar bill in my wallet as a just in case. I have had to use that a couple of times and it was fantastic to have it and need it instead of having it given to me.
ReplyDeleteAnd perhaps the most important thing about being in a position to give money to people in need is, I have never missed money that I have given away.
If somebody had an expensive mortgage in a city and 2 or 3 kids, I could see that.
ReplyDeleteWhen I was young, I was taught to budget EVERYTHING, period.
ReplyDeleteLearn to cook.
Learn to do basic sewing.
Learn basic vehicle maintenance.
Learn to perform basic household maintenance and repairs.
(These were actual required courses we had in HS in my day.)
Plan to have enough CASH (not credit card room) in the bank or in a jar to pay all of your expenses for a full month - always (except when I had to bail out a buddy so he didn't get thrown in the Brig for AWOL.) Build on that one month buffer every year and add at least half a month to it every year.
If you shack up or get married, budget so both of you are able to live on ONE INCOME and save every last penny of the other one - sooner or later, you will have another mouth to feed and be responsible for, and that extra income will be gone.
Making a budget is a real drag, and for the first few months will seem oppressive - the end of the year is a relief when looking at the cushion you have, and know the worry about missing a few days from work without pay isn't going to kill you.
If you understand that money is a tool and not a means, you can enjoy God, family and friends.
These people are doing it wrong.
ReplyDeleteHeltau
"...........it would kill them to live on what my wife and I live on."
ReplyDeleteI would wager it's not the dollar amount but more you and your wife's ability to live a happy and productive life on less than the think they "need for survival" that burns them like a five alarm fire.
Throw in that at least some of them live in a blue state/city with high taxes and fees and so forth. The price of a nice house on some land in most of the red states will buy a small fixer-upper in a place like Los Angeles or Seattle.
ReplyDelete