And I thought MY money handling was bad!

Viper GTS

Lifer
Oct 13, 1999
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Guy I sit next to has two incomes. Between him & his wife, they're making over $46K a year. They pay $550 a month rent, $400 for child care, $265 for their car payment, $125 for phone/DSL, & $100 for his wife's car insurance. He doesn't have a license or insurance, because of $2,500 worth of fines on his DMV account. They have thousands in credit card debt, & are constantly broke.

WTF is wrong with these people? That's a crapload of money for their level of expenses, yet they're blowing it all. He thinks most of the "extra" goes for junk food & things they don't need.

Damn, damn, damn!

Viper GTS
 

perry

Diamond Member
Apr 7, 2000
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<< things they don't need. >>




like computer parts.........

46k a year really isn't THAT much.
 

extra

Golden Member
Dec 18, 1999
1,947
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remember those painkillers you were on? maybe he's...oh, nevermind..hehe
 

Viper GTS

Lifer
Oct 13, 1999
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My parents have supported our family of 5 off of a single income that topped $40,000 for the first time ever last year. During that time, they bought &amp; paid off a house, &amp; stayed debt free until last year. Last year we went $140,000 in debt to pick up my grandma's house when she died, since we inherited 1/3 of it &amp; the other two parties didn't want it. Other than that loan, they have no debt. The house they bought is currently on the market for more than enough to cover what we owe on the second house. They also got me 170 credits of college, home-schooled my brother &amp; sister, &amp; started my sister in college this year. All while remaining debt-free.

It's VERY possible to live off that income.

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Eeks

Senior member
Dec 8, 1999
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Yeah for two people, split that in two and thats less than the GDP per a capita.
 

Praetor

Diamond Member
Oct 14, 1999
4,499
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It all (obviously) depends on how they live. I could get by on that quite nicely, even WITH my debt. (heheh, I just had to have those new parts) If they're buying bigger 'n better stuff everyday, then sure, they'll burn through it like it was paper.

Oh, wait. It is...
 
Apr 5, 2000
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What Viper is saying...

My dad only made around $25000 a year, he's had that job since '79, and has supported a family of 5 for 21 years off of it. We paid off our house, bought a 79 Cutlass (new), 86 Buick Century (new), a 88 Oldsmobile Delta (new), 90 Aerostar van (new), 2 88 Honda Accords (used), and for my sister a 00 Civic EX. We've never been financially unstable, we invest most of the money into mutual funds and bonds. We've lived comfortably and still are, even though my dad lost his job because his company decided he was expendable back in July.
 

reitz

Elite Member
Oct 11, 1999
3,878
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Some people just can't be responsible when it comes to their finances. My brother and sister-in-law got themselves in serious trouble with credit card debt when he was stationed in Korea. They are now making a combined $70k/year, and have less disposable income than a couple earning half that.
 

Windogg

Lifer
Oct 9, 1999
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Hats off to your parents Viper. They are obviously very good at managing their finances. I guess many people that say its not alot come from areas where the cost of living is much higher. $550 wouldn't even get you a studio here is Taxichusetts.

Windogg
 

Pretender

Banned
Mar 14, 2000
7,192
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Congratulations Viper, you've found someone who can't control money. What do you want an olympic medal?
 

Viper GTS

Lifer
Oct 13, 1999
38,107
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Pretender...

Hell, I can't control MY money as well as I should. But it's amazing to me that they're blowing ~$1600 of extra income each and every month. Granted, that has to include food costs, but even if you give them a generous $600 for food they could be out of debt in under a year.

For a grown couple with kids to act this way is ridiculous.

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GL

Diamond Member
Oct 9, 1999
4,547
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What city did they live in? Up here in Toronto it's f*ckin expensive as hell. Rent for a half decent place is about $1500 a month, child care is about $1200 a month, gas is at 79 cents per litre, cars are 1.5 times as expensive as they are in the U.S. (relatively). If he lives in any major city I could honestly see his problems as being perfectly justified.

-GL
 

Russ

Lifer
Oct 9, 1999
21,093
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Viper,

Welcome to what the average family is like. Count yourself lucky that you were raised by an extraordinary set of parents.

Russ, NCNE
 

sandmanwake

Golden Member
Feb 29, 2000
1,494
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Out of curosity, do you know how well off they were when they were growing up? My parents were dirt poor and had nothing as kids, now that they've got jobs and some money, they can't manage money worth a crap. It seems to me that in that aspect, they're like little kids always buying junk that they don't need or things that they need, but that are more expensive or nicer than necessary. Image is everything to them. It sort of pisses me off too since I'm paying for college myself and they earn enough so that I don't qualify for need based finacial aid, yet really they've got less than me in the bank and I'm a full time college student. I guess growing up with them always complaining on why they're always in debt among other things made me more disciplined than them when it comes to managing my finances and such matters. Doesn't mean I don't splurge once in a while, but come on, when your full time college kid has more cash than you in the bank is pathetic. Oh and before anyone suggest I have a talk with them about it, I'm one of these Asian kids who &quot;don't supposed to know any better than my elders,&quot; so I should only nod my head when they're speaking to me and not have any opinions that might contradict theirs. Trust me, talking is not big in my family.
 

Viper GTS

Lifer
Oct 13, 1999
38,107
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Napalm...

Why do I think my money handling is bad?

For the last 10 months, I've brought home $1,300 a month. I pay $400 rent to my parents, typically $150 - 250 phone bill, $25 ISP, &amp; $40 for transportation costs. That's a MAX of ~$725 for expenses before food, &amp; I've been spending around $200/month on food. That should leave me a good $500 minimum a month that's extra. I have a grand total of $1,600 in the bank. Not good. Better than some people my age, maybe, but still not good.

GL...

He told me what his costs were for rent, child care, etc. He kept saying &quot;It adds up fast.&quot; I kept think to myself that it doesn't add up nearly as fast as it should to blow $46K a year.

Russ...

I guess I know that, but I find it hard to believe that anyone could live like that. Living in fear of being pulled over by the cops 'cause you have no license or insurance. Not being able to pay your DMV fines for fear of being evicted if you can't pay your rent. And making $46K a year when there are people where I work supporting their wife &amp; 2 kids on the same income I make. It's really, really sad. No wonder people are in as bad shape as they are financially.

sandmanwake...

Neither came from a well-to-do family. Image is nothing to them, they get by on what they need &amp; only what they need. My dad drives a 1983 Toyota Tercel SR5, &amp; my mom drives a 94 Taurus wagon. My hair has always been cut at home, they rarely eat out, &amp; I can't EVER remember them going out on a &quot;date.&quot; While I admire their financial wisdom, I can't help but think there's got to be a balance somewhere.

Viper GTS
 

Viper GTS

Lifer
Oct 13, 1999
38,107
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Sorry, I was afraid I'd do that.

Basically they don't spend any more than they have to. Just off the top of my head, I can think of things like:

- the ones I already mentioned (home haircuts, rarely eating out, old(er) cars)
- My mom has always had a garden &amp; cans food from it. We buy peaches &amp; pears when they're in season &amp; can them.
- All meals are made from scratch. We've never had food delivered in my life.
- We've NEVER had cable TV, &amp; had a 10&quot; B&amp;W until we picked up a 12&quot; color that was sold as the monitor to an Atari we bought WAY back when. We have a 19&quot; now, only because that's what my grandma had. Otherwise we'd still be using the little one.
- No extravagant gifts. For my 10th birthday or so, instead of a new bike I got two beat up ten-speeds &amp; a toolbox full of new tools. I built myself a bike. Which I loved, 'cause I knew how to work on them after that.
- Very limited use of credit cards, paid off in full at the end of the month.
- No child care necessary, 'cause my mom stayed at home.

That's the main stuff I can think of. Just being frugal, almost to point of being painful. Some of the stuff they do drives me nuts. But the end result is they have no debt, save for the house, &amp; have extroardinary credit. Once they sell the house, they'll have around $300,000 worth of property that they own. Which isn't too shabby.

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KidViciou$

Diamond Member
Oct 9, 1999
4,998
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hmmmm, some stuff i dont know how you could survive without growing up in america, namely the tv :p

how do they can food though? i wouldnt mind doing that at my house
 

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Lifer
Oct 13, 1999
38,107
433
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Long process. Basically you peel &amp; cut the fruit/vegetable/whatever, pack them into jars, fill them with boiling water, put lids &amp; rings on them, &amp; cook them in a pressure cooker for like 15 minutes. Repeat that process 20 times.

;)

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