Safeway
Lifer
- Jun 22, 2004
- 12,075
- 11
- 81
Originally posted by: Eli
<div class="FTQUOTE"><begin quote>Originally posted by: Safeway
<div class="FTQUOTE"><begin quote>Originally posted by: MrChad
<div class="FTQUOTE"><begin quote>Originally posted by: purbeast0
<div class="FTQUOTE"><begin quote>Originally posted by: multiband8303
you guys are lucky.....</end quote></div>
I like to call it ... financially smart.</end quote></div>
To be fair, luck has something to do with it. People can rack up debt when they lose their job unexpectedly or have massive medical bills. Being fiscally responsible is a big part of staying (relatively) debt free, but there is a little bit of luck involved too.</end quote></div>
No, it is smart financial planning. A smart person would have an emergency savings of at least 3-months salary to prevent going into massive debt if they are laid off.</end quote></div>Easier said than done. Such things are nearly impossible for those that work paycheck to paycheck.I know how it is. Hopefully I'll be able to get out of that cycle with this new job. :thumbsup:
That isn't true in my opinion. When a person is living paycheck-to-paycheck, they are living beyond their financial ability. I know a single parent mother, three children that saves at least 5% of every paycheck. If you save it and never let yourself use it, you begin to forget about it. If you want to save, you can. You may have to sacrifice movies and eating out, but you can. There is always money to save.
ah, i just got myself in some after i was almost out!
(new car)
about 15k left on the car...
about 800$ in CC's
nothing outrageous, CC's will be paid off momentarily.
(new car)
about 15k left on the car...
about 800$ in CC's
nothing outrageous, CC's will be paid off momentarily.
I went through school - had some legal issues (see my background check) and was out of work for quite some time... I know I am an idiot, and can only try my best.
- Oct 28, 1999
- 62,484
- 8,345
- 126
Originally posted by: Safeway
<div class="FTQUOTE"><begin quote>Originally posted by: Eli
<div class="FTQUOTE"><begin quote>Originally posted by: Safeway
<div class="FTQUOTE"><begin quote>Originally posted by: MrChad
<div class="FTQUOTE"><begin quote>Originally posted by: purbeast0
<div class="FTQUOTE"><begin quote>Originally posted by: multiband8303
you guys are lucky.....</end quote></div>
I like to call it ... financially smart.</end quote></div>
To be fair, luck has something to do with it. People can rack up debt when they lose their job unexpectedly or have massive medical bills. Being fiscally responsible is a big part of staying (relatively) debt free, but there is a little bit of luck involved too.</end quote></div>
No, it is smart financial planning. A smart person would have an emergency savings of at least 3-months salary to prevent going into massive debt if they are laid off.</end quote></div>Easier said than done. Such things are nearly impossible for those that work paycheck to paycheck.
That isn't true in my opinion. When a person is living paycheck-to-paycheck, they are living beyond their financial ability. I know a single parent mother, three children that saves at least 5% of every paycheck. If you save it and never let yourself use it, you begin to forget about it. If you want to save, you can. You may have to sacrifice movies and eating out, but you can. There is always money to save.
If you are making $15 an hour, that 5% is about $25 a week, or around $1200 a year. If the transmission in your car craps out that's your years savings wiped out.
Home Mortgage: 120k "debt"
Student Loans: 15k
Credit Card: Was around 15k - now down to nothing
Interest free loans: Around 4k over the next few years - I always pay those off.
Money I owe my mom: 6k
No car loans - I don't believe in taking out money for a car unless you absolutely have to.
Student Loans: 15k
Credit Card: Was around 15k - now down to nothing
Interest free loans: Around 4k over the next few years - I always pay those off.
Money I owe my mom: 6k
No car loans - I don't believe in taking out money for a car unless you absolutely have to.
MrChad
Lifer
- Aug 22, 2001
- 13,507
- 3
- 81
I hope this new job works out for you and you can turn your financial situation around. I'm guessing that you're still young. Just be smart with your money; pay down your high interest debt first, then start building a safety net (savings account) and a retirement plan.
I've recommended it here before, but Andrew Tobias' The Only Investment Guide You'll Ever Need has some great tips on being smart with your money.
Well I know I'm not a big baller making 6 figures like the majority of ATOT, but here in ND I was only making $30k a year, now Im moving to Minneapolis, making double that starting @ $60k and working up to $75k by the end of the year.... I know that isn't a lot to most people on here. But for me, that's plenty and maybe by the end of this year, I can eliminate that debt - but moving itself is going to be expensive, and new furniture, etc, etc. Maybe I am just an idiot, I don't know, but I hopefully learned my lesson.
no CC, no car payment, only student loans, about 40k. I throw everything i make into savings. Almost 60% of my pay is currently going into some form of savings (IRA, 401k, ING, mutual funds, etc.)... yay for living at home!
not really, prior planning can avert any of those situations such as saving up 2 months/3months of living expenses in savings pending disasters. I guess you could say luck has a small part of it but I would say overall most people in a large amount of unsecured debt have huge medical issues or bills or are basically fiscally unresponsible or frivolous spenders
kranky
Elite Member
- Oct 9, 1999
- 21,019
- 156
- 106
Actually, I think it's good that you aren't comfortable with $7k in debt. At least you're aware of it. I just read a story on another forum yesterday where the poster wrote this:
I have a couple months to go until I have no debt and I will be the first to admit I am fortunate that I never had a serious period of unemployment or medical problems that kept me from working. I know plenty of people just can't get ahead because of circumstances beyond their control - but it kills me to see people get deep in debt when they could have EASILY avoided it by not blowing it all.
I have a couple months to go until I have no debt and I will be the first to admit I am fortunate that I never had a serious period of unemployment or medical problems that kept me from working. I know plenty of people just can't get ahead because of circumstances beyond their control - but it kills me to see people get deep in debt when they could have EASILY avoided it by not blowing it all.
CPA
Elite Member
- Nov 19, 2001
- 30,322
- 4
- 0
house: 340K
pool: 39k
car 1:26k
car 2: lease
timeshare: 7k
cc debt: 64k (buying a business will do that to ya)
But, I don't sweat it. My wife and I both contribute to our 401ks, I contribute monthly to my 4 kid's stock accoutns, I have enough savings for 3 months, have two 750k life insurance policies and I'm rather young still and still on my way up.
pool: 39k
car 1:26k
car 2: lease
timeshare: 7k
cc debt: 64k (buying a business will do that to ya)
But, I don't sweat it. My wife and I both contribute to our 401ks, I contribute monthly to my 4 kid's stock accoutns, I have enough savings for 3 months, have two 750k life insurance policies and I'm rather young still and still on my way up.
<div class="FTQUOTE"><begin quote>Originally posted by: vi_edit
If you are making $15 an hour, that 5% is about $25 a week, or around $1200 a year. If the transmission in your car craps out that's your years savings wiped out.</end quote></div>And that is being generous.
People that work paycheck to paycheck don't make $15/hr....
Hopefully pulling in more hours works out for me, otherwise I will join the masses that have a second job just to make it.
Not that it isn't my fault - I obviously spent the money that got me into this situation. It still sucks, though.
I'd be sitting fairly pretty if I didn't have any CC debt. My CC debt is only around $4,000 though. The rest is the car, and a fixed personal loan that I got around the beginning of the year.
The CC debt accounts for about 200$/mo in debt repayment bills. Ouch.
If you are making $15 an hour, that 5% is about $25 a week, or around $1200 a year. If the transmission in your car craps out that's your years savings wiped out.</end quote></div>And that is being generous.
People that work paycheck to paycheck don't make $15/hr....
Hopefully pulling in more hours works out for me, otherwise I will join the masses that have a second job just to make it.
Not that it isn't my fault - I obviously spent the money that got me into this situation. It still sucks, though.
I'd be sitting fairly pretty if I didn't have any CC debt. My CC debt is only around $4,000 though. The rest is the car, and a fixed personal loan that I got around the beginning of the year.
The CC debt accounts for about 200$/mo in debt repayment bills. Ouch.
I live in st. paul, no offense but north dakota is a windy pile of crap state so welcome to mn! What specific field?
- Oct 28, 1999
- 62,484
- 8,345
- 126
Originally posted by: Eli
<div class="FTQUOTE"><begin quote>Originally posted by: vi_edit
If you are making $15 an hour, that 5% is about $25 a week, or around $1200 a year. If the transmission in your car craps out that's your years savings wiped out.</end quote></div>And that is being generous.
People that work paycheck to paycheck don't make $15/hr....
I was originally going to say $8 an hour but then saw his post about "go find a better job" and doubled the rate to $15 to make a point.
A lot of people would kill for $15 an hour. Even 5% of that annual wage doesn't go very far at all.
What about those who sacrifice a trip, car, big screen television for an emergency fund?
If you work in a volatile sector where you could lose your job easily and it would take some time to find another, I think this would be essential before even having children or dependents of sorts.
Life can give you unexpected troubles, but often times it is preparation and not luck that sees others on top when all is said and done.
It isn't fun (to save) but you give to get. It all depends on how much risk you are willing to take on.
IT - Network Administrator....I know I'm not exactly making the big money compared to other people in the area... but you do the math - I think I made the right choice, but as you can see I am an idiot as judge by the amount of debt I am in.
Yes, ND sucks. I won't miss it, one bit. Except my family.
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