Thinking about something someone said to me... (regarding finances)

[Demon-Xanth]

I'm currently living with my parents, almost have all my loans (mainly student loans) paid off, and I was talking to my sister how my cousin was paying $1100 between him and two roomates to share a two bedroom apartment, and how I couldn't see a lot of people paying that for rent. She said something to the effect of:
"You just don't like to live strapped, that's why you'll never live on your own".

It made me wonder, why do people HAVE to live strapped? Why is it expected that people live at the limit, and often beyond the limit, of thier means? Why is saying "I have $100 to spend as entertainment and extras this month and I won't go over that" an indicator that you're a cheapskate?

for the record: I had $10k saved up for a house, and lost most of it when the stock market went to hell, I'll have paid off $25k worth of student loans in a total of 5 years, and my car in a total of three one year from now. I have the 401k thing going, and figure that I can have the $30k I estimate it will cost to move into a house in less than 3 years. (down payment+moving in expenses). I don't want a 5 acre ranch. That's what I live on now, it's a lot of work to maintain. Just a place with atleast two bedrooms, a bathroom, kitchen, and garage in a neighborhood that's not overly anal about how you live. (ie: complex that I know of where you can have your garage open for 30 seconds at a time max). One of my key goals in life is to live WITHIN my means.

I've seen what my family did right, and what they did wrong. And to me, blowing $5000 when you couldn't is a mistake, not a virtue. And maintaining $1000 in the bank balence incase something major pops up is a sign that you're prepared, not being a scrooge.

Edit: clarified topic.

 

[Kevin]

Do they sell houses for $30K?

 

[her209]

Originally posted by: Kevin
Do they sell houses for $30K?

Maybe refridgerator boxes.

 

[FoBoT]

sounds like you know what you are doing
don't change your plan

 

[TommyVercetti]

Because our general culture revolves around materialism and freedom. Most people associate living on their own and blowing off all their money with freedom. We have to spend all that we make, and someone not doing that is unamerican.

 

[Demon-Xanth]

$30k is just the downpayment and the cost to move. I'm expecting a good house to run about $250,000.

 

[Kevin]

I was raised to be conservative I guess. Never buy what you can't afford, always pay off the credit card every month and save for the future. Maybe 2 years ago I finally realized that many people live paycheck to paycheck or everything is on credit. It was kind of a rude awakening...

 

[gopunk]

Originally posted by: her209

Originally posted by: Kevin
Do they sell houses for $30K?

Maybe refridgerator boxes.

or in really poor areas. there's a place like that in WA

 

[Cyberian]

Originally posted by: Kevin
Do they sell houses for $30K?

$30k I estimate it will cost to move into a house in less than 3 years. (down payment+moving in expenses).

 

[gopunk]

people that say stuff like that always seem to be kind of jealous you have more money and dont' have to worry, imo

 

[Cougar]

I dunno...I guess 'cause it's the American way to live in debt and paycheck to paycheck. I don't see anything wrong with actually saving up to put a down payment on a house and paying off all your debts before you move out.

 

[Kevin]

Originally posted by: gopunk

Originally posted by: her209

Originally posted by: Kevin
Do they sell houses for $30K?

Maybe refridgerator boxes.

or in really poor areas. there's a place like that in WA

Where I live, townhouses sell for like $200K. I figured you could get one a hell of a lot cheaper somewhere else in the country...

 

[SuepaFly]

I think part of it is that many people do not have the option to live with their parents while they pay off bills and such. The reason may be that their parents won't let them, or they can't, or employment reasons lead them to a different area.

There's nothing wrong living strapped. My definition of strapped is that you take the debt and make the sacrifice with a plan and a goal to have things work out in the end. Thats what some people are lacking. 1100 for 3 people in an apartment is nothing. It depends on where you live.

 

[Shockwave]

People live strapped because starting off is hard and msot dont have the luxury of living with parents but are forced to do it on there own without such assistance. And its that simple. You'll never understand this though, nor the mentality of why people live the way they do.

 

[gopunk]

Originally posted by: SuepaFly
I think part of it is that many people do not have the option to live with their parents while they pay off bills and such. The reason may be that their parents won't let them, or they can't, or employment reasons lead them to a different area.

There's nothing wrong living strapped. My definition of strapped is that you take the debt and make the sacrifice with a plan and a goal to have things work out in the end. Thats what some people are lacking. 1100 for 3 people in an apartment is nothing. It depends on where you live.

yea, around here, that's a really good deal.

 

[Demon-Xanth]

The person who said this was my sister, who ended up marrying a guy that already was established. She had made the decision to move out with a bunch of roomates and ended up getting screwed because of it (ie: they didn't pay the phone bill that was in her name). I understand that some people HAVE to live strapped, but why should I be expected to do the same when I have the option of not doing it? I don't want to do the roomate thing because it's not any better than what I have now (I do pay rent), I'd be no closer to having a place of my own.

 

[AndrewR]

There are a lot of people who don't save and don't prepare for eventualities, like someone we just heard of who had a $250,000 home that burned down -- they had ZERO insurance on it! I think it's just that many people don't look too far ahead and would rather have a nice car now than security for later.

 

[Shockwave]

Originally posted by: Demon-Xanth
The person who said this was my sister, who ended up marrying a guy that already was established. She had made the decision to move out with a bunch of roomates and ended up getting screwed because of it (ie: they didn't pay the phone bill that was in her name). I understand that some people HAVE to live strapped, but why should I be expected to do the same when I have the option of not doing it? I don't want to do the roomate thing because it's not any better than what I have now (I do pay rent), I'd be no closer to having a place of my own.

Theres nothing wrong with it if you have other options. Its ismply some people dont have the option you have. Try handling a rent payment, car payment, all accompanying bills (Student loans, insurance, utilities, living expenses, some party money) and still trying to save up for a down payment on a house. Becomes a bit more difficult.

 

[sygyzy]

I don't quite follow your post Demon. What is your point? Are you trying to ask why people don't live at home? Or are you asking why people live with such high expenses?

Did it occur that maybe some people don't really make that much? Maybe they really don't buy that many needless thing but they are still barely getting by.

Like Shockwave said, not everyone has that luxury.

 

[gopunk]

Originally posted by: Shockwave

Originally posted by: Demon-Xanth
The person who said this was my sister, who ended up marrying a guy that already was established. She had made the decision to move out with a bunch of roomates and ended up getting screwed because of it (ie: they didn't pay the phone bill that was in her name). I understand that some people HAVE to live strapped, but why should I be expected to do the same when I have the option of not doing it? I don't want to do the roomate thing because it's not any better than what I have now (I do pay rent), I'd be no closer to having a place of my own.

Theres nothing wrong with it if you have other options. Its ismply some people dont have the option you have. Try handling a rent payment, car payment, all accompanying bills (Student loans, insurance, utilities, living expenses, some party money) and still trying to save up for a down payment on a house. Becomes a bit more difficult.

i think he's just saying his sister is being retarded because she gets pride from making herself suffer needlessly.

 

[element]

I've seen what my family did right, and what they did wrong. And to me, blowing $5000 when you couldn't is a mistake, not a virtue. And maintaining $1000 in the bank balence incase something major pops up is a sign that you're prepared, not being a scrooge.

Maintain only $1000 in the bank? Dood you're supposed to maintain at least 6 months worth of salary in the bank in case something happens and you gotta live jobless for a while. Any financial advisor worth their salty scooby snacks will tell you that.