Living paycheck to paycheck is getting harder

[DSTCHAOS]

It's good that it's getting harder. People who didn't need to live paycheck to paycheck were doing so and getting really comfortable in that. Then they had the nerve to present their material possessions as some sign of social class or "wealth." Sure, you have a nice car and new clothes, but you only have $500 in the savings account. Not a good safety net in case something happens. And don't dare have the nerve to get social services. The social services should've been you trading in that car and not buying those nice new clothes. People are spending on borrowed money and spending before they even get their paychecks. This consumerism has been feeding capitalism for decades.

Being poor sucks whether you're an underemployed adult or a student. Take some time to learn about investment opportunities or anything that can make your money work for you. This doesn't mean that everyone will be successful in getting out of poor status. 90% of people won't. But it means that the people with access to the info can learn and see what the outcome is.

[DaemonSeid]

Originally Posted by DSTCHAOS

It's good that it's getting harder. People who didn't need to live paycheck to paycheck were doing so and getting really comfortable in that. Then they had the nerve to present their material possessions as some sign of social class or "wealth." Sure, you have a nice car and new clothes, but you only have $500 in the savings account. Not a good safety net in case something happens. And don't dare have the nerve to get social services. The social services should've been you trading in that car and not buying those nice new clothes. People are spending on borrowed money and spending before they even get their paychecks. This consumerism has been feeding capitalism for decades.

Being poor sucks whether you're an underemployed adult or a student. Take some time to learn about investment opportunities or anything that can make your money work for you. This doesn't mean that everyone will be successful in getting out of poor status. 90% of people won't. But it means that the people with access to the info can learn and see what the outcome is.

To what DSTCHAOS just said....

This gets me to thinking about one of my s.o.'s co workers who just bought a house for about 400K...got upgrades which pushed the price to 700K

Then......

After moving in, she obtained a 4K plasma TV a 1K LCD for her daughter and a 2K TV for the master bedroom.

**I say 'obtained' because she is still paying for these items...*

She got a new car with all the amenites including OnStar or whatever it is that people use to get in-car help

She also has a Denon sounsystem which ran upwards to 800 bux and subwoofer which was at least 300....called me to drive a 1/2 down there to hook it all up.

Meantime, she has 3 kids (her husband and thier 2 children), can't cook....

and already has creditors coming after her.

Part of the issue with people living check to check is that no one really saves money. People spend beyond thier means when they don't have to.

I have gotten to a point within the past few years that I am being more consious of what I am saving vs spending and if I don't need it, I can skip it.

Even lunches during the course of the workday....you save more by sometimes making your own meals and taking to work with you vs spending 5 or 10 bucks for a less than satisfying lunch.

You can do more with less especially if you put some of it away.

Anyone here got retirement plans?

[AlethiaSi]

Originally Posted by DSTCHAOS

It's good that it's getting harder. People who didn't need to live paycheck to paycheck were doing so and getting really comfortable in that. Then they had the nerve to present their material possessions as some sign of social class or "wealth." Sure, you have a nice car and new clothes, but you only have $500 in the savings account. Not a good safety net in case something happens. And don't dare have the nerve to get social services. The social services should've been you trading in that car and not buying those nice new clothes. People are spending on borrowed money and spending before they even get their paychecks. This consumerism has been feeding capitalism for decades.

Being poor sucks whether you're an underemployed adult or a student. Take some time to learn about investment opportunities or anything that can make your money work for you. This doesn't mean that everyone will be successful in getting out of poor status. 90% of people won't. But it means that the people with access to the info can learn and see what the outcome is.

ya know, to a certain degree, you are right. However, like daemonseid said, i try to take my lunch to work, don't make unncessary purchases... etc. but its just not enough, i can't even put 50 dollars into a savings account each month. I would love to save or have an investment strategy, but i just can't.
I did have a second job, as a waitress, the restaurant closed b/c they didn't have enough money to make it through the slow summer season. I currently have a few more job prospects, but there really is nothing, and i've gone to places, craigslist, the paper, etc...
It's just not working right now. Luckily, I have an education and plan on continuing it, I feel terrible for those that don't or can't.

[DSTCHAOS]

Originally Posted by AlethiaSi

ya know, to a certain degree, you are right. However, like daemonseid said, i try to take my lunch to work, don't make unncessary purchases... etc. but its just not enough, i can't even put 50 dollars into a savings account each month. I would love to save or have an investment strategy, but i just can't.
I did have a second job, as a waitress, the restaurant closed b/c they didn't have enough money to make it through the slow summer season. I currently have a few more job prospects, but there really is nothing, and i've gone to places, craigslist, the paper, etc...
It's just not working right now. Luckily, I have an education and plan on continuing it, I feel terrible for those that don't or can't.

My post was about the consumer economy and those who are content with being broke and flashy. You're obviously not one of those people.

And never say "can't." That is defeatist. Like you said you have an education so there is always light at the end of the tunnel. Until you fully see that light, continue to put away a few dollars every month. You probably don't have health insurance and have not begun investing some money because you have low bank account balances and so forth. The turn around will be slow but small changes lead to big things. That's what my 2nd paragraph was about.

[AlethiaSi]

Originally Posted by DSTCHAOS

My post was about the consumer economy and those who are content with being broke and flashy. You're obviously not one of those people.

And never say "can't." That is defeatist. Like you said you have an education so there is always light at the end of the tunnel. Until you fully see that light, continue to put away a few dollars every month. You probably don't have health insurance and have not begun investing some money because you have low bank account balances and so forth. The turn around will be slow but small changes lead to big things. That's what my 2nd paragraph was about.

true, i guess i get defensive b/c I am going through such a hard time right now. thanks for the advice

[DaemonSeid]

Originally Posted by AlethiaSi

true, i guess i get defensive b/c I am going through such a hard time right now. thanks for the advice

ditto to what DSTCHAOS said...

insurances are going up and the general populace is going broke because of it but you get it because you need it...a nice portion of my money is going to my retirement fund...and one startagey for me is when I get paid....pay all my bills first...then put a nice amount into my saving and then what I got left is "play" money and even then I pinch because I haven't a need to be flashy....

You know what else slays me....people who have to tell me how much they spent on something and then in the same breath have the nerve to ask for a 'small loan'.

I remember a few years back, an associate of mine got a hummer..whupde flippin' doooo.. offered me and a few of our friends a ride and then had the nerve to ask everyone to contribute for gas.

On another point....

A friend of mine every other year comes up with these business schemes

One year it was an independent IT thing similar to Geek Squad

Another year it was a mentoring program

This year it was bus trips to Atlantic City....problem is, with all these ideas, he wants to go grandiose with them. For instance with the bus trip idea, he wanted to get high end buses with DirecTV and DVD players and so forth and try to do 1 trip every 2 months. he wanted me to find a DJ (for what?) and get bus catering.

The sad part is that he probably could make some money on the side from some of these ideas but he is just too cheap to invest his money. You can't dream grandiose and be cheap in real life.

The thing of it is...we may be all living from check to check but we also have to know when you decide to step out a little bit, you can't be cheap about it either...invest only if you plan on putting work into it but also if you are making money back also.

[Educatingblue]

Originally Posted by AlethiaSi

ya know, to a certain degree, you are right. However, like daemonseid said, i try to take my lunch to work, don't make unncessary purchases... etc. but its just not enough, i can't even put 50 dollars into a savings account each month. I would love to save or have an investment strategy, but i just can't.

I think we are in the same boat. Luckily, my husband and I both have our graduate degrees and good jobs with insurance, 401K, retirement etc. Even with a *plan* to put money away every month, it is still difficult to save.

I agree with bringing your lunch to work to save money and eating out less. We definitely eat out a LOT less now that gas is so high and try to stretch our weekly groceries as far as possible.

As many others have said, the key to not overextending yourself is avoiding unnecessary purchases and not being so quick to jump on a *sale*.

[Coramoor]

I think that sometimes people get confused with what is a necessity and what is a luxury.

A car is a luxury. Starbucks is a luxury. A cell phone and internet are luxuries.

I have friends that are ALWAYS broke. However, whenever they find what they *think* is a deal, they buy it. On credit. And then wonder why they don't have money.

I blame it on rap and MTV.

[AGDee]

All cars are not luxuries, some are. A brand new $30,000 SUV with leather heated seats= luxury. A $9995 two year old Chevy Aveo with windows you roll down manually and no power locks= necessity. I drive the latter. When I got it, my (then 10) year old son kept ranting about the "Low tech" car... lol. He had never had to roll windows down manually before.

Ok, I've been pretty financially comfortable (while married, two incomes) and have had it get tighter and tighter every year since my divorce. Since the divorce, between insurance, taxes and interest rates, the mortgage payment has gone up $450 a month. My income? It's gone up 2-3% a year.. which doesn't add up to $450 a month. The utilities have gone up, gas for the car has gone up, the cost of my benefits has gone up. I have had to tighten the belt a little more every year. I'm taking home less money each year too, because of the higher cost of the benefits. The longer I work, the less money I make. That makes it tough to stay ahead.

I do have a retirement fund through work, and a very small pension benefit. I'm planning to start investing more next year for my retirement so I can actually retire someday. I've learned all kinds of tricks to save money .. from taking lunch to work every day, to freezing LOTS of food so that I don't throw as much away, to learning all kinds of things that can be made from ground beef/turkey. We never eat out anymore, unless it's the dollar menu at Wendy's or Taco Bell, because I feed the kids cheap then. Oh yeah, and on those days, I generally skip dinner. I shop the sales, buy the generics and buy our clothes at cheap places like the Old Navy outlet and, for my son, Walmart. I can clothe that kid for an entire season for $120 there! The 13 year old girl is more expensive. Both kids are in braces.. luxury? Depends on who you ask. Payments for those are done in January and I'm going to feel rich after two years of payments to the orthodontist. It's definitely NOT easy. Things are changing for us, through difficult circumstances, but my first priority is going to be to eliminate debt, second priority, save money. I am actually going to do what they recommend and have 6 months salary in savings. It is a big relief.

I have co-workers who make a lot more than me and who have husbands who have make twice as much as me, so they are making more than three times my salary. They complain about being broke. I sit at lunch and listen to them talk about how broke they are while they're living in huge houses with new vehicles and wear all designer clothes. Sometimes I want to go off on them. One of them even gets all ticked off when we get our annual bonus (usually around $350 after taxes) because "they give us so little, they might as well keep it". I have told her that I'll take hers if she doesn't want it! That's' a lot of money to me!!!

Reality is, we, as a society, spend what we make. I'm not going to be one of those people anymore and I'm so glad.

[Coramoor]

Originally Posted by AGDee

Reality is, we, as a society, spend what we make. I'm not going to be one of those people anymore and I'm so glad.

True that! I college, $20 and bar specials would last me all week. Now...$20 might buy a drink or two at the first stop of the night.

If it wasn't for the tax benefits...I really don't even know if I would save for retirement. I plan on working for the rest of my life. I know I would get bored as hell doing nothing. I do like the idea of mini-retirements. Working for a few months, and then taking a few months off to do my own thing.

[AGDee]

Sometimes I think my retirement will be a retirement from my career, but not from working. There are lots of littler, less stressful jobs I'd like to do someday. However, I do suggest planning for retirement anyway because your health may not allow you to keep working.