Why is it hard for some privileged people to realize that saving is hard?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Especially if you make barely enough to cover the bare minimum. I am honestly disgusted by people online and in real life saying that govt employees (and everyone) should have 3-6 mons of expenses saved. That's mighty hard seeing as a lot of people live check to check. If I can barely make it to payday, where is the "savings" money coming from? We don't all have surplus funds at the end of the month to put away. And 6 months of expenses? That's a lot of money when most people don't even have $1000 for an emergency.

I didn't read through the whole thread because after a few pages I see you are getting alot of shade and shaming on this. Just want to say I agree with you. These people do not know what its like to be poor or live on a razors edge. Its very self righteous of them. Yes, there are people who are poor and make bad financial decisions. And yes, they could cut out some luxuries for sure. But cutting out a starbucks a couple times a week is not going to give you 6 months of living expenses. Get a grip people! Also, when you are that on the edge, you are often one step away from crisis and any savings you have get eaten up on a regular basis. ie. you manage to scrimp together $1000 in savings. Yay. Then you have a medical problem and need some testing done that's only partially covered by your insurance, your car breaks down or needs regular maintenance, etc. etc.

I agree with you. Privileged people can be completely tone deaf and simply have no frame of reference to understand. Not everyone can just go get a loan to cover their expenses like our supreme dumbass commerce secretary Wilbur Ross suggests

Exactly. Maybe you can manage to save $1000 in a year, but that can be wiped out in one medical event, home repair, or family emergency. Not to mention, if you're living that close to the edge, it's not like you can save for retirement, a down payment, or your child's college, so EVEN IF you manage to maintain emergency savings, it's not like you're getting anywhere close to the middle class.

[Anonymous]

Anonymous wrote:All the "struggling" people I know make stupid decisions. This is THE easiest country and area to do well in.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For me, I make $18/hr. thats about $2880/month (after taxes, it's more like $2500) if I work 40 hrs a week. I don't always get 40 hrs, so this is a rough estimate.

Rent: 1200
Food: 400
Utilities: $300
Phone: $100
Internet: $50
Car Insurance: $150
Health insurance: $200
Gas: $100

That comes out to about $2500.
No, I'm not going out to eat, getting fancy coffee, or getting my nails done. I'm paying bills. I don't feel poor... I feel comfortable but if there is any type of emergency, I'll be SOL.

You can’t afford to live alone. Your rent is too high. Also if you had a roommate you could share utilities and cable. I had a rooomate until I was married. And what car are you driving? In va dh and I pay $400 every 6 months combined. We have two 2008 camrys.

I have a Civic. And a roomate won't work in a 1 bedroom. I am trying to move to a studio in this building. Studios here are only $950 so I would be freeing up some extra cash.

Get a two bedroom and a roommate. A two bedroom won’t be anything close to $2400 a month.

Er...how old are you?

[Anonymous]

Dh and I are FAR from privilege. Far.

With some luck, we saved enough to have almost 1 month of net earnings. We saved 6k on a 110k hhi. We are trying to pay student loans and holding off on retirement additions unfortunately.

We kept that 6k for a year, helps us manage our cash flow to keep it in the bank.

However, we had a couple of urgent house repairs. And have had a really hard time with seemingly all of our bills rising by $20-100. Everything. Health insurance just went up by 700....but we are getting a little help with that and it feels more like 400.

So since October, our savings has been at 2700. We’ve added back a few hundred, so now its back at 3k.

It’s hard to save. From here we:
-have to choose between continuning our big progress on student loans, or saving again. We have a low min, but the ‘tipping point’ is $750. Meaning, if we pay 750/month, the loans stay the same. Everything we can manage to pay above that will help us get out of the mess. Weve regularly been paying 30% of our net to debt. But this month it will be as low as possible.
-dh is already looking for a higher paying job. April might be a new start date, and unfortunately it’s the same salary. Better situation with growth though. Or he can keep looking.
-I’ve tried to go back to work. See threads on sahms returning. I have applied and interviewed and struggled.
-we’ve cut everything. And the bills rise. We could be a teeny bit better on groceries and restaurants, but I will say I’m literally giving that area all I’ve got. To cut back more there, would be an issue for my stress and mental health.

So f u if you think we aren’t trying to save.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The modern redefining of luxuries as necessities makes it hard to see that saving is doable for many people who claim that they can’t save a dime (while typing away on their smartphones).

+1

One word: Starbucks.

Starbucks is not the reason people don't have much leftover after paying rent, school loans, car loans, and medical bills.

It's just an example of the type of consumption that drains a lot of resources away from other more critical needs, such as an emergency fund. Why is it emblematic? Because the underlying cost of making and drinking a cup of coffee at home is an order of magnitude lower than what it costs to by ready-made coffee in the feel-good atmosphere of a modern coffee shop. People are indulging in these "experiences" throughout their work days and weekends. They pay for expensive cable TV, high cost cellular service, a closet full of clothes and shoes, a payment on a car that they could not afford in cash, the list goes on.

If you want good outcomes from life, make good life choices. Don't blame others for your own mistakes. Having good financial discipline is not a privilege.

[Anonymous]

To the PP who thinks people are spending $13,000 a year at Starbucks: I literally have never known anyone who did this. No one. Ridiculous.

I will admit I tend to buy coffee about once a month, so I'm wasting $60 a year. I also spend around $130 a year on my Netflix subscription, which replaces cable, going to the movies, and really going out for entertainment at all.

How far does $190 a year get you in place of an actual paycheck again? I mean, just think about the orders of magnitude involved, and if they're so far apart, maybe don't criticize.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The modern redefining of luxuries as necessities makes it hard to see that saving is doable for many people who claim that they can’t save a dime (while typing away on their smartphones).

+1

One word: Starbucks.

Starbucks is not the reason people don't have much leftover after paying rent, school loans, car loans, and medical bills.

It's just an example of the type of consumption that drains a lot of resources away from other more critical needs, such as an emergency fund. Why is it emblematic? Because the underlying cost of making and drinking a cup of coffee at home is an order of magnitude lower than what it costs to by ready-made coffee in the feel-good atmosphere of a modern coffee shop. People are indulging in these "experiences" throughout their work days and weekends. They pay for expensive cable TV, high cost cellular service, a closet full of clothes and shoes, a payment on a car that they could not afford in cash, the list goes on.

If you want good outcomes from life, make good life choices. Don't blame others for your own mistakes. Having good financial discipline is not a privilege.

This is very true. It’s not just Starbucks but spa treatments, weekly nail appointments, designer purses and shoes and the list goes on. And we are not talking about one time events but these small treats add up to a lot of money. It’s the “I deserve it” mentality and keeping up with the Joneses when we can’t afford it. And I speak as someone who used to be like that but had to have a major mentality change for the better. I had to make it work with several months of no pay on multiple locations. And no backpay! Just zero pay. At first it’s not easy because you feel like you were missing out but believe me, not only does that feeling pass but when you start seeing the savings you feel so much better .

[Anonymous]

Anonymous wrote:

Anonymous wrote:Especially if you make barely enough to cover the bare minimum. I am honestly disgusted by people online and in real life saying that govt employees (and everyone) should have 3-6 mons of expenses saved. That's mighty hard seeing as a lot of people live check to check. If I can barely make it to payday, where is the "savings" money coming from? We don't all have surplus funds at the end of the month to put away. And 6 months of expenses? That's a lot of money when most people don't even have $1000 for an emergency.

I didn't read through the whole thread because after a few pages I see you are getting alot of shade and shaming on this. Just want to say I agree with you. These people do not know what its like to be poor or live on a razors edge. Its very self righteous of them. Yes, there are people who are poor and make bad financial decisions. And yes, they could cut out some luxuries for sure. But cutting out a starbucks a couple times a week is not going to give you 6 months of living expenses. Get a grip people! Also, when you are that on the edge, you are often one step away from crisis and any savings you have get eaten up on a regular basis. ie. you manage to scrimp together $1000 in savings. Yay. Then you have a medical problem and need some testing done that's only partially covered by your insurance, your car breaks down or needs regular maintenance, etc. etc.

I agree with you. Privileged people can be completely tone deaf and simply have no frame of reference to understand. Not everyone can just go get a loan to cover their expenses like our supreme dumbass commerce secretary Wilbur Ross suggests

Saving money is boring. Spending money is fun. That's basically why most people don't save.

There are a lot of people - maybe even you PPs - who will say they are just getting by but when you really dive in, you find out that a lot of things that people believe they must have and can not live without aren't really necessary.

The biggest and first expense that broke people I have talked to almost always have is their car payment. I have talked to people who say they are broke and then say they have a $300+ car payment a month. It's crazy that people will convince themselves that the $300, $400 or even $500 car payment is a need. It's not. And yes, it's possible to sell that car even if it's upside down. Yes, you will still have a car payment but it will be less or will be a payment for a shorter period of time. Some people just won't do that though.

Cell phones are the second biggest expense. They are paying hundreds of dollars for no reason. They refuse to use the pay as you go phone services and there is always some really good amazing reason they must absolutely not do that.

And I can even admit that I am a person who will say that I must have something (in my case it's not a car or cell phone though) knowing full well that I don't and I am making a choice. That being said, I don't blame anyone else for that choice and fully realize that it's not a good one and I am forgoing saving to pay that expense.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You should reduce your expenses then because if that’s the case you’re only one emergency away from bankruptcy or total poverty. It’s simple math, people!

You know, you’re right. My wife shouldn’t have gotten cancer last year. I shouldn’t have gotten laid off five years ago and I certainly shouldn’t have waited eight months to get a job after that. And then, we’ll the house flooding, boy was I stupid to let that happen. I should’ve been born into a family who could pay for my college education. And most of all, I should’ve never helped my mother not get evicted in2009. Boy what an ass I am. I deserve to lose my house and my kids don’t deserve to eat.

With all due respect, PP (which is very little), f you.

You are completely missing the point.

Um, so what is the point? Let’s go back to the point of this thread.

It is the point. The Pp seems unable to follow logic. Stuff happens. We’re not all living like single healthy adults with no outside emergencies or expenses or kids and spouses. Expenses arise, and those aren’t fancy coffee drinks and material goods FFS.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Especially if you make barely enough to cover the bare minimum. I am honestly disgusted by people online and in real life saying that govt employees (and everyone) should have 3-6 mons of expenses saved. That's mighty hard seeing as a lot of people live check to check. If I can barely make it to payday, where is the "savings" money coming from? We don't all have surplus funds at the end of the month to put away. And 6 months of expenses? That's a lot of money when most people don't even have $1000 for an emergency.

Hon, I made 60k one year and saved 20k of it. I had my expenses down to 2k/mo. Ans yes, this is in the DC area. I was than a. SAHM, DH made 110k/yr (less than thr average federal worker) supporting 3 people and managed to save 25k/yr, not including 401k, so even more.

Unlike many, we know the difference between a want and a need.

It’s awesome that you were able to do that! So what about people who haven’t - should they starve?

So the people who have made sacrifices in their life to save should simply bail out people who didn't?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This whole thread is nuts. It is hard to DIY when you don’t own a house. You can’t own a house if you can’t save the money. My sister pulls together odd jobs and has no future earning potential. She pays next to nothing in rent but I know I’m her emergency plan.

Starting out, I had to drop out of college because my finances got screwed up in loans (long story) and I couldn’t get out of the debt hole for almost 10 years (and that includes living with roommates and only having a phone when needed). When my $1700 car needed a new clutch, that was a crisis I couldn’t afford. When it died, I could have lost my job if I didn’t have a miracle happen. I had a paycheck screwup (it went to the wrong office) and I didn’t have metro fare to go get it. So I walked everywhere (luckily I could walk 2 miles to work in the summer) and skipped food (not eating out, actual food, unless one of my friends shared) for 2 weeks while I waited for the check to come to the right office so I could cash it.

Friends of mine from growing up are working one underpaid job with a second job, relying on parents for child care. One is an emt, but isn’t in a position to ever buy a house. Emergencies do put them underwater.

Another family member was in a debt tailspin for medical bills. Hell, an er copay for me was unaffordable, so I didn’t pay and it stayed on my credit report (along with a hell of a lot of other bad things) for years.

In this thread, I really wonder how many people posting have ever been in any position where they ever experienced any of that.

And, when my husband was 18, no opportunity for college, he joined the military. You have options.... you just may not like them. Because of his military service, we get low cost health care for life..takes away that issue.

And here you have it, ladies and gentlemen, if you don’t want to end up homeless in America, you simply have to sign up to get your ass shot off in a war that makes billionaire traitors even richer.

What war makes which billionaires richer?

You seriously don't know that we go to war for economic reasons. Wars are a huge money maker.

Watch Ken Burns' documentary on Vietnam.

You need to educate yourself.

Google it.

You need to work on reading comprehension. Asking what PP was referring to is very different than not knowing that economic issues factor into wars. And saying that economic factors contribute to decisions to go to war is very different than saying we go to war to enrich billionaires.

You need to educate yourself. You have the time since you live off your H's good decisions.

?? What does any of this have to do with my purported husband and how his hypothetical decisions affect my life? None of anything I have written provides any information about how I live and whether it is from my own efforts or the apparent

[Anonymous]

Anonymous wrote:

Anonymous wrote:All the "struggling" people I know make stupid decisions. This is THE easiest country and area to do well in.

+1

If you have a lot of money...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For me, I make $18/hr. thats about $2880/month (after taxes, it's more like $2500) if I work 40 hrs a week. I don't always get 40 hrs, so this is a rough estimate.

Rent: 1200
Food: 400
Utilities: $300
Phone: $100
Internet: $50
Car Insurance: $150
Health insurance: $200
Gas: $100

That comes out to about $2500.
No, I'm not going out to eat, getting fancy coffee, or getting my nails done. I'm paying bills. I don't feel poor... I feel comfortable but if there is any type of emergency, I'll be SOL.

You can’t afford to live alone. Your rent is too high. Also if you had a roommate you could share utilities and cable. I had a rooomate until I was married. And what car are you driving? In va dh and I pay $400 every 6 months combined. We have two 2008 camrys.

I have a Civic. And a roomate won't work in a 1 bedroom. I am trying to move to a studio in this building. Studios here are only $950 so I would be freeing up some extra cash.

Get a two bedroom and a roommate. A two bedroom won’t be anything close to $2400 a month.

Er...how old are you?

Are you daft? A quick google search showed me 25+ 2-bed apartments in Arlington for $1800 or less a month. At a minimum that would be $400 a month into the poster’s savings account.

[Anonymous]

Anonymous wrote:It really depends on the person and priorities. We have always made it a priority no matter our income level. If you are making over $80K, you should have a few months in savings. If you are making $120+, you should have 4-6 months minimum.

Same.

We still live in the house we bought when our income was 150k. It is now 750k.

Don’t let lifestyle creep happen.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:All the "struggling" people I know make stupid decisions. This is THE easiest country and area to do well in.

+1

If you have a lot of money...

I know a young woman who several years ago was on her own, struggling with money problems. She wanted to go to graduate school but couldn’t afford it. She started walking dogs to help make ends meet. She went about it intelligently, taking every job that came her way and going out of her way to accommodate her customers. She took some of the money she earned and invested it in a web presence. She expanded her services and over a couple of years because a thriving small business owner. Started graduate school and took on a couple of employees. One of those employees took care of my dog in the fall because the woman who started the business was taking a well deserved post graduation vacation to Asia. She didn’t have parents paying for that trip; she was scrappy and smart and made something out of nothing.

You don’t need “a lot of money” to start taking the steps to improve your financial future.