Anonymous
11/19/2015 06:59
Subject: What percent of people you know do you think are in debt/paycheck to paycheck?
Mortgage broker here. Given these responses you'd be suprised at the reality of how many people are not living paycheck to paycheck. I look at every aspect of people's finances and in this area, middle/upper income people are quite conservative with their money. Even the ones buying luxury cars. People with solid 401ks, solid savings, and investments. Not sure what demographic you are speaking of, bit of course the poor and lower income folks are going to be living check 5o check, but this is not the case with higher income people in this area, foe which there are many.
Anonymous
11/19/2015 06:38
Subject: What percent of people you know do you think are in debt/paycheck to paycheck?
I would say it's 50-50 among my peers. And no, no one is truly poor. I'm talking more financially irresponsible, at least by my own standards (and I'm not saying everyone has to live by my standards).
I'm mid-30s and there are plenty in my friend group with no credit card debt, no loans other than mortgage, boring small house with no renos, solid e-fund and retirement. I think many in the late Gen X/early Y group are actually very conservative, sometimes to their detriment.
And then there are those who think nothing of going into cc debt for a nice vacation or whatever else. I will say, sadly, these tend to be the single party girls who are basically waiting for a man to come along and pay it all off for them.
I'm mid-30s and there are plenty in my friend group with no credit card debt, no loans other than mortgage, boring small house with no renos, solid e-fund and retirement. I think many in the late Gen X/early Y group are actually very conservative, sometimes to their detriment.
And then there are those who think nothing of going into cc debt for a nice vacation or whatever else. I will say, sadly, these tend to be the single party girls who are basically waiting for a man to come along and pay it all off for them.
Anonymous
11/18/2015 18:55
Subject: What percent of people you know do you think are in debt/paycheck to paycheck?
Anonymous wrote:Anonymous wrote:I recently found this out about a few friends/coworkers. I work in the admin side of my office. The paychecks from our company were delayed by 2 days because of a clerical error and I was surprised by who was emailing me frantic because they needed their check - that day.
Whether you live paycheck to paycheck or not, this is absolutely unacceptable. You can't and shouldn't play fast and loose with people's livelihoods because of "clerical errors." If my check was late I wouldn't be coming into work until it was resolved.
+1. Also, if you pay your bills online and have certain bills set up to be paid after your paycheck is direct deposited, you would be quite concerned if your paycheck was delayed one or two days. You cannot assume that just because people called, they are living paycheck to paycheck.
Anonymous
11/17/2015 22:13
Subject: What percent of people you know do you think are in debt/paycheck to paycheck?
Anonymous wrote:Anonymous wrote:I get what you are asking OP, but I don't think having a car payment (or student loan payment as another PP mentioned) is really comparable to living paycheck to paycheck and needing to put home repairs on a credit card.
DH and I have student loans (not all of us are fortunate enough to start out the gate with school paid for) and we have a car payment, but drove our last cars for a decade. We have zero credit card debt and savings for home repairs/money for the occasional vacation, etc.
There is a huge gap out there between being DCUM rich and living paycheck to paycheck. I imagine the vast majority of people fall somewhere here.
OP here. To be clear, I think there is a huge difference between a car payment on a sensible car (and then driving a paid off car for a while) and leasing a luxury car every 2-3 years, which MANY MANY people in my neighborhood seem to do. It seems they really only care about what they can afford on a monthly basis rather than looking at a larger financial picture. Sometimes my friends seem baffled that DH and I don't spend they way they do - our cars and house are sensible not showy, and we save A LOT toward kids college and retirement. Its not exciting.
Who cares? OP, you will much happier when you stop caring so much about other people.
Yet another DCUM thread where everyone brags about how little they spend and much they save. Honestly it sounds like OP posted this because he/she has sour grapes over the Jones's new Audi while they are stuck driving around in a 2005 Civic.
It's not like I am against living in a way that is financially responsible and conservative. I myself am very thrifty, follow personal finance blogs and fully fund retirement. Just don't see the point in judging others for their choices if it doesn't impact me.
Anonymous
11/17/2015 18:32
Subject: What percent of people you know do you think are in debt/paycheck to paycheck?
And not nearly enough to retire!
Anonymous
11/17/2015 18:27
Subject: Re:What percent of people you know do you think are in debt/paycheck to paycheck?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:DH earns >$1M and we have boatloads saved, no debt. But if his pay was delayed, you can bet he'd be all over admin to get the $$ distributed ASAP. My point is frantic emails doesn't equal paycheck-to-paycheck living.
People who have a handle on their finances are not laissez faire about their money. I think the posters don't understand this. One does not build wealth by being casual about their balance sheet.
We understand it perfectly well but you all seem to want it both ways. Advising the popes about how it's so important to thing about your balance sheet, while looking for sympathy as being paycheck to paycheck bc you make $1 million and save 900k of it. See above for the definition of paycheck to paycheck. If you have money somewhere such that you can meet our obligations without CC debt or borrowing, you are NOT paycheck to paycheck - even if accessing the cash in your Swiss bank account will require a trip to Switzerland.
Advising the poors.
I thought the original word usage was better ?
Anonymous
11/17/2015 18:21
Subject: What percent of people you know do you think are in debt/paycheck to paycheck?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I am dying of curiosity to know how some of the people I know can afford the life they lead. For example,
We have friends (two teacher family) who have three kids in private school. I'm assuming that they get ridiculous financial aid or a family member is paying? The long and short is that it is 100% none of my business, but it doesn't stop me from being curious. And for the record, you never really know about anyone's finances. We live modestly, but have almost paid off our house and have a ridiculous amount of money saved. Do I judge people on my assumed understanding of their finances, yes. Do I try not to? Yes, of course.
Many people have an inheritance. I have friends who are quite open about digging themselves into debt. They also know that when his parents die they will get a huge chunk of change. I suspect they will manage to blow through that, but a lot of people get help from the family. Not gonna lie, wish I were in that boat!!
There is a huge difference between already have inherited the money or having a trust and ANTICIPating that the money will be there or go to you when parents or grandparents die. The later is super risky. I had a rich ain't who spent the last ten years of her life in assisted living, there was only a couple hundred thousand left when she died. Divorces, bad shakes in stock market or bad investment decisions, overspending on grandkid's education can all burn through what seems like a "pile" of money really quickly. Yes, there are people who are truly rich, but in my experiences, most of the people relying on perceived inheritances have very little understanding of what things really cost over time, tax ramifications, and how bickering siblings can really screw it all up. Another sweet anecdote, despite all kinds of offers for help managing her finances, when my grandmother died, we ended up paying a million(ish) in estate taxes. There are also the people who end up leaving all their money to their cats. So just make your own damn money and stop relying on other people to pay your bills for you.
Why do you care so much about what they do? I think it's great that they have a landing pad. No skin off my back. He's an only child and his kids college is already funded. Im sure every calamity can befall them in the next few years, but many people also benefit from inheritances. Personally my grandmother took out a 1M life insurance policy and despite being in nursing care and a mountain of medical bills, all the grandkid's still got 120k each. It happens.
You just proved my point. $120 will pay for about a year and a half of college for one kid or two years of private school for two kids. Not nearly enough to excuse you not saving for retirement.
That's ME. Not my friends. Only child, filthy rich parents already bank rolling much of their lives. My inheritance was paltry and is been great to have as a 8month emergency savings.
They are fine racking up debt and being wreckless. They know their parents will never let them be homeless.
Good on them. Heck, I'm just happy we've been invited to their parents vacation home in Aspen. We benefit from thr rich parents too.