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07-26-2011, 10:03 AM
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#1
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Recycles dryer sheets
Join Date: May 2007
Posts: 444
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This is astounding...
50% of Americans can't even come up with just $2,000 in an emergency given a month's time.
Got $2 000 in a pinch?- MSN Money
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07-26-2011, 11:00 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Posts: 5,350
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07-26-2011, 01:29 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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__________________
Have Funds, Will Retire
...not doing anything of true substance...
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07-26-2011, 02:10 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 1,608
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+1
It is really sad though not really a big surprise. I'm so glad I'm not in that camp.
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07-26-2011, 02:25 PM
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#5
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Recycles dryer sheets
Join Date: Dec 2009
Location: Cleveland
Posts: 344
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My sister and brother in law would fall into this group. They make about $200K per year combinded, live in a low cost of living area, yet carry huge amounts of credit card debt with no real savings outside pension, 401k. They waste a lot (perhaps most) of it spoiling their 3 kids. They have every gadget and toy known to man (ipads, 4-wheelers, a boat)etc.....but can't afford a minor emergency or unexpected expense without putting it on their credit card.
I blame part of the societal aspect of this in the U.S. on our tv shows. Many of today's show glamorize the consumption mindset and make people believe that is how everybody lives.
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07-26-2011, 02:42 PM
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#6
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Dryer sheet aficionado
Join Date: Oct 2007
Posts: 35
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Sounds like most of my relatives!
__________________
I love mankind; it's the people I can't stand. - Linus Van Pelt
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07-26-2011, 02:48 PM
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#7
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Recycles dryer sheets
Join Date: Jan 2011
Location: Desert SW
Posts: 358
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In the WSJ today it showed the mediun net worth of households by race - white=$113,000, hispanic=$6,300, and black=$5,600. And this is NET WORTH, not savings.
__________________
Retired in 2011 at 54
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07-26-2011, 02:52 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Posts: 5,350
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Quote:
Originally Posted by skyvue
My sister and brother in law would fall into this group. They make about $200K per year combinded, live in a low cost of living area, yet carry huge amounts of credit card debt with no real savings outside pension, 401k. They waste a lot (perhaps most) of it spoiling their 3 kids. They have every gadget and toy known to man (ipads, 4-wheelers, a boat)etc.....but can't afford a minor emergency or unexpected expense without putting it on their credit card.
I blame part of the societal aspect of this in the U.S. on our tv shows. Many of today's show glamorize the consumption mindset and make people believe that is how everybody lives.
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I don't think a high percentage of the people in the article are like the people you describe. They have a pension and probably 6-figures in retirement savings. They should be fine. I think the article is more like my brother or people even worse off. He has a college degree but has been working as an Assistant Manager for the last decade since graduating. Has never even made $25K/yr. He has a 1 bedroom apt., cheap car, never goes on real vacations. He's never taken a day off that wasn't paid and he volunteers to work holidays for the time and a half. The only time he ever has $2000 in the bank is right after tax return time but it gets spent on things he's been putting off like car repairs or work cloths. The are millions of other hard working people who are even worse off. They don't have iPhones and garages full of toys but still struggle to get by.
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07-26-2011, 03:35 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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Quote:
Originally Posted by Packman
In the WSJ today it showed the mediun net worth of households by race - white=$113,000, hispanic=$6,300, and black=$5,600. And this is NET WORTH, not savings.
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Was there a point you wanted to make regarding your post ?
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07-26-2011, 04:17 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Oct 2010
Location: Waimanalo, HI
Posts: 1,881
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Quote:
Originally Posted by skyvue
... but can't afford a minor emergency or unexpected expense without putting it on their credit card.
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What's wrong with that? I buy virtually everything now with a credit card. These days, I'm able to pay all my credit card bills as they come due, but a few years ago, I got about $20k behind -- but I could still buy stuff, emergency or not. I think credit cards are wonderful.
__________________
Greg (retired in 2010 at age 68, state pension)
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07-26-2011, 04:30 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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Quote:
What's wrong with that? I buy virtually everything now with a credit card.
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Don't confuse credit cards as convienience as opposed to credt cards as the last chance (ie. loanshark) loan.
Perhaps what should have been posted was that some have trouble with a mere $2k emergency without going (further) into debt.
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07-26-2011, 04:44 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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Quite sad indeed. Do they realize the financial situation they are in ?
Quote:
Originally Posted by skyvue
They make about $200K per year combinded, live in a low cost of living area, yet carry huge amounts of credit card debt with no real savings outside pension, 401k.
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__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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07-27-2011, 06:10 AM
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#13
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Recycles dryer sheets
Join Date: Dec 2009
Location: Cleveland
Posts: 344
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Quote:
Originally Posted by GregLee
What's wrong with that? I buy virtually everything now with a credit card. These days, I'm able to pay all my credit card bills as they come due, but a few years ago, I got about $20k behind -- but I could still buy stuff, emergency or not. I think credit cards are wonderful.
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What wrong with that? Are you serious? The point is they have to use their card because they don't have enough money in the bank to pay for it!! They are not using the card for "points" or convenience. Every non-reoccuring or surprise expense goes and their card and builds their balance! They don't pay it off each month in full because they are not saving any money. They literally spend all the money they make on what they consider their "normal" expenses then get frustrated when something like the transmission goes out on their car.
People need to learn you need to "plan" or allow for these type of expenses in your monthly budget. I personally set asided $200 per month for "random repair" and maintenance of my condo even though its only 4 years old. I also set aside $200 per month into a car repair and maintenance savings account. I don't even consider these accounts a part of my assets or net worth. I just use them when something goes wrong with the car or condo. It makes the "emergency" totally stress free.
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07-27-2011, 06:14 AM
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#14
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Recycles dryer sheets
Join Date: Dec 2009
Location: Cleveland
Posts: 344
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Quote:
Originally Posted by obgyn65
Quite sad indeed. Do they realize the financial situation they are in ?
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No, it doesn't seem like they really know how bad their situation is. They feel like this is "normal" and sadly it sort of is based on the article above. If my sister (primary bread winner) lost her job for more than 4-5 months, they would likely be facing bankruptcy. What is frustrating is she graduated #2 in her high school class, has an engineering degree and is the top manager at a very large automotive parts warehouse. Point being she is a very bright person with all other things in her life expect to managing and controlling her own family spending.
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07-27-2011, 08:27 AM
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#15
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,130
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Quote:
Originally Posted by GregLee
I think credit cards are wonderful.
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I think alcohol is wonderful. But I recognize that it is extremely destructive to many.
It's the same with credit cards, for many it is too easy to get into a downward spiral that they can never recover from.
We provided both our kids with credit cards with $500 limits when they went to college, and after they were both burned by late payment charges or over the limit charges, they cut them up, and in their 30's still don't have a credit card.
I'm not surprised that so few folks have $2k available for emergencies without going further into debt.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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07-27-2011, 08:39 AM
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#16
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Quote:
Originally Posted by skyvue
What wrong with that? Are you serious?
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C'mon, don't get jerked around, both of you understand that credit cards are a wonderful payment convenience whether they're used responsibly or not.
__________________
*
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
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07-27-2011, 08:44 AM
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#17
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Recycles dryer sheets
Join Date: Dec 2009
Location: Cleveland
Posts: 344
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Quote:
Originally Posted by Nords
C'mon, don't get jerked around, both of you understand that credit cards are a wonderful payment convenience whether they're used responsibly or not.
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At times it is certainly convenient but I can use my debit card just as easy when I need to buy something online or pay for a purchase that I don't have enough cash on me to pay for...but that is a different topic that has been debated before on here. The point of the post is they needed to use their credit cards because that is the only way they have to pay the bill.
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07-27-2011, 09:07 AM
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#18
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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Quote:
Originally Posted by Alan
We provided both our kids with credit cards with $500 limits when they went to college, and after they were both burned by late payment charges or over the limit charges, they cut them up, and in their 30's still don't have a credit card.
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When I went to college, My bank had a deal that included a checking and savings account and a VISA credit card with a $100 credit limit.
That $100 limit was supposed to teach you to use credit sensibly.
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07-27-2011, 09:13 AM
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#19
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,130
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Quote:
Originally Posted by MasterBlaster
When I went to college, My bank had a deal that included a checking and savings account and a VISA credit card with a $100 credit limit.
That $100 limit was supposed to teach you to use credit sensibly.
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The problem our daughter had was that the 'limit' was not a real limit. It just meant she just got hit with immediate $50 penalties if she mis-calculated and went over by a few $
It taught her that she didn't want to have a credt card ever again.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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07-27-2011, 09:33 AM
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#20
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Quote:
Originally Posted by skyvue
At times it is certainly convenient but I can use my debit card just as easy when I need to buy something online or pay for a purchase that I don't have enough cash on me to pay for...but that is a different topic that has been debated before on here. The point of the post is they needed to use their credit cards because that is the only way they have to pay the bill.
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My primary point was not the convenience of credit cards or the features of debit cards or the responsibility of their owners, but rather that you're being jerked around.
__________________
*
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
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