TheHaitian
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Post by TheHaitian on Dec 28, 2018 22:58:13 GMT -5
Agree or not? www.washingtonpost.com/business/2018/12/28/living-paycheck-paycheck-is-disturbingly-common-i-see-no-way-out/?noredirect=on&utm_term=.7ea43d2d7570I can see those in the lower income bracket, that used to be us... heck that is about 50% of my mom side of the family if not more: working dead end jobs, too busy working to focus on learn skills that will help them earn more but YOLO! And I do get medical issues happen; this year is the first time I did not reach my max OOP (currently at ~9k for the year) and 2019 may be another expensive year. But is it really that common or is it what we tell ourselves to feel better about the decisions we have made? The money we spent? The money we did not save? ***another reason to stay motivated to live off 1 income***
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Tiny
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Post by Tiny on Dec 28, 2018 23:54:39 GMT -5
I tend to think it's more likely than not. From the article: I think there are many more 'fixed' expenses that have to be covered than there use to be. And I think some of the standard fixed expenses are more expensive than they ever were. I think what they are really saying is that it's difficult to save the amounts you "should" be saving (saying 10% of gross) so it's easier to save nothing. I think that along with lack of wage growth - there's a wage plateau for many 'careers' that makes things difficult as well. You start out doing fine on your income - but then you hit that plateau but your costs keep creeping up - so the 'good income' goes a shorter way. Until, over years, it isn't such a 'good income' anymore. I think it's also really hard to start saving once you are older and further along - trying to eek out $100 a month to put on the side can seem hopeless - even if you've never saved anything before. (especially if they did that calculation and want to save 10% of their gross income as a goal... Median household income in the US is 60K or so... so that means saving $500 a month EVERY month to get to that 10% goal. That's a monthly car payment (and gas and maybe insurance and stickers for the month) or maybe groceries for the month. Heck $150 a month is 3% of 60K.... ) I think that's why the common wisdom is to start saving early (ie Pay yourself first)! So you get use to the idea of NOT spending every penny. It's hard to 'save' after you've paid all your bills.
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justme
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Post by justme on Dec 29, 2018 0:16:22 GMT -5
I tend to think it's more likely than not. From the article: I think there are many more 'fixed' expenses that have to be covered than there use to be. And I think some of the standard fixed expenses are more expensive than they ever were. I think what they are really saying is that it's difficult to save the amounts you "should" be saving (saying 10% of gross) so it's easier to save nothing. I think that along with lack of wage growth - there's a wage plateau for many 'careers' that makes things difficult as well. You start out doing fine on your income - but then you hit that plateau but your costs keep creeping up - so the 'good income' goes a shorter way. Until, over years, it isn't such a 'good income' anymore. I think it's also really hard to start saving once you are older and further along - trying to eek out $100 a month to put on the side can seem hopeless - even if you've never saved anything before. (especially if they did that calculation and want to save 10% of their gross income as a goal... Median household income in the US is 60K or so... so that means saving $500 a month EVERY month to get to that 10% goal. That's a monthly car payment (and gas and maybe insurance and stickers for the month) or maybe groceries for the month. Heck $150 a month is 3% of 60K.... ) I think that's why the common wisdom is to start saving early (ie Pay yourself first)! So you get use to the idea of NOT spending every penny. It's hard to 'save' after you've paid all your bills. My eyes bug out at $500 a month for a car, but damn that's likely what my next car would be. Not sure gently used $13k cars exist right now! Gah, what a downer.
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NastyWoman
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Post by NastyWoman on Dec 29, 2018 0:19:50 GMT -5
Not from the article, but from what I've been reading the last couple of days about the federal shutdown. It has only lasted for a couple of days now and (I believe) 1 missed paycheck. Yet I have read many stories of people panicking because they don't know how to pay their January bills.
Seems like there are an aweful lot of people living paycheck to paycheck in that group and I have no reason to believe they are different from the general population. And that is scary...
Note: I do have a strong opinion about the shutdown but that discussion belongs elsewhere so I won't go into that. It does however open up the curtains on the financial wellbeing or lack thereof, of a large group of people.
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justme
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Post by justme on Dec 29, 2018 0:21:06 GMT -5
This is also a bad time too. Christmas means most have larger than usual bills for presents and travel.
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NastyWoman
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Post by NastyWoman on Dec 29, 2018 0:25:34 GMT -5
Spoken from the true YM POV: wouldn't you have paid for those already? For example : my ticket was booked in September, paid for next cc cycle (October). Presents have been shipped over the last several months and most of them too have already been paid, with the rest of them to follow this cc cycle
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msventoux
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Post by msventoux on Dec 29, 2018 0:30:17 GMT -5
I think paycheck to paycheck is exceedingly common. Not so much anymore, but I used to be more involved in payroll issues with clients. It was very common to see an employee advance account, and not just the low wage earners, but doctors, lawyers and other professionals making a heck of a lot more than I did then.
We also had a couple of pawnshops as clients and it wasn’t uncommon to see the suburban soccer mom come in to pawn video games or electronics. I also saw tradesmen come in to pawn their tools then be desperate to get the tools back when they got a job lined up.
A lot of the professionals were burning through their money and couldn’t float all their obligations until next payday without an advance. I suspect not much of that was due to true hardships, other than perhaps student loans. Based on my observations of the professionals at least, it could mostly be attributed to lifestyle creep. A depressing amount of employees also failed to contribute to retirement plans that had a decent employer match.
I can see the “working poor” unable to easily break out of the paycheck to paycheck cycle. I’m sympathetic to catastrophic medical issues or family deaths that can sink a financial ship. I think the majority of the people I observed ended up in the cycle due to how they prioritized their spending. They think they can maintain or upgrade their lifestyle based on the expectation of raises or being able to easily find another job. As long as they can keep all the balls in the air everything will be fine. Until it suddenly isn’t.
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justme
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Post by justme on Dec 29, 2018 0:30:47 GMT -5
Spoken from the true YM POV: wouldn't you have paid for those already? For example : my ticket was booked in September, paid for next cc cycle (October). Presents have been shipped over the last several months and most of them too have already been paid, with the rest of them to follow this cc cycle Lol I'm pretty ym and all my gifts are usually last minute (though I have $ to pay for them). Can't say on tickets as I've never lived farther away than 2 hours from my immediate family.
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weltschmerz
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Post by weltschmerz on Dec 29, 2018 1:15:52 GMT -5
A lot of people basically live on credit.
Over the Christmas holidays, when everyone was buying gifts, I heard on the news that one third of Americans were still trying to pay their CC bills from the PREVIOUS Christmas, just adding on more and more debt.
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Shooby
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Post by Shooby on Dec 29, 2018 1:30:37 GMT -5
A lot of people basically live on credit. Over the Christmas holidays, when everyone was buying gifts, I heard on the news that one third of Americans were still trying to pay their CC bills from the PREVIOUS Christmas, just adding on more and more debt. Well then they are iduots. Buy a cheap box of cards and stop buying crap. Geez. Can the victim violins get any louder?
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resolution
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Post by resolution on Dec 29, 2018 1:53:23 GMT -5
I just don't understand how people can live like that long term. I understand young people that haven't had a long time to get established or minimum wage employees, but most of the people in the article are in their 40s, with many years of work experience at a middle income job. At that point they should know how much money they are bringing in and have had time to reduce their expenses to a level that allows for savings.
Also these work stoppages for federal employees have been going on for a long time, and people in those positions should be planning for them. There is no good excuse for Trump for creating this fiasco, but it is not some shocking or unprecedented event at this point.
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Deleted
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Post by Deleted on Dec 29, 2018 8:07:35 GMT -5
My eyes bug out at $500 a month for a car, but damn that's likely what my next car would be. Not sure gently used $13k cars exist right now! Gah, what a downer. 13K will still get you a very nice used car.
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Deleted
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Post by Deleted on Dec 29, 2018 8:15:49 GMT -5
A lot of people basically live on credit. Over the Christmas holidays, when everyone was buying gifts, I heard on the news that one third of Americans were still trying to pay their CC bills from the PREVIOUS Christmas, just adding on more and more debt. I would love to know how they came up with this number. I'm thinking they just pulled it out of their ass. 25% of American adults don't have a credit card at all.
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milee
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Post by milee on Dec 29, 2018 8:56:18 GMT -5
I tend to think it's more likely than not. From the article: I think there are many more 'fixed' expenses that have to be covered than there use to be. And I think some of the standard fixed expenses are more expensive than they ever were. I think what they are really saying is that it's difficult to save the amounts you "should" be saving (saying 10% of gross) so it's easier to save nothing. I think that along with lack of wage growth - there's a wage plateau for many 'careers' that makes things difficult as well. You start out doing fine on your income - but then you hit that plateau but your costs keep creeping up - so the 'good income' goes a shorter way. Until, over years, it isn't such a 'good income' anymore. I think it's also really hard to start saving once you are older and further along - trying to eek out $100 a month to put on the side can seem hopeless - even if you've never saved anything before. (especially if they did that calculation and want to save 10% of their gross income as a goal... Median household income in the US is 60K or so... so that means saving $500 a month EVERY month to get to that 10% goal. That's a monthly car payment (and gas and maybe insurance and stickers for the month) or maybe groceries for the month. Heck $150 a month is 3% of 60K.... ) I think that's why the common wisdom is to start saving early (ie Pay yourself first)! So you get use to the idea of NOT spending every penny. It's hard to 'save' after you've paid all your bills. My eyes bug out at $500 a month for a car, but damn that's likely what my next car would be. Not sure gently used $13k cars exist right now! Gah, what a downer. I think they do if you're patient and strategic. And maybe a little flexible. Just 2 years ago we got a third car for our family (sons started driving) - a used Honda Accord Sport in manual shift. It was just over a year old but listed as a two year old car, had high miles for that single year - 20k - but was absolutely pristine. Think someone turned in their lease early. Anyway, paid $15.7 vs the $25k they were new at the time. It's been an absolute gem. If I didn't need a vehicle that tows, I'd be happy to have it as my daily driver. No repairs so far and it gets in the low 30s MPG. Love it. So don't give up. Especially if the economy continues to wobble a bit - car sales suffer and there will be bargains to be had. Meantime if you have to get something earlier, some things that greatly reduce the used price of cars that if you can live with can get you a good deal: manual shift (we actually wanted this so our sons learned to drive manual but fewer and fewer people are able to), flexibility on color, model change (the Accord was redesigned for the upcoming model year at the time we bought ours so the older style lost value), not buying during the "busy" car sales season of Feb - May. And patience. After we figure out 3 or 4 models that would fit our needs, I researched the heck out of value and options so I could spot true bargains. Took about 3 months of once a week scanning the used car sales for our area and the areas within a 2 hour drive to find our unicorn, but IMO the $3k - $4k savings was worth it.
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oped
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Post by oped on Dec 29, 2018 8:59:46 GMT -5
A lot of people basically live on credit. Over the Christmas holidays, when everyone was buying gifts, I heard on the news that one third of Americans were still trying to pay their CC bills from the PREVIOUS Christmas, just adding on more and more debt. Well then they are iduots. Buy a cheap box of cards and stop buying crap. Geez. Can the victim violins get any louder? Says the professed lover of running up a trillion in debt at the height of an economic cycle...
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Shooby
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Post by Shooby on Dec 29, 2018 9:07:10 GMT -5
Well then they are iduots. Buy a cheap box of cards and stop buying crap. Geez. Can the victim violins get any louder? Says the professed lover of running up a trillion in debt at the height of an economic cycle... Squirrel!!
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giramomma
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Post by giramomma on Dec 29, 2018 9:23:37 GMT -5
I think there's a lot to unpack. We're running at some pretty mimimal savings percentages these days. Maybe 10% beyond retirement. It IS tight with four kids. Blah, blah, never have sex unless you can absolutely afford another kid. I know that's what you all would say. But, sometimes, having a child that statistically should not be here happens, even to the best of us.
We've had to put more in our house than usual.. We're at 4-5K, in less than 2 years. Plus the great tooth incident of 2017-2018. We probably spent 3K on my one tooth, between a root canal, it breaking, extraction, and implant. So. Trust me, if we had a shut down and I wasn't paid...I wouldn't be like "bring it on." I'd be like "Oh, no." I think this shut down is going to put a world of hurt on people. Not only the federal workers...but I guess my state has enough to fund WIC/SNAP for a few weeks after the fed money runs out..Then folks are going to have to turn to food pantries. That's going to put a huge stress on them right when they are flush with resources....and when they are hurting in the summer, that will likely be worse as well. And before you go off and say "well, everyone on wic/snap are lazy assholes that deserve it..." might I politely remind you that folks that receive SNAP, do in fact work. Maybe we should start telling the elderly and disabled they don't deserve to eat, because they can't pull their weight? Perhaps that's what the Repubs will do to help curb Medicare/SS costs...politely starve out the old people until they die?
"Most SNAP recipients who can work do so. Among SNAP households with at least one working-age, non-disabled adult, more than half work while receiving SNAP — and because many workers turn to SNAP when they are between jobs, more than 80 percent work in the year before or after receiving SNAP. The rates are even higher for families with children. (About two-thirds of SNAP recipients are not expected to work, primarily because they are children, elderly, or disabled"
www.cbpp.org/research/policy-basics-the-supplemental-nutrition-assistance-program-snap
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Lizard Queen
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Post by Lizard Queen on Dec 29, 2018 10:18:58 GMT -5
We could swing it relatively easily, but there are times where we'd have to cash out of investments or maybe even retirement tax shelters, which would suuuuck. Plus, how many people would work their jobs for free? Maybe 1% love their jobs that much (made up #). Even then, they'd likely not want to put in 40 hours/week.
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Miss Tequila
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Post by Miss Tequila on Dec 29, 2018 10:21:53 GMT -5
I find it absurd that people not living in poverty are living paycheck to paycheck. I also live in an areas where housing costs are pretty inexpensive so I’m coming at this with a biased opinion. Then again, why live in a crazy HCOLA if you aren’t major major bank?
I didn’t always make the kind of money that I make now but I always made sure our bills were very low compared to our income. I always prioritized savings over things. I realize that not everyone thinks like that but I have a hard time feeling sympathy for people that make a good living and are still living paycheck to paycheck. In this case we are talking about federal workers in a shutdown but most people can be fired at any moment for any reason (not discriminatory). Why would everyone not have a cushion built up?
We get paid once a month where I work on the 25th or the last business day before the 25th. This month that means we got laid on the 24th. I had a new salesman, who makes $125k plus $750/math car allowance, emailing everyone on the Friday before screaming because his direct deposit didn’t get to his bank yet. In the email he said his kids won’t have a Christmas! Payroll person called him and explained and he kept going on about his kids Christmas. Now, is he an ass and just being dramatic? Perhaps, but his reaction tells me he really didn’t have cash or credit(!) to buy his kids presents until he got paid. It was the most bizarre thing to me. How can you make that kind of money in my area and literally have one business day crush your entire world?!?!
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swamp
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Post by swamp on Dec 29, 2018 10:24:05 GMT -5
I find it absurd that people not living in poverty are living paycheck to paycheck. I also live in an areas where housing costs are pretty inexpensive so I’m coming at this with a biased opinion. Then again, why live in a crazy HCOLA if you aren’t major major bank? I didn’t always make the kind of money that I make now but I always made sure our bills were very low compared to our income. I always prioritized savings over things. I realize that not everyone thinks like that but I have a hard time feeling sympathy for people that make a good living and are still living paycheck to paycheck. In this case we are talking about federal workers in a shutdown but most people can be fired at any moment for any reason (not discriminatory). Why would everyone not have a cushion built up? We get paid once a month where I work on the 25th or the last business day before the 25th. This month that means we got laid on the 24th. I had a new salesman, who makes $125k plus $750/math car allowance, emailing everyone on the Friday before screaming because his direct deposit didn’t get to his bank yet. In the email he said his kids won’t have a Christmas! Payroll person called him and explained and he kept going on about his kids Christmas. Now, is he an ass and just being dramatic? Perhaps, but his reaction tells me he really didn’t have cash or credit(!) to buy his kids presents until he got paid. It was the most bizarre thing to me. How can you make that kind of money in my area and literally have one business day crush your entire world?!?! Id be pissed if I got sex instead of money. And he’s an idiot. It’s not like Christmas is a surprise. It come at the same time every year.
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Miss Tequila
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Post by Miss Tequila on Dec 29, 2018 10:25:49 GMT -5
I find it absurd that people not living in poverty are living paycheck to paycheck. I also live in an areas where housing costs are pretty inexpensive so I’m coming at this with a biased opinion. Then again, why live in a crazy HCOLA if you aren’t major major bank? I didn’t always make the kind of money that I make now but I always made sure our bills were very low compared to our income. I always prioritized savings over things. I realize that not everyone thinks like that but I have a hard time feeling sympathy for people that make a good living and are still living paycheck to paycheck. In this case we are talking about federal workers in a shutdown but most people can be fired at any moment for any reason (not discriminatory). Why would everyone not have a cushion built up? We get paid once a month where I work on the 25th or the last business day before the 25th. This month that means we got laid on the 24th. I had a new salesman, who makes $125k plus $750/math car allowance, emailing everyone on the Friday before screaming because his direct deposit didn’t get to his bank yet. In the email he said his kids won’t have a Christmas! Payroll person called him and explained and he kept going on about his kids Christmas. Now, is he an ass and just being dramatic? Perhaps, but his reaction tells me he really didn’t have cash or credit(!) to buy his kids presents until he got paid. It was the most bizarre thing to me. How can you make that kind of money in my area and literally have one business day crush your entire world?!?! Id be pissed if I got sex instead of money. Hahahaha! Given how miserable this guy was, he should take the sex!
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alabamagal
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Post by alabamagal on Dec 29, 2018 11:03:32 GMT -5
My eyes bug out at $500 a month for a car, but damn that's likely what my next car would be. Not sure gently used $13k cars exist right now! Gah, what a downer. 13K will still get you a very nice used car. YDS just got a 2016 Nissan Sentra for $11k. 50k miles. His GF just got a similar Chevy model for about the same. Both are a year out of college and their college vehicle was one its last leg ( or totaled in a wreck for GF). Both are nice vehicles.
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Lizard Queen
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Post by Lizard Queen on Dec 29, 2018 11:08:53 GMT -5
My DH got a Honda accord special edition with heated leather seats for right around $15k. It was a maybe 4 years old when we got it, but only had 36k miles on it. My minivan was about the same price, a year older but with a lot more miles. Minivans tend to be expensive.
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resolution
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Post by resolution on Dec 29, 2018 11:11:22 GMT -5
I think there's a lot to unpack. We're running at some pretty mimimal savings percentages these days. Maybe 10% beyond retirement. It IS tight with four kids. Blah, blah, never have sex unless you can absolutely afford another kid. I know that's what you all would say. But, sometimes, having a child that statistically should not be here happens, even to the best of us.
We've had to put more in our house than usual.. We're at 4-5K, in less than 2 years. Plus the great tooth incident of 2017-2018. We probably spent 3K on my one tooth, between a root canal, it breaking, extraction, and implant. So. Trust me, if we had a shut down and I wasn't paid...I wouldn't be like "bring it on." I'd be like "Oh, no." I think this shut down is going to put a world of hurt on people. Not only the federal workers...but I guess my state has enough to fund WIC/SNAP for a few weeks after the fed money runs out..Then folks are going to have to turn to food pantries. That's going to put a huge stress on them right when they are flush with resources....and when they are hurting in the summer, that will likely be worse as well. And before you go off and say "well, everyone on wic/snap are lazy assholes that deserve it..." might I politely remind you that folks that receive SNAP, do in fact work. Maybe we should start telling the elderly and disabled they don't deserve to eat, because they can't pull their weight? Perhaps that's what the Repubs will do to help curb Medicare/SS costs...politely starve out the old people until they die?
"Most SNAP recipients who can work do so. Among SNAP households with at least one working-age, non-disabled adult, more than half work while receiving SNAP — and because many workers turn to SNAP when they are between jobs, more than 80 percent work in the year before or after receiving SNAP. The rates are even higher for families with children. (About two-thirds of SNAP recipients are not expected to work, primarily because they are children, elderly, or disabled"
www.cbpp.org/research/policy-basics-the-supplemental-nutrition-assistance-program-snapUSDA says they are paying out SNAP for January and the school lunch program will continue through February. WIC and tribal food distribution may run out before then, but I guess they must be democrats too, just like the furloughed federal workers.
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Tiny
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Post by Tiny on Dec 29, 2018 11:29:24 GMT -5
My eyes bug out at $500 a month for a car, but damn that's likely what my next car would be. Not sure gently used $13k cars exist right now! Gah, what a downer. 13K will still get you a very nice used car. $500 a month isn't all that outrageous is you include insurance, gas, and the car loan. Figure a minimum of $100 per month for gas, maybe $80 for insurance (cause you are paying monthly and probably do not have a sterling driving record). I looked at CarMax (cause they show a loan and financing) if the max is 13K (that's how much you are borrowing) - that means a 11,500 car price (1500 for taxes, title, plates). It looks like most of the cars in this price range are 5 years old (I picked a toyota Corolla) So, lets go with a 60 month loan, no downpayment, payments will be between 255 and 275 a month depending on your credit score/interest rate. And monthly cost of car is between $435 and 480 a month. (FWIW: that 13K car after taxes/title/plates and 0 down is close to a 15K loan which gets the payment over $300 I do know taxes and prices vary from area to area.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Dec 29, 2018 11:30:45 GMT -5
I tend to think it's more likely than not. From the article: I think there are many more 'fixed' expenses that have to be covered than there use to be. And I think some of the standard fixed expenses are more expensive than they ever were. I think what they are really saying is that it's difficult to save the amounts you "should" be saving (saying 10% of gross) so it's easier to save nothing. I think that along with lack of wage growth - there's a wage plateau for many 'careers' that makes things difficult as well. You start out doing fine on your income - but then you hit that plateau but your costs keep creeping up - so the 'good income' goes a shorter way. Until, over years, it isn't such a 'good income' anymore. I think it's also really hard to start saving once you are older and further along - trying to eek out $100 a month to put on the side can seem hopeless - even if you've never saved anything before. (especially if they did that calculation and want to save 10% of their gross income as a goal... Median household income in the US is 60K or so... so that means saving $500 a month EVERY month to get to that 10% goal. That's a monthly car payment (and gas and maybe insurance and stickers for the month) or maybe groceries for the month. Heck $150 a month is 3% of 60K.... ) I think that's why the common wisdom is to start saving early (ie Pay yourself first)! So you get use to the idea of NOT spending every penny. It's hard to 'save' after you've paid all your bills. My eyes bug out at $500 a month for a car, but damn that's likely what my next car would be. Not sure gently used $13k cars exist right now! Gah, what a downer. a 2019 corolla is only 18-19k, so not sure that is all that different from a used 13k one in terms of immediate costs/payments over the next 5 years. My 2013 corolla had it's first ever maintenance that was pricey - about 12-1300 - which I bought in december 2012. I paid 2500 down, payment was 278/month 0% interest for 5 years and I got free maintenance for 2 years. In my experience, a new corolla is cheaper in the long run than a cheaper gently used car. In fact, my 1300 maintenance has me thinking of getting a new car. They are <generally> so carefree, I love the confidence of know everything is new - barring of course manufacturer defects. I was in the market to buy a corolla for about 5 years previous to that purchase, and over that time I determined that based on new and used figures, that it cost about 1k/year to own a corolla in terms of ownership/value/purchase price. Not including taxes/maintenance/insurance, etc. when I figured that new/used didn't really impact that number, I went new. The maintenance costs were much less, the insurance much more and in my mind, evened out and I prefer to go new. 500/month is a lot of car/payment. My eyes bug out when people have more than one of those
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tractor
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Posts: 3,458
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Post by tractor on Dec 29, 2018 11:38:02 GMT -5
Sadly, most of my “savings” is tied up in retirement funds, which I would have to be desperate to touch. Not including that, we live paycheck to paycheck. It’s not ideal, but as we move forward, all the bills are paid every month and we live comfortably. I try my best to plan things out every two weeks so I know exactly where each dollar is going to go.
My wife commented the other day when the news was talking about some of the federal employees and I had to remind her we were in the exact same boat. If either one of us were to be without a paycheck for 1-4 weeks, bills wouldn’t be paid and fees/penalties would start piling it. I don’t like living on the edge, but it’s where we are at in our lives right now. Holding out hope for a better 2019.
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Deleted
Joined: May 20, 2024 14:01:21 GMT -5
Posts: 0
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Post by Deleted on Dec 29, 2018 11:38:56 GMT -5
I'm not one to discuss car costs with. All three of mine combined wouldn't sell for over 8K, so to ME 13K is a lot of car.
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Deleted
Joined: May 20, 2024 14:01:21 GMT -5
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Post by Deleted on Dec 29, 2018 11:47:05 GMT -5
A few years ago our school district did not direct deposit on the last day of the month, which is our "payday." There was some glitch. They had to spend money to wire-transfer the funds into employees' accounts and then also refund overdraft charges. People were really upset . . . as you would be if you didn't get paid on time. Many of my younger colleagues do live paycheck to paycheck. I understand that. It takes time to build up savings. Meanwhile, a lot of bills are automated.
What I wonder is what happens to these employees' benefits if they don't get paid? Do they still have health insurance, etc? That's one of the things that would terrify me.
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giramomma
Distinguished Associate
Joined: Feb 3, 2011 11:25:27 GMT -5
Posts: 21,413
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Post by giramomma on Dec 29, 2018 11:51:05 GMT -5
I find it absurd that people not living in poverty are living paycheck to paycheck. I also live in an areas where housing costs are pretty inexpensive so I’m coming at this with a biased opinion. Then again, why live in a crazy HCOLA if you aren’t major major bank? Why assume that housing is only expensive in HCOLA. The median income in my county is 62K. The median home price is 270K.
Renting a decent three bedroom apartment runs 1300 or so a month. Our house (4 beds, 1800 sq feet) could be rented out for 1500-1700/month. Not including utilities. Even two bedrooms in the hood are running close to 900 a month. Daycare is running at 1800/month for one infant. So. No MCOLA does not translate to cheap living. Our city's school system now has over 50% of the kids living in poverty, as defined by the feds. That number has steadily crept up over the last 10 years.
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