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What is the Real Problem on Financial Situations?

This topic contains 8 replies, has 0 voices, and was last updated by  Bainc 3 years, 8 months ago.

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  • #177222

    norules
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    Interesting article.

    http://money.cnn.com/2016/03/16/news/economy/donald-trump-bernie-sanders-us-election/index.html?iid=hp-stack-dom

    This is not meant as a political discussion as mainly on discussion on what people say they are scared about being a paycheck away from financial ruin. Is this mostly a matter of lack of planning? Maybe living the high life too much? Lack of education requirements for better paying jobs? Bad life choices? Loss of jobs suck, but if you are looking for the same pay to keep your lifestyle, maybe you need to cut back?

    Most people early on in their adult life don’t make a lot of money, but if you are single, you can deal with that. Are young people now assuming they should be making more money? Do they need to have reality check on what they make and what they spend?

    I think we find it harder to deal with loss of jobs now than 50 years ago maybe. Back then, there wasn’t a lot of luxury items you spent money on. Now, we pay monthly fees on cell phones, Satellite TV, Cable TV, gym membership, and probably a boatload of other luxury stuff. Back then, the parents saved money just to buy a TV for the household and all the kids were excited. Now, society buys cell phones for the kids like it is expected. Need a credit card, sure here you go.

    Personally, I cannot imagine being a paycheck away from financial ruin at this stage in my life. I am in my late 40’s with two kids. I view satellite TV as a luxury that I could get rid of. Heck, we have had satellite tv for only 8 years, before that it was just airwaves. Cell phones are nice, but I could do without if necessary. I never viewed myself needing the latest gadget. Although sometimes I find myself looking new gadgets more and more. Granted, I would make sure I could afford it. Case in point, I bought a Playstation 4 in November. I played it for about three weeks and have not touched it since. Now, back 10 years ago, I would still be on it. In my mind now, I just wasted $300 and I spent about a month debating on buying it.

    I also get sometimes life sucks and no amount of planning can help. I don’t think this is typical of most people complaining about wages and yet they have cellphones and going out etc. I feel for people who have been injured on the job, illnesses, and just bad luck. That is not what I am talking about though. Just because you cannot afford to go on vacations, that doesn’t mean you have bad wages. Take a look at what you spend your money on.

  • #293047

    ErinO
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    The article says that most people fear they are one major issue (or step) away from financial ruin. Nowhere does it say that they are one paycheck away.

    I don’t think that is far off base. The loss of a job or facing a major medical problem are major life hurdles and I would expect most people to fear that.

  • #293043

    norules
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    I messed up stating paycheck. But, that is part of major issue too. If you lose your paycheck, you are a step from financial ruin, if you don’t have any savings or backup. Of course, we all worry about medical issues, but this goes beyond just worrying about health problems. The people are not just worried about health, they also are worried about if they also lost that paycheck because of health issues. If you don’t work, you don’t get paid. I get the feeling that is the what people are worried about in the article.

  • #293048

    ErinO
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    I didn’t get that feeling at all. Which parts led you to believe that?

  • #293044

    norules
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    If you don’t have money coming in, you don’t have money to spend on medical issues or major issues. You can’t build up a saving account to help on major issues. So if you are not making enough money to help on major issues, then you are essentially a paycheck from financial ruin. You lose your paycheck, you can’t pay your bills.

    The person who lost the job in 2002, burned through savings and retirement and is now making only $11/hour. She has no savings or retirement. She is a paycheck from financial ruin.

  • #293042

    EGL Admin
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    I think cell phones are more than just a luxury though. You don’t need the latest and greatest, but a person should have one to at least make calls on. Just because we lived without them 20+ years ago doesn’t mean it was easy or fun. I remember expecting a phone and either not leaving the house or having to check the answering machine multiple times. You can get a no frills phone for pretty cheap. I understand what you’re saying though because a lot of people buy things they don’t need. Like they have 40″ TV but then buy a 60″ one.

  • #293049

    ErinO
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    I don’t think the article you linked supports what you are saying, norules.

  • #293045

    norules
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    EGL, you are right about cell phones. Life has changed dramatically over the years and it has been a staple of our lifes. You can miss deadlines, business deals, all because you did not respond to a phone call or text immediately. We have talked before on here about taking vacations, buying expensive cars and buying TVs when you really shouldn’t be due to financial obligations.

    ErinO, oh well. Life goes on.

  • #293050

    Bainc
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    I’ve heard about 75% of people live paycheck to paycheck. Not sure if that’s a valid amount or how they define paycheck to paycheck but regardless that’s crazy scary.

    This post is on a phone that was $150 and $35/mo. I wouldn’t call a cell phone a luxury know days but an iPhone 6+ on Verizon probably is.

  • #293046

    norules
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    I meant to put this thread on the general forum. I forgot posting on National News/Politics forum is only for members to see. This is really not a political discussion.

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