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Wall Street Crisis, Economic depression, government bailout, bad economy effects of average Joe, media out of touch with middle class financial situation
I turn off the TV when Schiff comes on. Both him and Schiff and Rogers don't profit from the bailout bill, so naturally they are against it. I'm more interested in what economists have to say, rather than sleazy fund managers.
Regardless, Nourial Roubini isn't for the current bill. Although he does support some sort of depression like bailout.
Its hard to suggest how someone else can save unless you know the details of what they do. People aren't exactly frank and like to pretend the things they do are all "necessary". But you can save a lot by simply not buying brand names. Costco really isn't that cheap. Sure they sell brand names for less than the grocery stores do, but the generics at the grocery store, wal-mart, target etc are cheaper even with buying in smaller qualities.
Costco does have decent deals on Cheese, Milk and meat tough. But the sale prices at the grocery store are better you just have to alternate your diet depending on what is on sale. So get rid of your Costco membership and save!
We don't shop at Costco or Sam's. I spend way more in those stores than I would shopping at the stores I shop at.
My wife is a sahm and we get by w/one income (w/2 kids)..
Several months ago I wrote down everything me and my wife spent (for a couple of months). It takes REAL discipline, but you all should try it...you'd be surprised what you spend money on...
I look at EVERYTHING that I can cut. First, here in NC, the A/C (central) is on alot. Always try to lower it or shut it off as much as possible. Biggest money pit there is...have a gas fireplace also..never use it..huge money pit also. I grocery shop at different stores to take advantage of really good sales. cut coupons (hence the name) every week. Make sure you check your minutes each month on your cell..or go w/a pay as you go plan...
Look at car insurance..raise your deductible. Times are extremely shaky right now for me w/employment so I've decided to (temporarily) stop contributing to my 401k to increase my emergency fund. Oh yes, everyone MUST have an emergency fund. What would you do if you lost your job tomorrow? Would you have to raid your 401k?
The point is you CAN get by w/o making alot of money.
Times are extremely shaky right now for me w/employment so I've decided to (temporarily) stop contributing to my 401k to increase my emergency fund. Oh yes, everyone MUST have an emergency fund.
So much for dollar cost averaging. The shares that you purchase during a market down turn are the ones that will do the best long term.
So much for dollar cost averaging. The shares that you purchase during a market down turn are the ones that will do the best long term.
I have been DCA'ing, until just recently when I had a major cut in my salary.
This forced me to make a difficult choice for my family. Do I contribute 75-$100 bi-weekly to a 401k w/no match, OR do I use that money to help keep my emergency fund up? Difficult decision because as I said previously, these are the accumulating years for us for our retirement. However a major cut in salary (which I didn't anticipate) definitely changes things.
When our income starts increasing again, I will be buying cheap shares again...
I have been DCA'ing, until just recently when I had a major cut in my salary.
This forced me to make a difficult choice for my family.....
I'm wasn't trying to say you're making the wrong choice, just noting that part of why dollar cost averaging works is because you buy when shares are cheap in addition to when they are high. Yet, maybe people are going to stop contributions right now for whatever reason. Investment theory is all nice, but if you can't follow it in practice its doesn't matter.
I suppose also, its my view that one should first save for an emergency fund before they heavily invest for retirement due to this sort of event. It is only natural that market down turns are going to correlate with a tough job market etc.
I'm wasn't trying to say you're making the wrong choice, just noting that part of why dollar cost averaging works is because you buy when shares are cheap in addition to when they are high. Yet, maybe people are going to stop contributions right now for whatever reason. Investment theory is all nice, but if you can't follow it in practice its doesn't matter.
I suppose also, its my view that one should first save for an emergency fund before they heavily invest for retirement due to this sort of event. It is only natural that market down turns are going to correlate with a tough job market etc.
Food on the table and emergency funds trump investing. He did say it was temporary. You have to adjust your priorities as life hands you surprises.
You know - not too many years ago there was a book called "The Two Income Trap". There were arguments about the "myth" that these people were just "keeping up with the Joneses" - and they had tons of data to refute the claim. I had actually forgotten about this book / topic until yesterday, when all the discussion of the NO bailout affecting Main St. / Average Joe.
In a matter of years we have those that claim the majority of our citizens are in debt over things they don't need. I personally think there are alot of people in debt for ridiculous reasons. However, our family is debt free excluding home (15 year fixed mtg) and that is ALL we owe.
There is so much information out there for both sides of the argument - I don't know who to believe anymore! Do the posters on this forumn represent a true sampling of the American public or not?
After reading the "How much debt do you have?" thread, I came to the conclusion that the readers of this forum are far above avaerage. Most had very little credit card debt or excessive housing debt.
I guess the majority are busy playing video games and at the mall or watching dancing with the stars.
I have been DCA'ing, until just recently when I had a major cut in my salary.
This forced me to make a difficult choice for my family. Do I contribute 75-$100 bi-weekly to a 401k w/no match, OR do I use that money to help keep my emergency fund up? Difficult decision because as I said previously, these are the accumulating years for us for our retirement. However a major cut in salary (which I didn't anticipate) definitely changes things.
When our income starts increasing again, I will be buying cheap shares again...
And this is what worries me if we just deny the bailout out of hand instead of trying to figure out a workable solution. I do forsee many companies cutting back or shutting down or a serious reduction in wages throwing many into under/unemployment. It's already happened to the housing industry though I don't think it's trickled down to all the related services as of yet. So many posts here have a theme that "we don't care about buisness" or " so what if buisness can't get credit" or "we need this depression" and I really have to wonder if they were looking at their own employer telling them "I'm sorry, we have to let you go because we can't afford to stay open" or cutting their hours down to 20 a week if they'd still be here advocating their current postition?
Most people have an opinion but it's amazing how fast that opinion changes when it's them on the line...
Not good either way, but you know who's responsible for all of this? WE ARE! We put 'em in office and let 'em stay for all these years (both parties by the way) and I don't think there's enough people with the guts to clean 'em out so we get what we deserve I guess...
Location: Sitting on a bar stool. Guinness in hand.
4,428 posts, read 6,509,244 times
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Quote:
Originally Posted by jimmyP
I guess the majority are busy playing video games and at the mall or watching dancing with the stars.
Unfortuanly...........Yes.
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... depends on how you define wealthy?
