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But the difference is that people who don't live beyond their means and those who do is people not living beyond their means PLAN FOR STUFF. They accept that some day they may lose their jobs and plan accordingly (i.e. they save a good chunk of their incomes). They think twice about having a kid if finances are tight. They avoid single parenthood like the plague (especially starting out that way) because they know it's not good for them or their kid(s), etc.
This is reality and more people should wake up to it, especially this liability children are and create
This is reality and more people should wake up to it, especially this liability children are and create
Women who start off life as single moms just boggle my mind. I remember being 10 years old and hearing about this and thinking these women were crazy. I still think it's crazy.
ruin it for the people who are financially responsible/smart?
i was having this conversation with someone who is horrible with money and in so much debt despite the person making $200k per year. obviously some horrible decisions were made and this person lived beyond their means for quite some time. do these situations effect the people who are financially responsible with their money? if so, how? i was trying to make the argument that this person was ruining it for the rest of us but i didn't have any examples to support my argument lol so then i started questioning if that were true. i was just wondering what kind of ramifications this has on the rest of society.
When they default or get their payments lowered, your prices will go up to pay for their mistakes/missteps/not paying.
Well, I may be wrong about this, but seems to me that eventually that kind of carelessness leads to things like the housing market crash and depression of the economy. Not sure, but if that's true then that's just one more reason for me to be pissed off at dumb, thoughtless people. If only their actions would just affect them. Unfortunately, they're just so stupid they don't realize how many other people they're affecting. But then, I could be wrong about that and maybe somehow all that debt they're in just affects them and the rest of us are untouched by it; that's what I would like for it to be like.
Yep my thoughts too. Easy money (subprime mortgages) easy to be approved for a mortgage and everyone is buying and drives housing prices up. When it all came crashing down they blame it on everyone else.
I heard a saying. When the government gets involved in the name of helping the poor they always end up making more poor.
I work in a convenience store with no upside potential; the hourly employees are all paid within a few cents of minimum wage and our middle-aged manager exemplifies the Peter Principle and is in place until he retires.
Why not work in a restaurant where you get tips. I hear tips can be pretty decent. If there is no upside then the first step is to go elsewhere.
Didn't read the whole thread, but yes, they do hurt it for the rest of us. Because at some point someone has to pay the bills. Think of the housing crash, cost of healthcare, etc. Or college. Do you know the formula for aid actually rewards those who spend over those who save? If you live above your means, extend yourself on the house, take expensive vacations on credit, have little savings, then you get more aid than someone else with the same income who bought a smaller house, took cheaper vacations, put money into savings and investments? Because the formula counts those investments against you. That's one very specific example right there.
Or all those great deals for consumers? Guess who pays when they don't? The rest of us pay in higher prices.
Yep, like my healthcare insurance. Before Obamacare I paid $450 a month with a $2500 deductible. Post Obamacare, I'm paying almost $800 a month with a $5k deductible. And Obama said premiums would go lower
An example of someone else not being responsible so the responsible have to pay a lot more.
ruin it for the people who are financially responsible/smart?
i was having this conversation with someone who is horrible with money and in so much debt despite the person making $200k per year. obviously some horrible decisions were made and this person lived beyond their means for quite some time. do these situations effect the people who are financially responsible with their money? if so, how? i was trying to make the argument that this person was ruining it for the rest of us but i didn't have any examples to support my argument lol so then i started questioning if that were true. i was just wondering what kind of ramifications this has on the rest of society.
Of course they do why do you think so many people work two jobs?
I hear this argument in soooo many context, not just this. The reality is some people don't even have enough education to understand they lack education. It becomes this chicken and egg situation.
There is a fact that people who have role models to show them how things are done properly do better than those that don't. It's not at all uncommon to hear people with money problems say that their parents didn't handle money wisely either.
The opposite is true too: the parents who take the time to teach their children responsibility with money tend to produce adults with good financial health. Frugalwoods is a wonderful and obvious example of the power of effective influence.
I'm not trying to give anyone a pass, but to put the burden of the housing crisis squarely on the buyers is just not fair.
Big Short puts the blame everywhere, which I think is most accurate.
I know it's "vogue" to blame the other guys (greedy bankers) and you give excuses to the mortgage holder (parents" didn't teach about finance). In most cases look at the parents, therefor you go. So people wanted better than their parents based on their parents teaching? Does learning stop once you graduate and move out of your parents house? My parents didn't teach me and I made it my responsibility to learn. I don't give people who's parents didn't teach them about finance a pass, they played as big part in the housing crash as the bankers.
The blame is "everyone" involved. There are many situations but to put blame squarely on bankers is wrong too. And by placing blame elsewhere you don't learn from "your own" mistakes.
Subprime mortgage is a type of mortgage that is normally issued by a lending institution to borrowers with low credit ratings. As a result of the borrower's lower credit rating, a conventional mortgage is not offered because the lender views the borrower as having a larger-than-average risk of defaulting on the loan.
Thank you for saying so. As a real estate agent I have limited knowledge of what bills and spending habits a buyer has. It isn't my business to ask or sit down with them to write out a house hold budget. I show them houses in the price range they ask me for. You have to be an adult person to enter into a contract and the buyer has to do their own math. To actually say something like " Now can you really afford that price?" would likely come across as insulting to most people.
Yea I just shake my head when I hear people blame the real estate agent, the bank and now the parents for not teaching them but never look in the mirror.
It's amazing how people give themselves a pass. Although not on same level as a mortgage but there was a girl who was thousands and thousands in credit card debt. She said that she wasn't going to pay it because the cc company shouldn't have given her the limits they gave her.... she blamed the credit card company, not herself... amazing it's it? It really makes you wonder about people.
Most of what you hear about people who "live beyond their means" is hooey. Actual cases of it tend to occur when one's means suddenly disappear -- as in through job loss, health crisis, or an unfavorable divorce decree. These and other sorts of setbacks of course hit hardest at those already living at risk, such as minority and single-parent households. Most people meanwhile know and respect whatever their financial limits are. The number who actually go out on spending sprees and binges is tiny indeed, except in lore and mythology.
Yea life happens, it's guaranteed. And since we know it's guaranteed why don't people prepare for it? If you won a $600k after taxes what would you do with it? A lot of people would go on a spending spree till it's gone, some would spend it and then give some away neither thinking about their "future".
There are only a few who will spend a little and put the rest away and invest it.
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