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Housing, insurance, education and taxes have all gone up faster than wages for a good 15 years now. This has created generational and geographical poverty. At the same times Americans have become fatter and consumer more than ever while producing less.
if all those things have gone up more than wages, why are they able to "consumer" more than ever?
and debt is not the answer, sure it allows them for a time being, but why should the rest of us feel sorry for them once the bill collector comes knocking?
if they know they are making "less", they need to either make more or live on less
Housing, insurance, education and taxes have all gone up faster than wages for a good 15 years now. This has created generational and geographical poverty. At the same times Americans have become fatter and consumer more than ever while producing less.
Or try and find a job that gives their employees annual cola raises.
What happens when Life gets in the way and changes everything like being laid off?
Freemkt,
I'm impressed. You have a second identity and have posted over 700 times since April of this year with your alter ego? I was hoping to be here when you cracked 30,000 but with the combined post count, I missed it by months.
That being said, life does get in the way of the best laid plans. That's why you always have plan B-Z. My ex is facing Plan Z as we speak. She needs to strategically plan a chapter 7 bankruptcy due to a life threatening health issue. If she makes it, she will be okay financially as she will get to start at "zero" as opposed to a mountain of debt. Not great but certainly better than the alternative.
I'm impressed. You have a second identity and have posted over 700 times since April of this year with your alter ego? I was hoping to be here when you cracked 30,000 but with the combined post count, I missed it by months.
That being said, life does get in the way of the best laid plans. That's why you always have plan B-Z. My ex is facing Plan Z as we speak. She needs to strategically plan a chapter 7 bankruptcy due to a life threatening health issue. If she makes it, she will be okay financially as she will get to start at "zero" as opposed to a mountain of debt. Not great but certainly better than the alternative.
Not an alter ego at all just a general question since lots of posters talk about what people should have in their account. It doesn't always work out like that when things happen beyond your control.
if all those things have gone up more than wages, why are they able to "consumer" more than ever?
and debt is not the answer, sure it allows them for a time being, but why should the rest of us feel sorry for them once the bill collector comes knocking?
if they know they are making "less", they need to either make more or live on less
Homeowners are special snowflakes who can consume more housing in the absence of wage increases because their principal and interest payments are fixed. Not only that, homeowners enjoy increasing home equity through appreciation and principal reduction, which enables them to refinance their mortgages while pulling cash out.
homeowners are homeowners because one way or another they can afford to be .
it can also be said homes are where you tie up large sums of money that could be used to generate lots more money elsewhere in exchange for hopefully lower housing costs.
you are to wrapped up in this if i only had a home thing . the real if is if you only had a job that paid real substantial wages and if you only had some money .
with the potentials wealth to even buy a home comes other options with that money .
the fact is you have no options without money or if you did , home ownership wouldn't be key because cost cutting with a home could get the same effect to a point as having more money invested elsewhere offsetting higher costs renting
Last edited by mathjak107; 06-05-2017 at 02:35 AM..
Homeowners are special snowflakes who can consume more housing in the absence of wage increases because their principal and interest payments are fixed. Not only that, homeowners enjoy increasing home equity through appreciation and principal reduction, which enables them to refinance their mortgages while pulling cash out.
"Try doing THAT with rent." (TM)
they consume the house payment in lue of having more money for entertainment.
I choose to use my disposable income on the house, not movies/$100 pants
my house consumed 50% of my paycheck because I choose to pay more towards it, now I have it paid off and I have my disposable income free for other things
If I rented, I would have same disposable income with a different choice of where to spend it. If you put it into an investment, that would keep up with inflation to cover rent, but you don't dedicate 50% of your disposable income to housing. I did
How can someone not have money? Aside from the obvious bad choices, the compounding impact of health issues is eye opening to say the least.
While I am lucky that my cancer was curable with limited (though still life-altering) long term side effects, I was insured, I already had a college education when my diagnosis came, and I had supervisors who worked with me to ensure that I continued to get paid during treatment, at any step of the way my story could have ended up differently. But I was also 23 with limited savings and an entry level nonprofit job. I'm still clawing out from behind to get my retirement and savings where I would have expected them to be as I approach 30, and I still live with roommates (and the added stress, anxiety, and financial burden that often brings) in order to do it.
Illness/disability can make it hard to impossible to hold a job while also making life cost that much more. My out of pocket costs for 6 months of chemo was more than my entire year's take home pay at my entry level job (and I was making several multiples above minimum wage). Luckily, the extreme expense portion of my illness was time-limited. People living with chronic conditions may not have a light at the end of the tunnel for expensive medications, frequent medical visits, medical supplies that are not covered by insurance, etc. Cancer in particular can cause serious dental issues, and we all know how limited dental "insurance" can be! One particular anecdote in my social circle is a friend who was born with congenial defects that resulted in a kidney transplant at 18, and she developed diabetes on top of it all while also struggling from severe anxiety and chronic pain.
My illness history made me medically disqualified for the career field I had trained for (Foreign Service), though luckily I had received a full scholarship for undergrad and have been able to retrain with a paid-for master's degree by my employer. Student loan debt on top of the cost/debt from cancer would have been immensely challenging. If my diagnosis had come a year later, I may have been in the middle of law school and been forced to take a leave of absence - still on the hook for the bill of course.
I know others in the young adult cancer community who were in the middle of law school or medical school, got sick, and are no longer able to pursue those employment options due to cognitive impairment or other issues. Can you imagine getting a brain tumor with 6 figures of medical school debt when you will never be able to be a doctor, but still have to pay off those loans? It would be very hard to save without the anticipated income of a physician.
People in my particular cohort of disability often get sick before they have had the chance to buy a home and have that protection if they need to file for bankruptcy. When I got sick, it was recommended here and elsewhere that I file for bankruptcy, but as a renter who did not yet own a car, the idea of trying to find rentals, securing an auto loan, or eventually purchasing a home with bankruptcy in my history was just not a possibility. I dream of being able to save enough for a downpayment, but as others have noted, the cost of living keeps going up while wages stay stagnant (though I'm very hopeful about my increased earning capacity when I finish my master's this year!). That said, I know plenty of older folks who have had to drain their retirement funds due to medical crises. You have *no* idea how much you may need until you're there - I certainly didn't!
So yes, I've been able to save thanks to a lifetime of hard work, making good decisions, and being flexible despite my medical challenges, but even still, I wouldn't have anything to show for it if not for a whole lot of good luck to counterbalance the bad luck.
Homeowners are special snowflakes who can consume more housing in the absence of wage increases because their principal and interest payments are fixed. Not only that, homeowners enjoy increasing home equity through appreciation and principal reduction, which enables them to refinance their mortgages while pulling cash out.
"Try doing THAT with rent." (TM)
And then they end up upside down on their mortgage and totally without money again. No, the smart ones don't do this and if your mindset is here you should be renting instead. I think in the long run you're better off.
Also, the whole idea that there is not effort or work involved in owning rentals is just not true.
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