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People blow their money on stupid crap they don't need. Expensive cars to impress people at the stoplight. And too many people spend wayyyy too much eating out along with 7 dollar beers
Many financial advisers say "People spend what they earn". Simple as that.
We have close friends, he is an attorney, and he makes 10 times what we do a year {well into 6 figures}, and never has any money. He lives in a "mansion" {11 rooms, 2.5 bathrooms on 3 acres}, we live in a 2 br 1 ba small ranch. They go on vacation about 3 or 4 times a year to either exotic places or countries or travel USA.
Our other close bestest friend makes twice as much as we do, lives in a house provided on land contract from MIL that is very cheap, and STILL has no money. Money goes through their hands like water. They are always begging extra money off their elderly parents, and the MIL pays all repairs/maintenance on a house they supposedly "own".
We don't have a lot, don't make anywhere near what either do, but at least we have some savings and retirement.
You need look no further than people's driveways and garages to know why people spend as much (or more) than they make. Americans seem to have an unhealthy obsession with expensive automobiles and/or trucks. I always shake my head when I see people driving a $70,000 fully loaded Yukon pull into a small/crappy house with no yard on a corner lot.
it may be nothing more than priorities with their money . you don't know their story .
i always drove nice new cars , but that was because we didn't spend on other expensive things .
ppsssst , i drove mostly bmw's and rented an apartment ! i just preferred to invest elsewhere where it was more lucrative and i hate chores and maintaining a house .
as i said , stop trying to evaluate what strangers have , you are wasting your time .
Math, , I think it's about the broader issue of what this could mean for society if people continue to not save and have no safety net of their own. That's all.
Sure. If a person has a pension and social security coming, then they might be able to have less of their own money saved. Call me crazy -- but form a sociology and economics POV -- I do find it fascinating that so many "high" (that's relative) income earners don't have more saved. Is any of this new? No. But I continue to find it interesting.
If a person or couple making 500K or a million or more -- is broke month to month..... that's on them. But I'd love to talk with them and find out WHY are you living paycheck to paycheck....making that amount of money? I'm interested in what makes people make the decisions they make. And as we've all said before....money -- finances -- and how we treat them and what we do about them...touches every aspect of an individual's life....childhood memories, family dynamics, budgeting, thoughts of sacrifice and delaying wants, versus live for today. All kinds of things.
How is it possible that some people just. can't. manage. their. money? While for some budgeting is simple math, saving is a given...for others it's not even a thought. Why? -- and what does that mean for that individual and us all? That's interesting to me.
and you are going to do what about the fact your neighbor over spends ?
that is my point .
folks would be far better off reading article's , books ,and visiting forums that teach them how to plan and do better themselves than discussing the fact others over spend . that is pretty much not actionable by you
I think we might be talking about two different things. You may be talking about a purient interest for no other reason than: "look at him," and gossip. My focus is something altogether different.
I suppose that study the OP posted about shouldn't have been done or that article shouldn't have been written? We all interview and learn from individual cases to piece to other the situation on a larger scale and at a societal level.
If a couple is broke that's on them...what's that mean, what does it bode, for the future, when entire societies have those spending habits or a lack of savings habits?
Look at how we're always compared to the Japanese savings rate. Yes, I do believe it's interesting to see what and how they save versus how and what we save. We can learn from others stories and histories and behaviors. That's all.
And I will also contradict myself a bit. There IS a fascination I have with how people can make certain salaries and have so little saved. Yes. I would love to know what is that about??? I would. So shoot me.
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