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Since I feel certain this will get controversial, I am putting this here. Can't believe tattoos didn't make the list. Maybe Buffett has no idea how expensive they are.
Warren Buffett: 12 things poor people should stop wasting money on to accumulate wealth
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Frequently visiting bars and pubs
Visiting bars and pubs frequently can add up. For this, Buffett suggests alternatives like home get-togethers that can help one save a significant amount.
Chasing tech
Buffett has a history of sticking to functional rather than flashy tech, says the report. Before buying the latest gadget, one needs to see if the upgrade is really providing added value for the price...
I live near a city provided low income housing apartment community. I notice many of the cars (not all) are really nice, and/or souped up. As a kid I noticed this too. I grew up in a not so great part of town. My family did ok, but I knew a lot of people who didn't have money. They spend their money on crap like fancy cars. You should see some of these lifted trucks! These are easily 50k vehicles. Meanwhile my wife and I make really good money and I drive a 7 year old dadmobile.
He's talking about the people that make 6 figures but spend it and then go into debt to spend more.
They are "cash poor" and have very little savings.
Their net worth is in the negative because of debt.
They are poor. He's not out of touch; he's spot on IMO.
Yes I think you are right and some who have mentioned the lower middle class. I wouldn't even say they are lower middle class. I think they are actually poor, but they spend money on the right things to appear lower middle class (the latest gym clothes, nice cars, etc)
I live across the street from some very poor Mexicans. They don't have nice cars or spend nights in bars (I don't think).
Seems like most of his list applies to lower middle class who are living above their means, those that are truly poor are not buying new cars or getting gym memberships. I wonder what he recommends when your out of money and have a family to feed or house if you shouldn't use a credit card....
Sell stuff for immediate cash. Get side jobs for additional income.
Have kids? Get side jobs where you can take them with you. I delivered coal in the winter to houses in a borrowed pick up truck when my kids were little. Cleaned rentals between tenants with them along. Pressure washed construction equipment during the summers for a crew and cleaned their lot.
I manage my own rental property and after reading credit reports over the past several years, it's not medical bills, student loans or the sudden loss of a job which buries renters. More often it's spending beyond their means. 10k-15k in credit card debt and 20k-25k owed on a vehicle? Not unusual. Yes, you need a vehicle in the Phoenix metro, but do you really need a 35k Ram truck?
I have a renter who earns good money but had been late paying her rent. My guess is the horse she bought a few months back hasn’t helped. Don't know what it costs to rent a stall in a stable for a horse or to feed one, but I suspect it's not cheap.
But she knows the rules: I don't get paid the rent by the 10th (including late fees) it's the house or the horse because I will move to evict.
I see on many threads that many of us recommend getting a second job. My father worked 2 jobs, my husband worked two jobs, I worked a full time internship at the hospital and had a 2nd job. I'd be interested in knowing how many others have worked 2 jobs at some time.
I don't believe it's political as my father and I were Dems and my husband a Repub. I do think it may be the generation we were brought up in. My DH's parents went through the Great Depression - my dad grew up without a father and Gramma took in other's wash - people did what they had to do to make ends meet.
It seems today - people want it all now - no waiting to save so you can purchase it outright.
That was a great book. All of the participants lived like paupers.
I'll bet we all know more than a handful of them. Loved that book, too.
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