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A lot of people find a way to spend everything they earn with the idea nothing will ever go wrong such as a job loss or unexpected expense. Another problem is people have a "YOLO" attitude towards their finances and have no problem signing up for debt because they "deserve" good things. This applies to every level of income. I've known people making much less buying silly stuff that makes them feel better on credit because "I can afford the payments". I am wondering how this is working out when basic living costs have thrown a monkey wrench into their plans.
The poll points to Millennials specifically, and that tells me the issue is housing prices. A very large rent or mortgage payment leaves very little room to maneuver in an inflationary economy.
Families with kids might be paying for private school, extra tuition help, sports camps, more than 2 cars if you have teens and that means insurance which is higher for teens. Teens also need phones and clothes and fast food and in that income bracket they are not going to be working
You could also be looking at families paying for college
Families with kids might be paying for private school, extra tuition help, sports camps, more than 2 cars if you have teens and that means insurance which is higher for teens. Teens also need phones and clothes and fast food and in that income bracket they are not going to be working
You could also be looking at families paying for college
Living paycheck to paycheck while paying for private school, extra tuition, sports camp, more than two cars are all choices. So is having children and paying for college.
Living pay check to pay check and having to live paycheck to paycheck are two different things.
Lots of people in all income levels spend each month what the earn. I don't think that is really paycheck to paycheck. Most have money they can tap into if they need it.
To me paycheck to paycheck means you better have that check every month or there is no way to pay your expenses.
Lots of people in all income levels spend each month what the earn. I don't think that is really paycheck to paycheck. Most have money they can tap into if they need it.
To me paycheck to paycheck means you better have that check every month or there is no way to pay your expenses.
From that article..."one in nine respondents said that they wouldn’t be able to cover a $400 emergency expense by any means, including credit cards, borrowing from family or friends or by selling an asset. "
From that article..."one in nine respondents said that they wouldn’t be able to cover a $400 emergency expense by any means, including credit cards, borrowing from family or friends or by selling an asset. "
Everyone should aim to have an emergency fund with at least 6 months of living expenses.
I have no debt outside of my mortgage. My student loans are all paid off and I own my car outright. Also, I don't carry credit card debt. I have an emergency fund and invest nearly 65% of my income. Next year, I'm aiming to invest 75%!
It’s not inflation that’s the problem, certainly not most Id suspect. It was overspending from the start that was the issue
I don't doubt they do things like expensive salon trips, nails, eat out often, buying a lot of convenience food items, drive the most expensive cars... All choices they made when they started being a high earner.
Quote:
Originally Posted by k374
it could be those that entered the housing market recently overpaying and overextending by a lot or are recent renters who had to take a lease at some ridiculous prices. If you're entering the housing market now I could see how you're going to be stripped dry because home values and rents have skyrocketed to eye popping levels... I know markets where rents have gone up by 30-40% and home values have doubled or tripled in just a few years.
Read the article again, their credit cards are all maxed out. What does that tell you? They like to spend money by using credit cards. No doubt they vacation regularly in addition to what I said above.
The fed sucks, no doubt, but this is a personal finance problem, if true.
^^^this.
I had a woman at my house last night that looked like a million bucks. Jewelry, late model Range Rover, dressed like she was going to a modeling shoot.....she looked amazing yet she rents her house, car has a $1200 payment and she literally lives child support check to child support check and the kid will be 18 soon.
I cringe when I hear the stories of her credit cards being declined or some scheme for her to get rich. She is super likable but financially a black hole.
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