News, Half of all Americans are two paychecks away from TOTAL FINANCIAL ARMEGEDDON. (loans, expenses)

[drjones96]

Originally Posted by Philip T

And picks more money from Sandy's pocket to do so.

Sort of like -- Drowning? Here is a rock for you to hold.

That's a winner.

Couldn't have said it better.

It's almost like a recent Saturday Night Live skit I saw. This guy was recently homeless and living on the street and he was calling into this show asking for financial advice. The lady kept blindly telling him to not stop contributing to his 401k and his savings acct. LOL

[kwalk65]

I don't get this. It is like someone who thinks they got fat from ONE Thanksgiving meal rather than an accumulation of many bad food choices and no exercise.

Poor planning and overspending is a good reason why so many Americans are broke and living paycheck to paycheck. Sometimes one only needs to look in the mirror to see the problem. So many people stopped saving up for the raining day that is here now.

[drjones96]

Originally Posted by kwalk65

I don't get this. It is like someone who thinks they got fat from ONE Thanksgiving meal rather than an accumulation of many bad food choices and no exercise.

Poor planning and overspending is a good reason why so many Americans are broke and living paycheck to paycheck. Sometimes one only needs to look in the mirror to see the problem. So many people stopped saving up for the raining day that is here now.

Fundamentally I think you are right.

But having lived in the real world for almost a decade now I can clearly see what the real problem is for a lot of people: Life.

So right now you are asking yourself WTF does this clown mean by 'Life is the problem'?

OK since you asked: There is no fail proof financial plan to get through your life end to end. $h!t happens.

One day you're employed and contributing 10% to your savings and investing beyond the company matching % to your 401k and the next minute you are dipping into your savings to pay for physical theropy and braces for your oldest daughter's crooked teeth and scaling back your 401k contribution to help make a payment on a minivan because your wife announced that she was unexpectedly prego. Not that any of this was anyone's fault but...man that's just how life hits you sometimes. And when you're down like that and don't think it can get any worse....you lose your job. In a matter of 3 years you went from being on the path to success to being a complete failure that everyone on the financial message boards loves to bash.

FYI - I have my job....today. Today I am paying all my bills including my mortgage. Tomorrow I may be a statistic for the other side of that coin. Maybe it's you the next day.

[shiphead]

Originally Posted by jdrtx

Two paychecks? WOW, my wife is broke if she misses 1/2 of her monthly income each month. If her check is $5000.00 she spends $6000.00.

Ouch!

JD out

!!!!!

Depending on where you live, you could easily save 1/2 of that and live comfortable.

[neil0311]

Unfortunately, this isn't news. I just wonder how many of these people who find themselves in such dire straights are that way from poor money management habits. Some folks probably bust their butts and work multiple jobs to get by and live paycheck to paycheck, but I wonder how many lived/live beyond their means and could have been saving when times were good, but instead spent it or borrowed it and spent it.

Just look at the example our politcians of both parties set, and do you wonder why people grow up in this country with the money management skills (or lack thereof) they have?

[gwynedd1]

Originally Posted by kwalk65

I don't get this. It is like someone who thinks they got fat from ONE Thanksgiving meal rather than an accumulation of many bad food choices and no exercise.

Poor planning and overspending is a good reason why so many Americans are broke and living paycheck to paycheck. Sometimes one only needs to look in the mirror to see the problem. So many people stopped saving up for the raining day that is here now.

Hi kwalk65,

We should thank them. Without them we could not save anything at all for a rainy day. Their debt is our savings as well as money supply.
Dollars are debt instruments and you need to understand this profound paradigm shift required for understanding. When one walks into the current banking system their powers of common sense understanding will do them no good at all. Everything will end up foolishness.

[Heiwos]

Originally Posted by induhvidual

Sandy, why do you say that.
Don't you have medical insurance that caps your deductible.
I just signed up for BCBS that does exactly this.

My liability is limited to my deductible, which is 6k for me.

You're in for a shock if you have a big medical issue. Perhaps half of all charges won't be covered by insurance. Insurance applies only to covered items. Your non-covered items probably run to over 500 pages at the health insurance company (I used to be a medical claims adjuster in another life). My mom had surgery with primo insurance; her responsibility: $30K.

[nightbird47]

Originally Posted by drjones96

Fundamentally I think you are right.

But having lived in the real world for almost a decade now I can clearly see what the real problem is for a lot of people: Life.

So right now you are asking yourself WTF does this clown mean by 'Life is the problem'?

OK since you asked: There is no fail proof financial plan to get through your life end to end. $h!t happens.

One day you're employed and contributing 10% to your savings and investing beyond the company matching % to your 401k and the next minute you are dipping into your savings to pay for physical theropy and braces for your oldest daughter's crooked teeth and scaling back your 401k contribution to help make a payment on a minivan because your wife announced that she was unexpectedly prego. Not that any of this was anyone's fault but...man that's just how life hits you sometimes. And when you're down like that and don't think it can get any worse....you lose your job. In a matter of 3 years you went from being on the path to success to being a complete failure that everyone on the financial message boards loves to bash.

FYI - I have my job....today. Today I am paying all my bills including my mortgage. Tomorrow I may be a statistic for the other side of that coin. Maybe it's you the next day.

Been there. One day the home business was doing fine, family in one piece. Then the bottom fell out, husband boogied, business falling apart, no money and losing house. Maybe a few decisions might have been better but wouldn't have made a real difference. Like you said, $hit happens.

What I learned is to never depend on tomorrow or your plans. No matter that all the decisions were perfect and that you could see was on the right path, the bottom of life can fall. No matter how great life may be at any moment I always know there is another shoe ready to fall.

But... What I've also learned is to enjoy the moment. Don't ruin a suprise trip by not giving it your all. Maybe it is the only one. Stop and appreciate a sunset, a bird singing, a perfect tree, one of those moments when everything is right. This is how we are made to be, to take in the now and appreciate it, not brush it past for something that is to come.

We have to plan and have a goal, but we also have to know that goals are just that, an end. Life isn't about them, its about each day and how we make it through with as much joy and peace and giving as we can. We make that goal wonderful, but who knows how many turns there have been or side trips or redefined priorities. Its that that matters, that along the way to that end, we lived the best life we could and didn't put off enjoying the path because we aren't "there".

Hard and basic fact is that no matter how sure you are that things will be good, there is no "sure". Don't walk around waiting for the piano to fall, but is you see cracks *see* them. Think about what you'd do. Try for a fall back. And if you can, have one even if you can't see any.

So... if you can't afford that special trip, ie if you don't have the money now to pay for it... then you can't, but find something to do. There are always places that are beautiful and not so expensive. But don't say we'll wait until "then". Take fun and joy and life within your means even if that dream of a lifetime never comes. Enjoy life with the people that matter now, not "putting it off" so it will be better later. Always remember that what is real is now. What is available is what is here. Money, people, beauty and joy. Later, when we retire, next trip, when I have time are figments that we only hope will come.

The essense of life is balance. Taking into today and planning for what we hope tomorrow will be. Being blessed for the good times but knowing that there is no guarentee that they will last, believing enough in the future to plan but knowing that it is only a goal.

So when that two paychecks lost is the mark against disastor, take care. Don't spend unless you have to, aviod credit, save, but within your means take time to share with family and friends and see the beauty too, for it is the balance to the fear and without balance we are lost.

[kwalk65]

Originally Posted by drjones96

Tomorrow I may be a statistic for the other side of that coin. Maybe it's you the next day.

I don't say what I said in any sort of arrogance and if it came off that way I am sorry.

I myself, as well as many I know have several years worth of savings that could sustain ourselves for quite some time. I don't want to be a "statistic" of a life lived in debt. I've known too many people who have been stricken suddenly with tragic illness and those who lost jobs, homes, etc. --- none of them had planned for those events to happen and never ever thought of having a safety net. I don't live in fear --- I live in the freedom of knowing that prudent decisions years ago as well as each and every day now make harder times that may come feel like they might be a bit less stressful.

[Stac2007]

I truly wonder how thing are going to get better when people are earning less that what it takes to survive in today's world. We are still loosing jobs to outsourcing and yet the market is going up. When big businesses and government realize that without the money in our paychecks to spending retail sales will remain flat. Then maybe the market will correct itself. Until then we will keep plugging the holes in our economy with the debt we are expecting our children to pay off. Last I heard it was close to 10 trillion dollars. Please correct me if I did not add a few pennies.