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what if it's a man who wants to date can he still save 20% of his paycheck?
Add that to an entertainment budget which is a want, not a need. I am using the needs in my analysis to prove that there are problems with making what you need to make to save AND cover basic needs on the current jobs.
One article ends, "He said many homeowners are, indeed, getting stuck with repair bills significantly larger than their insurance settlements, but he blamed strict limits on what the flood program covers, not bad adjustments."
If the flood programs does not cover the cost of your home, you have to plan accordingly. That amount should have been saved in a separate account. I have a few friends that have separate accounts for natural disasters, so that idea is nothing new.
This happened to a good friend of mine. He was in IT, not technically a "banker".
You had a great job at a bank.
Then the economy went sour, mainly because of the way the banks had handled their end of things.
You get laid off and like so many others at that time, your variable rate mortgage goes sky-high due to the increase in interest rates.
Your mortgage was through the same bank you worked for.
Bank refuses to negotiate the interest rate down.
You cannot find another job paying anywhere near that old salary.
Bank eventually forecloses on your home.
Your credit goes down.
Now the same bank that originally employed you and repeatedly said you were a great employee, refuses to hire you back because you have bad credit due to their poor business tactics that got you laid-off in the first place!
How is that fair?
Would you hire the class clown? How about would you hire an irresponsible person? If someone can't manage their own life how efficient would they be in managing your business...When a business go's shopping for a new employee they,just like you are looking for the best product for their money and needs....It isn't discrimination,,it's them using common sense....
First, he has to be vetted, he cannot go into office with bad credit- he must pass the background check,,, and 2nd good credit does NOT ever mean you are a good person - ever. Right now I work with some folks I know ahve good credit--because of security clearances they MUST pass for the job- but they are the nastiest, laziest people ever. MIA, never have their stuff in order, long lunch hours, sick ever time they get time, and cant even do a fed ex--and one lady even wrote a Book in her cube -work ethics --HA credit -please- means nothing when it has to do with work- when I was 20 I was a very good worker and had no credit--- because in the 70's females didn't have credit-just so you know
Would you hire the class clown? How about would you hire an irresponsible person? If someone can't manage their own life how efficient would they be in managing your business...When a business go's shopping for a new employee they,just like you are looking for the best product for their money and needs....It isn't discrimination,,it's them using common sense....
For the 4th or 5th time...there is NO correlation between bad credit and poor work performance. Stop making assumptions. I love how some of you can size an entire persons life up based on a credit score. Its laughable. You don't what the circumstances are so stop being so judgmental
$951 for a 2bd, split that in half. $425.
$200/mo for groceries
$50 for transportation (not sure what your bus passes cost there)
I'm up to $675 without utilities. When I was in college, our utilities (electric) was usually under $50 mo, didn't run the A/C much at all and that was for four people in a 2bd apartment. So that's $725.
Maybe you need a cell phone, $10/mo. Or $30 for a t-mobile unlimited data plan and use wifi calling.
$755.
$150 for health insurance brings it up to $905.
With $1800 after taxes, you could be saving close to 50%. There's certainly going to be some incidentals in there but 20% is definitely possible. It might not meet the standard of living you feel entitled to. But that's why people end up "needing" to put things on a credit card.
No sharing a room required. If you're willing to do that (I did in college) it gets even cheaper. My rent my sophmore year was $250/mo since we had a $1,000/mo 2bd apartment split between four guys.
First of all, a $951 2bd split between 2 people will be $475 each. It doesn't make a big change to the overall numbers, but it does add an extra $50 to the monthly expenses.
Not everybody that rents a 2bd is sharing with somebody else that will pay rent. They might be married and have a kid or even 2 kids. In this case, yes the spouse's income should go towards the monthly bills, but a couple things could change the overall numbers.
1) The spouse, assuming the wife, but not always, may be a stay at home parent.
2) If the kids and young, such as too young to have started school for instance, and both parents work, then there is a good chance that some type of daycare will be needed.
Also, many people have cell phone plans through Spring, Verizon, AT&T, so those will be more than $30 a month. You could always terminate the contract and make one larger payment and then go with something cheaper, such as the T-Mobile unlimited data plan, but that's not an option for some. Some areas have really bad reception and some providers are worse than others. If you have Verizon for instance and get good service in your area, but T-Mobile's service isn't so good in the area, then you'd be silly to make that change because a cell phone without service is useless.
I do understand that your example was based on a single employed person, but there are many, many, many people that aren't single or even employed.
So let's take your numbers and consider a married couple with 2 young kids and the mother is a stay at home mom.
You still have the rent of 951, but now 1 person is paying it, not 2.
$50 in my car would give me a full tank, but would only last about a week and a half even if I only drive to work and back. Plus, my wife would need some form of transportation and that would also require gas. So we'll estimate $150 a month in gas.
Utilities can vary depending on where you live and time of year. We'll just estimate that at $100 a month since we are talking about a family and they will usually use more than a college student will simply because the college students will spend usually spend more time away from the apartment.
Cell phone, I only looked at Verizon because I was on their paying my bill anyway so we'll say a family plan costs $160 a month.
At my job, my family insurance costs $97 a month so we'll round it up to $100, but I never see it so I really don't spend that money so we won't even include it,
Also, auto insurance for us costs roughly $70 a month.
So you have:
1800
-951 rent
-150 gas
-200 groceries
-100 utilities
-160 cell phones
- 70 auto insurance
=169
As you pointed out, there will surely be some incidental costs that occur each month and some months will have more than others. It may be a good guideline to try to save 20%, but it's not always possible. Before you say that by these numbers, both parents should work, then you'd have to add in the cost of daycare. In my town, the cheapest I've seen is $40 a week per kid so somebody paying for 2 kids could figure $320 a month in daycare costs. I know there is a better deal in another town, but taking kids there would increase the cost of gas each month.
Many people in this situation consider themselves lucky if they're able to save $50 a month.
Would you hire the class clown? How about would you hire an irresponsible person? If someone can't manage their own life how efficient would they be in managing your business...When a business go's shopping for a new employee they,just like you are looking for the best product for their money and needs....It isn't discrimination,,it's them using common sense....
In my graduating class, there was this kid that just wouldn't shut up. He always had some "funny" comment about EVERYTHING. Often they were funny, but sometimes they weren't and if you happened to be his target on that particular day, then it was rarely funny at least at the time, but looking back you'd probably think it was hilarious. This kids antics would disrupt the class, but it never took away from his work. He ended up being I believe #7 in the class, but I'm not sure about that. I do know he was top 10 in the class though.
He now owns his own business, which is very successful, locally at least and while I haven't had a reason to do business with him, I've heard from others that knew him in high school that he really hasn't changed any in terms of personality, but people continue to go to him because he's so smart and so good at what he does.
So, in this case, if he was looking for a job, I would indeed hire the class clown because I'd look at his resume and qualifications instead of the fact that he was the class clown.
The fact remains that having good credit doesn't automatically make somebody a good employee and having poor credit doesn't make somebody a bad employee. You have to look at the job the person is applying for. If somebody is applying to be a financial advisor, then yes that person should have good credit. If he/she doesn't, then it would be like a dentist with bad teeth. If it's a factory job, then it shouldn't matter.
I don't think FICO is a litmus test even when it is utilized. However it is a part of the picture and if an employer wants to know if you are responsible with your personal finances, he has a right to consider it, along with everything else on your application.
Most Americans are quite bad with their finances, and when you suggest they might be at fault in some respect, they become indignant and invoke the malevolent universe excuses.
If you take 100 broke Americans, you will see that 95 of them could have been financially stable if they executed Reason, and a basic financial plan. 5 of them might have true hard luck stories that no planning could have prevented.
My comments are aimed at the 95. If you save 15-20% of your income, over a short period of time, you will be insulated from most common emergenices. In the medium term, say 2-3 years, you will be insulated from almost all common emergencies. In 5-7 years, you will be divorce proof, job-loss proof, and 1 year disability-proof. In 10 years, you are financially impregnable with the exception of catastrophic life events such as getting hit by buses and errant landing jetliners (which hardly ever happens to anybody statistically)
During this period of basic responsibility, your FICO will go over 800 and stay there. Will you be some kind of exceptional human being at this point? No. Just an average schmo with half a brain, a basic plan, and some discipline.
Saving 15-20% of income is LOL for a high percentage of people in America. Totally impossible, especially living in a place where it's a crime to not do business with private insurance companies. Where I live, if you have a family you would need 2 people to earn an above average income just to meet basic living expenses....and save nothing. That's with almost zero luxuries, btw.
credit -please- means nothing when it has to do with work- when I was 20 I was a very good worker and had no credit--- because in the 70's females didn't have credit-just so you know
What ?
I am a female, and I had a credit score in the 70s. Heck, I even had my own credit cards, just so you know.
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credit -please- means nothing when it has to do with work- when I was 20 I was a very good worker and had no credit--- because in the 70's females didn't have credit-just so you know
