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Why do people insist that they can't save anything?

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  • SnoopyCool
    replied
    I bounced back and forth on getting gazelle intense on knocking out debt and saving 3-6 months income. I wanted all of my debt gone ASAP (and still do) and wanted a cushion. Now that we are jobless, I'm glad I mostly sided on savings, as we've needed that cushion.

    I say save, baby!

    Leave a comment:


  • SacredFaerie
    replied
    Originally posted by ScrimpAndSave View Post
    I think this is a perfect example of my first reaction when I first saw this thread. I know plenty of people my age that I work with making around 50K but can save NOTHING. This is basically because they are in debt up to their eyeballs and are stuggling to only make the minimum monthly payments on credit cards. In order for them to save even a few dollars, they would have to either be behind on their credit card payments, or not pay utilities.

    I think there comes a point when someone is living so high above their means (and using credit cards to do so) that they no longer have any liquid cash. Everything from their paychecks are already accounted for (bills)...and the only way they can save is if they choose to to behind on payments.

    So yes, it is totally possible.

    I don't think Maat is trying to sound like he is being the "be all end all". He's just stating a fact...and I think that the truth sometimes hurts.
    I know the truth of my situation. I've stated it actually. I stay away from using my cards unless I have some kind of emergency (something breaks, one of the kids needs something blah blah blah). I wasn't always that way but I'm young and young people make mistakes. I know the error of my ways now and I don't continue the same bad spending habits anymore. I don't know it just seems logical that in order to start living within my means I need to eliminate some of my bills. Saving money and continuing to go further into debt doesn't make much sense. Once I eliminate the cc bill, that money will go into savings. I'm not there yet.

    And based on some of the responses of Maat's I saw I went back and read some of his other responses.......yeah.

    Leave a comment:


  • ScrimpAndSave
    replied
    I think this is a perfect example of my first reaction when I first saw this thread. I know plenty of people my age that I work with making around 50K but can save NOTHING. This is basically because they are in debt up to their eyeballs and are stuggling to only make the minimum monthly payments on credit cards. In order for them to save even a few dollars, they would have to either be behind on their credit card payments, or not pay utilities.

    I think there comes a point when someone is living so high above their means (and using credit cards to do so) that they no longer have any liquid cash. Everything from their paychecks are already accounted for (bills)...and the only way they can save is if they choose to to behind on payments.

    So yes, it is totally possible.

    I don't think Maat is trying to sound like he is being the "be all end all". He's just stating a fact...and I think that the truth sometimes hurts.

    Leave a comment:


  • maat55
    replied
    [QUOTE]
    Originally posted by SacredFaerie View Post
    Look I don't know who you are but I do notice your final, concrete statements about what people HAVE to do. You're not the end all be all.
    I'm just a guy who has been where you are. The advice I gave works if done. If you do not like it, continue doing what has worked for you.

    Leave a comment:


  • SacredFaerie
    replied
    Originally posted by maat55 View Post
    If you want to get traction towards getting out of debt and saving for the future, you will have to live on less than you make, at all times.

    To some this may mean completely changing their lifestyle, lowering their housing costs, transportation costs, entertainment costs etc. Some can use future raises for debt reduction and investing only.

    To get a clearer picture, I recommend reading The Total Money Makeover by Dave Ramsey and The Automatic Millionaire by David Bach.

    Getting yourself into a position to save first while living on less than you earn is the key to winning with money.
    Look I don't know who you are but I do notice your final, concrete statements about what people HAVE to do. You're not the end all be all.

    Originally posted by disneysteve View Post
    Here is your problem. If you wait until you have "extra" to save, you'll likely never save, because there is never any extra. You need to save first. Perhaps you've heard the expression, "Pay yourself first." Even if it is just putting $5/paycheck into the bank, you need to get in the habit of saving something each time you receive money before paying any bills or doing any other spending. Ideally, you need to work up to living on 80% of your income and saving 20%. Don't expect to start there, though. It took us years to hit the 20% level after first paying off 2 cars and over 100K in student loan debt.
    If I did that one of my bills would have to suffer. I can do that but I will end up pulling it right back out. In order to get my credit to where I can get a mortgage and a different car (drive a two door need a four door) I'm trying to get rid of the Capital One debt ASAP. I've posted the whole basic outlook in another thread. (The one you asked me about it in.)

    Leave a comment:


  • disneysteve
    replied
    Originally posted by SacredFaerie View Post
    I try to save when (if) I have extra
    Here is your problem. If you wait until you have "extra" to save, you'll likely never save, because there is never any extra. You need to save first. Perhaps you've heard the expression, "Pay yourself first." Even if it is just putting $5/paycheck into the bank, you need to get in the habit of saving something each time you receive money before paying any bills or doing any other spending. Ideally, you need to work up to living on 80% of your income and saving 20%. Don't expect to start there, though. It took us years to hit the 20% level after first paying off 2 cars and over 100K in student loan debt.

    Leave a comment:


  • maat55
    replied
    Originally posted by SacredFaerie View Post
    Good point. I try to save when (if) I have extra but in a few months I generally end up dipping into it to cover myself. I don't end up having savings but when I need money I have it.
    If you want to get traction towards getting out of debt and saving for the future, you will have to live on less than you make, at all times.

    To some this may mean completely changing their lifestyle, lowering their housing costs, transportation costs, entertainment costs etc. Some can use future raises for debt reduction and investing only.

    To get a clearer picture, I recommend reading The Total Money Makeover by Dave Ramsey and The Automatic Millionaire by David Bach.

    Getting yourself into a position to save first while living on less than you earn is the key to winning with money.

    Leave a comment:


  • Goldy1
    replied
    Mym om was frugal, and still is. I tihnk I learned it from her. I rubbed off my frugalness to my dh. It's not sexy to be too frugal when dating, but we consider ourselves kinda partners in frugality. WE still have fun, and have our splurges. WE most value our TIME together, and our time together is better if not worried about debt, and I want to be with him in retirement sometime before 70..LOL....
    I made one splurge on a designer purse this year and I probably won't do it again b/c I ended up changing my mind about liking it. lol oops, and to resell it on e bay would probably cost me $40 in fees. lol

    Leave a comment:


  • SacredFaerie
    replied
    Good point. I try to save when (if) I have extra but in a few months I generally end up dipping into it to cover myself. I don't end up having savings but when I need money I have it.

    Leave a comment:


  • disneysteve
    replied
    Originally posted by SacredFaerie View Post
    Well as someone who says she can't save, a lot of it has to do with the fact that my debt exceeds my income.
    Actually, most homeowners have debt that exceeds their income, so that alone isn't a reason. Many college grads today also have debt that exceeds income, at least early in their careers. I certainly did. That never stopped me from saving, though. What really matters is how large the payments are relative to your income.

    Leave a comment:


  • SacredFaerie
    replied
    Well as someone who says she can't save, a lot of it has to do with the fact that my debt exceeds my income. I don't have anything left over. I'm working on eliminating some of my debt though so I can save. And if a bill is ever less that expected I make sure the left over goes towards an advance on that bill (or another one if a larger one with heavier interest is giving me a headache).

    Leave a comment:


  • kork13
    replied
    Little story demonstrates this problem really well... I've been staying with some friends of mine for the holidays. They're relatively well-off, so they are able to indulge themselves and my friend (their only son, who is like a brother to me) on a somewhat regular occasion. His parents are quite responsible with their money (they mentioned that she has recently lost over $500k from her 401k, indicating fairly advanced savings), but my friend isn't quite as money-smart yet. Leading up to christmas, my friend was dying for a set of skis (goes to school in CO), and a high-end watch ($500-$1000 range.... however, he's one that would keep it for a lifetime). After over a week of going back and forth with his parents, he and I were out with his mother one evening and we finally convinced him to wait on the watch, and actually save up for it, then to look at buying it a few months down the road. He's now actually pretty sold on the idea that he can save up a raise he's getting soon, then have enough to buy whatever watch he wants.

    The dollar figures and reasoning behind it are a bit staggering (IMO), but if you knew him, you'd see that him really buying into the idea of saving his money up (even if just to plan on spending it later) is a minor miracle. We're hoping that he gets the clue that saving his money can be helpful to him.... I'm still gently working him towards this, as are his parents. It'll be interesting to see how things play out in a few months, and later on beyond that....

    Leave a comment:


  • Staceyy
    replied
    I don't know, but dh and I finally came to the conclusion that people who don't save are always in some kind of trouble that they can't handle. So we had our employers begin to deduct money for our 40lk's, began to save our change and stockpile food. These small changes have saved our hides many times. We really need to start an emergency fund though. This would make a good new year's resolution. Thanks for starting this thread.

    Leave a comment:


  • rob62521
    replied
    It's really frightening how many people choose not to save. My mom didn't have much, but she still found a way to put a few dollars back here and there. But, she was of the generation that grew up during the depression and I think that certainly made a difference.

    Many of our friends make good money, but claim they can't save. Yet, one friend in particular buys many DVDs each Tuesday when they come out. He bought a new Flat Screen (60 inch) and put in on his credit card. He denies himself very little, but claims he can't save. He, by himself, made more money than my dh and I did together. He even made more money on his pension than the two of us did when we both worked (dh is now retired). Yet, his house is not paid off, he owes on both cars and the list goes on. He claims there isn't enough money left over to save. When I suggested we take turns eating at each other's homes (we each provide a few dishes so no one has the whole burden) he thought it was a good idea when they came to our house. We haven't been invited there; instead he paid for our dinner at a pizza place. When we talked finances I said the easiest way to save is to stop spending which means don't go into the stores and "browse". He got right to the point: I don't want to. Bottom line!

    Leave a comment:


  • minnie1928
    replied
    Originally posted by Goldy1 View Post
    I know so many people who are filling a void or a hole with buying stuff. IT ruins some people's lives, and sadly some of them don't seem to be able to change yet.
    I think the culture is shifting. My dh's father retired from the big three. He took 30 years to pay off a mortgage he got in his 20's then had debt we helped them consolidate. They spent every dime they made and then charged whatever else they wanted. They never heard of a 401K or knew what the difference between principal and interest is. WAnt to go to the casino again? They went. WAnt to buy tons of stuff? They bought. That pension check will be there for some people til they drop. I see it now repeated in my dh's brother. Him and his wife "work" for the big three on the line. They have so much expensive stuff, 2 time shares, about 7 long vacations a year, a 10 grand cruise planned. pension check will be there. no worries.
    For the rest of the world? Oh yea it's reality. lol It is a cultural shift of take care of yourselves, no longer the 30 (or 20 in come cases) and out, company take care of me.
    That is soooo my parents. After living in the same house for nearly 30 years, they sold it for $110,000. After they paid off the mortgage they had about $8000 left. They financed everything into that house over the years. Every time the credit cards were too high, they'd refinance the house.

    Now, my dad's in a nursing home and mom's trying to scrape by. They have less that $8000 in cash (they only have that because I started running their finances) to last my mom the rest of her life...she's 63. She STILL spends more each month than she brings in but she has stopped her recreational shopping habit. That habit killed them financially all those years. Now if I could get her to give up her expensive dog ($250/month in daycare bills!) and move into a smaller apartment ($200/month less) she'd be in a positive cash flow position. But I can't get her to do either one of those things...

    Leave a comment:

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