broke people afford everything

[MonkeyMama]

PRIORITIES

I had a conversation with my sister the other day.

Me: "Texting cost too much money."

Sister: "It's only $5/month, on my plan!"

Hmmmm, I think it is the same on mine. But since I have NO INTEREST in it, why would I Waste my $5/month? My sister is not in debt and an insane money waster, but she has had financial priority issues.

Her perception is I am "well off" and can afford anything. I can certainly afford $5/month, but I have other priorities. I try really hard to only spend money on things that improve my life and make me happier.

The friends who are in debt up to their eyeballs, in foreclosure, and filed BK multiple times? There are no priorities. They want everything that everyone else has, and they want it now. End of story. They also would think I Was insane and deprived not to spend that $5. But I have a nice home, ample savings, and plenty of money to spend on things I truly enjoy.

Anyway, I feel the same way with the iPhones. It's not that giving up that one purchase is going to save these people, but why does every single person I know on the verge of foeclosure and bankruptcy have an iPhone and buy Starbucks every day??? It's kind of the symbol of someone who doesn't have any priorities.

I have granite countertops and flat panel TVs - so I am used to hearing how those are the symbol of bad spending. For most people, I guess. I can't take it personally. Just to point out I truly don't believe everyone that has an iPhone is a financial idiot. Not any more than my own luxuries say about my own financial personality. Mine are paid for in cash.

[nick__45]

Looking back, I wish she had come over Monday and offered to sell us their TV.....would have been a win/win....

I call that ungrateful. That little spoiled brat should have given y'all the TV and other things that they can't get much for at the pawn shops. Be on a look-out, these are the first people to put you in nursing home, the cheapest one possible and hope you won't make it long, so they can inherit your wealth.

[nick__45]

Well I think that could be the reason that they are broke in the first place.

Also it could be that they went into foreclosure voluntarily as their mortgage may be more than their house has value, so they may actually be better off after the foreclosure.

I am surprise that banks don't go after people that strategically default loan and still have money or will have money in the future. Either banks are saints or they have one hell of a write-off protection that would cost people like me tons of money in taxes. I heard Exxon didn't pay taxes last year due to its write-off. It must be nice to make a lot and not having to pay taxes.

[Hector]

I dont know what to think about bankruptcy? Is it slap on responsible people's face? or God even gives second chance then why not system thing? I dont know what to think of it!

Its weird that people borrow hundreds of thousands of dollars that they can't afford and when they run out of resources to borrow more money, they can file bankruptcy and after less than a decade everything will be erased from your record and you can do the same thing again and again and again..

Sometimes I feel tired of living discipline life (in terms of living under my means). I see so many people around me getting stuffs and I try to resist thinking there is gonna be a day when I will stop working, how would I able to feed my family after that? For sure it’s frustrating sometimes, but I am doing it because I think its right which is hard sometimes.

The other day my wife was hanging out with her friends and she was talking about how we talk about retirement and try to save and not spend everything we earn and how I worry about it sometimes. Her friends responded: our parents will pass us a lot and our kids will help us out! I am coming from a good family background and my parents are going to pass a good amount of wealth, but I am not counting on it. Our parents paid for our educations and we wanna do the same for our kids. How can we do that if we dont live discipline life? If my parents were thinking like that, we would have tuition loans and they wont be in shape to pass anything to us. If I think like that, my life after retirement might be horrible and my kids will have to take tuition loans and I would have to depend on them.

About iphone and being broke. One day my wife was angry coz she elected not to spend $5/month on texting plan and her co-worker who is in the process of filing bankruptcy bought a smart phone because they stop paying mortgage and that money is being saved now so they have enough money to buy a smart phone!

When I was in the school, I was fond of Credit Cards 0% promotion offers. So I opened quite a few credit cards and when I graduated I had around 50k in credit line. How in the world a student not working any real job would get that much credit line? I don’t think that we are living in very effective system.

[Scanner]

I went into a bank once, years ago, my own bank and the loan officer remarked that she doesn't know why people actually hold up banks, when it's perfectly legal (criminally, that is) to open credit lines, cash them out, put them in an untouchable account, declare bankruptcy, move back to the US with the money.

Remember though, George Bush DID make bankruptcy laws tougher.

What I found a bit unsettling about that is yes, we can wax at savingadvice dot com all we want about these undisiplined spenders. . .wax on about how we are oh-so-superior (between the lines). . .but over 50% of bankruptcy comes from medical bills/illness/catastrophe.

Think about that - any one of you. . .disiplined saver. ..skipping the shiney new grills and the Smartphones. . .you get sick. . .bam. . .kiss all of that savings goodbye. Because getting sick and getting care - it's expensive. Just look at the "cash fees" for anything healthcare related. Nothing reasonable about them. They make lawyers look reasonable (hospitals, that is).

So, why could you be bankrupt? Because your insurance plan had an exclusion in it for this or that.

Yet. . .healthcare reform was evil.

Go figure.

Yeah, when faced with $100,000 in medical bills for a month's stay in a hospital, I may just go spend my savings too. A hospital would eat up my life's work with nay as much as a blink or a thank you.

[Hector]

I went into a bank once, years ago, my own bank and the loan officer remarked that she doesn't know why people actually hold up banks, when it's perfectly legal (criminally, that is) to open credit lines, cash them out, put them in an untouchable account, declare bankruptcy, move back to the US with the money.

Remember though, George Bush DID make bankruptcy laws tougher.

What I found a bit unsettling about that is yes, we can wax at savingadvice dot com all we want about these undisiplined spenders. . .wax on about how we are oh-so-superior (between the lines). . .but over 50% of bankruptcy comes from medical bills/illness/catastrophe.

Think about that - any one of you. . .disiplined saver. ..skipping the shiney new grills and the Smartphones. . .you get sick. . .bam. . .kiss all of that savings goodbye. Because getting sick and getting care - it's expensive. Just look at the "cash fees" for anything healthcare related. Nothing reasonable about them. They make lawyers look reasonable (hospitals, that is).

So, why could you be bankrupt? Because your insurance plan had an exclusion in it for this or that.

Yet. . .healthcare reform was evil.

Go figure.

Yeah, when faced with $100,000 in medical bills for a month's stay in a hospital, I may just go spend my savings too. A hospital would eat up my life's work with nay as much as a blink or a thank you.

Personally I think its okay in this situation.

But we hear people declare bankruptcy for not paying CC and mortgage debts. Though one declares bankruptcy, one can not get rid of student loans. IMO mortgage and consumer debts should be added in that class. But when it comes to consumer debt, it gets messy as one can charge everything including medical bills on CC.

I think its shame that someone in US (world's # 1 economy) goes bankrupt because of medical bills. I dont understand why president has to convince anyone in order to pass health care reform. Don't we or people opposing it get the fact that its for our own good?

[LivingAlmostLarge]

Nope, I just wonder how do you justify not paying your credit card, mortgage, but still paying a cell phone bill? I get that you make money on DS, but if I were in trouble of losing a home? Not being able to rent?

But then reading more about this couple, they apparently spend money like water.

[maat55]

Nope, I just wonder how do you justify not paying your credit card, mortgage, but still paying a cell phone bill? I get that you make money on DS, but if I were in trouble of losing a home? Not being able to rent?

But then reading more about this couple, they apparently spend money like water.

DW would live in a tent and still not give up her cell. I'm amazed at what people prioritze these days.

[disneysteve]

DW would live in a tent and still not give up her cell. I'm amazed at what people prioritze these days.

I think a smart phone is the best deal around. My phone is:
A telephone with free long distance
A computer with full Internet access
A camera for still photos
A video camera
A video game player
A tv and movie viewer
A radio
An mp3 player
A calculator (regular or scientific)
An educational device
A GPS unit
Shall I go on? This one device can easily replace hundreds or thousands of dollars worth of other devIces and monthly fees. By the way, I'm posting this message from my phone. I can understand people putting their smart phone somewhat high on their priority list.

[maat55]

I think a smart phone is the best deal around. My phone is:
A telephone with free long distance
A computer with full Internet access
A camera for still photos
A video camera
A video game player
A tv and movie viewer
A radio
An mp3 player
A calculator (regular or scientific)
An educational device
A GPS unit
Shall I go on? This one device can easily replace hundreds or thousands of dollars worth of other devIces and monthly fees. By the way, I'm posting this message from my phone. I can understand people putting their smart phone somewhat high on their priority list.

How do you get any work done? It would take me a year to learn to use it.

[cypher1]

While I'm an Android user, and could still live without my smart phone, their data plans are not much more than reg plans, removing certain bells and whistles. Luckily my work provides me with one, and my personal cell is through Virgin mobile, no contract, paying $30 per month for unlimited SMS/internet/email, 300 minutes (I barely use). I'm just saying Iphones/Android cells are not as expensive as others think, compared to a couple years ago people paying 600+ for a jailbroken 2G/3G iphones, not including the data plan.

[disneysteve]

I'm just saying Iphones/Android cells are not as expensive as others think, compared to a couple years ago

Exactly. You can get an iPhone today for $49 and the minimum data plan is $15/month. If you are really struggling to make ends meet, you can certainly do without it, but in the grand scheme of things, $180/year is unlikely to make or break anybody's budget.

Of course, if you are also having your daily Starbucks, leasing a car, buying video games every payday, eating out 7 times/week and blowing money a dozen other places, it all adds up and points to more of a mindset problem.

[Hector]

I think a smart phone is the best deal around. My phone is:
A telephone with free long distance
A computer with full Internet access
A camera for still photos
A video camera
A video game player
A tv and movie viewer
A radio
An mp3 player
A calculator (regular or scientific)
An educational device
A GPS unit
Shall I go on? This one device can easily replace hundreds or thousands of dollars worth of other devIces and monthly fees. By the way, I'm posting this message from my phone. I can understand people putting their smart phone somewhat high on their priority list.

I have been using iphone since it launched, but I could live with a dumb phone if necessary.

[Pansori]

I went into a bank once, years ago, my own bank and the loan officer remarked that she doesn't know why people actually hold up banks, when it's perfectly legal (criminally, that is) to open credit lines, cash them out, put them in an untouchable account, declare bankruptcy, move back to the US with the money.

Remember though, George Bush DID make bankruptcy laws tougher.

What I found a bit unsettling about that is yes, we can wax at savingadvice dot com all we want about these undisiplined spenders. . .wax on about how we are oh-so-superior (between the lines). . .but over 50% of bankruptcy comes from medical bills/illness/catastrophe.

Think about that - any one of you. . .disiplined saver. ..skipping the shiney new grills and the Smartphones. . .you get sick. . .bam. . .kiss all of that savings goodbye. Because getting sick and getting care - it's expensive. Just look at the "cash fees" for anything healthcare related. Nothing reasonable about them. They make lawyers look reasonable (hospitals, that is).

QFT

I have seen it happen all too many times at my job. People in their 60s and 70s, who at one point had good enough credit to warrant a 50k credit line not even being able to get approved for a $1000 cli because their credit has been through the ringer and they are maxed out.

Life happens. People fall short... and then pick up and move on.

[MonkeyMama]

Actually, most the people I know who faced medical bills, unemployment and catastrophe, didn't save a dime and lived well beyond their means. So, I have issue when people point this out. They will say that was their ruin, but their financial irresponsibility was their ruin. I've seen it over and over and over. The foreclosure rate in my city/age group is about 99%. They will all tell you they faced unemployment and disability, hardship, etc. They all lived very high on the horse while we chose to live well within our means. (BTW, I am not referring to their iPhones! Thinking much bigger expenses!)

My family has faced plenty of trials - chronic unemployment, disability, medical emergencies, etc., etc. My immediate family. My parents. In-laws, etc. We all saved up when times were good - it isn't that hard to roll with the punches when you prepare.

Not saying that things could never get so bad that we could be out on the street or face some really hard times. I certainly have never said that. Knowing those bad times is our number one motivation to save and be disciplined. You can call me holier than thou, but I just don't want my family to ever be out on the street. That's all it comes down to, for me. If I didn't worry about the bad times, why on earth would I save??? Times would just always be good and rosy, right?

I could write a sob story here, for sure. Unemployment, disability, medical bills. Lost money in stocks, in our home, etc., etc. Happens to everyone, it seems to me. That's life! The best thing we ever did was not waste our money on a bunch of crap we didn't need. We have a lot of nice things too - never said we didn't.