Am I as poor as I feel?

[Frugal]

It sounds like you are doing very well, if you have saved up that much at your age.

[feh]

If you're not tied to your current area, I also suggest moving to a lower cost-of-living area.

[Donaldo]

I am so very pleased so many people took the time to answer my post. What a welcoming forum this is! I am looking forward to pilfering as much of your knowledge as I can.

DisneySteve:

Your post made me feel quite good. Thank you! Unfortunately, I haven’t been able to save for some time now, so I’m kind of stuck. I’m a bit of a hypochondriac, I stress myself out, and therefore get random aches, pains, and other stuff, so I spend a good amount on supplements, chiropractic & acupuncture, trying to eat mostly organic, etc. Then again, I see this as an investment in my health, though it’s not doing much for my finances!

Krantcents:

I really should get some training to better myself but, to be honest, there is nothing I’d like to do that pays better…everything that sounds good to me actually pays less than what I get now! So, I’m sort of afraid of taking the time (and expense) of going back to school to better myself for something I already would rather not be doing. Then again, I’m not accomplishing anything doin’ nuttin’! (I would like to get out of the office environment.)

schin4

I actually inherited the house (only child), and about ½ of my savings were inherited. Perhaps part of my worries are due to the fact that my parents spent a mint in health care costs (my mom was a heavy smoker, which didn’t help), and they were better off than I – pension, fairly-well-paying job (father), social security which was then decent, etc.

As for renting in a better location instead - here, rent is about $1800+ in the poor neighborhood I’m trying to get out of. I net $1840 a month.

Maat55, jtr8178, humandraydel, dawnwes, feh

If it weren’t for the tornadoes, I would LOVE to move to the South or Midwest! The people seem phenomenal! I’m already a worrier, though, and I’d probably spend half my time looking out the window, awaiting “the big one,” or shivering in fear in the basement! Especially after seeing all the horrors on the news this year. Earthquakes (here in CA) – no problem!! If anyone knows of a cheap area in the South/Midwest that is relatively safe from tornadoes, and not too snowy, I’m all ears!

97guns

I have seen how cheap the houses are in Merced, Stockton, etc.! I wasn’t sure if it was worth it, though, to purchase a cheap house, have low-income people with their 10 kids (and 8 cars parked on the lawn) rent it out, then trash it. A friend of mine owns a 10-unit apartment complex and the people that rent it out are pigs. If you could tell me just a tad little more (via PM if you like), I’d so appreciate it!

bj584

I’ve seen pictures of PA that make me melt. Unfortunately, I’m concerned about shoveling snow… I believe snow-shoveling is the #1 cause of heart attacks, if I’m not mistaken! (I did mention I am a borderline hypochondriac! )

BMEPhDinCO

Thank you for your advice! I will have to look into that. I don’t even know what a Roth IRA is (though I’ve heard of it). If Vanguard is online only, that would really make me nervous, especially as the online crooks get sneakier and sneakier, and I have no brick-and-mortar place to march into! But, I guess $5K isn’t that huge of an investment and worth a try? Again, thank you!

Frugal

Thank you. Again, I feel much better after coming here!

Thank you all SO very much for your time in replying!! I feel more hopeful, and I will look into the possibility of relocating further away or purchasing a rental home, if cheap enough. I feel pressured to do something. I do want to make my money work for me, not the other way around!

[riverwed070707]

If you're really open to the idea of relocating, start by doing some research. Most of your assumptions about the ciites mentioned above are based on stereotypes...not ever midwestern/southern city is full of large redneck families. There are a lot of great places that come to mind.

Check out this article for some ideas Kiplinger.com. Another great starting place would be by just looking around for jobs and seeing what's out there. You haven't mentioned what you do, but if it's industry specific, look for other companies in your field and check out where they are headquartered. Even if you aren't looking to do an office job forever, it's certainly a great way to get you moved and settled before looking for something else.

[disneysteve]

I actually inherited the house (only child), and about ½ of my savings were inherited.

This obviously changes the story, though still you've saved about 70K, more than double your annual income. I think the percentage of Americans who have 2 years worth of income in savings is probably pretty low. There was just a recent survey that showed that 50% of Americans couldn't come up with $2,000 within 30 days for an unexpected expense without selling personal belongings. So even without the inheritance money, you are at least in the top half of the population.

What would be helpful at this point is to see your income and expenses to make sure that you are using the money you do earn wisely. The inheritance has obviously put you in great shape but you don't want to take your eye off the ball just because you have a paid for home and a big bank balance.

[Hector]

I think you are doing great. With a job of 16/hour, you have managed to be debt free including mortgage. Even though you mentioned that you inherited half of your savings and home, you did a great job in not blowing it away.

Correct - single, no kids, no credit card debt, always pay full balance.

I'm new to this site as of today, so I look forward to learning what those terms mean. I'm completely ignorant when it comes to investing. My money is in CDs because I'm too leary of anything else, but the rates are dismal. Oh, I do have an annuity which is under $13K, earning maybe 3.3%.

I appreciate your reply so much. When I see people with money worrying, it makes me wonder how much more should I be worrying!!! But, I guess I can look at it this way: I may be lowly-paid, but if I lost my job tomorrow, I know how to get by and still be happy. I'm not sure a lot of the 6-figure-salaried people can say the same.

Thanks again!!

If you are interested in investing, I would suggest reading a book: a random walk down the wall street.

To start with, I would read about ibond and would put money from maturing CDs into it as far as they keep paying more than CD(which I think is gonna be the case majority of time)

[Donaldo]

Most of your assumptions about the ciites mentioned above are based on stereotypes...not ever midwestern/southern city is full of large redneck families. There are a lot of great places that come to mind.

It didn't even occur to me that midwesterns/southerners would have such large families, oddly enough. I was speaking of the cities here in CA, Merced & Stockton, which are much like my own neighborhood. In Stockton, one could buy a house for a song ($40K), but the tenants would be exactly as I described.

Check out this article for some ideas []Another great starting place would be by just looking around for jobs and seeing what's out there. You haven't mentioned what you do, but if it's industry specific, look for other companies in your field and check out where they are headquartered. Even if you aren't looking to do an office job forever, it's certainly a great way to get you moved and settled before looking for something else.

Thank you for the link!! I'll check it out!!

[riverwed070707]

It didn't even occur to me that midwesterns/southerners would have such large families, oddly enough. I was speaking of the cities here in CA, Merced & Stockton, which are much like my own neighborhood. In Stockton, one could buy a house for a song ($40K), but the tenants would be exactly as I described.



Thank you for the link!! I'll check it out!!

Ah well cars in the yard makes me think of 10,000 redneck jokes I've heard so that's where my mind jumped. Anyway, I also wanted to say that while the idea of tornadoes is scary, most people in "tornado prone areas" have never been affected by one, let alone actually seen one. I certainly wouldn't rule a place out based on that, and tornadoes usually hit in the country/small towns...if you're looking to move to a city you really don't have much to fear.

[feh]

Maat55, jtr8178, humandraydel, dawnwes, feh

If it weren’t for the tornadoes, I would LOVE to move to the South or Midwest! The people seem phenomenal! I’m already a worrier, though, and I’d probably spend half my time looking out the window, awaiting “the big one,” or shivering in fear in the basement! Especially after seeing all the horrors on the news this year. Earthquakes (here in CA) – no problem!! If anyone knows of a cheap area in the South/Midwest that is relatively safe from tornadoes, and not too snowy, I’m all ears!

Not sure if you're joking or not...worrying about tornadoes is like worrying about getting hit by lightning. Don't waste your time.

There are big chunks of this country where you could live less expensively that are just waiting for you...

[Donaldo]

I think the percentage of Americans who have 2 years worth of income in savings is probably pretty low. There was just a recent survey that showed that 50% of Americans couldn't come up with $2,000 within 30 days for an unexpected expense without selling personal belongings.

Wow, that's scary! But those poor saps make me feel a whole lot better about myself!!

It is nearly impossible to save a lot of money where I live as the cost of living is through the roof. Gas is currently $3.79 a gallon (finally under $4 again, thank goodness), if that gives you any idea. Or is that the Costco price...

The inheritance has obviously put you in great shape but you don't want to take your eye off the ball just because you have a paid for home and a big bank balance.

That is exactly my concern. I feel financially OK now, but with the cost of living here I'm not sure how well I'll be able to maintain that.

[Donaldo]

Feh & RiverWed, you are tempting me! Perhaps I've seen too much CNN or "Storm Chasers." It almost feels like the people back that way have to watch their backs on a daily basis. If that's not the case, well, perhaps I should pack it up and move to Kentucky after all!

[Donaldo]

I think you are doing great. With a job of 16/hour, you have managed to be debt free including mortgage. Even though you mentioned that you inherited half of your savings and home, you did a great job in not blowing it away.

If you are interested in investing, I would suggest reading a book: a random walk down the wall street.

To start with, I would read about ibond and would put money from maturing CDs into it as far as they keep paying more than CD(which I think is gonna be the case majority of time)

I appreciate the tips so much!! And I will see about that book on Amazon (and see if they give a free preview )!

I also appreciate your comment that I still did a good job not blowing the inheritance... I just hope I can put all this wonderful advice into practice and get my financial situation in better shape!

[Hector]

I appreciate the tips so much!! And I will see about that book on Amazon (and see if they give a free preview )!

I also appreciate your comment that I still did a good job not blowing the inheritance... I just hope I can put all this wonderful advice into practice and get my financial situation in better shape!

you can read about ibond here: Individual - I Savings Bonds In Depth

[maat55]

[QUOTE]

Maat55, jtr8178, humandraydel, dawnwes, feh

If it weren’t for the tornadoes, I would LOVE to move to the South or Midwest! The people seem phenomenal! I’m already a worrier, though, and I’d probably spend half my time looking out the window, awaiting “the big one,” or shivering in fear in the basement! Especially after seeing all the horrors on the news this year. Earthquakes (here in CA) – no problem!! If anyone knows of a cheap area in the South/Midwest that is relatively safe from tornadoes, and not too snowy, I’m all ears!

I've lived in Oklahoma 42 of my 48 years and never seen a tornado.

[ActYourWage]

Feh & RiverWed, you are tempting me! Perhaps I've seen too much CNN or "Storm Chasers." It almost feels like the people back that way have to watch their backs on a daily basis. If that's not the case, well, perhaps I should pack it up and move to Tennessee after all!

Fixed your post.