Most Americans One Paycheck from Disaster

Discussion in 'General Trading Discussion' started by My401K, Jan 8, 2015.

  1. missbishi

    missbishi Well-Known Member

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    I agree that there is no easy way out for those on low incomes. Prices are getting higher but there is never a rise in wages or benefits that reflects the rate of inflation. The only thing you can really do in this situation is cut out all non-essential spending and look for ways to cut back on things like groceries, utilities and clothing.
     
  2. Rosyrain

    Rosyrain Senior Investor

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    I have found myself in this situation many times and it is a terrible place to be in. You are in constant worry about your job and if you are secure or not. I actually make sure that I have at least a paychecks worth of vacation saved up at work so I would at least have that to fall back on if I were to ever lose my job. I really like doing the online work that I have been doing as it has enabled me to think ahead a little and know that I will have something to fall back on, and the fact that working keeps me out of stores.
     
  3. petesede

    petesede Guest

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    It has been brainwashed into our heads that last 75 years. Ever since WW2, the USA has grown to be the #1 country in the world largely because of consumerism. We have been convinced we need to buy, and this creates profits for companies, which creates good jobs, which allows us to buy more. All that began back in the 1950s when ´everyone needs a car´ which sent the auto industry soaring. The psychology is no entrenched in us as we are now 4 generations of living this way. Coincidentally, it has also been the downfall of the philosophy of ´ I want my children to have a better life than I had´.. the last generation that really practiced that was the generation that fought in WW2, everyone since then just wants to buy crap for themselves. Yeah, you want your kids to have a good life, but few people sacrifice for their children the way the first 150 years of people did in our country.
     
  4. My401K

    My401K Well-Known Member

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    I think we heard quite a bit about our responsibility to shop back in the Clinton and Bush administrations. That's how many people got in trouble, credit companies offered cards and people went hog wild. Eventually all that toppled and when business started cutting back people were left with debt. So... many people did what they had heard all their lives, they went to be re-trained for better jobs. What they ended up with was even more debt because the changes in the economy were not because of changes in technology. It was the result of actual business constriction. Not a good scenario, especially because many of those affected are people that are the end of the baby boomers. To young to retire but to old to recoup the loss. It might be a miserable existence for these people when they finally do get to retire at 80. In the mean time you have droves of over educated people working jobs that should really be entry level jobs for the younger generation.
     
  5. troutski

    troutski Guest

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    I've been slowly building back the money I've wasted over the years. I pretty much ignore my savings and stock portfolio as a source of money, meaning I put tons of money into them but ignore them whenever I get into a financial pinch. I'm not a paycheck away from disaster, but a few missed paychecks or unexpected expenses could easily do some damage to my personal financial situation. I'm all right, but I'm not too much better off than the people that responded to this poll, I'd say.
     
  6. ally79

    ally79 Guest

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    We are generally less than a paycheck away from disaster, and we don't live beyond our means. My house payment is less than $300 a month for a 3 bedroom house and my cars are nearly 20 years old and paid for. There is simply not enough coming in. My husband lost his job in 20013 and even though he has found work since it doesn't pay squat. He is one class away from finishing his associates degree and hopefully that will make a difference.
     
  7. SamClemensMT

    SamClemensMT Well-Known Member

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    Less spending more saving

    Times are changing. We live in an economic reality where cutting down is advisable for nearly everyone. Wage stagflation and rising prices are putting people in a pickle. There no need to preach about it; folks will eventually figure it out on their own. The government also needs to adapt fiscal policies consistent with this reality. Times have changed.
     
  8. btatro

    btatro Member

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    I can easily see this being accurate. I am surrounded by individuals who do currently live paycheck to paycheck and seem to have no interest in changing that. On the contrary, I have been working (albeit somewhat slowly) towards creating a comfortable saving of at least 6 months of my salary while also investing. These are the same people that seem to live from crisis to crisis, which is quite unfortunate as most of them are fully capable of more.
     
  9. Rosyrain

    Rosyrain Senior Investor

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    It is scary when you try so hard to get some savings put away and just can't seem to do it from one month to the next. I have been struggling with this for years. Suze Orman says that you can't have a savings account until your bills are paid. I think this is flawed thinking, because you could end up even more screwed if something breaks down and you have to fix it.
     
  10. ally79

    ally79 Guest

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    I absolutely can't stand Sue Orman but she is right about that...you can't have a savings account until your bills are paid. We still aren't to the point where our bills are paid. We have cut expenses everywhere we can and started working multiple jobs but we still aren't there yet. Soon I hope!
     

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