Current Events > Are most people in general bad with managing their money?

(+) Yeah! (+)

This pandemic kinda proved that lots of people dont know how to handle their money since a LOT of people were screwed once they lost their jobs

Isnt the unwritten rule to save for 6 months of expenses in an emergency fund?

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depends on culture, background, environment, etc

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AzNDarkSamurai posted...

Isnt the unwritten rule to save for 6 months of expenses in an emergency fund?

No. Thats only for folks with money.

If youre paycheck to paycheck, you cant save.

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cuttin_in_farm posted...

No. Thats only for folks with money.

If youre paycheck to paycheck, you cant save.

What I learned lately is that people that are paycheck to paycheck are usually that way because theyre overspending on something unnecessary in their budget (take out, delivery, buying unnecessary things, etc.)

there rarely is not a way to cut costs and save money somewhere

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im bad with money. im that guy that has most things on autopay, and never realizes that im overpaying for shit. if there was ever an overcharge on something, i wouldnt have noticed it. used to spend way more on groceries than necessary, when i could have been shopping at aldi rather than your typical grocery store like wegmans or publix. with that, since the pandemic i have improved. cost of living has seemed to increase rapidly where i live (rochester ny) so i try to be more mindful of my money. and i've saved a lot doing basic stuff like shopping at aldi.

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AzNDarkSamurai posted...

What I learned lately is that people that are paycheck to paycheck are usually that way because theyre overspending on something unnecessary in their budget (take out, delivery, buying unnecessary things, etc.)

there rarely is not a way to cut costs and save money somewhere

Mental and psychological factors are also at play.

Someone not rich but maybe working a shit job they dont like are likely to not have energy to cook. Because of that, they order food.

Its also worth noting someone not being flawless with money doesnt mean theyre bad.

Ironically, people with surplus money are actually the worst with money if you want to go the buys unnecessary things route.

Being less wealthy gives you less wiggle room and higher difficulty. To just say its because theyre bad at managing money is short sighted imo.

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I havent heard of anyone turning their lives around who qualified for the buffed unemployment this year. Which is sad.

In my area even the base amounts enough to live like a king.

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https://www.youtube.com/watch?v=DoZyOq5GlSY

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The idea with being poor is it's also generational. It's very hard to break out of the being poor cycle if you come from a family of being poor. It's possible with a lot of work and a modicum of good luck, but most people don't have the luxury of investment in that.

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Alucard188 posted...

The idea with being poor is it's also generational. It's very hard to break out of the being poor cycle if you come from a family of being poor. It's possible with a lot of work and a modicum of good luck, but most people don't have the luxury of investment in that.

This is exactly why social welfare policies in this U.S need to be reworked. Even something as basic as SNAP would benefit most households.

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InhumaneRaider posted...

This is exactly why social welfare policies in this U.S need to be reworked. Even something as basic as SNAP would benefit most households.

They practically criminalize being poor and having mental health issues in the US. The amount of support they give is proportional to the amount of worth they feel you are to society. It's pathetic. They treat you less like a human being, and more like a sprocket in a cog of a machine.

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I see millions of unemployed people driving new cars, so that must mean they're good with money.

21WIVES_CHILL posted...

I see millions of unemployed people driving new cars, so that must mean they're good with money.

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Alucard188 posted...

They practically criminalize being poor and having mental health issues in the US. The amount of support they give is proportional to the amount of worth they feel you are to society. It's pathetic. They treat you less like a human being, and more like a sprocket in a cog of a machine.

Yep, it's the "pull yourself up by your bootstraps" mentality, generally attributed to the older generations, who are now, ironically benefitting from Social Security. People refuse to acknowledge socio-economic issues that hamper economic mobility, such as growing up in a poor neighborhood. Yeah, people occasionally do, "make it out", but not everyone does.

It's a shame, we won't see a shift left in economical issues until at least, 12 years down line, at the least.

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In my experience they are. I think it's american culture

I used to be accused of being a trust fund kid by coworkers because how could I POSSIBLY afford to only have this one job paying $15/hr?

Oh also they had credit card debt, payments on a $30k car, ate out for lunch every day etc etc

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21WIVES_CHILL posted...

I see millions of unemployed people driving new cars

Yup

its always funny when someone posts a vid of these drive-thru food bank lines and all these people are in $40,000 vehicles

like, maybe you wouldnt need to be in a food line if you didnt have a $600/month car payment

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https://m.youtube.com/watch?v=wzXIQwo8lgs
Several $15-20k cars in that line

Trumpo posted...

https://m.youtube.com/watch?v=wzXIQwo8lgs
Several $15-20k cars in that line

Do people jsut think they are spending money on cars cause it's a luxury? 15k-20k is like the basic car price now. Some may also have been bought used. But old cars are actually more expensive sinc entry tend to start breaking down and have other issues. Having a car that can reliably get you from point A to point B is a badic necessity.

Who knows how long these peopel had these cars or when they bought them or why they bought them. It's not like they are upgrading cars every year like it's a phone.

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^ Nah, if your poor, you should buy a $5000 car with 200k+ mileage that wiill cost you way more money upfront for maintenance that you dont have than bite the bullet with a car payment that you can actually afford.

Thats being smart. Buying things you cant afford

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I love how people think it's so easy to save up for a car, when even those are like 5-6K and most Americans live paycheck to paycheck. It'd be easier for most to finance a car, than save up, because they can't live for the "long term interest". It's here and now.

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InhumaneRaider posted...

I love how people think it's so easy to save up for a car, when even those are like 5-6K and most Americans live paycheck to paycheck. It'd be easier for most to finance a car, than save up, because they can't live for the "long term interest". It's here and now.

Even with the financing, a lot of the better places refuse to finance people that don't have great credit and a lot of gross income. That means you're stuck with going for poor credit application places that are very poor long-term investments. But, you need a car now. That's the reality for a lot of people.

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InhumaneRaider posted...

Yep, it's the "pull yourself up by your bootstraps" mentality, generally attributed to the older generations, who are now, ironically benefitting from Social Security. People refuse to acknowledge socio-economic issues that hamper economic mobility, such as growing up in a poor neighborhood. Yeah, people occasionally do, "make it out", but not everyone does.

It's a shame, we won't see a shift left in economical issues until at least, 12 years down line, at the least.

Ever thought about how the older generations did their part of hard work for society and now it's time for them to enjoy retirement? They contributed to the social security they're receiving now.

Or are you one of those people that think you shouldnt have to work and be a leech with a universal basic income?

yutterh posted...

Do people jsut think they are spending money on cars cause it's a luxury? 15k-20k is like the basic car price now. Some may also have been bought used. But old cars are actually more expensive sinc entry tend to start breaking down and have other issues. Having a car that can reliably get you from point A to point B is a badic necessity.

Who knows how long these peopel had these cars or when they bought them or why they bought them. It's not like they are upgrading cars every year like it's a phone.

Sounds like you've never heard of craigslist. I've bought several older Honda cars on there for no more than $3K each and theyve been running well for nearly a decade.

It boggles my mind that people "NEED A NEW AND RELIABLE CAR AT THE DEALERSHIP" and the majority of them buy a luxury vehicle.

InhumaneRaider posted...

I love how people think it's so easy to save up for a car, when even those are like 5-6K and most Americans live paycheck to paycheck. It'd be easier for most to finance a car, than save up, because they can't live for the "long term interest". It's here and now.

If you look at their spending and poor life choices, then you'd know why they cant save up hence the topic title.

yutterh posted...

Do people jsut think they are spending money on cars cause it's a luxury? 15k-20k is like the basic car price now. Some may also have been bought used. But old cars are actually more expensive sinc entry tend to start breaking down and have other issues. Having a car that can reliably get you from point A to point B is a badic necessity.

Who knows how long these peopel had these cars or when they bought them or why they bought them. It's not like they are upgrading cars every year like it's a phone.

Don't respond to 21. He's a dishonest poster. Save yourself some time and effort.

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No idea. I'm great at managing money, I just don't buy useless things or thing that are accessories.

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cuttin_in_farm posted...

Someone not rich but maybe working a shit job they dont like are likely to not have energy to cook.

Give me a fucking break. Cooking isnt some superhuman feat that requires a tremendous amount of willpower and stamina.

cuttin_in_farm posted...

No. Thats only for folks with money.

If youre paycheck to paycheck, you cant save.

If you're making 30k a year and living paycheck to paycheck you're bad with money. And that's well below the average income.

And yes, most people are bad with money. I promise you the vast majority of people are incapable or unwilling to make and stick to a budget for a month or more

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I'm good at saving money, haven't done much investing yet. I'd like to get into it but I don't really know where to start.

DDirtyDastard posted...

I'm good at saving money, haven't done much investing yet. I'd like to get into it but I don't really know where to start.

Find a reputable financial advisor and meet with them. If they're good they will sit down with you and walk you through and explain anything you have questions about.

If they just give you sales pitch after sales pitch with no desire to actually explain investments to you then find someone else.

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21WIVES_CHILL posted...

Ever thought about how the older generations did their part of hard work for society and now it's time for them to enjoy retirement? They contributed to the social security they're receiving now.

Or are you one of those people that think you shouldnt have to work and be a leech with a universal basic income?

Irony. Older generations constructed a system with a limited lifespan to benefit them only. Social Security is a welfare program, bucko. Those people are welfare recipients. Arguing against social programs or socialist policies, makes them a hypocrite. They can get their ass right back to work.

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Solid Snake07 posted...

Find a reputable financial advisor and meet with them. If they're good they will sit down with you and walk you through and explain anything you have questions about.

If they just give you sales pitch after sales pitch with no desire to actually explain investments to you then find someone else.

this is the tricky part. how do you know how to find a reputable financial advisor?

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Once my girlfriend moves in with me I'll have more money to save ^-^

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AzNDarkSamurai posted...

this is the tricky part. how do you know how to find a reputable financial advisor?

Ask around, look at online feedback

And as I said, do you due diligence. If you're getting used car salesman vibes, run. A good advisor should have no problem with sitting down with you and explaining your investments to you so you can understand them. Don't just pick some guy or gal at random and throw all your savings at them and not understand, atleast somewhat, where it's going. You're essentially looking for someone to start a business relationship with. Pick someone you like and trust.

I think dave ramsey has a network of advisors they work with, so that could be somewhere to start.

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