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In reply to the discussion: Bernie Sanders: Do you know why millions of our people are stressed out? [View all]SheilaT
(23,156 posts)Many years ago, Life Magazine did a piece profiling some ordinary man who was saving some $2,000/year, and stocking up on non-perishable foods, just in case. He was not a survivalist, just felt he ought to do that kind of stocking up. This was, as I recall, in the late 1960's, and he was saving a significant percentage of his income. I don't recall what he did for a living, or anything else about him, but what I remember most from the article was that he said, in connection to saving as he was, to remember that there was always some guy down the street who's living on a couple of thousand dollars a year less than you are.
While we all have different needs and different circumstances it does seem as if a lot of people make poor financial decisions.
Take cars. I've heard more than one story of a person getting into a car wreck, their car is totalled and, guess what? They owed more than the car was worth, so now they have no car but still have a car loan to pay on. Oh, and now they need a replacement car.
Or eating out. Yeah, I do know how frazzled everyone can be after a full day at work, but really, fixing meals at home really is cheaper and often is a lot faster than eating out.
Or student debt. It's not the end of the world to start out at the local community college and then transfer to an in-state university and exit school with little or no debt. For those who can get a full-ride scholarship to Harvard, my hat's off to you. But for normal kids, and especially their parents, be realistic and don't take on debt.
Or supporting adult children. I know way too many people who do that. If you're over 21, you're on your own. Work, do without, save, but don't expect your parents to help out.
I was a stay at home mom, which meant we had less money coming in than most of my husband's co-workers. But we had fewer expenses, also. I recall being at a company picnic, where one wife -- who worked -- was expecting their third child in as many years, and was complaining that the cost of day care once the new baby arrived would be more than she made. I suggested she stay home for a while, and everyone looked at me as if I had suddenly started speaking Martian. Sometimes it does cost more to work than to stay home, but if you're building a career you love, the equation will be different.
Not spending windfalls. All the years we were married, my husband's parents gifted us with money. We never spent that money, but invested it. It might have been nice to buy a bigger house, to have newer and fancier cars, or to go on more exotic vacations. But we didn't. It's a matter of deferred gratification, which is incredibly hard for many people. But it was well worth it.