Financial Stability????

This is just a curious post. I read the posting the other day about whether $10,000 is a lot of money in savings or not. Although I respect everyone's opinion ... and I would be THRILLED to be one of the many people who have that much or more in savings right now ... I am not. (I wish I was!!) We have a healthy 401K plan, my husband works his butt off and we don't spend anything at all except for the necessary things, but as for personal savings ... we have little to none. I'm just wondering if I am truly the only one here. I'm married, with two little ones, a mortgage, two cars and lots of monthly expenses. We are a one salary household. Is there anyone else out there that lives tighter than tight? There are honestly months where I'm not sure how we are going to get by. I admire all you ladies and men who have lots of savings, great salaries and can afford to do whatever you want. I'm just wondering if I'm the only one really having a difficult time these days? Is it just that people don't want to talk about this subject? Again, just curious ... so I'm going to add a poll for those that don't want to post an answer.

Re: Financial Stability????

Unfortunately I think most people in this country don't have any savings and live paycheck to paycheck - and often beyond their means.

I also think there is a lot of shame when it comes to money and often people don't talk about it - or ask for help when they need it. I really think it's a secret epidemic in this country.

Personally I think personal finances are something that should be tought in our school system.

Message edited 3/3/2008 6:25:08 PM.

Re: Financial Stability????

I believe you are supposed to have 6 months worse of monthly expenses in your account. We are talking readily available cash.

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My husband and I are very fortunate because most of our savings is from wedding gifts from our families.

I only over the past couple of years became serious about personal finance.

I also think this subject should be taught in schools.

I think a big problem though is that if you are never really exposed to not having much, especially as a child, you tend to be ignorant about personal finance until you need not be anymore (usually some major wake up call lik a ton of credit card debt). Just my personal opinion, not looking to start any drama ;).

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I am so thankful that I was brought up in a financially responsible household. My husband and I have learned so much by talking to my parents and making sure that we do the "right" thing with our money. My husband and I save, save, save but still live our lives and do what we want. We also do not have children to support.

I think people in this country also value material things that they truly cannot afford and live way beyond their means. I'm sure that more people than we realize live paycheck to paycheck or are in serious debt.

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It is so true...as much as I know the right financial thing to do, you watch people around you and a small part of you wonders...but..then we know..we know the interest only mortgage people, the credit card debt people...they do not fear it or they don't think it's going to hit them...I think, in the long run, it all boils down to pulling up your big girl panties, being a grown up and postponing or changing temptation in order to live the way you want...or work more to get it...then you'll really appreciate it! (boy, that was a mom statement there!)

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i have a decent amount in savings, but that is ALL the money we received for our weddign last year as well as saving that we do throughout the year.

Sadly, just about all of it will be gone when we hopefully by a house this year. it will be a small (emphasis on the word small!) downpayment.

DH and I live quite frugally...we only buy what we need and don't buy extravagant things... that said though we both put ourselves through both under grad. and graduate and law school with no help as well as buying so many of the things like a car, etc. on our own that i think many of our peers had taken care of for them by their parents. i dont' regret that, but we have never been able to save too much because we came from nothing and had to work for everything. if anything, we are very proud of that....

i just wish we had more of a cushion and could afford a house more easily!

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We've got one separate savings account for our "house fund" which is money we don't touch.

We also have a decent sized amount in a savings account that we consider our baby fund, vacation fund, or emergency fund that is readily available.

So although we have these savings account, we "pretend" to live paycheck to paycheck so that we can put away as much as we can right now.

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WOW! I'm glad to hear people are so well off.

I live pretty much paycheck to paycheck, and i think FH does too. but we have some flexibility in that our monthly bills include CC debt, and if we need extra $$ we can pay less to the CC. It would be MUCH different if FH hadn't been unemployed and if I were not supporting my mom and trying to help her carry the moneypit aka my house.

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I am proud to put us in the highest category, two years ago, I wouldn't have been able to. From the time we bought our house, we had basically no savings for 2 years. That being said, we never lived paycheck to paycheck.

We live within our means. We still travel (going to Alaska and Chicago this year), we still go out to dinner, we own a home. We are also fortunate to have two salaries and no children at this point. I know that I will never be a stay-at-home mom, because I want to be totally financial sound, but that is my decision, and not one I would expect others to make.

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We have been working on the savings slowly but surely but got lucky with not owing for taxes and were able to keep the money we saved for that and are going to put some of the money we get back in it too to help us out.

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Well we have well over 25K in the bank but unlike others here besides two very cheap cars we own squat. We are holding out on buying so we can put a hefty down payment. We don't want to be drowning in bills once we are homeowners so for now we live very frugal.

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I think a lot of this advice is easier said than done.

A few years ago, DH and I were existing on Kraft Mac & Cheese when we weren't invited for weekend suppers to his mom's or mine. We lived in an apartment. We didn't have cable or internet service. We didn't use our telephone for outgoing calls and we never used AC. When it got REALLY hot we would bring our infant son to my mother's house for the night so that he wouldn't be too uncomfortable. We didn't buy presents for each other, we didn't even buy CARDS. I remember that for Christmas that year I went to the Dollar Store and stocked up. I spent about $50 total. We had ZERO in savings because EVERY SINGLE DIME of our paychecks went into rent, buying food, clothes or putting gas in our single run down POS car. We couldn't cut corners because there were no corners to cut!

Point is - save what you can but it is NOT easy living in this world and some people are just not fortunate to have ANY wiggle room at all. I think you should count your blessings when you are able to save even an extra $5 a week.

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We have a lot in saving. Most of it will be put towards a down payment for a house someday, and then we need to start saving for retirement, and we want to keep 6 months salary in the bank. I learned how to be good with money from my mom. They basiclly put half their paycheck into retirement accounts and learn to live on the rest. They just redid two bathrooms, and they've gone on vacation this year, they just know their limits. They still enjoy themselves. Dh learned the opposite way. His parents make about 4 times what mine do, yet they are constantly living paycheck to paycheck, borowwing money, ect. So he knows what NOT to do. Both has helped us to be financially secure! We are also very fornunate, in that, we eat a lot of meals at my parents, our rent is very low, we don't have any bills really, we paid for our cars in cash, ect. I am not really working right now, and we are still able to save. I still worry about when we have a house and kids though, I can't imagine how expensive things can get!

Message edited 3/3/2008 9:59:04 PM.

Re: Financial Stability????

Re: Financial Stability????

Tighter than tight?

I think that describes us.



ETA - It is so frustrating that we will never be able to really save anything. everything goes to child support, and DH has 2 other kids who also need things that their mom can't afford. We try and try and try to save, and we get a little bit together, and it has to go somewhere else.

Message edited 3/3/2008 10:23:27 PM.

Re: Financial Stability????

Posted by lipglossjunky73

Tighter than tight?

I think that describes us.



ETA - It is so frustrating that we will never be able to really save anything. everything goes to child support, and DH has 2 other kids who also need things that their mom can't afford. We try and try and try to save, and we get a little bit together, and it has to go somewhere else.

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There wasn't a catagory for me...$6000 in bank savings. $15,000k in mutual funds...can't touch that now. So its like only having $6000.

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We have a lot in savings right now because we are saving for a downpayment on a house. We are planning to have a savings when we buy and be able to put money away each month. We are lucky that we are able to save so much now.

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we aren't great, but we aren't the worse either- we have a good amount in savings, not the highest- but we haven't been able to save more since I got laid off.

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I wasn't trying to start controversy when I started this post, but I can see where this is headed. I want to say that both my husband and I are educated ... I went to college and he got his education in the military. We both grew up in nice neighborhoods, had hard-working parents and had good lives. To be honest, my parents have money and I never struggled for anything growing up. When we were first married and living in our apartment, we had lots of money in the bank. Then we bought our house. There are mortgage payments, heat, electric, propane and the many, many maintenance things that a house requires. It just doesn't seem like there is ever enough money. When the kids came along, so did the additional expenses. One of my children is disabled and the expenses with him are astronomical ... beyond what insurance pays. My other child ... just normal expenses there. I guess what I'm trying to say is that we live a modest life. I shop on sale for everything. Walmart is my best friend. We eat out very rarely. We entertain on a budget. We haven't taken a vacation in a number of years. We have little to nothing on credit cards ... maybe $3,000. We try ... and I mean try hard ... to watch expenses and we still can't save because there is nothing left to save. My husband works every bit of overtime he can. Sometimes people are just caught in a situation with housing and childcare expenses that they just can't get out of. When we bought our house, we bought within our means and price range. We did not overshoot on anything. It just seems like everything is increasing in cost except for our income. I know a lot of people overextend themselves, but that is not our case ... and not the case of many. Just remember that you can be taught the right way to spend, save and manage money ... but ... sometimes things are thrown your way that just impact your life no matter what you do. I applaud the many men and women on here who have strugged, worked hard and saved lots. I hope to be where you are one day.