10-15-2019, 06:58 AM | #111 | |
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Love your story - one more thing to lecture them about
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Bravo to you. It takes a village and it’s important to share our wisdom with the next generations. I have two daughters in their 20s and my husband is a fiend about teaching them financial responsibility. So they are doing very well and I expect them to do that going forward. However, most of their friends, and our relatives of similar ages, are idiots. They all have college degrees but can’t crunch simple numbers. One thing I’m hard over on, when talking to young people angsting to buy a house is - watch out for flood insurance. If you have a mortgage you must get it in quickly expanding locations. It can cost as much as the damn mortgage. Always ask the realtor if the house requires flood insurance. Factor that into your costs. The larger problem is that the flood insurance situation is dire. They simply don’t pay out many claims since the Sandy storm. Totally corrupt. After watching a documentary about a man who lost his home in New Jersey, could not get any flood insurance benefits, and STILL has to pay his mortgage AND flood insurance on an empty lot - we RAN to the phone and cancelled our flood insurance. We live right on the water, and our neighborhood floods regularly but never high enuf to damage the homes (it’s flatland and the water just spreads out). Since we don’t have a mortgage we had the option. Most people are stuck paying ever increasing premiums, that they are unlikely to ever be able to collect on - like flushing their money down a toilet. So, if you have kids or other young people in your life, please help them understand this horrid situation before they buy a home. Houses are not investments. They can take you down quick if you buy more than you can handle. |
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unluky7669.00 |
10-15-2019, 09:24 AM | #113 | |
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"Premiums surpassed $20,000 on average for families with employer health insurance coverage, according to the annual Kaiser Family Foundation employee health benefits survey". So "employer health insurance coverage" is the distinction in regards to the average. |
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10-15-2019, 12:25 PM | #114 | |
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I dated a young lady a long time ago who has a degree in accounting and worked at a large corporation's HR department. She was doing work around the company's 401k plan and did the talks to the employees about enrolling in the plan. The ironic thing was she didn't believe any of the stuff she was told to message. She YOLO'd. |
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10-15-2019, 12:35 PM | #115 | |
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10-15-2019, 12:35 PM | #116 | |
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I graduated in 92 with $25k in student loan debt....which is a pretty high sum for that time period. I didn't have a career job when I graduated with the recession going at the time. What I did was to understand the loan terms I signed up for. Not sure if things have changed for subsidized student loans but there is a stipulation where principle payments and any interest is deferred while you're still enrolled at least half/part time in college. I used this rule to its fullest until I was able to get myself in a financial situation to pay on the student loans. The way the system works is you get a 6 months grace period after your last semester. If you enroll again for classes with at least a total of 6 credits, the clock resets and you're in your deferment period again. When you complete that semester, you again have 6 months to begin paying or re-enrolling in classes. I did this for a few years taking a bunch of different IT/programming classes at my local community college where the cost per credit hour was very cheap. I'd be very surprised if this rule was removed from subsidized student loans. I bought myself enough time where I was able to get my career established, save up some money, get my debt load down, be in the position to pay on my student loans, and buy my first place. Granted I had help from my parents as I was able to live at home. But I lost out on the tax write off for paying on my student loans as I made too much. |
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10-15-2019, 12:39 PM | #117 | |
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10-15-2019, 02:11 PM | #118 | |
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10-15-2019, 04:47 PM | #119 | |
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100%. My father was raised as 1 of 9 children and was poor enough he never had shoes till the snow fell. His father died when he was 5 - so they were the definition of POOR. But it was the 30's - so lots of poor people - they all made due. He quit high school his senior year to join the military and never finished or did college. But from those poor beginnings he understood money and taught us to be very conservative and to buy with money not credit for everyday things. He certainly was not "rich" by today's standards, but retired when he was ready, had a pretty nice retirement and died a millionaire. That does not mean as much today as it did when he was young, but he left this world debt free and left a nice chuck of land to my sister and I that we enjoy a modest profit off each year. We are both doing just fine ourselves, but I think with him starting with nothing - the fact he left us something was one of his best accomplishments to him. It seems each generation loses 50% of their fear of debt because they no longer knew anyone that was as poor as they were back then. When you went hunting to eat - not sport. Crazy how times have changed. You can have a iPhone X and still be considered poor by today's standards.
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10-15-2019, 05:13 PM | #120 | |
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fakeairpods. so how you think they going to grow up . there parents probably the same; lavished out in designer clothing and jewelry. im sitting here north of 6 figures trying to save 50 cents at sonic drive thru for a pricing discrepncy. kid told me today to stop being a poor ass and that he wasn't going to argue with me. closed window on me. manager same deal. LOL. i was in my beater pilot, thank god i just laugh at these situations now; and don't let my ego get hurt by general stupidness. if i even muttered "oh come on man im pretty wealthy" that conversation would have taken a wild turn |
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10-15-2019, 06:53 PM | #121 | |
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10-15-2019, 06:55 PM | #122 | |
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10-15-2019, 07:00 PM | #123 | |
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My X5 was my first car loan since 1979. I had a hard time getting aProved, partly because if that. I showed them my savings account and they were glad to lend me the money. It’s fun to not be so thrifty, but hard getting used to after a lifetime of holey underwear and bargain-basement everything. |
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10-15-2019, 07:23 PM | #124 | |
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If someone were to be paying that entire tab out-of-pocket working a 40-hour week, the first $12.50 of their pay would all go to health insurance.....
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10-15-2019, 09:43 PM | #125 | |
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The current company I'm with...I just started with them a few months ago. The reason why the benefits are so good is because the company prides itself as a great place to work. The company is also on a few of those various lists of great places to work such as Glass Door and Fortune Magazine. |
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10-15-2019, 10:49 PM | #126 |
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I made the mistake of going for the 72 months instead of 60. My mind was telling me go for the lower monthly. But doing so bumped the APR almost double. In the end the interest is much more. But my thinking was that I'll just refinance it after a couple years. I probably made the wrong decision.
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10-15-2019, 11:54 PM | #127 | |
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vreihen1619201.00 |
10-16-2019, 12:06 AM | #128 | |
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That’s why I don’t by the sob stories nowadays on student loans - most have basically a car loan’s worth of debt. It’s easily paid off if you stick to a budget and aren’t spending a ton of money going out to eat/drink, using the latest gadget, or otherwise spending beyond your means. Those who have 100k+ either went to medical/law/business school and will recoup it over the long haul or made a bad decision to borrow 6 figures for a major that won’t get you a job capable of paying it back easily. The lesson I learned in my 30s was that when you wonder how some people you know afford the lifestyle they seem to have, it’s that they really can’t. Eventually you see them drown under a mountain of debt because they’ve been spending everything they’ve earned and more. Many of them probably have 69 month loans that they’ll trade in at 3 years and take a bath on depreciation and trade in value versus what they owe.. |
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10-16-2019, 04:48 AM | #129 |
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I graduated from college with $3000 in student loan and paid it off the first month I got a job. The rest was paid for by GI Bill. I'm horrible with money but I learn early on not to owe the government either in student loan or taxes.
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unluky7669.00 |
10-16-2019, 06:05 AM | #130 |
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I'll have to see when I file next year as I started with my current employer this year.
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10-16-2019, 08:00 AM | #131 |
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"Seven million people are at least 90 days behind on their payments, so is the fault with the lenders or people who are living beyond their means—or both?"
Its difficult for me to even get through the article after reading this question. This is what's wrong with the American consumer. Nobody forces us as consumers to live outside of our means, no matter how enticing the proposition, sales pitch, financing offer, etc. To say otherwise means either that we 1) lack common sense, 2) are weak willed and willing to make decisions detrimental to our well being, 3) selfish and greedy, 4) easily cajoled or manipulated or 5) all of the above. If you make a decision, be it financing or something else, own that decision and when/if you fail don't blame the system, predatory lending practices, your neighbor, your bank, your local politician for your inability to live like an adult. Drives home on days when I read articles like this are sometimes thought provoking. At a red light next to my second-hand mile E92 M3 is a guy in a 2020 M4 CS. He's probably telling his wife how much better performance and luxury the M4 packs against my old M3, but more likely than not, that M4 CS is leased or financed to the hilt. The same guy probably calculates his net worth based on the 50K in his checking account, excluding the 200K in student, auto, rent-a-center and mortgage debt. And his Instagram sure looks good! |
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