Three rules for staying out of poverty

[chalee94]

To me if you're making 7 figures a $130 textbook wouldnt set you off

so if you were making 7 figures, you'd throw away a couple of hundred dollars without thinking about it? you'd light your cigars by setting $100 bills on fire?

you've got some awfully arrogant opinions about what the rich are like...

 

[Muushka]

Look at Clark Howard! The guy has a bundle but is very frugal. I admire that, I won't ever make fun of it.

 

[HsvTeacher]

Really?..
How was last year?
You were really complaining on College textbook cost here
http://www.disboards.com/showthread.php?t=2376902

I had 2 in college at the same time and paid $600+ each kid, each semester
It is what it is

To me if you're making 7 figures a $130 textbook wouldnt set you off

But how do rich people stay rich? By not blowing through all of their money.

I have some relatives who are very well off, and they stay that way by living way below their means. You'd never know they were multimillionaires because they don't live like they are.

 

[Muushka]

Look at Clark Howard. The guy has a bundle but is very frugal. I admire that, I won't ever make fun of it.

 

[limace]

1. Have the good fortune to be born in a first world country.
2. Have the good fortune to be born to middle class parents.
3. That should do it.

 

[ilovemk76]

But how do rich people stay rich? By not blowing through all of their money.

I have some relatives who are very well off, and they stay that way by living way below their means. You'd never know they were multimillionaires because they don't live like they are.

The PP is claiming to make a million dollars a year but she needs to fill out the FAFSA to try to get college help for her son. She really thinks they will say she does not have the means to pay the $39K-$42K for Seton Hall?

I think she is stretching the truth. The 6-7 figures is really 5-6 figures.

 

[punkin]

The PP is claiming to make a million dollars a year but she needs to fill out the FAFSA to try to get college help for her son. She really thinks they will say she does not have the means to pay the $39K-$42K for Seton Hall?

I think she is stretching the truth. The 6-7 figures is really 5-6 figures.

I have asked this before and now I am asking again...how do you people remember so much about who every poster is and every thing they've ever posted? It borders on being a stalker.

Also, rich people need budgets every bit as much (if not more so) than poor people.

FAFSA (at some schools) is required for merit aid as well as financial aid. MY estimated family contribution is over $60K and yet I fill out the FAFSA for DD every year.

 

[marie1203]

This had gotten well of subject and even political which is a no, no on this board. Anyway OP I think the guide lines are good to start with. The only thing I find it missing is learn how to manage your money because no matter how much money you make if you don't know how to manage your money you still can be broke.
I think too many people in this thread get too caught up with money while it is important to save and be responsible but at the end of the day it will not help you in your grave. While I am all about being frugal complaining about paying $130 for a college book while you make 6 figures seems ridiculous.

 

[DMRick]

Not pertaining to anyone in particular, but like you, the 'rich' people I know are frugal, however, they also don't complain/worry when they do need to spend money. They are thankful they have it to spend.
One couple I have in mind have a child that just finished college at a very expensive school. They were not qualified to get student loans (their son wasn't) and they weren't qualified to get parent loans. I don't know many 'rich' people who can get the loans. They have the money to pay, so it's expected they pay. Their son still got merit grants, but no loans
While they may look for the best place to get their sons books, it's not a hardship for them to pay what they have to pay. I'm sure they have a nice nestegg (just bought a wonderful second home in a really nice vacation area), just judging by how very generous they are to our cat rescue.
You are correct, many rich people live below their means..I imagine it's how they stay rich..but they usually don't need to take out loans to pay what they owe, unless taking out the loan is less interest than the money they are earning on their savings.

But how do rich people stay rich? By not blowing through all of their money.

I have some relatives who are very well off, and they stay that way by living way below their means. You'd never know they were multimillionaires because they don't live like they are.

 

[Ceila]

I have asked this before and now I am asking again...how do you people remember so much about who every poster is and every thing they've ever posted? It borders on being a stalker.

I fail to understand why people don't realize that once you put something on the internet, it can be out there forever. And I also don't understand why people on this board expect others to never remember what another poster said. It's not stalking. For heaven's sake, it's not a crime to recall other things that posters have written! And frankly, nobody should be surprised to get called out when they post conflicting or hypocritical statements.

 

[RitaE]

Not pertaining to anyone in particular, but like you, the 'rich' people I know are frugal, however, they also don't complain/worry when they do need to spend money. They are thankful they have it to spend.
One couple I have in mind have a child that just finished college at a very expensive school. They were not qualified to get student loans (their son wasn't) and they weren't qualified to get parent loans. I don't know many 'rich' people who can get the loans. They have the money to pay, so it's expected they pay. Their son still got merit grants, but no loans
While they may look for the best place to get their sons books, it's not a hardship for them to pay what they have to pay. I'm sure they have a nice nestegg (just bought a wonderful second home in a really nice vacation area), just judging by how very generous they are to our cat rescue.
You are correct, many rich people live below their means..I imagine it's how they stay rich..but they usually don't need to take out loans to pay what they owe, unless taking out the loan is less interest than the money they are earning on their savings.

Just to clarify here - we "rich people" (because rich in Financial terms isn't all that rich) can get loans. There are no upper income ceilings where you can't get PLUS loans anymore. What we can't get are subsidized loans and the interest rates on un-subsidized loans are so high people are often able to do better just by using their credit cards or taking out a personal loan at the bank.

 

[punkin]

Not pertaining to anyone in particular, but like you, the 'rich' people I know are frugal, however, they also don't complain/worry when they do need to spend money. They are thankful they have it to spend.
One couple I have in mind have a child that just finished college at a very expensive school. They were not qualified to get student loans (their son wasn't) and they weren't qualified to get parent loans. I don't know many 'rich' people who can get the loans. They have the money to pay, so it's expected they pay. Their son still got merit grants, but no loans
While they may look for the best place to get their sons books, it's not a hardship for them to pay what they have to pay. I'm sure they have a nice nestegg (just bought a wonderful second home in a really nice vacation area), just judging by how very generous they are to our cat rescue.
You are correct, many rich people live below their means..I imagine it's how they stay rich..but they usually don't need to take out loans to pay what they owe, unless taking out the loan is less interest than the money they are earning on their savings.

There is no income qualification requirement for UNSUBSIDIZED student loans or PLUS (parents'_) loans. Anyone can qualify for them. Whether they are a good financial move is a different story.

 

[ilovemk76]

I have asked this before and now I am asking again...how do you people remember so much about who every poster is and every thing they've ever posted? It borders on being a stalker.

Also, rich people need budgets every bit as much (if not more so) than poor people.

FAFSA (at some schools) is required for merit aid as well as financial aid. MY estimated family contribution is over $60K and yet I fill out the FAFSA for DD every year.

A rich person budgets but does not complain about buying what a candy bar costs to us.

Some of us have way better memories than others. When she first posted the 6-7 figure I was shocked that she would brag and asked her about it. Of course, she ignored it. That stuck in my head and made me wonder if she made it up.

Then I see her posting about not having money for a roof. Hmmmm I do not make 7 figures (very, very far from it) but I could replace my roof and not have to borrow money so that I only had $3K left in the bank.

Then she is having trouble with paying for college.

Do you really think a person who makes a million dollars a year has troubles paying these tiny bills. A $130 book at her income is what a second of work?

We am helping another person with college. This is no my child. I spent way more than $130 for books and I did not need a thread to complain about the cost.

I remembered her "we were poor post" and then I see this how wealthy her
parents were.

People can pretend to be whomever they want but when you pretend it is best to keep the story straight.

 

[ilovemk76]

This had gotten well of subject and even political which is a no, no on this board. Anyway OP I think the guide lines are good to start with. The only thing I find it missing is learn how to manage your money because no matter how much money you make if you don't know how to manage your money you still can be broke.
I think too many people in this thread get too caught up with money while it is important to save and be responsible but at the end of the day it will not help you in your grave. While I am all about being frugal complaining about paying $130 for a college book while you make 6 figures seems ridiculous.

But she says she makes 7 figures!!

 

[sk!mom]

Well - for some people it's just not that easy.


My tips for not being poor would be: be born into a middle-class or wealthy family, with caring parents, who can give you a good start in life.

Teresa

You're right it's very, very difficult for some but that does not change the statistics. My DH and his siblings were born and raised in poverty. Four of them got out by meeting those steps. Two became pregnant as teens, quit school, and continued in poverty.

You are also correct that being born into the middle class makes it easier. My children definitely have an easier time and more choices than my DH and his siblings had. DH's brother joined the military to get out and DH took out student loans and worked full time while going to college to get ahead. It was hard and took much determination and perseverance. My children don't have to join the military unless they want to. They have parents who saved and will continue to support them through college while they work part time- Certainly much easier.

For me the bottom line is that we need to support those programs that help people reach those goals rather than support them continuing in poverty. The Brookings study went on to say that social programs with strings attached have been successful in nudging people out of poverty.

 

[marie1203]

But she says she makes 7 figures!!

Well she said it depends on the year so I was low end. DH doesn't make six figures and I am a full time student we pay for books and most of tuition out of pocket and I don't complain because it is for my education.The poster it was her choice that she keep going back to school then why would it shock you the price of books when you been to school many times before.

 

[disykat]

so if you were making 7 figures, you'd throw away a couple of hundred dollars without thinking about it? you'd light your cigars by setting $100 bills on fire?

you've got some awfully arrogant opinions about what the rich are like...

They say there are a lot of secret millionaires out there who die in their budget homes leaving behind previously unknown about wealth. I agree wtih you IN THEORY. However, I really doubt people who make a million dollars a year (or in the high hundred thousands) generally fuss over the kinds of things this poster is fussing about, have to take out school loans, or spend much time on the budget board trying to figure out how to save a few nickels. My thought is that someone got mixed up and meant to say they had a high FIVE figure or low SIX figure income and isn't making the millions we're assuming.

People who make that kind of money don't do so at a "job."

 

[drcmk]

Liberals tend to think that anyone not on welfare is rich.[/B]

That is so true. And (for me) it explains a lot. It is why the middle class will always be screwed.

Sorry, I can't let that one go. I am a liberal. I've never been on welfare or any kind of public assistance. I am far from rich. I don't actually know anyone I would consider rich, even though no one from our social circle has had to use welfare or unemployment (that I know).

Sweeping generalizations only serve to stir up emotions, not to explain anything and certainly not to solve problems.

 

[DMRick]

Sorry..I should have said school loans..meant specifically for students and parents of students and often those that are needy. Loans that people can afford to actually pay back. Of course there are other types of loans, house refinancing, etc.

Just to clarify here - we "rich people" (because rich in Financial terms isn't all that rich) can get loans. There are no upper income ceilings where you can't get PLUS loans anymore. What we can't get are subsidized loans and the interest rates on un-subsidized loans are so high people are often able to do better just by using their credit cards or taking out a personal loan at the bank.

 

[Danibelle]

I fail to understand why people don't realize that once you put something on the internet, it can be out there forever. And I also don't understand why people on this board expect others to never remember what another poster said. It's not stalking. For heaven's sake, it's not a crime to recall other things that posters have written! And frankly, nobody should be surprised to get called out when they post conflicting or hypocritical statements.

Thank you for pointing this out!