10 Reasons You're still broke

[tvguy]

Kind of an interesting article.

http://www.kiplinger.com/slideshow/saving/T063-S001-10-reasons-you-re-still-broke/

 

[Iowajes]

Keeping up with the Jones can be a major drain, and really the only one that applies to my family (though we try our hardest not to succumb!). My neighbor's have boats, projector TVs with movie screens on their walls. Everyone has a pool table, a super nice landscaped backyard, goes on many vacations a year.

It is just not possible for us, and we have to remind ourselves over and over that having ALL of that really isn't normal for most people, and can't be for us. They either have a lot more money than us (possible for many of them) or a lot more debt (also possible).

I think it can be a big issue here on DISboards when we read other people's vacation plans, and think the extravagant ones where they do a signature restaurant every night, go to BBB three times in the trip, stay at the monorail resort, character breakfast each morning, etc- is what EVERYONE does. Not just a small few.

 

[eliza61]

I think it can be a big issue here on DISboards when we read other people's vacation plans, and think the extravagant ones where they do a signature restaurant every night, go to BBB three times in the trip, stay at the monorail resort, character breakfast each morning, etc- is what EVERYONE does. Not just a small few.

My mantra is that the Dis is like the land of Oz, it bears no resemblance to real life.

Personally I have my own top 10.

1) Kids
2) kids
3) Kids
4) Impulse shopping
5) Kids
6) Kids
7) the dogs.....
8) repeat



My downfall is impulse shopping (it's still a bad habit I work hard to break).
I totally admit I like to shop. retail therapy is the only therapy I believe in.

Keeping up with the joneses never was a problem because my style was always a little "weird". LOL, ecletic is how my sister puts it politely.

 

[Happyjen27]

Great article, thank you for that.

You've inspired me to see how I'm doing on this year's financial goals and step it up if we're not hitting the mark.

 

[purpledisneyprncess]

This is very true!

 

[Josh Hendy]

The advice about not buying "too much car" rings true. A buddy of mine and his wife convinced themselves that they needed a brand-spanking-new, large-size SUV. The cost of taking on bank debt and the tax implications of cashing in retirement savings early (!!!) in order to buy the vehicle practically put them in the poorhouse. The particular brand they bought (I am told) is also notorious for the high cost of OEM replacement parts and scarcity of after-market parts. Going from owning two inexpensive clunkers to having only one expensive new vehicle means that they're having disagreements about who gets the car, and when, and for what reason. So they compromise by staying home all the time except for work.

At the other end of the spectrum, another buddy of mine confessed that he gets his cars from the dump! His car-wrecker buddy phones him if he sees a still-driveable vehicle dropped off and if it's something he could use he picks it up virtually for free, then gets minimal repairs done to keep it driving safely. He has absolutely no ego about his ride, he gets around and does everything that he wants.

 

[eliza61]

The advice about not buying "too much car" rings true. A buddy of mine and his wife convinced themselves that they needed a brand-spanking-new, large-size SUV. The cost of taking on bank debt and the tax implications of cashing in retirement savings early (!!!) in order to buy the vehicle practically put them in the poorhouse. The particular brand they bought (I am told) is also notorious for the high cost of OEM replacement parts and scarcity of after-market parts. Going from owning two inexpensive clunkers to having only one expensive new vehicle means that they're having disagreements about who gets the car, and when, and for what reason. So they compromise by staying home all the time except for work.

At the other end of the spectrum, another buddy of mine confessed that he gets his cars from the dump! His car-wrecker buddy phones him if he sees a still-driveable vehicle dropped off and if it's something he could use he picks it up virtually for free, then gets minimal repairs done to keep it driving safely. He has absolutely no ego about his ride, he gets around and does everything that he wants.

LOL. Doesn't anyone on the budget board know folks who are not "extreme" cases.

Where are the people who wants some thing in the middle, a 2 year old Honda that he can make easy payments on that he won't have to worry about falling off piece by piece as he drives down the road.

 

[SEA333]

My mantra is that the Dis is like the land of Oz, it bears no resemblance to real life.

Personally I have my own top 10.

1) Kids
2) kids
3) Kids
4) Impulse shopping
5) Kids
6) Kids
7) the dogs.....
8) repeat



My downfall is impulse shopping (it's still a bad habit I work hard to break).
I totally admit I like to shop. retail therapy is the only therapy I believe in.

Keeping up with the joneses never was a problem because my style was always a little "weird". LOL, ecletic is how my sister puts it politely.

Love this!!! hahaha

My top 10:

10.) Sky-high cost of living in our area
9.) Kids activities
8.) Kids extra costs for above activities
7.) High gas and food prices in our area
6.) Kids "NEED" to have what their friends have
5.) DH needs to have the newest phone and $200 worth of cable every month
4.) Wage freezes (we are lucky just to have the jobs we have after relocating from Michigan in 2010)
3.) Kids school costs
2.) Health care
1.) Kids use up just about every available last lovin' dollar I have. Every.Single.Week.

 

[pryncess527]

So many of those used to apply to me! I feel like we've done a great job of breaking the bad habits that got us here, now it's just going to take time to dig ourselves out. That article did make me feel like we are on the right track

 

[SEA333]

LOL. Doesn't anyone on the budget board know folks who are not "extreme" cases.

Where are the people who wants some thing in the middle, a 2 year old Honda that he can make easy payments on that he won't have to worry about falling off piece by piece as he drives down the road.

Me! Me!!

I am driving the car that falls apart piece by piece as I drive down the road, and we are looking to "upgrade" to a $5,000-$10,000 Honda or Toyota that we can buy for cash Hopefully one that will not fall apart piece by piece like the current one....

DH has car connections in his line of work, so we think we can do it!

 

[AquaDame]

#1 You quit school
No, I finished so I am paying back student loans which adds to the pile!
I did follow their 'guideline' without thinking much about it though.

#2 "You try to keep up with the Jones'
Not really... I drive a '97 beater and we didn't buy the largest house we could afford in the hip neighborhood. I only spend money on things I actively want - no boats, RVs, etc.

#3 You're hardly working
This is absolutely me.. but not my husband. There isn't anywhere for me to grow to is the problem.

#4 You have bad habits
Coffee daily, check. $2.30 a day is still something... I'd argue that taking up running, futsal etc has in itself been a drain on my pocketbook though. Athletic clothes and equipment are not cheap!

#5 You make impulse purchases
Occasionally if we are out of cookies and I want one I will add it off the list its true...

#6 You play the lottery
No, we very very rarely get a Powerball. Maybe 2x a year my husband get a $2 ticket if there is an office pool.

#7 You make minimum payments
On all but the highest APR. We put as much as we can to that and are snowballing.

#8 You lack goals
I have many, many goals. All of them to someday be able to afford some things/retire well, lol!

#9 You hang out with the wrong crowd
We all TRY to be responsible... but I suppose I'm the one who encourages others to have a budget and check their 401Ks periodically so maybe this is spot on.

#10 You're a couch potato
OK, I do watch an hour of TV on average while we are eating our dinner. But we do SOMETHING every night so I dunno if I would call myself a potato. Walks, go for a jog, lift weights, garden, etc otherwise I feel yucky especially in summer! I volunteer too. So neener.

I know why I'm "broke" - because I spend my money!

 

[tvguy]

#2 "You try to keep up with the Jones'
Not really... I drive a '97 beater

Your beater is 10 years newer than my family car which I bought new.

 

[maxiesmom]

Your beater is 10 years newer than my family car which I bought new.

Wow, and I thought having a car that was 11 years old was doing well!

I can tell you my #1 reason for being broke--my dogs. I seem to attract dogs that have special needs. I lost one earlier this year to cancer, even after doing different types of chemo. And that came after years of auto-immune diseases. The one sleeping next to me is diabetic (which means special, expensive food), and mostly blind. The one sleeping across the hall is a recent rescue, who is on prozac for anxiety.

Still, I love them to bits and wouldn't trade them for anything!

 

[eliza61]

Wow, and I thought having a car that was 11 years old was doing well!

I can tell you my #1 reason for being broke--my dogs. I seem to attract dogs that have special needs. I lost one earlier this year to cancer, even after doing different types of chemo. And that came after years of auto-immune diseases. The one sleeping next to me is diabetic (which means special, expensive food), and mostly blind. The one sleeping across the hall is a recent rescue, who is on prozac for anxiety.

Still, I love them to bits and wouldn't trade them for anything!

Lol, tell me about it. My dog Hobbes is diabetic. 5000 bucks to get his cataracts removed. Not including 300 bucks every time we step into the vets. Insulin Humlin, 100 bucks a month, needles. So far he's doing well on blue buffalo dog food which is still pretty pricey.
I'm totally a pet mom.

 

[tvguy]

Wow, and I thought having a car that was 11 years old was doing well!

I can tell you my #1 reason for being broke--my dogs. I seem to attract dogs that have special needs. I lost one earlier this year to cancer, even after doing different types of chemo. And that came after years of auto-immune diseases. The one sleeping next to me is diabetic (which means special, expensive food), and mostly blind. The one sleeping across the hall is a recent rescue, who is on prozac for anxiety.

Still, I love them to bits and wouldn't trade them for anything!

Yeah, pets will brighten your day, break your bank account and then your bank account.

 

[olwyngdh]

My money goes to the dance studio, and to gas to get to and from the studio. I am not broke, I am investing in my daughters future.

 

[ellochka]

LOL. Doesn't anyone on the budget board know folks who are not "extreme" cases.

I will raise you one. Our neighbors bought a very expensive luxury SUV - actually, I believe they leased it, which is a financial hole of its own. They did it while looking for a new house. So, just over a month later they moved into a unit in our building that allows the husband who was supposed to drive this thing to bike to work (and that was one of the top reasons they bought the condo!). So, now he bikes to work while the SUV sits in the garage. They may be able to afford the vehicle, but what a waste of money!

 

[ellochka]

Where are the people who wants some thing in the middle, a 2 year old Honda that he can make easy payments on that he won't have to worry about falling off piece by piece as he drives down the road.

Hello, I am here. I bought a 2 year old Scion with 28K miles on it for cash one month before my baby was born. I could not keep my 10 year old VW Beetle because it had two doors.

 

[chris31997]

My money goes to the dance studio, and to gas to get to and from the studio. I am not broke, I am investing in my daughters future.

Me too

Dance studio, shoes, costumes, recital fees Can't wait to get into Disney for free

Actually, we budget for it so I can't say we don't have any money and we do save for retirement everything else

But I'm counting the days to DD working at Disney

 

[barbmouse]

Interesting article and a fun thread!!