working hard=financial success?

..and I would suggest a different book..Scratch Beginnings by Adam Shepard. It was written by a young college student who has his own strong opinions on his generation and Nickel and Dimed, which was required reading in one of his classes. He went out to disprove the theories in Nickel and Dimed by hard work and some logic and started in a homeless shelter to do so with nothing more than $25.00. Great read.

PS.. I see someone else mentioned this book..oops! Bears repeating though.

I have read it and I wasn't advocating either or system. Actually the one point I have been saying is that there is not "one single bullet" formulation to "financial" success.
Adam shepards success in making it on $25 bucks in no way means that Barbara's scenerio is any less real. In fact just as he rejects Enrichks working poor are doomed to stay that way, I reject the "every one is on equal footing and the poor would not be poor if they just pull up their boot straps" theory Adam seemed to embrace.



yes hard work is important but it is not the only factor as many of the working poor find out daily.
 
I am coming to believe that we've lived through a historical aberration. Particularly the "unskilled labor (e.g. manufacturing jobs) leads to a middle class lifestyle." The labor movement which peaked in the 1950s, combined with our post WWII economy and our robust infrastructure when other countries were building, or rebuilding, theirs - combined to make a circumstance possible that wouldn't have been economically feasible any other time.

Similarly, the 1990s were an aberration for IT professionals. You won't see programmers, systems analysts, etc. get paid like that again. The demand with the dot com boom and the Y2K crunch created a demand that drove up wages - and we hadn't yet developed the infrastructure to enable cheap offshoring.


I think you're right on the money here....that the last 20 years or so was an historical aberration. I can attest that from our standpoint, that we have not seen the insanity in the IT world with respect to stock options....

In the mid 90s through the end of that decade DH received an insane amount of stock options, which we in turn...cashed out. Salary-wise, he peaked in 2000, it wasn't until 2008 that he saw a return to the salary that he was paid in 2000.

As for stock options.....none for any company he's worked for since 2000....and that company was a classic "dot-com" that is still around, but is just a skeleton of what it once was. We realized by 2003 that we needed to really increase our personal savings from our income as the "stock option days" where we'd routinely get a ton of money each year....was over for good.
 
Ive read *almost* every post here and am shocked I havent seen this point brought up yet....

Divorce

Divorce has sky-rocketed since the 50's and it is probably the number one factor in why people stay poor (myself included).

Did the guy in Scratch Beginnings have 2 or 3 children to take along with him on his journey? Children which needed to be cared for emotionaly, physically, financially? I havent read his book but I dont think he did. He did nothing spectacular it sounds....a single person starting with nothing and is able to make a gain in a year. We all could have done that.

The posts I see here talk about DH or DW...thus 2 person households. What about us single parents? Working 2 or 3 jobs, trying to manage school IF you're lucky and can find childcare. How do those people get ahead? Child support is nothing. Its based on the other parents income....if they make low wages you dont get much....many dont get support at all.

The flip side - you are the parent paying the child support or alimony....there goes some of your income. You're remarried and have new kids to support. how do those people get ahead?

Does hard work = financial success? No. IMO, high morals, having values, and dedication = financial success...because with those things you are going to naturally work hard. Working with your partner when problems arise (instead of running off to sleep with the next hot thing that comes along, or drinking/drugging your money away) = financial success.

My advice? Choose your partner wisely. Live with them a year or 2 before you make it legal. Wait to have kids until your mid-twenties or later. And lastly....PRAY that your partner in life has the same morals/values that you do and will be willing to work through those hard times......because the alternative option means even harder times.
 
I have read it and I wasn't advocating either or system. Actually the one point I have been saying is that there is not "one single bullet" formulation to "financial" success.
Adam shepards success in making it on $25 bucks in no way means that Barbara's scenerio is any less real. In fact just as he rejects Enrichks working poor are doomed to stay that way, I reject the "every one is on equal footing and the poor would not be poor if they just pull up their boot straps" theory Adam seemed to embrace.



yes hard work is important but it is not the only factor as many of the working poor find out daily.

I didn't say his book negated Nickel and Dimed, just that he tried a different way with a different result. I believe that was my point..there is no 'single bullet' answer and I think Adam was very compassionate in the way he saw that many didn't have the skills, motivation or mind set that would allow them to appoach things his way. And he also made note that much of these issues were caused by upbringing, poverty cycle, drug and alcohol abuse or flat out the inability to look past a single day and be able to put off gratification. I have read both and feel that Adam had less of a bone to pick and really was much more open to seeing things in any light than the Nickel and Dimed author was, as her POV seemed pre set and became a self fulfilling prophecy.
 

Well, the meritocracy is a fallacy and hard work has nothing, absolutely nothing to do with wealth accumulation, but I guess this post will just be ignored while the "successful" keep clapping each other on the back and talking about how deserving they are of their wealth.
 
Well, the meritocracy is a fallacy and hard work has nothing, absolutely nothing to do with wealth accumulation, but I guess this post will just be ignored while the "successful" keep clapping each other on the back and talking about how deserving they are of their wealth.

:confused3
 
It has more to do with how money / finance is being handled. Working hard always pays off decently. But that doesn't mean people who are earning less are not as hardworking as others are.
 
Well, the meritocracy is a fallacy and hard work has nothing, absolutely nothing to do with wealth accumulation, but I guess this post will just be ignored while the "successful" keep clapping each other on the back and talking about how deserving they are of their wealth.

Well, I don't buy this. I think that an awful lot of hard work goes into wealth accumulation, especially in the early years of the process. Sure, once someone like Bill Gates or Warren Buffet is incredibly wealthy, they could do next to nothing and still continue to grow their personal portfolios.

But DH and I have a seven figure portfolio (not including our home) and we work our ***** off, day in and day out. We're in our early 40s, in the top 1-1.5% of income earners in this country and we don't consider ourselves anywhere near being "wealthy". We've been working, saving and investing to get to this point for twenty years now. All of our accumulated wealth will be used to support us in retirement later in our lives. There's no time to "clap each other on the back" or congratulate each other. We're too busy working.

There's a really, really steep curve as far as wealth goes in this nation. It boggles my mind that we're actually that high up percentage-wise with respect to income (and probably even with savings) and yet live *nothing* like what anyone would consider a "wealthy lifestyle". We have a 500K paid-for home, drive 13.5 and 7 year old SUVs. And we save 60% of our net income.

I believe that you're thinking of a select few in this nation with portfolios in the 8-9 figure to billion dollar range. Surely, those people are in a different league than the grand majority.
 
My advice? Choose your partner wisely. Live with them a year or 2 before you make it legal. Wait to have kids until your mid-twenties or later. And lastly....PRAY that your partner in life has the same morals/values that you do and will be willing to work through those hard times......because the alternative option means even harder times.

Actually, more people are doing these things and they don't really seem to be helping.

Co-habitation might sound good, but it has the opposite effect in real life, couples who live together before marriage are much more likely to divorce. I would guess it's because there needs to be a major change when marriage happens or people continue on as if they are still just dating.
 
Well, the meritocracy is a fallacy and hard work has nothing, absolutely nothing to do with wealth accumulation, but I guess this post will just be ignored while the "successful" keep clapping each other on the back and talking about how deserving they are of their wealth.

In some cases, yep. In some cases, nope.

My husband is pretty well paid. But he does work hard. His day starts with email at 7am before he even leaves the house, and he often comes home to continue to work until 11pm. He reads within his industry during his free time - taking books with names like "Pattern Oriented Software Architecture" on vacation. There has not been a Thanksgiving or Christmas in ten years he hasn't had to log into work to tweak something.

And deserving of his paycheck? - his hard work has gotten results. Over the last two years he thought up and implemented a system that results in $30M in bottom line profit per year. That's initial, as the system gets used for more functions, that number will increase.

Then we have the wealth accumulation part of it - that's my job. (I have an outside the home job too). You can get paid well, but it doesn't become wealth if you spend it. So its my job to nurture our income - save money (and people around here with small incomes will tell you that isn't easy - there is less stress about it in my life because my budget isn't tight, but I still shop sales, color my hair at home, kids wear hand me downs), and invest it (which can also be difficult and time consuming).

I know wealthy people, and I know poor people. MOST of the wealthy people I know have worked pretty hard. MOST of them got some breaks that other people weren't so lucky to get (DVCgirl and I both got kick on wealth accumulation with stock options - lucky us to exist in the right field - or be married to those in the right field - in the 1990s.) But then there are other people - my brother in law for instance - who has gotten break after break - and I suspect will be bankrupt again in another three years because bad breaks - sometimes helped along by bad decisions - keep following the good breaks.
 
Ive read *almost* every post here and am shocked I havent seen this point brought up yet....

Divorce

Divorce has sky-rocketed since the 50's and it is probably the number one factor in why people stay poor (myself included).

Did the guy in Scratch Beginnings have 2 or 3 children to take along with him on his journey? Children which needed to be cared for emotionaly, physically, financially? I havent read his book but I dont think he did. He did nothing spectacular it sounds....a single person starting with nothing and is able to make a gain in a year. We all could have done that.

The posts I see here talk about DH or DW...thus 2 person households. What about us single parents? Working 2 or 3 jobs, trying to manage school IF you're lucky and can find childcare. How do those people get ahead? Child support is nothing. Its based on the other parents income....if they make low wages you dont get much....many dont get support at all.

The flip side - you are the parent paying the child support or alimony....there goes some of your income. You're remarried and have new kids to support. how do those people get ahead?

Does hard work = financial success? No. IMO, high morals, having values, and dedication = financial success...because with those things you are going to naturally work hard. Working with your partner when problems arise (instead of running off to sleep with the next hot thing that comes along, or drinking/drugging your money away) = financial success.

My advice? Choose your partner wisely. Live with them a year or 2 before you make it legal. Wait to have kids until your mid-twenties or later. And lastly....PRAY that your partner in life has the same morals/values that you do and will be willing to work through those hard times......because the alternative option means even harder times.


Stephanie Koontz, who is a social and economic Historian out of Evergreen State College in Washington, might disagree with you that it is that different. She's written a few books on marriage and family history and one point she makes is that marriages didn't necessarily last longer in the past. People just wouldn't get divorced formally - they'd go out for cigarettes and never come back - setting up a new life somewhere else. Without the computer records that we take for granted, people didn't necessarily bother with formal legal marriage and divorce - the minister might marry you, but if the county courthouse was twenty miles away and your family was still horse and buggy - you might never register it. Also, because it was much more common for people to die early, more marriages dissolved through death in the past. She thinks its actually fairly likely that the number of single parents has been pretty stable. Other things have changed though. There is less community. You might live farther from family and families aren't as tight.

But what you say is true - it is far easier to have financial success when two adults are pulling toward the same goal of financial stability. Its also easier when there are no children involved - children being expensive little things - which is why marketers like "DINKs."

Its easier when your parents fund your education and you leave without student loans. Its easier when grandma leaves you a nice amount of money or when you inherit the family home or business. Its easier (really, it is) when you are good looking and thin and tall. Its easier when you live in a spot with a combination of good opportunities and low cost of living. Its easier if somewhere along the way you acquired a set of life skills - from the 'you'd think it would be obvious' like showing up to work on time, to budgeting, to planning, to cooking and mending and home repair. To being trained to do a well paying job - like being a plumber.
 
Well, the meritocracy is a fallacy and hard work has nothing, absolutely nothing to do with wealth accumulation, but I guess this post will just be ignored while the "successful" keep clapping each other on the back and talking about how deserving they are of their wealth.

May I ask why you think that?

I don't think hard work is the "only" thing to do with wealth accumulation but it dang sure contributes to it.

Like Crisi & DVCgirl, my family probably had a bit of luck in that my dh is in a lucreative industry (oil). But let me tell you, you try working your way up through the petroleum industry working on rigs, through hurricanes, dirty, hazardous work, 365 days a year and tell me he didn't work hard. I fully admit that I had a leg up in that my parents were professionals who were able to send me to college. My mom was a civil rights attorney in Tenns. during the 50's &60's. You wanna try going to work while the KKK is threatening to kill you and your family, for simply registering people to vote. let me know how easy you find that.
So you're correct in that I know people who are deserving of their success and I make no apologies for it.

But I also recognize that "there by the grace of God, go I". outside of my son being an Aspergers kid we have had no serious medical conditions that unforunately can wipe families out. We were fortunate to have started out at a time when getting a modest house was a bit easier and then having it appreciate quickly due to the housing boom. We've also made some horrendous mistakes (credit card debt) in our early married life that make us cry when we think of where we could be at had we not made those choices.
 
The mills (and manufacturing in America in general) is more complicated than just NAFTA. Robotics took away a lot of jobs starting in the 1970s.
Having lived in a textile area all my life, I can tell you that automation DID take a toll on the manufacturing world -- the mill stopped hiring as many people, young people couldn't gain entrance to the lifestyle their parents, grandparents, great-grandparents had live . . . but the mills also didn't lay people off, didn't disrupt the economy of our entire area until NAFTA.
No offense, and maybe it's because I'm a crazy Yankee, ;) but I think that is kind of a romanticized view and I don't think that sounds so great...to me it is almost reminiscient of economic slavery...remember when people used to say how plantation owners cared about their slaves, and the slaves were taken care of and happy? (Of course slavery was a million times worse.) The system you are describing was set up to benefit the mill owners, and it became a cycle for the workers' kids, as you said. No education, no prospects besides working at the mill? The owners had a built in work force within walking distance. Of course, once it was no longer financially advantageous, it sounds like the "older brother" bailed on them, though. What happened to the "moral duty" you describe? :confused3

My grandparents came over as immigrants with very little education, my grandfathers both worked in a shipyard and my grandmother came over at 14 and worked as a maid for a wealthy family in NYC. They eventually were able to purchase their own homes, one set had 11 kids and one set had 7 kids, all the kids were educated, some went to college, vocational training, etc. They definitely struggled economically, but they wanted their kids to do better, and each successive generation has done better. (Whether that will continue, I don't know.)
Remember, these are stories told to me by much-older, now-deceased relatives -- I know they were very satisifed with their lot in life. Your view may be different because you're a crazy Yankee, and your family has always viewed the world in terms of city, jobs, and small spaces.

Your NYC ancestors had access to jobs. They had access to transportation. They had access to education. My grandmother says that when she was a girl (she was born 1913), her father "went to town" every couple months. Making such a trip required about three days of travel and sleeping in his wagon. They had a traveling preacher who came through once a month, and everyone in the area traveled to him and made a whole day's event of it. I'm not sure when they first owned a car, but they were middle-class farmers with LOADS of land. They weren't poor. Jobs for farm kids? At best, a young man could hire himself at planting, harvesting, or haymaking. College? They had land, they had everything they needed . . . but cash money? No one had that -- at least not much. My grandparents both went to college; they were each the only sibling to do so, and it was considered an immense stretch for them.

So for those people, with those options, moving to the mill town looked like a pretty good choice. Their livelihood wasn't subject to the weather. If they stayed on the farm, they weren't going to have money -- ever -- AND as more and more families raised large numbers of children to adulthood, what the land could produce could support fewer and fewer people.

Does that mill life look attractive to us today? No. To people who have access to education and opportunities, it does look like economic slavery. But to them, with their options, in they heyday of the mills, it looked like an option equal to staying on the farm . . . but with the benefits of medical care, holidays off, and guaranteed retirement.

For people in that generation, it was a pretty good choice.

What changed the situation? Social morals changed, other options became available (for example, the two world wars and Vietnam took many of the young men away to the military). The Union changed things. For a long time, the South was very, very anti-Union. The owners (and most workers) took the viewpoint that we're family, we take care of each other -- we don't need someone else telling us what to do. But many people wanted the mill owners to provide all the benefits they'd provided for years (free housing, medical care, etc.) AND ALSO pay more money. It wasn't economically feasible; the product wouldn't sell for enough money to make that happen. So really, it was lots of changes /evolutions in the fabric of society that "did in" this social system.
The working poor for the most part I think do not have the resources to rise about their situation, while the middle class does. And I think this applies to their children as well as they are taught so differently. Instead of being a system that's based upon work I think in many ways our system is also based on a level of knowledge that many people simply don't have. And by the time people go to teach them it, it's too late or there's just no way to overcome what they were taught growing up.
I agree somewhat. With public schools, need-based financial aid for college, and many other safety nets in place these days, the working poor have the tools with which to move up in the world. However, those who've come from generations of working poor don't always see those things as choices. I'm thinking of a couple relatives of mine. They tend to see a college degree and a professional job as "good luck" rather than the product of years of effort.

Also, today's success can't be passed on to children in the same way it was in the past. I said in my above post that my 1900-s era relatives were middle-class farmers who owned lots of land. That land was passed on to their children, and many generations used that same land to live the same lifestyle their parents lived. In a city, I'd imagine the details varied: Probably a man started a grocery store or a five-and-dime, and after he built that business up, he passed it on to his children. Today the world-of-work focus has shifted, and most of us are not self-employed. Today it takes knowledge and education to move ahead in the world, and we can't pass our college degrees on to our children. That's a huge shift.
I think you're right on the money here....that the last 20 years or so was an historical aberration.
I think you're right. The last 20 years -- I'd probably say 30, possibly 40 years, but let's not quibble -- have been markedly different in the world of work (and in social affairs too), and we tend to lose track of the fact that our recent past is not at all representative of our entire history. Also, many of the things that've happened in the last couple decades are not sustainable. For example, the average American's personal debt.
Divorce has sky-rocketed since the 50's and it is probably the number one factor in why people stay poor (myself included) . . . My advice? Choose your partner wisely. Live with them a year or 2 before you make it legal. Wait to have kids until your mid-twenties or later. And lastly....PRAY that your partner in life has the same morals/values that you do and will be willing to work through those hard times......because the alternative option means even harder times.
We've all been focused on discussing work . . . but you're absolutely right to say that social changes have bled over into financial issues and work concerns.

Divorce is a huge obstacle to financial success, and I think even those of us who haven't been through it could enumerate the ways in which it's more expensive than staying together.

I disagree that living together is the answer. I'd point out that statistics have shown for years that you have a greater chance of staying married if you don't live together prior to marriage; and that as this practice has grown more common, the divorce rate has grown higher. Also, I'd say do more than pray that you've chosen wisely. Too many people are too anxious to marry, too concerned about offending/running off that potential partner, and they don't discuss the tough questions ahead of time -- so that's how, for example, a saver marries a spender (or something simliar). They figure that they'll work those things out later, and then later they realize that they had wildly different opinions about children, housing, vacations, even fidelity.
I didn't say his book negated Nickel and Dimed, just that he tried a different way with a different result. I believe that was my point..there is no 'single bullet' answer and I think Adam was very compassionate in the way he saw that many didn't have the skills, motivation or mind set that would allow them to appoach things his way. And he also made note that much of these issues were caused by upbringing, poverty cycle, drug and alcohol abuse or flat out the inability to look past a single day and be able to put off gratification. I have read both and feel that Adam had less of a bone to pick and really was much more open to seeing things in any light than the Nickel and Dimed author was, as her POV seemed pre set and became a self fulfilling prophecy.
I havn't read his book, but I suspect (note the portion I bolded) that I'd agree with his theories.

It's not politically correct to say that poor kids do worse in school, but it's true for many of them -- not the whole group, of course; after all, I was a poor kid, and I did great in school. But those are the very things that hold them back academically: They weren't brought up to view education as important, they sometimes skip school to work /work so late that they don't do homework, get into drugs /alcohol (not that our middle class kids don't do that too, but that's another subject), and genuinely DON'T "GET" that goofing off today in my high school class will hurt their chances of passing at the end of the semester. These same actions will hold them back in the work world.
But DH and I have a seven figure portfolio (not including our home) and we work our ***** off, day in and day out. We're in our early 40s, in the top 1-1.5% of income earners in this country and we don't consider ourselves anywhere near being "wealthy". We've been working, saving and investing to get to this point for twenty years now. All of our accumulated wealth will be used to support us in retirement later in our lives. There's no time to "clap each other on the back" or congratulate each other. We're too busy working.
You and I are very much alike -- even in age. I don't think of us as "wealthy". In my mind, wealthy people are those who inherited money rather than working for it. I don't particularly think of my husband and I as high wage earners -- we're not really -- but we really make the most of everything we have.
Actually, more people are doing these things and they don't really seem to be helping.

Co-habitation might sound good, but it has the opposite effect in real life, couples who live together before marriage are much more likely to divorce. I would guess it's because there needs to be a major change when marriage happens or people continue on as if they are still just dating.
Yeah, I think the large number of people who are living together has essentially denegrated the concept of a life-long partner, and it's made it easier for people to make the decision to split up.
I know wealthy people, and I know poor people. MOST of the wealthy people I know have worked pretty hard. MOST of them got some breaks that other people weren't so lucky to get (DVCgirl and I both got kick on wealth accumulation with stock options - lucky us to exist in the right field - or be married to those in the right field - in the 1990s.) But then there are other people - my brother in law for instance - who has gotten break after break - and I suspect will be bankrupt again in another three years because bad breaks - sometimes helped along by bad decisions - keep following the good breaks.
Yep, I could say this same thing. I don't know anyone personally who became financially secure by accident or working just occasionally. But I know people who earn good wages and still have little to show for it.

And I think the working poor and our less educated citizens are less likely to ever "do well" because they don't recognize breaks, opportunities for what they are. I'm thinking of a relative who has had SO MUCH given to him, and he just makes bad choice after bad choice. He isn't bright, but he had so many chances to get help with school; still, he never graduated. Various family members have helped him find job after job, but always after a couple weeks or months, he feels that someone's treated him unfairly and he shows them: he quits. Someone else BOUGHT HIM a house, and his girlfriend complains that it isn't good enough, has too many things that need to be fixed. He's never, never, never going to get ahead.
Stephanie Koontz, who is a social and economic Historian out of Evergreen State College in Washington, might disagree with you that it is that different. She's written a few books on marriage and family history and one point she makes is that marriages didn't necessarily last longer in the past. People just wouldn't get divorced formally - they'd go out for cigarettes and never come back - setting up a new life somewhere else. Without the computer records that we take for granted, people didn't necessarily bother with formal legal marriage and divorce - the minister might marry you, but if the county courthouse was twenty miles away and your family was still horse and buggy - you might never register it. Also, because it was much more common for people to die early, more marriages dissolved through death in the past. She thinks its actually fairly likely that the number of single parents has been pretty stable. Other things have changed though. There is less community. You might live farther from family and families aren't as tight.
I come from a family that's deeply entrenched in the same rural area longer than America has been America, and I know for certain that this has not been true for us (we're also a family who's never thrown away a scrap of paper -- my grandmother could be on that Horders TV show; well, not really because she's categorized all those family records and stored them into plastic page protectors and notebooks labeled by family, but she literally has a whole room full of family records). Until my mother's generation, I don't think we've ever had a single parent in our family -- except, as you mentioned above -- when one spouse died young.
 
.I come from a family that's deeply entrenched in the same rural area longer than America has been America, and I know for certain that this has not been true for us (we're also a family who's never thrown away a scrap of paper -- my grandmother could be on that Horders TV show; well, not really because she's categorized all those family records and stored them into plastic page protectors and notebooks labeled by family, but she literally has a whole room full of family records). Until my mother's generation, I don't think we've ever had a single parent in our family -- except, as you mentioned above -- when one spouse died young.

My family is the opposite - on both sides my parents are the first generation to see their coupledom survive to raise all their children to adulthood for as far as we can go back - either death or divorce/abandonment or chronic illness (including alcoholism). My grandparents on my father's side divorced when he was a child. My grandparents on my mother's side, my grandmother died young. Back a generation, my paternal grandmother was raised by her father's second wife, no one has any idea what happened to his first wife. My maternal great grandfather died early. My other side paternal great grandmother raised the first half of her family as a single mother in Italy while her husband immigrated - twelve years later he'd managed to build enough of a life that she could join him - so while their marriage lasted a long time, there was a long period of separation. My great grandfather's second wife drank - so while the marriage was intact, in some ways it would have been better for the kids if it wasn't.

My grandmother had at least one extra sibling - a cousin whose mother had had them out of wedlock. And that being a huge shame - they are all properly recorded in the family bibles as belonging to intact couples - it wasn't until she was very old and rather senile that truths about who begat whom started to leak out. She also had extra cousins living on the farm during the depression - their parents would drop them off and then leave to find work - some of those marriages didn't survive - some of those kids left to find their own way.

Another common theme in my family is severe mental health issues. My grandmother died early - but for most of my mother's childhood she was not "accessible" since she had severe depression, was in and out of hospitals. Its the sort of thing now that is probably treatable with medication.
 
I agree somewhat. With public schools, need-based financial aid for college, and many other safety nets in place these days, the working poor have the tools with which to move up in the world. However, those who've come from generations of working poor don't always see those things as choices. I'm thinking of a couple relatives of mine. They tend to see a college degree and a professional job as "good luck" rather than the product of years of effort.
I'm sure that is true for some, but I also think people from middle/upper middle class backgrounds tend to be very dismissive of the weight of "financial aid". When you grew up in a family that lives on 30 or 40K, there's a HUGE psychological barrier involved in wrapping your mind around the idea of 50 or 100K in student loan debt, and as college costs continue to rise that's a factor for more and more people.

Divorce is a huge obstacle to financial success, and I think even those of us who haven't been through it could enumerate the ways in which it's more expensive than staying together.

I disagree that living together is the answer. I'd point out that statistics have shown for years that you have a greater chance of staying married if you don't live together prior to marriage; and that as this practice has grown more common, the divorce rate has grown higher. Also, I'd say do more than pray that you've chosen wisely. Too many people are too anxious to marry, too concerned about offending/running off that potential partner, and they don't discuss the tough questions ahead of time -- so that's how, for example, a saver marries a spender (or something simliar). They figure that they'll work those things out later, and then later they realize that they had wildly different opinions about children, housing, vacations, even fidelity. I havn't read his book, but I suspect (note the portion I bolded) that I'd agree with his theories.

I think as far as marriage is concerned, our society has changed in ways that devalue it. Not socially, in the family values sense that the media likes to talk about, but in concrete and practical matters. Marriage was never, historically speaking, supposed to be a partnership between equals who each have their own lives and livelihoods outside of the shared home. But mechanization and mass production replaced the traditional role of the woman in the home, and the subsequent entry of women into the workforce diminished the male role in providing for the family. Marriage used to be about mutual dependence because it took more than one person to manage a household; now we're taught (young women especially) never to be dependent on anyone and managing a household alone is only a question of income. So the purpose of marriage has shifted from one of practical concerns to one of mainly emotional purposes, and emotions are more fickle than mutual desire to survive/thrive.

It's not politically correct to say that poor kids do worse in school, but it's true for many of them -- not the whole group, of course; after all, I was a poor kid, and I did great in school. But those are the very things that hold them back academically: They weren't brought up to view education as important, they sometimes skip school to work /work so late that they don't do homework, get into drugs /alcohol (not that our middle class kids don't do that too, but that's another subject), and genuinely DON'T "GET" that goofing off today in my high school class will hurt their chances of passing at the end of the semester. These same actions will hold them back in the work world.

And there are often differences in the physical environments that effect learning too. One study that made headlines around here showed that more than 70% of Detroit students who had been tested (a fairly high percentage of the overall population, since testing is mandated for kids on state-subsidized insurance programs) had high enough levels of lead exposure to cause measurable damage. Poor nutrition is often a factor too. Kids can't concentrate when the only good meals they're getting are breakfast and lunch at school. Likewise, home heating is a common issue. When utilities are shut off, kids don't get enough sleep because they're bundled up and still cold. the things that hold the poor children in this country back aren't just behavioural or learned.
 
Wealth is a matter of perception. To some, people who have a 500K paid off home and can save 60% of their income are wealthy.

I think that the point is that many people work very hard and life deals a different hand to them. Things sometimes happen that are beyond their control and that can slow down success if not derail it completely at times. I think that those who have achieved success should definitely be proud but also grateful.
 
I think many of the posters have been right to note the effects of marriage and divorce on financial success. It has been shown that marriage is "wealth building" and divorce is "wealth destroying". Obviously two people who can now share common bills (mortgage, utilities, etc) will be able to save more money than a couple that now has to support two households due to divorce.

Statistics have also shown that college educated people marry later and have more stable marriages, while younger non-college educated people are more likely to divorce. This may be economic--two college educated people likely are earning more money and having less financial problems. Or it may be due to maturity of marrying later--who we are at 18 is not who we are at 30.

The disparity between the haves and have-nots have been growing and I do think this has a lot to do with college educated men marrying college educated women. It used to be that a man (likely financially well off enough to marry) would marry a woman "beneath him"--who was not college educated or who would not be expected to have a career of her own. If she worked, she would work retail or part time. Marriage had an economic/business merger component.

Now college educated women will not choose to "marry down" due to societal pressure and will marry a college educated man or richer man. That leaves less educated/poorer men to marry less educated/poorer women. Add in the stresses of raising children and the financial difficulties of doing this on a lower salary, it is no wonder divorce rates are higher among the "poor". Thus the discrepancy only gets larger and larger between rich and poor.
 
Working hard seldom brings financial success.
Working smart usually does bring financial success.
 
Remember, these are stories told to me by much-older, now-deceased relatives -- I know they were very satisifed with their lot in life. Your view may be different because you're a crazy Yankee, and your family has always viewed the world in terms of city, jobs, and small spaces.

Your NYC ancestors had access to jobs. They had access to transportation. They had access to education. My grandmother says that when she was a girl (she was born 1913), her father "went to town" every couple months. Making such a trip required about three days of travel and sleeping in his wagon. They had a traveling preacher who came through once a month, and everyone in the area traveled to him and made a whole day's event of it. I'm not sure when they first owned a car, but they were middle-class farmers with LOADS of land. They weren't poor. Jobs for farm kids? At best, a young man could hire himself at planting, harvesting, or haymaking. College? They had land, they had everything they needed . . . but cash money? No one had that -- at least not much. My grandparents both went to college; they were each the only sibling to do so, and it was considered an immense stretch for them.

So for those people, with those options, moving to the mill town looked like a pretty good choice. Their livelihood wasn't subject to the weather. If they stayed on the farm, they weren't going to have money -- ever -- AND as more and more families raised large numbers of children to adulthood, what the land could produce could support fewer and fewer people.

Does that mill life look attractive to us today? No. To people who have access to education and opportunities, it does look like economic slavery. But to them, with their options, in they heyday of the mills, it looked like an option equal to staying on the farm . . . but with the benefits of medical care, holidays off, and guaranteed retirement.

For people in that generation, it was a pretty good choice.

What changed the situation? Social morals changed, other options became available (for example, the two world wars and Vietnam took many of the young men away to the military). The Union changed things. For a long time, the South was very, very anti-Union. The owners (and most workers) took the viewpoint that we're family, we take care of each other -- we don't need someone else telling us what to do. But many people wanted the mill owners to provide all the benefits they'd provided for years (free housing, medical care, etc.) AND ALSO pay more money. It wasn't economically feasible; the product wouldn't sell for enough money to make that happen. So really, it was lots of changes /evolutions in the fabric of society that "did in" this social system.

My ancestors lived in cities with signs saying "no Irish need apply" so they certainly didn't have all that great access to jobs. :confused3

Anyway my point was really addressing what you described as generations staying in mill work, in the situation you described: never earning minimum wage, no savings, never owning their own property, dependent on the benevolence of the "big brother" mill company. You stated that their kids would drop out of school to work at the mill. Obviously this went on for generations because then you referred to NAFTA and Vietnam. I was contrasting it with the situation of people I know who were immigrants, who also struggled economically and worked in low wage jobs and couldn't get ahead, but did whatever they could to make sure their kids didn't follow their parents' path. Whether it was pushing their kids to get education/training, or even moving to a whole new country (in the old country they were strugggling farmers, btw) they wanted their kids to strive for more.
I think you yourself pointed out the dilemma inherent in generations of citizens becoming too dependent on one industry, which then contracted, causing many problems.
 
Wealth is a matter of perception. To some, people who have a 500K paid off home and can save 60% of their income are wealthy.

I think that the point is that many people work very hard and life deals a different hand to them. Things sometimes happen that are beyond their control and that can slow down success if not derail it completely at times. I think that those who have achieved success should definitely be proud but also grateful.

Great post! This is exactly how I feel. My husband and I have both worked very hard for all of our 11 year married life, and we have a small house. We are thankful for what we do have. But we have been quite unlucky in several ways. We have paid well over $20,000 off in medical debt during this time because we have had several unfortunate medical problems including an emergency ectopic surgery for me that saved my life and cost us nearly $14,000. We have not been able to build wealth primarily because of health issues, but that doesn't mean that we have worked less hard than many people who have great portfolios. Oh, at one time, we did have a growing portfolio that was wiped out by student loans and medical debt.

I've enjoyed reading the different responses on here and am glad that no one has said or even really implied that if you are having financialy problems then it must because you aren't working hard enough.
 












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