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Many don't have $2,000 for a rainy day

money.cnn.com

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Re: Many don't have $2,000 for a rainy day

#141

Post by cynicalkane »

dmm wrote: post #74
GeneralWaste wrote: post #54

Earlier quoted context omitted.

As a UK resident, I find that distressing. The idea that needing medical treatment might impoverish me or poverty leaves me unable to obtain the treatment I need seems exceedingly cruel.

He's not going to pay $24k. Either he has insurance to cover most of it or he'll just not pay it. Bill collectors can't harass you for medical debts. Hospitals have to treat you regardless of your ability to pay. The whole situation is far from optimal though.

Bill collectors can't harass you for medical debts

A Google search lead me to the Illinois State AG's website, which claims bill collectors certainly can attempt to collect medical debts. So your claim might only be true in some states (or none at all...)

Re: Many don't have $2,000 for a rainy day

#142

Post by sosuke »

illumin8 wrote: post #67
sosuke wrote: post #26

Earlier quoted context omitted.

A lottery-linked savings account sounds awesome since I already play low-odds lottery and put money into savings every month. Texas won't give up their lotteries or multi-state lotteries for anything though.

Lottery is just a tax for those that are bad at math. Why would you do both? Putting money into a low yield savings account will get you a statistically better return over your entire lifetime than buying a few powerball tickets every week.

I already work my buns off trying to strike it rich and the odds are terrible but playing the lottery gives me the hope that I could just get lucky one day. I figure I should exhaust all my opportunities if I'm going to make it.

Re: Many don't have $2,000 for a rainy day

#143

Post by hugh3 »

anonymous246 wrote: post #135
jrockway wrote: post #69

Earlier quoted context omitted.

Neither? When you get paid a lot of money, it's easier to be less careful with your money and not have anything bad happen. It's easy to contribute the maximum to your 401k, have the best health insurance and flexible spending account, save $1000 a month, and still buy a lot of things. If you lose your job, you'll probably get another one. And banks are more than happy to loan you money to bridge the transition. All…

Umm, I think you misunderstood his point. I guess he was trying to make the point that a 110k salary will barely (if at all) cover the sorts of expenses he described. Which is actually true, unless you go through contortions like interpreting "foreign vacation" to mean shacking with friends in a different country. Btw, AFAIK, new condos do cost more than older ones.

Which is actually true, unless you go through contortions like interpreting "foreign vacation" to mean shacking with friends in a different country.

Meh, international vacations aren't necessarily all that expensive. $1000 for an airfare, another $1000 for a week's accommodation... that's six grand a year. Heck, let's make it ten grand, just so you don't have to skimp. And a lease on a new 5-series is, what, $600 a month? This is all perfectly affordable on a $110K salary.

I'd never advise anyone to lease a car rather than buying one with cash, but actually I reckon three international holidays a year is a great way to spend money. You only live once, and while you're probably doomed to spend your entire life within a six-mile deep approximately-spherical shell, it's full of interesting stuff so you might as well go and see as much as you can.

Re: Many don't have $2,000 for a rainy day

#144

Post by klbarry »

anonymouser wrote: post #43

I have a question for HN hackers. I make over 6 figure a year. My wife doesn't work. She keeps telling me that we are not middle class, and that I should earn more if I want to afford us a middle class lifestyle, because everything is very expensive now. She also thinks that I'm a bit of an underachiever, professionally, for earning only 120K a year. Am I an underachiever or is she out of touch with Midwestern Americ…

My family is solidly middle class, have provided enormously for me so I've had advantages most of my college peers havn't, and make around 100k a year.

It's also been shown that while happiness increases drastically up to 60k a year in annual income (in the U.S.A.), happiness does not increase further after that point. I.E. People making 100k are on average no happier than people making 60k, and people making 200k are no happier than those making 100k.

Re: Many don't have $2,000 for a rainy day

#145

Post by meric »

ChuckMcM wrote: post #33
billybob wrote: post #6

If you don't have enough money to handle an emergency, you have an emergency. Go ahead and panic. Trade your car for a cheaper one, move into a cheaper apartment, stop eating out, sell your TV, and get an emergency fund . If you're already living on toasted rats in a cardboard box, that's different, but if you've got unnecessary expenditures, you should really cut those out and get an emergency fund. To do otherwise…

I wish I could double raise this. When raising our kids we often talked about money and "kinds" of money. When you're young you can go for long stretches with "no" money, as you get older you get introduced to the notion of a "cash flow" and a steady stream of expenses that need to be paid. The single biggest point we try to impress on them was that if you were not able to 'save' (put aside) some money every month (c…

>>Acquiring it through a credit instrument didn't pass the test, since you just moved the obligation forward in time, and if you couldn't come up with it now then why do you think you can come up with even more later?

What about stocks? I need three days for a sale of stocks to settle and take the money out. If I have an emergency I can use my credit card. (and pay it back at the end of the month).

Re: Many don't have $2,000 for a rainy day

#146

Post by hugh3 »

getsat wrote: post #111
robflynn wrote: post #3

I certainly don't have any put away for a rainy day. After a bit of time being jobless, I finally found some underpaying work to get back on my feet. Coupled with various bills and medical bills, etc., I'm sitting at a paycheck to paycheck point. I get paid again tomorrow and I have $5.00 in the bank. It's quite depressing. Couple that with my girlfriend also losing her job and we tore through any savings pretty quic…

> I'm also polishing up the resume to begin sending out June 1. Why are you reading HN instead of doing this? Close your browser, finish your resume, and apply for ten jobs online before you go to bed tonight. Apply for ten more tomorrow. Repeat until you're employed. Good things come to those who hustle.

I gotta agree with this. There's no darn way that "polishing up" your resume can possibly take a full week. That sounds way too much like procrastinating.

Re: Many don't have $2,000 for a rainy day

#147

Post by hugh3 »

arethuza wrote: post #103
pkamb wrote: post #25

Earlier quoted context omitted.

Does the UK not have something like FDIC Insurance?

I meant physical cash, not a number in a computer system somewhere. I don't use cash that often - which made me wonder about having a roll of cash stashed somewhere.

At the very least, it's worth having dealings with multiple banks (eg your savings account with one and a credit card with another). It wouldn't take a financial collapse to make your money temporarily vanish -- I mean, how long was Playstation Network down for? It's entirely conceivable that one day a major bank will have a serious computer problem that'll shut them down for days.

Or failing that: heck, what happens if you lose your wallet? Yeah, a few hundred bucks (or quid) in a piggy bank isn't a bad idea.

Re: Many don't have $2,000 for a rainy day

#149

Post by sunchild »

pyre wrote: post #118
sunchild wrote: post #56

Earlier quoted context omitted.

Don't be embarrassed. Many "rich" people have similar problems. It's just that, in their case, the cash flow figures are larger by orders of magnitude. Desperation can be a tremendous motivator, and a great way to set priorities. Think of yourself as a newly-arrived immigrant. Now make your way in your new world. Whatever you do, don't let depression set in. Depression = failure. Even if you struggle to pay the bills…

> Depression = failure Just to clarify, depression (mostly) leads to failure. Depression doesn't define you as a failure.

Hmm. Not interested in getting into a debate about whether depression is an illness or whatever, so I'll just say "OK".

Re: Many don't have $2,000 for a rainy day

#150

Post by hugh3 »

jtbigwoo wrote: post #70
anonymouser wrote: post #43

I have a question for HN hackers. I make over 6 figure a year. My wife doesn't work. She keeps telling me that we are not middle class, and that I should earn more if I want to afford us a middle class lifestyle, because everything is very expensive now. She also thinks that I'm a bit of an underachiever, professionally, for earning only 120K a year. Am I an underachiever or is she out of touch with Midwestern Americ…

$120k a year is more income than about 90% of U.S. households. The median household income in the U.S. is about $45,000. Your wife needs to find different friends.

Y'know, the actual amount doesn't matter here at all.

I don't care if he's only earning $30,000 a year -- no wife should be talking to her husband like that.

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