living ABOVE your means...

Do you think alot of people buy houses that they can't really afford without thinking- just because they want a house?

I know a few of my friends have. But I just cant- I want to live comfortable and if that means living in a smaller house than so be it. I dont want to be stressing from dime to dime just to have a huge house. I know when I have even a small amount of money stress I start freaking out. Im not good at just letting things work out- I like to know that Im covered at all times...

Message edited 12/22/2006 5:22:35 PM.

Re: living ABOVE your means...

None of my friends have bought above their means that i am aware of. I am not sure how you would really know that someone is living above their means without knowing the intimate details of their finances..... Do people actually admit to being in a lot of debt and buying something they know they shouldnt?

Re: living ABOVE your means...

Re: living ABOVE your means...

Well none of my three friends are but I do know two people who are struggling because they want to live beyond their means. They are litearlly working just to pay their bills and they cannot save any money at all because they do not have any money after paying the bills. This is very sad and I do feel sorry for them because of the way they are struggling but that is what they want to do to live up to the hype of society and to impress people. One of them came to me on several different occasions complaining about how difficult it is and I told her that it is very bad to be living from paycheck to paycheck because God forbid if tomorrow she or her DH should lose their job how on earth will they manage. They need to sit down and look at their finances and make better decisions. People should not live to impress people because at the end of the day you will be the one suffering.

Message edited 12/22/2006 6:55:25 PM.

Re: living ABOVE your means...

We live pay check to pay check. Im not embarrased to say it at all. I wouldn't want to live in an apartment anymore. Its awesome to own my own home. Even if it means making sacrafices like driving a 12 year old car and not eating out a lot

Re: living ABOVE your means...

Re: living ABOVE your means...

Posted by june262004

Posted by BellaPaige

Well none of my three friends are but I do know two people who are struggling because they want to live beyond their means. They are litearlly working just to pay their bills and they cannot save any money at all because they do not have any money after paying the bills. This is very sad and I do feel sorry for them because of the way they are struggling but that is what they want to do to live up to the hype of society and to impress people. One of them came to me on several different occasions complaining about how difficult it is and I told her that it is very bad to be living from paycheck to paycheck because God forbid if tomorrow she or her DH should lose their job how on earth will they manage. They need to sit down and look at their finances and make better decisions. People should not live to impress people because at the end of the day you will be the one suffering.

Im seriously offended. I don't live to "impress people"

Message edited 12/23/2006 10:52:04 AM.

Re: living ABOVE your means...

None of my close friends own a house they can't afford but I do have aquantiences that are trying to live a "champagne life on a beer budget".

The thing about the McMansions is not just the price and the taxes, it's the maintenance, upkeep and utilities It's beautful to have accents lights on professional landscaping but the LIPA bill Twelve foot ceilings are wonderful but those rooms are to heat. Also, whose washing all of those windows, cleaning all of those bathrooms and manicuring all of that park-like landscapin?. A homeowner needs a team of employees to keep up a house like that. Never mind the pool, jacuzzi, pool house... I forgot about that.

There are plenty of people who work very hard and unforunately just get by but my above comments are directed to those who are living unrealistically and unnecessarily way above their means.

Message edited 12/23/2006 10:53:55 AM.

Re: living ABOVE your means...

Posted by BellaPaige

Posted by june262004

Posted by BellaPaige

Well none of my three friends are but I do know two people who are struggling because they want to live beyond their means. They are litearlly working just to pay their bills and they cannot save any money at all because they do not have any money after paying the bills. This is very sad and I do feel sorry for them because of the way they are struggling but that is what they want to do to live up to the hype of society and to impress people. One of them came to me on several different occasions complaining about how difficult it is and I told her that it is very bad to be living from paycheck to paycheck because God forbid if tomorrow she or her DH should lose their job how on earth will they manage. They need to sit down and look at their finances and make better decisions. People should not live to impress people because at the end of the day you will be the one suffering.

Im seriously offended. I don't live to "impress people"

I did not mean to offend you or anyone but I know some people who go out of their way to put themselves into debts just to live up to a certain hype which is quite ridiculous. I was not talking about and everyone situation is quite different so no need to get offended by my post.

Re: living ABOVE your means...

A huge house is not always a sign that you are living above your means. You can't assume that someone renting a one bedroom aptartment doesn't have huge debts and isn't living paycheck to paycheck.

Re: living ABOVE your means...

Posted by june262004

Posted by BellaPaige

Posted by june262004

Posted by BellaPaige

Well none of my three friends are but I do know two people who are struggling because they want to live beyond their means. They are litearlly working just to pay their bills and they cannot save any money at all because they do not have any money after paying the bills. This is very sad and I do feel sorry for them because of the way they are struggling but that is what they want to do to live up to the hype of society and to impress people. One of them came to me on several different occasions complaining about how difficult it is and I told her that it is very bad to be living from paycheck to paycheck because God forbid if tomorrow she or her DH should lose their job how on earth will they manage. They need to sit down and look at their finances and make better decisions. People should not live to impress people because at the end of the day you will be the one suffering.

Im seriously offended. I don't live to "impress people"

I did not mean to offend you or anyone but I know some people who go out of their way to put themselves into debts just to live up to a certain hype which is quite ridiculous. I was not talking about and everyone situation is quite different so no need to get offended by my post.

Im sorry. I guess when I read it I was just like You pretty much described me since we do live pay check to paycheck. You made it seem like everyone who lives pay check to pay check does it to impress people

Re: living ABOVE your means...

Posted by BellaPaige

Posted by june262004

Posted by BellaPaige

Posted by june262004

Posted by BellaPaige

Well none of my three friends are but I do know two people who are struggling because they want to live beyond their means. They are litearlly working just to pay their bills and they cannot save any money at all because they do not have any money after paying the bills. This is very sad and I do feel sorry for them because of the way they are struggling but that is what they want to do to live up to the hype of society and to impress people. One of them came to me on several different occasions complaining about how difficult it is and I told her that it is very bad to be living from paycheck to paycheck because God forbid if tomorrow she or her DH should lose their job how on earth will they manage. They need to sit down and look at their finances and make better decisions. People should not live to impress people because at the end of the day you will be the one suffering.

Im seriously offended. I don't live to "impress people"

I did not mean to offend you or anyone but I know some people who go out of their way to put themselves into debts just to live up to a certain hype which is quite ridiculous. I was not talking about and everyone situation is quite different so no need to get offended by my post.

Im sorry. I guess when I read it I was just like You pretty much described me since we do live pay check to paycheck. You made it seem like everyone who lives pay check to pay check does it to impress people

No, that is not what I am saying. Not everyone who lives paycheck to paycheck are trying to impress people. I am talking about the two people I know who knows their situation but refuse to make adjustment to suit them. They rather drown themselves in debt and then bother others every month.

Re: living ABOVE your means...

Posted by june262004

Posted by BellaPaige

Posted by june262004

Posted by BellaPaige

Posted by june262004

Posted by BellaPaige

Well none of my three friends are but I do know two people who are struggling because they want to live beyond their means. They are litearlly working just to pay their bills and they cannot save any money at all because they do not have any money after paying the bills. This is very sad and I do feel sorry for them because of the way they are struggling but that is what they want to do to live up to the hype of society and to impress people. One of them came to me on several different occasions complaining about how difficult it is and I told her that it is very bad to be living from paycheck to paycheck because God forbid if tomorrow she or her DH should lose their job how on earth will they manage. They need to sit down and look at their finances and make better decisions. People should not live to impress people because at the end of the day you will be the one suffering.

Im seriously offended. I don't live to "impress people"

I did not mean to offend you or anyone but I know some people who go out of their way to put themselves into debts just to live up to a certain hype which is quite ridiculous. I was not talking about and everyone situation is quite different so no need to get offended by my post.

Im sorry. I guess when I read it I was just like You pretty much described me since we do live pay check to paycheck. You made it seem like everyone who lives pay check to pay check does it to impress people

No, that is not what I am saying. Not everyone who lives paycheck to paycheck are trying to impress people. I am talking about the two people I know who knows their situation but refuse to make adjustment to suit them. They rather drown themselves in debt and then bother others every month.

Yikes. Ok I see what you are saying. See I would love to get a new car but the house is more important to me right now. Even though my car is ancient.

Message edited 12/23/2006 11:13:19 AM.

Re: living ABOVE your means...

Re: living ABOVE your means...

Re: living ABOVE your means...

I don't know anyone that bought a house above their means, but I have a few friends who don't have houses yet and complain they don't have enough $$ for a downpayment. But somehow they have the money to buy or lease ridiculously expensive cars. I don't feel bad for them though because they are just not making sound financial choices. They'll learn someday!

Re: living ABOVE your means...

Most people I know did not. One couple I know lived with her parents for at least a year, maybe longer, to save the money for their NYC apartment (which they bought right before the big housing boom--it's worth a lot now).

One couple I know appears to be living beyond their means, though I'm not sure. He is the only one working, and he works in a field which is well-respected, but does not pay well generally. They bought a HUGE house in Westchester, have two cars, buy expensive clothing for themselves and their children, the best furniture, etc. Anyway, I'm not sure, but it seems a safe bet that they are living beyond their income.

I think some mortgage brokers and banks encourage irresponsible spending--not that people shouldn't be able to monitor themselves, but when a bank tells you they will give you XXX amount of dollars, it can be easy to think you can really afford that money. DH and I were approved to borrow FAR more money than we can afford. When we buy, we want to continue saving, etc. so we can't get a big azzz house, but that's according to our income.

Re: living ABOVE your means...

Re: living ABOVE your means...

Well, IMO buying a modest home is fine, even if you have to struggle to make the payments. I've lived paycheck to paycheck myself, and it doesn't mean you manage your money poorly. Just means the cost of living in our area is too high for many people.

I get concerned about people like a friend of mine who buy large homes with all the trimmings and overextend themselves to live at a level they really cannot afford. They could have a perfectly nice, more modest home and live within their means.

Re: living ABOVE your means...

Re: living ABOVE your means...

Living paycheck to paycheck out of choice is different from living paycheck to paycheck out of necessity. I think the reason alot of people don't have more savings and less debt is the high cost of living on LI. Sad to say but sometimes people making 6 figures are still just swinging it after paying basic necessities, childcare costs, food, etc. Now of course you have those whole set of other people who live above their means out of choice. Unfortunatley, I think that our generation has a want now buy now attitude. Want a brand new truck buy it, plasma tv, buy it. Companies extend credit to all kinds of people and unfortunatley some people fall into the trap of buy now pay later....this includes buying huge houses using unconventional financing. My parents and grandparents always save up for purchases, use things until they can't anymore etc. This generation is a very disposable one...have a functioning TV but want to buy a Plasma because it's the new thing. Now if you have the money go ahead and knock yourself out but if you know you're living beyond your means you have no business in the coach store buying a new coach bag when you can't afford to pay your electric bill and then act surprised when you have to file for bankruptcy.
IMHO, I rather have a modest house that I can afford and be able to take my future kids on vacations and spend quality time with them then buy a big house along with a big electric, gas and water bill and not have enough to buy my kids a pizza because I wanted to have the nicest house on the block. I'm not a "try to impress the neighbors" type person so I honestly don't give a hoot what anyone thinks about my house but not everyone is like that.

Re: living ABOVE your means...

we own a 2 bedroom co-op and live paycheck to paycheck. it's tough. we want a house sooo bad... nothing extravagant, it'd just be nice to have some more room, a basement for storage, a backyard. in a way, we're living above our means now because we are always in some form of debt and we stress about money more than we want to... but we're just trying to get by.

Re: living ABOVE your means...

Yes i think WAY too many couples do that and then are strapped and end up fighting over money etc etc

Thats why DH and i bought a co-op. Its affordable, roomy, we still save money (for a house one day) and we get a tax write off AND.... we still have money for a life and can do things, shop, travel etc

I think too many young couples want everything RIGHT AWAY and dont wanna work or wait for things

JMO

Re: living ABOVE your means...

Re: living ABOVE your means...