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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: living ABOVE your means...
I absolutely believe that people do it! My inlaws have a house that for awhile, they couldn't afford (MIL got an inheritance.) They were doing it to show off.
ETA: I'm not saying that EVERYONE does it to show off. I'm just using them because they are the only example I have at the moment.
Message edited 12/27/2006 11:21:36 AM.
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Posted 12/27/06 11:20 AM  |
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Lucky09
2017!
Member since 1/06 7537 total posts
Name:
DW
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Re: living ABOVE your means...
Posted by jacquig
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.
This is very true... We built our house (upstate) and after paying our downpayment and for all of the upgrades  we didn't have much left over for furniture, curtains, decorating, etc.
I am FINE with living sparsely decorated right now. I do NOT want to rack up my credit card bill with the buy now pay later attitude just to have curtains, a new kitchen table, furniture in every room, etc.
BUT - you don't know how many people walk into our house and have a comment about the lack of furniture / decorations / etc. They are like, "ummm, you have lived here 9 months? you can't tell. You know, you can get stuff on 0%"
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| Posted 12/27/06 11:43 AM |
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skew
LIF Adult
Member since 5/05 6794 total posts
Name:
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Re: living ABOVE your means...
i really don't care what others do as it is none of my business but i do agree that some do live to impress.
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| Posted 12/27/06 12:11 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: living ABOVE your means...
Posted by MrsNYPDsGirl
Posted by jacquig
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.
This is very true... We built our house (upstate) and after paying our downpayment and for all of the upgrades we didn't have much left over for furniture, curtains, decorating, etc.
I am FINE with living sparsely decorated right now. I do NOT want to rack up my credit card bill with the buy now pay later attitude just to have curtains, a new kitchen table, furniture in every room, etc.
BUT - you don't know how many people walk into our house and have a comment about the lack of furniture / decorations / etc. They are like, "ummm, you have lived here 9 months? you can't tell. You know, you can get stuff on 0%"
People are so inconsiderate. I'm pretty sure you can rest your head at night not stressing over how you are going to pay your kitchen curtains and table which to me is worth more than the prettiest pottery barn table and kitchen curtains in the world.
I wonder how many people actually pay off the entire balance before the 0% turns into 24%. I do think that the 0% is a good deal if you have the discipline to pay it off in the alloted time frame though.
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| Posted 12/27/06 2:35 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: living ABOVE your means...
I can think of 1 person in family who lives like this- then borrows money from my dad to cover the bills when he can't
personally- we are waiting to buy a house b/c we didn't want to buy at the peak of the market- people ask me all the time why I don't own a house yet- as if it's any of there business
I think alot of people just want to own a home- but they don't think about if they can afford it etc
these are the same people who tell you in 1 breath they can't afford to pay you back $20 that they borrowed- but in the next breath about the new Lexus GL that they want to lease
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| Posted 12/27/06 2:46 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: living ABOVE your means...
Posted by jacquig
Posted by MrsNYPDsGirl
Posted by jacquig
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.
This is very true... We built our house (upstate) and after paying our downpayment and for all of the upgrades we didn't have much left over for furniture, curtains, decorating, etc.
I am FINE with living sparsely decorated right now. I do NOT want to rack up my credit card bill with the buy now pay later attitude just to have curtains, a new kitchen table, furniture in every room, etc.
BUT - you don't know how many people walk into our house and have a comment about the lack of furniture / decorations / etc. They are like, "ummm, you have lived here 9 months? you can't tell. You know, you can get stuff on 0%"
People are so inconsiderate. I'm pretty sure you can rest your head at night not stressing over how you are going to pay your kitchen curtains and table which to me is worth more than the prettiest pottery barn table and kitchen curtains in the world.
I wonder how many people actually pay off the entire balance before the 0% turns into 24%. I do think that the 0% is a good deal if you have the discipline to pay it off in the alloted time frame though.
I don't know why anyone would get to the point of 24% interest. If they have not paid off the cc bill, they can easily transfer to another 0% card. I guess they get too lazy.
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| Posted 12/27/06 3:11 PM |
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Florence
LIF Infant
Member since 5/05 220 total posts
Name:
Florence
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Re: living ABOVE your means...
I don't most people try to live above what they can truly afford. I do believe most folks try to live in the best way they can possibily can even if that means living paycheck to paycheck. The more money you make, the more you spend.
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| Posted 12/29/06 11:47 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: living ABOVE your means...
Posted by Florence
I don't most people try to live above what they can truly afford. I do believe most folks try to live in the best way they can possibily can even if that means living paycheck to paycheck. The more money you make, the more you spend.
I agree with the more money you make the more you spend. You just have bigger things like bigger houses and cars.
I don't agree that most people are not living above their means. I can give you a few examples of people who have refinanced their houses 3-4 times and pay more than double their original mortgage payment just so they could have "things" and go places.
I also know of someone who is young in their 20's, owns a home, a huge SUV, spends tons of money on the weekends going out and can not pay their mortgage and cc bills. I doubt very highly they are the only person who does this.
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| Posted 12/30/06 9:31 AM |
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CaseyGirl
Mommy to 3 Boys :)
Member since 5/05 19978 total posts
Name:
Jen - counting my blessings...
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Re: living ABOVE your means...
Before we bought our house we laid out the max we could afford and that's what we stick to. I don't see why anyone would purposely struggle and go beyond that, but hey, people are weird!
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| Posted 12/30/06 10:16 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: living ABOVE your means...
Posted by MrsTC
Before we bought our house we laid out the max we could afford and that's what we stick to. I don't see why anyone would purposely struggle and go beyond that, but hey, people are weird!
I think because alot of people are not like you and me and know how much they should be spending. They just think "I want this or that" and buy it not realizing that their paychecks do not equal the monthly bills.
They make it very easy to buy a house now. When we bought our house over 10 years ago, our mortgage was double our income. That was a very comfortable amount. I know now with the price of houses you can't do that anymore but they need to give people realistic numbers.
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| Posted 12/30/06 2:26 PM |
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MrsT
Enjoying wedded bliss.....
Member since 4/06 1323 total posts
Name:
Katrina
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Re: living ABOVE your means...
I have a friend who owns a condo in Mahattan that she can afford now but if she ever wants to leave her hectic job for a lower salaried she does not have the option. The plus is her equity shot up in the last 2 years so she could sell and make a decent profit to buy something in an outer borough or NJ.
The sad truth is that 70% of Americans live paycheck to paycheck and are one paycheck away from homelessness.
link to article
37,000,000 Americans live in poverty
link to report re: Pembroke, IL
Maria Shriver report -Kentucky
Coeburn, VA
Anderson Cooper report on New Orleans
Anderson Cooper report on Detroit - poorest city in America
Message edited 12/30/2006 9:55:17 PM.
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| Posted 12/30/06 5:41 PM |
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lucyloo
nope
Member since 1/06 9758 total posts
Name:
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Re: living ABOVE your means...
Posted by MrsNYPDsGirl
Posted by jacquig
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.
This is very true... We built our house (upstate) and after paying our downpayment and for all of the upgrades we didn't have much left over for furniture, curtains, decorating, etc.
I am FINE with living sparsely decorated right now. I do NOT want to rack up my credit card bill with the buy now pay later attitude just to have curtains, a new kitchen table, furniture in every room, etc.
BUT - you don't know how many people walk into our house and have a comment about the lack of furniture / decorations / etc. They are like, "ummm, you have lived here 9 months? you can't tell. You know, you can get stuff on 0%"
We have lived in our house over a year and our dining room is still empty. Our master bedroom has furniture from the '80's. Man would I love to have the house furnished right away but I'd rather not be in debt for it.
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| Posted 12/30/06 9:42 PM |
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jozieb0925
Double Trouble!
Member since 5/05 4358 total posts
Name:
Josie
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Re: living ABOVE your means...
Posted by antoinette
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...
I agree with you 100%!!
Message edited 12/31/2006 9:38:05 AM.
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| Posted 12/31/06 9:35 AM |
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MissJones
I need a nap!
Member since 5/05 22136 total posts
Name:
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Re: living ABOVE your means...
Posted by cjik
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.
I totally agree!!!
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| Posted 12/31/06 10:02 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: living ABOVE your means...
Posted by dita
Posted by MrsNYPDsGirl
Posted by jacquig
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.
This is very true... We built our house (upstate) and after paying our downpayment and for all of the upgrades we didn't have much left over for furniture, curtains, decorating, etc.
I am FINE with living sparsely decorated right now. I do NOT want to rack up my credit card bill with the buy now pay later attitude just to have curtains, a new kitchen table, furniture in every room, etc.
BUT - you don't know how many people walk into our house and have a comment about the lack of furniture / decorations / etc. They are like, "ummm, you have lived here 9 months? you can't tell. You know, you can get stuff on 0%"
We have lived in our house over a year and our dining room is still empty. Our master bedroom has furniture from the '80's. Man would I love to have the house furnished right away but I'd rather not be in debt for it.
That is why we have financed most of our furniture. We paid off the dining room set in 2 years and now have 1 year to pay off the couches. I am strict about putting the money aside each week so we don't have any interest payments in the end.
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| Posted 12/31/06 3:16 PM |
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Eleanor
LIF Adult
Member since 2/06 2223 total posts
Name:
Ellie
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Re: living ABOVE your means...
I don't think it's the initial mortgage people overextend on, but the luxuries like super nice cars and vacations and furniture. i think people use CC and HEL/HELOC to pay for these and that's where the problem lies.
a $40K car is at least $600/month financed. and when you think about it, that is the same monthly price for $100K in mortgage.
I'm not sure I actually know anyone who is living above their means though.
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| Posted 1/2/07 9:00 AM |
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snowboardgirl
LIF Adult
Member since 8/05 1033 total posts
Name:
Christine
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Re: living ABOVE your means...
we have the house we wanted but have very little furniture!! We are taking it slow so we don't charge everything. It is hard, but we will get there eventually.
I never had a car payment, I buy used! No way could I afford a new car, to me it isn't all that worth it sometimes anyway! I am on the train 4 hours a day!
Message edited 1/2/2007 9:39:56 AM.
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| Posted 1/2/07 9:29 AM |
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anon
where's winter?
Member since 11/05 2209 total posts
Name:
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Re: living ABOVE your means...
yes, i think a lot of people don't know what they are getting themselves into and at times i feel the same way about us! 
we live paycheck to paycheck but have an emergency backup plan should anything happen (loss of job, illness, etc.) i would have never agreed to buying a home absent an exit strategy. we have a TINY house in a good neighborhood. we just bought living room chairs after a year and a half of sitting on the floor. and our bedroom furniture is what i had when i was 16  . the good thing about owning a small house though, is that a few pieces go a long way
we refuse to live in any debt other than house and car payments. i am also a SAHM. many times i feel like the "odd man out" because my priorities at times seem out of sync with others...
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| Posted 1/2/07 9:48 AM |
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