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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 04:32 AM
Always have a years costs in the bank.
I call it my "fuck off fund".
If you don't like a job, or you have some unforeseen drama, you have a year to get back on your feet.
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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 05:17 AM
On the subject of credit cards and looking after your funds.
I agree credit cards can be an emergency fall back but I have one because of the additional guarantees some of your transactions get under section 75 of the Consumer Credit Act.
This only applies in the UK, I don't know how other countries handle it.
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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 09:04 AM
I sometimes wonder how people on the red pill can hate on the "elites" so much, instead of how figuring out how to become part of it.
Banging girls requires the exact same skills that salesmanship requires: Knowing your client, striking the right emotional points, good timing. So many people could use these skills to become great salesmen or just great company owners, yet many just choose to complain about it.
Exact the same thing as complaining about this one guy who always gets laid, instead of becoming the guy who always gets laid. If you don't like the fact that America is probably the most capitalist country around, then GTFO to North Korea or how about you head to Feminazi capital Scandinavia where everyone is happy and milk and honey flows?
Get your own "Fuck you fund" going. By the time you're 25 you should have at least 1 years worth of salary in your savings account.
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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 09:32 AM
Quote: (04-24-2016 02:36 AM)username Wrote:
Quote: (04-23-2016 04:11 PM)churros Wrote:
Hang on – you are blaming this on ancient history and Shakespeare? Please.
He didn't blame anything on Shakespeare. What he was saying is that any subject imaginable is taught in schools and colleges except for basic financial literacy.
Most people do not understand really basic stuff like loans, interest rates, loan principal, etc. Yet these same people are making often life long decisions about these things without any knowledge!
I'm happy to grant I mischaracterised the original point. The abuse above is unwarranted.
Finance classes are moot. Even without such classes, personal debt hardly compares in the EU. Why? Credit is not so easy to access. Loans are not commonplace for education etc. So either you can blame the poor and uneducated, or the credit card companies who exploit them. You might have an ideological preference, but ultimately it's just easier to regulate credit cards than to transform the educational system.
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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 10:30 AM
People talking about how they don't teach financial responsibility in schools. Why should they?
Schools don't teach you how to shop for a car, negotiate a mortgage, pick up girls, etc. That's life shit your parents, friends, and plain old life-experience teaches you. Schools teach you about history, science, and how to read, write, and do math. Money management isn't part of academia. It never has been, but somehow people got by perfectly fine in previous generations.
As I said in my first post, the problem is our culture of rampant spending. It's not economic disparity. It's not poor financial education. It's that people just buy all kinds of shit all the time. We live in a culture of high consumerism where everyone is obsessed with material shit and spending exorbitant amounts of money on a lot of unnecessary things.
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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 12:20 PM
The reality is that there's two factors that make up the problem.
On one hand, the cost of living in America has gone up, the 1% are getting more wealthy, and and the average American is getting less wealthy.
On the other hand, our evolving culture is leading people to feel entitled to things they can't afford, living the opposite of a minimalist lifestyle, and overall making shitty financial decisions that end up fucking them over.
People need to learn good saving habits early on in their life. I have literally been saving money since I was in Kindergarten getting fifty cents allowance a week, and it's just stuck with me throughout my life. It's like a hobby for me at this point ("collecting money", if you will), and now I now have thousands saved up being only twenty. Unlike my brother who has had the same financial handouts as me throughout his life and has always lived paycheck to paycheck. He always thinks short-term; He spends rather than saves (like most Americans), and he faces the consequences.
Lucky for him, our parents are generous. He has to borrow money constantly from them (being almost 24). If anything out of the ordinary happens like having to lay down $100 for a car repair, he has to call up mommy and daddy for help. The money he borrows helps to pay off these payments, sure, but in all reality it just enables him to live his irresponsible lifestyle.
It actually got to the point where he couldn't pay off his last loan from them, so they're making him come over on the weekends now to help around the house to pay it off. Sad.
It all comes down to responsibility, really.
Tl;dr From a macro point of view, the financial system of America is crooked, but from a micro point of view that's just an excuse. Almost everyone has the power to thrive nonetheless.
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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 03:16 PM
Having a years salary in the bank is definitely a good idea to aim for if you want to have some options and freedom if needed. For most normal people imp it isn't such an easy accomplishment especially with the cost of living and if you want to have your own place and live a busy social life as it can be hard to save.
It's ideal not to be a debt slave but it's far too easy to get credit in the UK and it can be too easy to spend it thinking it's free money or can be paid back at a later date.
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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 03:45 PM
I think having a years worth of salary sitting in a checking account is silly. I keep about a months worth of expenses (~5k) on hand to cover anything that might come up. Everything else goes into the Roth IRA (the principal can be tapped at anytime), then my employers retirement 40x(x) (which I can borrow against at reasonable rates - and I pay the interest back to myself), and finally my external investment accounts. If I have known expenses on the 6 - 12 month horizon I'll use money markets or CDs depending on the predictability/interest rates available.
It's all about hedging risk. It's very difficult for me to imagine a scenario where I'd need more than a few hundred dollars in cash within less than a business day. The only thing I can think of is bailing myself or a friend out of jail (false accusations happen and they're most likely to be of the domestic dispute nature - which means you're probably getting arrested). I can tap my credit card cash advances if I need to do that and then pay them off within 2-3 business days from my less liquid accounts. All the other emergencies I'm likely to face have longer time horizons. If I suddenly need new housing I have enough in my checking account to put down first and last months rent. Car repairs can be put on a credit card and paid off within the grace period of the card. Medical bills can be paid off over longer periods of time and I have an HSA to cover those kinds of expenses. If I'm unemployed for a significant period of time I can slowly unwind my investments as needed without doing too much damage.
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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 05:14 PM
The people that say they can't find the $400 probably responded to the survey using their iPhone 6's.
Aloha!
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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 06:36 PM
This thread is great but a similar thread could be greater.
"What people will do to get 500 in case of an emergency"
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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 09:10 PM
Quote: (04-23-2016 12:42 PM)JacksonRev Wrote:
Forum Results: 6% Difficult, 94% Not Difficult
This forum is decidedly better than average.
If women make 85% of consumer purchases, then that means they spend almost 6 times as much.
Since men make more money because we work more hours at harder jobs
and we spend less, it stands to reason that most of us will have $400 kicking around if you get car trouble and it needs to get fixed now.
This is also a forum where (hopefully) none of the members have parasitic girlfriends who spend all their money, so I'm not surprised by the results.
“I have a very simple rule when it comes to management: hire the best people from your competitors, pay them more than they were earning, and give them bonuses and incentives based on their performance. That’s how you build a first-class operation.”
― Donald J. Trump
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7% of Americans would have trouble finding 0 for an emergency
04-24-2016, 11:00 PM
$400 is a nice night out for me. For a genuine emergency I wouldn't flinch at dropping $10k. I don't make a lot either. I'm firmly middle class.
One major factor here I think is the fact that so many people live in cities now and spend a disproportionate amount on rent. Starting about 5 years ago I learned how to budget and refused to pay more than 33% of my take home on rent. If that meant I lived in a tiny studio in L.A. then so be it.
I've got friends that still live there, paying $2600 to rent a perfectly average condo. 2600! That's insane to me.
In Vegas my mortgage payment is about 25% of my take home but in L.A. it would easily be 3x that much for this place. I don't have a TV or cable, I opt for cheap internet, I eat 90% of my meals at work (one of the perks of this industry), so I'm able to sock away a good amount on top of making extra payments against the principal on my house.
I agree about the concentration of wealth in this country but if you can't even put together $400 for an emergency then there's something wrong with you. Either learn to hustle, work harder, or spend way less.
"...so I gave her an STD, and she STILL wanted to bang me."
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7% of Americans would have trouble finding 0 for an emergency
04-25-2016, 06:48 AM
Capitalism was never about elitism or monopolies. I believe it was more about encouraging competition between medium and small local businesses.
Monopolies are the biggest socialists around. They get bailed by govt money if needed and they cooperate with other monopolies to set price levels.
Elites often get their wealth by inheritance or some illegal means.
Notice the shame tactics used to silence the middle class --even on this thread.
trainwreck Wrote:
"I sometimes wonder how people on the red pill can hate on the "elites" so much, instead of how figuring out how to become part of it."
Not everyone wants to part of the elite. A healthy middle class is the engine that runs the ship. Destroy the middle class -- like what is presently occurring, and the ship sinks. Everyone goes down.
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7% of Americans would have trouble finding 0 for an emergency
04-25-2016, 09:34 AM
Some of the commentary on spending and education has been absolutely top notch. Well done.
I would firmly agree that we are primed for disruption of the higher education field. It almost makes too much sense not to. The internet has created the opportunity to bypass the 'brick and mortar' gateways needed for knowledge and network.
What you'll see in the coming years is a strong pivot on global recruitment of students. I think you'll see an increasing minority of students from the West in Western universities. Demand is already great and is increasing as Asia's middle class develops. Even a generation ago, Western study was limited to a small percentage of Eastern families. Universities will move to accept even more of these students because they know they'll get the full sticker price from these students every time.
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7% of Americans would have trouble finding 0 for an emergency
04-25-2016, 09:44 AM
Quote:Quote:
The simple fact of there being an elite doesn't take away from a strong middle class either. That's why they're called the Elite. It's because its just a few inbetween. And there will always be a need for the few inbetween who lead the country in whatever policies it needs.
There are two kinds of elite. Genuine and pseudo. The genuine are a tiny minority and they achieve their status by genuine talent and effort.
Prince for example could be considered an example. Perhaps that is why there is such a big outpouring for his death.
The pseudo elite achieve their status by often means that were not genuine and even unethical.
In the US, the pseudo elite far outnumber the genuine. They bring little value and as a result the middle class declines.