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Sorry to hear about your situation, Sundae, sounds really tough. I'm getting married and both our parents are getting very excited because this means grandbabies soon, right? Right?! My future-MIL definitely has a case of the (grand)baby rabies. She was enthusing on the weekend. Enthusing. In her mind, it doesn't matter how woefully unprepared (mentally, financially, etc) either of us is - we must have grandkids ASAP! And today from Reddit... Wait what? quote:Hello guys and girls,
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Oct 18, 2016 06:26
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Leon Trotsky 2012 posted:There was a statewide raise of 1.5% that went into effect in October. But our payroll operates on a two-week lag and the first and second of October were weekends, so there were no payable hours for salaried employees. High income paycheck-to-paycheck is my favorite kind of BWM
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Oct 18, 2016 13:44
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froglet posted:And today from Reddit... Wait what? From the way he writes it seems plausible that he's ESL. If he's in Croatia renting from A Sweat Fatbeard, this situation would be completely unsurprising.
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Oct 18, 2016 13:56
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Aagar posted:A Sweat Fatbeard Is this some kind of Croatian saying, or am I just not keeping track of all of my posters?
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Oct 18, 2016 14:04
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At first I thought he was renting from a sweet flatbread which sounded delicious 
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Oct 18, 2016 14:10
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Volmarias posted:Is this some kind of Croatian saying, or am I just not keeping track of all of my posters? My fault - I was running late and didn't have time to post the link: http://forums.somethingawful.com/showthread.php?threadid=3709978 It is a fascinating tale (spanning 6 months now) of a perpetually broke Croatian kid who is a landlord. Having a diagnosis of cancer, he spiraled down the rabbit hole of drugs and alcohol. Now cancer free, he's having a hard time deciding if he needs to clean up, or just keep on keepin' on. There are many highlights, but I don't think (as of now) anything has topped setting a chair on fire on his stove in a drug-induced delusion, where he thought he was cooking something that was not a chair. There is a lot of BWM buried in there (managing rental slums, an inherited house of a hoarder, not collecting rent from deadbeats), so it has a lot of potential for this thread.
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Oct 18, 2016 14:47
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pig slut lisa posted:High income paycheck-to-paycheck is my favorite kind of BWM The way I've heard it put is that people are goldfish and generally grow to the size of their 'tank' if they're not careful. I know several people, personally, whose families are making six figures and who can't make rent consistently if their tax return isn't as large as they thought it would be.
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Oct 18, 2016 15:03
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A couple years ago my company switched from weekly checks to biweekly. Not a big deal, they told everyone well in advance. They had an all-hands meeting the week it was taking effect to remind everyone that we wouldn't be getting a check that Friday because it was the start of the two-week cycle. Cue a bunch of the managers freaking out because apparently they didn't have the cash reserves to bridge a single week without a paycheck, despite being warned this was coming. 
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Oct 18, 2016 15:18
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Breetai posted:The way I've heard it put is that people are goldfish and generally grow to the size of their 'tank' if they're not careful. I know several people, personally, whose families are making six figures and who can't make rent consistently if their tax return isn't as large as they thought it would be. This judge also moonlights as a law professor, so his income is even higher than his salary of 210k. He was furious at HR for sending out an email saying that raises go into effect in October, but our first October check didn't have the raise included because of the two week lag. He literally spent 25 minutes in the HR office yelling "You made an announcement. People expect that money to be there. Now we have late fees and penalties associated with a late mortgage payment! This is your job!" It boggles the mind how that happens. I'm hoping for the sake of my sanity, that he was just angry about not knowing about the two week lag and was lying about his mortgage payment rather than admit he didn't know and look dumb. Leon Trotsky 2012 fucked around with this message at 15:24 on Oct 18, 2016 |
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Oct 18, 2016 15:21
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Breetai posted:The way I've heard it put is that people are goldfish and generally grow to the size of their 'tank' if they're not careful. I know several people, personally, whose families are making six figures and who can't make rent consistently if their tax return isn't as large as they thought it would be. I dunno, don't reach people a point where they get sick of shopping? Or run out of space? I just can't think of anything that would eat up your entire six figure income for several years running (assuming you're making minimum payments on your loans). Oh wait... Could it be.... 
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Oct 18, 2016 15:40
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froglet posted:I dunno, don't reach people a point where they get sick of shopping? Or run out of space? Six figures really isn't that much anymore, especially when housing is eating up >$3k/mo in many cases. Just sprinkle two luxury car payments, international travel, and eating out most of the time on top of that and you're living hand to mouth on $120k easily. None of that involves filling your house up with crap.
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Oct 18, 2016 15:43
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The rising economic inequality has create a boom in high end luxe poo poo catering to the ultra-wealthy and a related boom in aspirational lifestyle advertising. It's super easy to feel like a poor if you aren't taking $15,000 cruises, driving a $80,000 sports car, cooking with ingredients that cost comparably to cocaine on a per oz basis, and wearing clothes that cost more than most children's annual cost of education. Hell, you could do all that and still feel like you haven't 'made it,' because you're still flying commercial and not on a private jet. The higher your income is, the more people will try to wheedle into your lifestyle aspiration with ultra-expensive poo poo. Nobody is immune from manipulation and insecurity, even people making Doctor/Lawyer money.
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Oct 18, 2016 15:49
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Parents can somehow infinitely scale their spending on children. You end up with dolls that cost thousands or reusable diaper shells that somehow have designer prints. You can basically get everything for near free off friends or craigslist. We always get barely used stuff off craiglist from upper middle class professional suburbs at a huge discount.
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Oct 18, 2016 16:00
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Twerk from Home posted:Six figures really isn't that much anymore, especially when housing is eating up >$3k/mo in many cases. Just sprinkle two luxury car payments, international travel, and eating out most of the time on top of that and you're living hand to mouth on $120k easily. None of that involves filling your house up with crap. $100k, while about twice the national median household income, is definitely not enough money that you don't have to mind your finances to avoid pissing all your money away.
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Oct 18, 2016 16:10
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cowofwar posted:Parents can somehow infinitely scale their spending on children. You end up with dolls that cost thousands or reusable diaper shells that somehow have designer prints. You know, I'm gonna say that some of this is because the luxury unnecessary stuff looks dirt cheap compared to the giant fixed costs like daycare. Daycare is unbelievably expensive in some parts of the country, more than I'd think most people pay in rent.
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Oct 18, 2016 16:17
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The average daycare price in my city is $400/week for one infant. That alone could absorb every cent of in unbudgeted income for a couple, much less a single parent. The early head start subsidized daycare has a hundred name waitlist at the moment.
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Oct 18, 2016 16:21
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I think people manage to go broke because you can essentially scale certain costs up endlessly. There is always a more exclusive, more expensive house to live in, you can always blow even more money on even higher branded clothes/accessories, and when you hit a certain ceiling you do things like move your kids into expensive private schools and enroll them in ridiculous summer caps where they skeet-shoot horses or something. I seem to recall that our communities are increasingly income-segregated, so when you make more money you move into a money area and everyone else is doing this too. Unless you manage to be making $100k and living in a community making $40k, you aren't going to see how wild you are getting. Also a lot of people fail to develop good spending and budgeting habits when they are young and broke, and therefore don't have them to help control them when they are old and rich. Tons of people have no idea how much money they spend on frivolous stuff, they just know that they 'can afford it'. Twerk from Home posted:You know, I'm gonna say that some of this is because the luxury unnecessary stuff looks dirt cheap compared to the giant fixed costs like daycare. Daycare is unbelievably expensive in some parts of the country, more than I'd think most people pay in rent.
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Oct 18, 2016 16:25
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Yeah if you have ten options with increasing cost from 1-10 but also with increasing desirability then someone with an income of 1 will buy a 3; then when they get a raise to 3 they'll now go after the 5 instead of the 3. It's the human condition to always want more and what others have. I think you're right that it has to do with people moving in to progressively wealthier areas rather than their income in itself. If you're always the low earner in a relative high earning area then you're going to constantly overreach financially.
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Oct 18, 2016 16:38
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Horseback skeet shooting sounds really fun
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Oct 18, 2016 16:42
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I imagined horses would replace the clay pigeons.
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Oct 18, 2016 16:43
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High earner, bad with money is incredibly painful. To share a little bit of my BWM background, my wife and I are both physicians newly in attending jobs and are set to make a boatload of money this year for the first time. Having slaved away for so long, the first thing I did - even before I paid a cent down on our $30,000 of credit card debt - was go out and buy an $80,000 car. Why? Because I'd arrived and wanted to show it and that car was safe and a bunch of other doctors I know drive similar cars and with our cash flow, it would never be a problem to make a payment (never mind the fact that we have something like $750,000 of debt between our student loans, mortgage, credit cards and the car). My MIL spends $1000 on groceries for two people every month. Not total on food, but on groceries alone. When I tell her I want to shop at Aldi to save some money so we can pay down our debt I get treated like I'm abusing my child and her daughter because "it's not all natural, it's not organic." My BIL has been trying to convince me to buy a boat since before we moved back. People see our salaries and are totally oblivious to the unbelievable debt that lurks below the surface of this kind of compensation. I read "The Millionaire Next Door" and although there are things I disagree with in the book overall, you can't dispute that some of the high earners are some of the worst with money.
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Oct 18, 2016 17:24
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Your BIL is good with money because the best way to enjoy a boat is to convince someone you know to own it BWM is sharing your salary with people you're close to
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Oct 18, 2016 17:34
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Ashcans posted:A couple years ago my company switched from weekly checks to biweekly. Not a big deal, they told everyone well in advance. They had an all-hands meeting the week it was taking effect to remind everyone that we wouldn't be getting a check that Friday because it was the start of the two-week cycle. Cue a bunch of the managers freaking out because apparently they didn't have the cash reserves to bridge a single week without a paycheck, despite being warned this was coming. A few years ago they changed our payday from Friday to the following Wednesday for reasons. They gave us a few months notice but for some people with this was literally worse than the end of the world. Apparently when you change your automatic mortgage payment to a different day the bank takes the opportunity to charge you some sort of interest increase.
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Oct 18, 2016 17:40
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Poldarn posted:A few years ago they changed our payday from Friday to the following Wednesday for reasons. They gave us a few months notice but for some people with this was literally worse than the end of the world. Apparently when you change your automatic mortgage payment to a different day the bank takes the opportunity to charge you some sort of interest increase. I don't have much of an emergency fund saved up so far but I am really fuckin' happy that I have at least one pay cycle's worth for now 
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Oct 18, 2016 17:43
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Sounds like a bunch of people need to learn a little something called YNAB Rule 4. 
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Oct 18, 2016 18:27
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Ashcans posted:A couple years ago my company switched from weekly checks to biweekly. Not a big deal, they told everyone well in advance. They had an all-hands meeting the week it was taking effect to remind everyone that we wouldn't be getting a check that Friday because it was the start of the two-week cycle. Cue a bunch of the managers freaking out because apparently they didn't have the cash reserves to bridge a single week without a paycheck, despite being warned this was coming. There are good ways and bad ways to handle that. At AT&T they announced they were switching us from paid-current to paid-behind at the end of the year. They stated the date this would take effect and they specifically said they'd be no change to your pay and no one was losing any money. What they didn't make clear is that you only got one paycheck in December. I get it, living paycheck-to-paycheck is stupid. Everyone should have a buffer. But at Christmas? That company was evil. If I remember correctly it was even worse because they way they started the new pay period you got a partial check first. So it took another pay cycle to get a full paycheck. You got that missing paycheck back 2 weeks after you quit at least.
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Oct 18, 2016 19:53
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EAT FASTER!!!!!! posted:High earner, bad with money is incredibly painful. I feel you my man (PGY5) but the super BWM part that's making me cringe is two residents racking up $30k in credit card debt. A luxury car and spending a lot of money on fancy groceries (I'm guilty) can be in your attending salary x 2 budget as things to enjoy if the rest of your financial house is in order. But don't buy a loving boat!!!!
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Oct 18, 2016 21:49
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Rent-to-own SiL wants to buy a 2013 bmw 3 series because her jeep uses too much gas I told my wife to tell her nobody has ever saved money by buying a bmw. she doesn't want to say anything. I mean i have a bmw but it's old and not really worth much and i do all the work on it and wouldn't ever own one if I couldn't do the required maintenance myself.
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Oct 18, 2016 21:56
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BraveUlysses posted:Rent-to-own SiL wants to buy a 2013 bmw 3 series because her jeep uses too much gas To be fair a 2013 base model 3 series gets great gas mileage due to the turbochargers, has fallen off the depreciation curve and can be had for less than $20,000 with low miles, is a pretty reliable vehicle, and may have remaining factory warranty. Depending upon how new and expensive her current Jeep is that may not be a bad trade. No doubt a Honda Fit or something is a better option etc etc before 20 posters chime in.
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Oct 18, 2016 22:28
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BEHOLD: MY CAPE posted:No doubt a Honda Fit or something is a better option etc etc before 20 posters chime in. As long as we're at it, let's pretend that my response here counts as the "Buy a 1997 Toyota Crunchbucket" post and the fifteen pages of safety vs cost arguments that inevitably follow such a post. We upgraded to a 1998 Corolla a few years ago. I'd never driven such a nice car before!! 
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Oct 18, 2016 22:41
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New economy cars really aren't that expensive in the big picture, especially because the 150k-300k mile part of a car's life is nowhere near as maintenance light as 0-150k.
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Oct 18, 2016 22:47
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EAT FASTER!!!!!! posted:My BIL has been trying to convince me to buy a boat since before we moved back. People see our salaries and are totally oblivious to the unbelievable debt that lurks below the surface of this kind of compensation. Yep buy a boat you won't have time or money to use  People seem to think an MD's salary is the same as winning the lottery, with family deciding they need to be involved in your financial decisions. This sort of poo poo has caused a rift between some of my relatives.http://www.bbc.com/capital/story/20...k&ICID=ref_fark The millionaire next door was a good read at the time as it provided a lot of insight. Although these days there's more thinking around FIRE concepts and 4HWW. Living a luxury lifestyle is a good way to never accumulate wealth. I know of one professional who after completing a large contract that they decided to buy a Ferrari. Saving for retirement or not having debts were not considerations. Of course 30 years later things have not worked out well for them.
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Oct 18, 2016 22:55
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2 physicians with cc debt just blows my mind. A lot of people buy BMW 3 series, go on forbearance, and don't save for retirement during residency because youth and YOLO. But credit card debt is just... drat.
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Oct 18, 2016 23:01
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https://www.reddit.com/r/personalfinance/comments/584dz4/178k_in_debt_from_school_loans_dear_god_someone/ $180k in debt for art school.
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Oct 18, 2016 23:05
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potatoducks posted:2 physicians with cc debt just blows my mind. A lot of people buy BMW 3 series, go on forbearance, and don't save for retirement during residency because youth and YOLO. But credit card debt is just... drat. They'll probably net like $300k a year but it will take time to pay off all that debt and their financial path looks bad considering they already have consumer debt and are buying luxury goods. They should be able to easily get a line of credit at prime and the fact that they instead have $30k on credit cards suggests their credit is poo poo or that they are dumb. If they want kids then I hope they have good benefits because they wont be saving much otherwise. My MD wife has to beat banks away from giving her free money and has some huge unused LoC that we used to bridge a house sale and house purchase. cowofwar fucked around with this message at 23:16 on Oct 18, 2016 |
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Oct 18, 2016 23:13
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Barry posted:However, the investment so far is "paying off" because I found a decent job in a very competitive field. So they can pay it all in just 8,112 worked hours, assuming 100% of the money goes to paying the loans and there's no interest and you work a 40 hour workweek with no overtime since you're salaried. INVESTMENT IS PAYING OFF
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Oct 18, 2016 23:16
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Krispy Kareem posted:There are good ways and bad ways to handle that. At AT&T they announced they were switching us from paid-current to paid-behind at the end of the year. They stated the date this would take effect and they specifically said they'd be no change to your pay and no one was losing any money. Ah, changes to the pay system! It's GWM to just not pay your employees right? Oopsie daisy! Looks like that's rather BWM, and very expensive to fix
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Oct 18, 2016 23:16
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quote:During my exit counseling they actually asked how old my parents were while I was trying to pick my payment plan because if one of them passes away the loan is forgiven...that's pretty messed up right? GWM: get your parents to take out your student loans in their name, then murder them!
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Oct 18, 2016 23:19
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Find someone in another country with an equivalently sized debt load. Take out that amount in another loan and then pay off the other person's loan and default.
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Oct 18, 2016 23:22
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Poldarn posted:A few years ago they changed our payday from Friday to the following Wednesday for reasons. They gave us a few months notice but for some people with this was literally worse than the end of the world. Apparently when you change your automatic mortgage payment to a different day the bank takes the opportunity to charge you some sort of interest increase. The fact that they HAD to change the mortgage payment date like that and eat a loving interest hike just to bridge a 5 day loving gap is some real tip of the iceberg poo poo.  Like, I hear people at my work talking all the time about how glad they are that it's finally payday, and we're all making well above minimum wage/comfortably in the middle class pay bracket. Not having to even think about what day your paycheck clears is so much more of a quality of life boost than a new car or a fancy gewgaw bought now instead of later. Being one bank transfer error or payment delay away from disaster sounds exhausting.
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Oct 18, 2016 23:31
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