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  • FIRST POST
    • longleggedhair
    • By longleggedhair 11th Sep 17, 12:26 PM
    • 268Posts
    • 339Thanks
    longleggedhair
    What's wrong with people.
    • #1
    • 11th Sep 17, 12:26 PM
    What's wrong with people. 11th Sep 17 at 12:26 PM
    Despite earning big money, why are some people in big debt and have no savings.

    I think it's definitely a psychological thing. I had parents who were professionals & earned very good money, but never had any money, because while they are both intelligent people they are financially illiterate. Money was just wasted on needless things and quite often financial problems would crop up.

    The experience as a child changed my whole mindset and as an adult I've saved & invested with every pay rise. Just added up my latest total and im around £200,000 after 12 years....and it really was very easy! I don't earn big money (just above minimum wage) I did have a small inheritance and have done well with my investments.

    The key is not to chase the posh cars/clothes/phones. I absolutely love my life, I live it to the full but that money gives me so much security and happiness you wouldn't believe. I know that if I want I can walk out of work tomorrow I can, it gives you choices. And that security is worth far more than material things.

    As others have said it's important to live life and enjoy it, we only come this way once, but what I don't understand is why most people haven't "seen the light" (time is precious, we don't have much so why spend most of our life at work to buy things that make us feel better about going to work, which then results in us having to be at work almost forever) I work with people who hate work, are desperate to leave but have no prospect of ever being able to become they are driving the posh car, the designer clothes etc

    It seems so simple to me...but why have so few seen the light?
Page 6
    • Dird
    • By Dird 13th Sep 17, 10:47 AM
    • 2,608 Posts
    • 1,558 Thanks
    Dird
    The inheritance was a house and cash of around 50 K
    Originally posted by longleggedhair
    Are you including the house value in the £200k though?

    People will do what they want, there's no point nagging ultimately. Recently I found this US show about consumer debt: https://www.youtube.com/watch?v=U2xXuxMnupY - hopefully she divorced him. Pay rise = nicer house, nicer car etc. My view is basically pay into company pension but otherwise do what the heck you want to do. 0% credit card is essentially the same as an emergency fund

    I briefly had a thought of FIRE which quickly evaporated from the notion of "why bother scraping during the best (healthiest) years just so you can stop working 10 years earlier". Yes you have saved £45k over the last 3 years but was your last 3 years as epic as this guy? https://www.youtube.com/watch?v=ioYqFtr2D0Q - !!!! no it wasn't.

    and that 'changed your mindset' in a positive way.
    Originally posted by bowlhead99
    Similar to me. My mom & dad are both spenders; the £60k debt & not being able to open the front door as a teenager put me off living outside your means. My sister is a shopaholic like them though so didn't have the same effect
    Last edited by Dird; 13-09-2017 at 10:50 AM.
    Mortgage (Nov 15): £79,950 | Cashback sites: £900 | Current accounts: 16
    Mortgage (Sep 17): £75,229 | £30k in 2016: £30,300 (101%) | £25k in 2017: £16,996 (67.9%)
    • Zola.
    • By Zola. 13th Sep 17, 11:38 AM
    • 1,106 Posts
    • 429 Thanks
    Zola.
    The best things in life are not things.
    • Dird
    • By Dird 13th Sep 17, 11:39 AM
    • 2,608 Posts
    • 1,558 Thanks
    Dird
    The best things in life are not things.
    Originally posted by Zola.
    In your opinion
    Mortgage (Nov 15): £79,950 | Cashback sites: £900 | Current accounts: 16
    Mortgage (Sep 17): £75,229 | £30k in 2016: £30,300 (101%) | £25k in 2017: £16,996 (67.9%)
    • Zola.
    • By Zola. 13th Sep 17, 11:43 AM
    • 1,106 Posts
    • 429 Thanks
    Zola.
    In your opinion
    Originally posted by Dird
    Its a fact; health, happiness, love, family. All trump materialistic things.

    I like materialistic things too though!
    • coyrls
    • By coyrls 13th Sep 17, 11:45 AM
    • 919 Posts
    • 961 Thanks
    coyrls
    I’m a bit uncomfortable with the quasi-religious (“why have so few seen the light”) and moral judgements in discussions like this one. People make choices that have consequences that they may or may not be aware of. Spending can be visible but conspicuous consumption doesn’t necessarily imply debt; as I said on another thread there are wealthy people around that can afford what they spend. Why is it necessary to place your particular choice of lifestyle as morally superior to others?
    • Anonymous101
    • By Anonymous101 13th Sep 17, 11:51 AM
    • 1,010 Posts
    • 370 Thanks
    Anonymous101
    I’m a bit uncomfortable with the quasi-religious (“why have so few seen the light”) and moral judgements in discussions like this one. People make choices that have consequences that they may or may not be aware of. Spending can be visible but conspicuous consumption doesn’t necessarily imply debt; as I said on another thread there are wealthy people around that can afford what they spend. Why is it necessary to place your particular choice of lifestyle as morally superior to others?
    Originally posted by coyrls
    I don't think its thinking of it as morally superior, although when an individual comes around to seeing their own life from a new perspective I think the sense of awakening can be similar to those that find religion. Whats religion if not a way of life?
    Its therefore natural too that having experienced a sense of enlightenment and felt the positive effects of this that people that have come round to lets say an FIRE way of thinking would want to pass this on to others. There's lots of similarities between this and religious movements now i'm thinking about it.
    • jeepjunkie
    • By jeepjunkie 13th Sep 17, 12:14 PM
    • 1,384 Posts
    • 1,323 Thanks
    jeepjunkie
    I think it is just common knowledge that a large proportion of people are in eye watering debt, whether it be the massive mortgage or the debt to finance the bling lifestyle, cars on monthly payments etc.?
    Originally posted by Crashy Time

    I'd love to know who all these mythical people are...? Never met one... Sure some people might have a large mortgage but live frugally or live cheaply and have a nice car etc but so what?


    Of course there are a few individuals that over extend, hardly news worthy and can be sorted.


    Perhaps this moral superiority gives a section of society a much needed comfort blanket...
    • talexuser
    • By talexuser 13th Sep 17, 12:52 PM
    • 2,284 Posts
    • 1,762 Thanks
    talexuser
    I've always been a saver but don't admonish the spenders if they want to work till the're 75 or 80 and imagine they can have a job at that age which keeps them in their lifestyle - driving the brand new Merc to work to stack the trolleys in the supermarket car park?

    If they think they can live off the state pension then, well that's their choice. The problem will come when there is not enough taxpayers money to keep them all from starving, and the way the debt is going, and the less and less we get back in services from taxes we pay each year it could well be a problem. The people cashing in their pensions since the freedoms can't be helping.
    • JohnRo
    • By JohnRo 13th Sep 17, 1:15 PM
    • 2,458 Posts
    • 2,213 Thanks
    JohnRo
    The problem also comes when financial engineering, repression and manipulation are being engineered by the omnipotent central politburo to keep their client banks and the borrowers that feed them afloat at the expense of everyone else.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • Dird
    • By Dird 13th Sep 17, 1:21 PM
    • 2,608 Posts
    • 1,558 Thanks
    Dird
    I'd love to know who all these mythical people are...? Never met one...
    Originally posted by jeepjunkie
    You probably have but you just don't realise
    http://www.bbc.co.uk/news/business-37504449
    http://www.bbc.co.uk/news/business-40154370
    http://www.bbc.co.uk/news/business-39453844
    People are more likely to show off their new car than they are their credit card debt. People on "Can't Pay We'll Take It Away" and "Til Debt Do Us Part" don't even know how much debt they have (by way of their wife/husband...or themselves but just ignoring it)
    Mortgage (Nov 15): £79,950 | Cashback sites: £900 | Current accounts: 16
    Mortgage (Sep 17): £75,229 | £30k in 2016: £30,300 (101%) | £25k in 2017: £16,996 (67.9%)
    • jimjames
    • By jimjames 13th Sep 17, 1:36 PM
    • 12,184 Posts
    • 10,702 Thanks
    jimjames
    I'd love to know who all these mythical people are...? Never met one... Sure some people might have a large mortgage but live frugally or live cheaply and have a nice car etc but so what? .
    Originally posted by jeepjunkie
    I thought that everyone was like me and had emergency savings, it came as quite a surprise when others I know on similar or higher salaries and similar circumstances have revealed that they can't do something until payday or had built up substantial credit card debt.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Anonymous101
    • By Anonymous101 13th Sep 17, 1:47 PM
    • 1,010 Posts
    • 370 Thanks
    Anonymous101
    I thought that everyone was like me and had emergency savings, it came as quite a surprise when others I know on similar or higher salaries and similar circumstances have revealed that they can't do something until payday or had built up substantial credit card debt.
    Originally posted by jimjames
    I know lots of people that earn decent salaries and still live month to month.
    I think some people can end up there through circumstance, divorce or ill health, but most its just a case of having eyes bigger than their belly!
    • POPPYOSCAR
    • By POPPYOSCAR 13th Sep 17, 11:31 PM
    • 10,816 Posts
    • 22,523 Thanks
    POPPYOSCAR
    I used to think like this.

    But losing a niece at the age of 30 and a nephew at 39 I am more inclined to say enjoy life while you can.

    I encourage my own children to do a bit of both, some saving but more emphasis on living their lives to the full.
    • Puddylove
    • By Puddylove 13th Sep 17, 11:49 PM
    • 440 Posts
    • 714 Thanks
    Puddylove
    I'm lucky in that money was never a problem for my parents, so I could afford to study, get qualifications which in turn mean I can earn a higher income than minimum wage.

    I'm fortunate in that I can get additional contracts for PT work doing something.

    But it really is luck, and I'd not take credit for it. I know many people who are far more deserving but through ill health or lack of opportunity, struggle.

    And £200k is great, but even if others on minimum wage did save that, it won't last long if they have no or low pensions, or have to pay rent, or need to pay for care, have to leave work to look after someone else.

    Lives can change in a second. Appreciate what you have but realise it's fragility.
    Last edited by MSE ForumTeam5; 14-09-2017 at 8:29 AM. Reason: Quoting deleted post
    • longleggedhair
    • By longleggedhair 13th Sep 17, 11:57 PM
    • 268 Posts
    • 339 Thanks
    longleggedhair
    Agreed to a degree.

    As for health agreed, I suffer with a debilitating long term condition, which will sooner rather than later result in me finishing work.

    (Text removed by MSE Forum Team)
    Last edited by MSE ForumTeam5; 14-09-2017 at 11:02 AM. Reason: Quoting edited post
    • darkidoe
    • By darkidoe 14th Sep 17, 12:33 AM
    • 886 Posts
    • 1,008 Thanks
    darkidoe
    I used to think like this.

    But losing a niece at the age of 30 and a nephew at 39 I am more inclined to say enjoy life while you can.

    I encourage my own children to do a bit of both, some saving but more emphasis on living their lives to the full.
    Originally posted by POPPYOSCAR
    It's a constant debate isn't it. Go for it, You only live once or to securing your future. Why not think of it this way, you only live once, therefore, secure your future financially and in health and not let disasters or unplanned illness/situations dictate what you need to do to survive or live. Choose to live by your own values and by your own call and not to others (Government, Debt, Society).

    The key to enjoying life is experiences, it is much easier to get experiences with money, paying for the holiday, owning cars and paying for gratification etc. We work hard to gain money to give us access to these experiences. And how much of these experiences we need to keep us happy? Perhaps it is a mentality/perspective as much as feeding ourselves the experiences. We can chase experience all our lives and never get enough of it to keep us satisfied. Hence some turn to spirituality, religion etc but yet that might be just another experience we chase.

    Going by Maslow's Hierarchy of needs, we can start by covering food, water, shelter and then we go further to security, relationships, achievements and self actualization. Humans don't need too much to be happy. Basic things can satisfy us very easily. Working on each level of the pyramid can gain us a certain amount of happiness. Achieving a healthy and fit body with a clear mind and inner peace covering the various aspects of Maslow's pyramid is probably the kind of lasting fulfillment that one needs.

    If the above is your perspective, then perhaps you can possibly find happiness. If your perspective is to live everyday as if it's your last, then perhaps you might not be so happy after you live beyond your last day.

    Tell yourself a simple story and make do with the simple story.

    Save 12K in 2017 # 9 £11,119.65/15 000 (74%)
    Save 12K in 2016 # 8 £19 721.58/12 000 (164.35%) Achieved!
    • Puddylove
    • By Puddylove 14th Sep 17, 12:40 AM
    • 440 Posts
    • 714 Thanks
    Puddylove
    Well, I wish you a long and happy retirement with the slowest possible progression of your condition.
    Last edited by MSE ForumTeam5; 14-09-2017 at 8:30 AM. Reason: Quoting edited post
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