Living payday to payday. How many people do it?

Naf

innovate wrote: »

I had - perhaps wrongly - assumed they won't have any money left for saving, after they bought themselves clothes and shoes, paid for their transport, paid for the odd night out, had their hair cut, bought some papers, books, presents, paid for their mobiles etc etc etc. They have to fund all this from 25% of their income. Unless, of course, Bloomberg pays for all of it?

You appear to have the wrong end of the stick. Practically everything you list has to come out of that 25% for most people - and those who budget correctly do manage to make savings. It's their choice what to do with that 25%; save it or spend it.

innovate wrote: »

They'd have to pay a mortgage or rent, and any other costs that come with the place they live in. No way could they save 'similar' amounts (75% of their income)

Yes, mortgage/rent, utilities etc. very easily take up 75% of a person's income. And from the 25% remaining they can make savings if they wish - which makes the situation very similar.
As I already pointed out, the fact that the 75% will eventually be returned (which they don't know) is a separate point.

innovate wrote: »

And how, if they will get the whole lot back one day plus interest, will they have learned that living somewhere costs a lot of money?

Of course they will; because they have gone without that portion of their income month on month for a long time; they learn just how much living somewhere costs. Then at a later date they receive a nice gift of a lump sum.
Maybe putting the situation slightly differently will help:
Bloomberg asks for board equivalent to a rough idea of what living in the real world costs. He/she then spends this on the household, and saves from his/her own pocket a similar amount towards his/her children's future. Many parents save towards their children's university/wedding/first home; it just so happens that in this case the saved money comes straight from the board they pay.

Bloomberg

suburbanwifey wrote: »

I envy your children (you'll give them back that money right?) I was told that very same thing when my mother [STRIKE]stole[/STRIKE] took 2/3rds of my wages from the day I started work at age 16. I was told a lie - a third for you, a third for me and a third for your savings. I never saw the savings book but when I asked I was told all the money would be given to me when I left home. I went on to leave home and when I asked (I had to ask! for my own money) I was told, oh! I didn't say that. She stole my money from me with lies, I worked for a third of my wage as long as I lived in that house and effectively paid for all her designer bags, boxes of 4 cream cakes she loved to buy to get fatter etc. Yeah. I'm glad you aren't like my mother and you will give your children the money you take from them.

I'm in my 40's now and I haven't spoken to her since the day I left home. I don't like liars or thieves and she can rot in hell for all I care. Stealing money from your kids loses them.

I am very sorry to hear about the way your mother treated you. Her actions were indefensible. Alongside the saving I do for my children I educate them and make sure that their money is working as hard for them as possible. I too hate liars, thieves and people who think that others owe them a living. I am eternally grateful that there has never been any dishonesty in my family.

Some people on this forum think that I am doing my children a disservice which strikes me as odd. My son actually thanked me the other day, his friend who is the same age is heavily in debt and wishes that his parents had saved some of his money for him. The debt has affected other parts of his life, he is a basically bordering on alcoholism and is severely depressed.

Bloomberg

Naf wrote: »

You appear to have the wrong end of the stick. Practically everything you list has to come out of that 25% for most people - and those who budget correctly do manage to make savings. It's their choice what to do with that 25%; save it or spend it.




Yes, mortgage/rent, utilities etc. very easily take up 75% of a person's income. And from the 25% remaining they can make savings if they wish - which makes the situation very similar.
As I already pointed out, the fact that the 75% will eventually be returned (which they don't know) is a separate point.




Of course they will; because they have gone without that portion of their income month on month for a long time; they learn just how much living somewhere costs. Then at a later date they receive a nice gift of a lump sum.
Maybe putting the situation slightly differently will help:
Bloomberg asks for board equivalent to a rough idea of what living in the real world costs. He/she then spends this on the household, and saves from his/her own pocket a similar amount towards his/her children's future. Many parents save towards their children's university/wedding/first home; it just so happens that in this case the saved money comes straight from the board they pay.

You have explained the point so well, hopefully people will now understand. Quite simple really.