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High Earners Can Still Struggle
USA Today ^ | July 18, 2007 | Stephanie Armour

Posted on 07/18/2007 7:39:01 AM PDT by truthkeeper

Edited on 07/18/2007 8:06:58 AM PDT by Admin Moderator. [history]

Gannett meterial must be linked-only.


TOPICS: Business/Economy; Culture/Society; Miscellaneous
KEYWORDS: newcar; overspending
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1 posted on 07/18/2007 7:39:02 AM PDT by truthkeeper
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To: All

Student loans are very burdensome. It’s basically a 10 year mortgage on your life.

Want to bet they bought a house, two cars, furniture, appliances, lawn mower, etc etc and then kiddie comes along and what do you know - he has medical problems.

I can see the bias from here - the medical problems causes them to be in such dire straits, and it can only be solved by HillaryCare.


2 posted on 07/18/2007 7:42:17 AM PDT by Sir Hailstone (Graduate of The Archie Bunker School of Conservatism [http://digitalfarmers.blogspot.com])
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To: truthkeeper

Spending habits don’t change with higher income.

More money only amplifies current behavior.


3 posted on 07/18/2007 7:44:11 AM PDT by Retired Greyhound
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To: Retired Greyhound

That’s the way I see it too.


4 posted on 07/18/2007 7:46:16 AM PDT by truthkeeper (It's the borders, stupid./LOUD and PROUD!)
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To: truthkeeper

He still has a student loan at age 34?

Together they earn $80,0000?

What degree cost him so much and led to a career where their joint salary is $80,000?

I’ve often wondered where these families are found? Why doesn’t anyone ever offer to profile how I’ve handled my finances?


5 posted on 07/18/2007 7:46:47 AM PDT by wpa_mikeb
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To: truthkeeper
many Americans who are middle- and high-wage earners but still living paycheck-to-paycheck, stretching to make ends meet despite earning salaries that are near -- or above -- six figures.

Well, it's a two-part problem: a rapacious government appetite for tax dollars and an individual desire to achieve the upper-middle-class lifestyle depicted as "normal" on most television programs. Living below one's means is especially hard in these times, when one has so few examples of it to refer to.

6 posted on 07/18/2007 7:47:43 AM PDT by Mr. Jeeves ("Wise men don't need to debate; men who need to debate are not wise." -- Tao Te Ching)
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To: truthkeeper

If we only had free medical care. . . . . . . .


7 posted on 07/18/2007 7:48:08 AM PDT by neodad (USS Vincennes (CG-49) Freedom's Fortress)
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To: neodad

and free cars, free houses and free vacations.......


8 posted on 07/18/2007 7:49:37 AM PDT by wpa_mikeb
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To: truthkeeper
“There is an overspending issue, without a doubt,”

The key to personal finance is to manage your lifestyle consistently with your budget. If you have a lifestyle to spend $200K per year and make $190K per year, you will continue to pile up debt.
People want big homes, new and expensive cars, boats, riding lawnmowers for 1/3 acre yards, coffee at Starbucks when the coffee just as good at McDonalds, the list goes on. I went through the post college debt problem, paying off student loans, raising kids and made a huge mistake buying a new car, when I should have bought a new one, but I had survived through college with a junker car, and wanted to reward myself.
I learned that you don’t need to eat out all the time, drive a 30K-40K auto, and spend, spend, spend.
Saving is easy if you put aside the money first.

9 posted on 07/18/2007 7:49:55 AM PDT by GeorgefromGeorgia
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To: wpa_mikeb

It says they are probation officers. My cousin is a social worker. She has a Master’s degree and she’s practically a volunteer for the kind of pay she gets. Must be a labor of love.


10 posted on 07/18/2007 7:51:10 AM PDT by TNdandelion
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To: truthkeeper

It’s called “Golden Handcuffs.”


11 posted on 07/18/2007 7:52:03 AM PDT by dfwgator (The University of Florida - Still Championship U)
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To: Sir Hailstone

Sounds like the lady who drove her new RV to the democrat political rally, and had to pick up cans along the highway to buy food for her dog.

Stupid is as stupid does. Hey, if you have a fancy-ass house or apartment, and 2 car payments, and have to “curb your recreational spending” and are living paycheck to paycheck, you are an idiot. Sure, sometimes stuff comes up and bites you in the ass, but living like this should not be a lifestyle.

Run your life like a business. Income MUST exceed outgo. Oh yeah, pay yoursself, too! Dump a chunk of your paycheck into a retirement fund. The power of coumpouding interest is amazing!


12 posted on 07/18/2007 7:52:15 AM PDT by Clam Digger
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To: truthkeeper

Evidently these persons are not philosophers and never will be.

Philosophers are satisfied easily and then are free to philosophize, and that is true freedom.
—Schopenhauer


13 posted on 07/18/2007 7:52:50 AM PDT by RightWhale (It's Brecht's donkey, not mine)
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To: TNdandelion

There’s nothing wrong a labor of love. If your goal is probation officer or social work, it’s wonderful that you’re doing what you love. I think most people would be happy to enjoy their jobs, many don’t. But you can’t willingly educate yourself for a career you know in advance is on the lower paying end and then complain that you can’t live on the lower paying end.


14 posted on 07/18/2007 7:54:14 AM PDT by wpa_mikeb
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To: truthkeeper; Sir Hailstone
The car payment was due.

That's the first problem. I've never had a "car payment" in my life, and as a corollary, have never spent a penny on collision insurance. Even though my income is well into 6 figures, the most I've ever spent for a car was $3500, cash and drive (my current car, a 1992 Buick which I've had for about 6 years, and averages $500 a year in repair/maintenance costs). Needless to say, I'm not living paycheck to paycheck.

15 posted on 07/18/2007 7:55:43 AM PDT by GovernmentShrinker
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To: Sir Hailstone
Student loans are very burdensome. It’s basically a 10 year mortgage on your life.

If you look at student loans as an investment; i.e., what your expected return will be, they need not be a burden.

A smart "investor" doesn't lay down $75,000 for an education, to take a job that pays $30,000/year.

16 posted on 07/18/2007 7:57:13 AM PDT by Lou L
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To: Sir Hailstone
I can see the bias from here - the medical problems causes them to be in such dire straits, and it can only be solved by HillaryCare.

I agree, and I'm seeing more and more articles like this. Hillary! or the DNC must have released a talking points memo.

As for spending yourself into debt, it's hard for me to be sympathetic. Within reason (and I say that, becuase there's always some wiseacre FReeper that says "So, did you pay cash for your house??!") you shouldn't spend money that you don't have. It's a philosophy that's worked pretty well for me. :-)

17 posted on 07/18/2007 7:58:50 AM PDT by wbill
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To: Sir Hailstone

Just another plug-in module in the larger whole, huh.


18 posted on 07/18/2007 8:00:11 AM PDT by Freedom4US
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To: wpa_mikeb
Why doesn’t anyone ever offer to profile how I’ve handled my finances?

I think it should be mandatory for these types of bleeding heart stories, that they actually include a profile of their net assets and spending habits. This would include answering questions such as how large is their TV? Do they have a premium cable package? How many cars? Do they save in their 401(k)s? Do they save at all?

You get the idea.

19 posted on 07/18/2007 8:00:47 AM PDT by Lou L
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To: truthkeeper
I'm a little confused. Do they earn $80K jointly or individually? Because if it's joint, I don't consider them to be high earners. That's the part of this article that bothers me. The media setting the level of what they consider "too much income" here, then moaning that the middle class is disappearing.

Remember folks, these are the "high earners" that dems want to "take back from" for the good of everyone.

20 posted on 07/18/2007 8:01:37 AM PDT by Hoffer Rand
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