Two incomes, more debt?

Christian Science Monitor ^ | September 17, 2003 | Marilyn Gardner

[tdadams]

You're exactly right. People ratchet up their spending commensurate with their income. When their income takes a hit, they're thrown into crisis.

It needs to be said over and over... live below your means. It brings you a lot more comfort and security than any new car or big screen TV.

[Mad Dawgg]

"In the Sixties, a family with an income of $10,000 was doing well. Now a family with an income of $100,000 is struggling to pay their bills."

Horse hockey!

Mrs. Dawgg and I have a combined paycheck of LESS than 29K a month! Our daughter goes to private school and we live damned well.

No we don't wear the latest fashions from Abercrombie and Fitch, no we do not buy 150.00 Nikes, and no we don't buy brand new SUVs. We do however spend wisely, bank at least 10 percent of our income monthly and we put our savings in long term investments that give a good return.

[woofer]

Easy credit encourages people to get into debt.

And let us also not forget Murphy's 8th rule of economics:

Lifestyle and spending will always rise to meet and exceed one's income.

[Mad Dawgg]

"It's the same word THEY ALL miss. Paying ~50% of your combined income in Federal, State, City, County, Property and Sales Taxes (and yes YOU are taxed that much) is killing this country."

/

BINGO!

I've got a friend that hinks he doesn't pay any takes because his accountant has him taking very little in payroll deductions and gets him a big return each year.

I've tried to explain it all to him but he does not want to be confused with facts!

[tdadams]

Mrs. Dawgg and I have a combined paycheck of LESS than 29K a month! Our daughter goes to private school and we live damned well.

I imagine most of us could live quite well on $29K a month.

[Mad Dawgg]

"I imagine most of us could live quite well on $29K a month."

Heheh Err Year...

[Libertarianize the GOP]

I wonder if she has ever heard of land use planning and how any time you limit the supply of housing you drive the price up.

[Tax-chick]

"Families are vulnerable because they've stretched the fixed costs they have to pay month in, month out, no matter what. If something goes wrong and you face a period of unemployment, there's no way to cut back on the mortgage."

Well, darn, I guess I'm sorry for them. Really (a little), because all of us are misled by marketing at some point in our lives.

How about they sell the house that's 3x what they need, take care of their own kids, get rid of one of the $60,000 SUV's ... no, too obvious, better get the government to take care of everything ...

I hate to be unsympathetic, but we have 6 chidren on one income, and survived over a year of unemployment without any major problems, because we planned ahead: "Will we be able to afford this house (car, activity) if something goes wrong with the job?" Yes, we did, and so could these people if they weren't in a fantasy world.

[chris1]

Nonsense, I guess the total is about up to 65% if you add ALL the taxes. Its so insane. Good point though!

[Cincinatus' Wife]

Mrs. Dawgg and I have a combined paycheck of LESS than 29K a month! Our daughter goes to private school and we live damned well.

Well, I guess we all would.

[Cincinatus' Wife]

Bump! for a "plan ahead" mentality.

[Cincinatus' Wife]

That's one reason the Houston metro area is growing so fast. They have a lot of land so home purchase costs are lower.

[varon]

Even without income drop, the margin is eaten up, and the working couple is just living in poverty at a higher level.

Well stated.

[arete]

It is nowhere near as easy to make a decent living as it used to be.

Standards have changed and we expect more and more. I grew up with one car, one TV and one telephone in the family. Now every family member has their own car, TV and phone not to mention PC's and a variety of other "essential" items like DVD players and the latest must have gadgets. Times are different although not necessarily better.

Richard W.

[FITZ]

It would be instructive if people were paid in full and then wrote a check each month to Uncle Sam.

That would really help. Let the democrats have to explain why they want more and more of that check.

[FITZ]

Now a family with an income of $100,000 is struggling to pay their bills.

It depends a lot on where you live too ---- in some areas people are paying only $2000 a year for property taxes on an average house but in some places they're paying quite a lot more. I've seen milk around here sell for as much as $3 a gallon and any family with several kids is going to need a pretty good income just to afford milk.

[GovernmentShrinker]

"Bankers who wear $3,000 suits and starched shirts are now charging interest rates that Jimmy the Leg-breaker didn't charge 25 years ago," Warren says. "Nobody sounds the alarm. The consequence is a wealth transfer of tens of billions of dollars every year from middle-class families to a handful of big banks."

Huh? Interest rates are at historic lows. The only people getting charged super-high rates are those who have already destroyed their credit, so high rates obviously have no part in the cause of their financial problems.

And this article provides numerous illustrations of the number one rule of financial stability: don't have children before you can afford them. What are people thinking of, having a baby while they've got $30,000 in credit card debt, or before they've paid off their own student loans? Get completely out of debt except for a reasonable mortgage, pay cash for a good used car, and THEN start bringing children into the world.

[oh8eleven]

It would be instructive if people were paid in full and then wrote a check each month to Uncle Sam.

Rush has brought this up repeatedly. If every American had to sit down once a month and write checks to the tax collectors for:

• Federal taxes
• State taxes
• County taxes
• Town taxes
• School taxes
• et al

...there would be so many angry Americans we'd have the American Revolution Pt II.

[netmilsmom]

You are right but only to a point. I sold a 2000 square ft house in OH to move to MI with my hubby. It sold for 90,000. We now have a 2000 sq ft house that we bought for 161,000. Not any better neighborhood. We could afford it at the time but the property taxes and insurance rates are killing us. No raise in pay in 4 years. We drive 10 year old cars (considering selling one) and shop for clothes on E-bay or resale. We don't eat out and for my daughter's birthday she will get fun fro the dollar store.
It's cheaper to live in OH

[netmilsmom]

You got that right!!! Milk is pricey and 2 bucks for a dozen eggs is tough too.

Here is the best one....how much do you pay for gas?
We are at 1.82 a gallon here. When I visit my family in Cleveland, I pay significantly less.