[SaxxonWoods]

I actually read all of that article. To his credit, the guy admits he screwed up by living too high and in the wrong city (New York).

Once he sank, there was no way to make it up.

That’s the real problem. Once you hit the skids, there’s no coming back without radical changes in your life.

Americans are woefully ignorant of how to handle their personal finances. This is a failure of the educational system. I was lucky to avoid the trap. I did so by always living below my means, and never borrowing to buy things that disappear (food, entertainment) or depreciate (cars).

When I wanted luxuries (motorcycles, for example), I saved the money first and then bought them. Old-fashioned, but it still works. I built financial security first, then enjoyed its fruits.

My clients (later, even my tenants!) drove nicer cars and had more toys than me. Others who were doing well bought nicer homes than me. Now I’m retired and most of them are still working.

[pabianice]

And its Discharge Day. I leave the rehab hospital for the last time, again riding passenger in Karen’s car. I take with me my grabber, plus a wire-doohickie for buttoning shirt buttons with just one hand. Also my plate-guard and crip spoon. Also several removable casts for my left arm. I do not yet know how horrible my arm operation will be or that it will take almost two years before I am well enough to go back to work. I do not yet know how tough re-learning to walk will be, or that it will be another three months before I can make it up the stairs in my house (on my ass) and again sleep in my bedroom with my wife or get to the bathroom and, sitting on a “crip seat,” take a shower. I have not yet had my first visit from my in-home PCA. I have not yet received the hospital bill and laughed crazily when I see the total I am expected to pay is $ 287,000* despite my having an HMO (the dirty little secret of HMOs is that if you are in an accident they expect to be repaid for your care). But for the moment, things are good..."

From "What I Saw After the Crash"

($451,578 in 2015 dollars)

[sheana]

You just explained hubby and I. We worked like dogs, lived within our means, bought houses we could afford and drove 10 yr old cars. I’m driving a 10 yr old car right now.
Now we can live the life we always wanted to. I am surrounded by relatives and people who did just the opposite and are barely surviving. They all ask me for money when they need it. I try to explain to them that borrowing from me will not help them because when it comes time to pay it back it will put them in an even worse situation. They think I’m just being hateful and mean. Guess they expect me to just give it to them so I usually tell them no. I have a good friend who borrowed $600 last month and is supposed to pay me back in a week. I expect it to end our friendship. Whatever. She has blown through more money in the last 10-15 years than we’ve ever had and is destitute now.

[Texas resident]

We are in the same situation as you.

Two good tools are Dave Ramsey (live like no one else now, live like no one else later) and the book “The millionaire next door”. I required my kids to read that book.