Rosemary, maybe we are the average Americans?

:)

Moni

Maybe those that paid their credit cards off aren't wealthy, maybe they just live within their means.

Ditto that, Georgysmom!

I agree that maybe WE are the average Americans.
We have savings because we don't overspend.
We use credit cards for the convenience and points, and pay them off before interest is charged. And those points or cash back can be used for "free" stuff.
Also helps to have saved a little, for emergencies - because our parents/grandparents lived through a real depression, and taught us to spend sensibility.
Fresh vegetables are not that much more expensive. I would rather buy a fresh tomato and dice it up, than pay $1.29 for a can of tomatoes.
Home made soup is mostly leftovers - cheaper than Campbells.
And a fresh hamburger is way cheaper than Mickey D's.

If your not working(retired or out of work), there is certainly enough time in the day to shop for fresh foods.

Average Americans are out buying things today at after-Christmas sales that they don't need. They're not home like us sitting the Kitchen Table!

Want and need are not the same. A person may just WANT something, and buy it on a sale because it was a super discount.
Just like the spring Jean jacket I bought at Cracker Barrel the other day - don't have one, and it was perfect to wear at spring and fall car shows. Tagged at $49.99, it was on sale at $15.00.
Put it on a credit card that earns points(and is paid off before interest is accrued) - that I xfer to Hotel program for free rooms at distant shows.

You might be surprised at how many average people do this.

We switched to Visa from Discover for only a month because we got a lot of incentives like kickbacks on groceries and restaurants. Yesterday we got 60$ gift card for Gap, Banana Republic and old Navy. So that little switch gave us free clothes for our effort. We only have the two cards and I prefer Discover which we always use but some places dont take it. Even when we had not much money, in our entire life going back decades, we have never not once not paid the monthly bill fully and on time. So for 40 years, we have used credit cards free. But we use them like money. We buy groceries, clothes, restaurant meals so we don't carry a lot of cash. We never get carried away. Our house was paid off years ago despite all the restoration projects because we don't buy JUST to buy.

We've never had debt for anything other than a mortgage on our first home. We lived more modestly than we needed to for many years.

We were also lucky. We also got good starts in life, and our families were self-sustaining. We've been reasonably healthy and have attempted to stay that way with diet and exercise. We've also been responsible about maintaining our good fortune. We saved and invested disposable income instead of splurging on forgettable 'stuff'.

In retirement we are drawing closer to par with income, but not touching savings (yet). We could live another 20-30 years. Even if we can avoid serious medical costs, we will eventually start to spend what we banked when we were younger. We seem to have enough to continue to live well, well into the future.

CC's are a convenience for transactions and record-keeping. I'm aware of costs whether I use a CC or cash. I don't understand why *adults* need debit cards to enforce spending limits, but then I don't understand why people can't plan ahead enough to avoid paying ATM fees, late fees or penalties.

I don't 'get' *living* on credit. We froze our credit reports as a security measure long ago. I think we've unfrozen them twice in the last six years -- when changing a credit card account.

Evidently though, America's 'wealth' depends on consumers overextending themselves, being in debt, and paying usurious interest rates. That's a very uncomfortable feeling! What's wrong with us?

Well, the demographics here aren't typical. There was a survey thread a few months back and I think I was the youngest at 28 and the average age was 68.

Most people who are struggling are the ones with shaky jobs or young families. I would wager a lot of people here are retired with their savings/pensions/paid-off houses and that makes a big difference. It's very difficult in this economy to get started in life. Starter houses start at 400k where I live and that's just not happening, lol. And so you just get further and further behind, even living within your means. Not to say people don't overspend - they definitely do but it's not all frivolous.

I also think people here are generally wiser about savings and spending and investments. There isn't the bright, shiny new toy mentality that a lot of people have as people seem more interested in conversation and socializing than "stuff".

So I think it's a combination of the types of habits of people who are drawn to this type of community, and the general demographics. :)

I posted on the CC thread, but not on the thread about eating healthy because I don't eat "healthy."

So I would think that the stats are showing great because those who didn't post on those threads didn't want to be the only negative ones. Right?

I know my diet is not "healthy" according to some (a lot) of folks. I'm 87 years old, and I'm still here. Have some problems due to age, but I'm not diabetic, no heart, lung or other problems, no allergies other than to pain meds, so I don't take them.

Living alone makes it almost impossible to try to eat mostly fresh fruit and veggies. They only stay fresh for so long and spoil before they are used. I am not a big eater and I eat to live, don't live to eat.

Works for me.

Sue

We are ones that pays the charge card off each month. I feel blessed to be able to do this. We are far from wealthy but have done well for ourselves. We have always lived within our means. We knew we wanted and needed to get our 3 kids educated and that was our goal. We went through all our saving and then some to get this done. Then once they were all finished we regrouped and started saving once again. We have lived in the same house for 40 years and didn't have to have new stuff to make us happy. We drive our vehicles for many years. We are very simple people.

About 20 years ago we bought another place in Southern Indiana and we enjoy it a lot. It is worth way more then we gave for it. It came in 5 parcels and taxes on 3 of them are only $5.00 a year. Tax bill is only $100.00 a year for 34 acres. It has an old schoolhouse on the property that we redid the inside. We have 3 people that have told us when we get ready to sale to call them.. Plans right now are to leave it to our kids.

Having the best of everything has never been a thing for us. Comfort and affordability is where we have always been. It has taken us many miles down the road.. You do have to be rich to be happy..

Well said, chi83. Starting out years and years ago, one was able to achieve so much more with much less than one is today. It's easy to judge others by your own situation (good education and opportunities along the way,) and wonder why they didn't end up in a positive situation.

You also have a very good point, sue va. And there are many, many people who live in run-down areas in which food stores do not do business. When you've only got your legs, arms and the bus to rely on, you may not be able to buy and keep the healthy food you know is good for you.

Dave Ramsey fans? :0) But it is nice to be among other "savers" and responsible individuals! :0) I too am debt free...

I enjoy listening to Dave Ramsey too. When we were first married, we lived frugally on one salary and invested the smaller salary. That financial planning was my DHs plan, and it has made a huge difference. I count our family blessed that all of the kids graduated from college and have good jobs. We did not buy lots of things over the years, and while our Christmasses were nice, the kids' friends clearly had lots more spent on them, even those from families who were struggling. We paid for their bachelor's degrees, as that was my goal from before they were born, and we had set aside for them. In fact, we delayed having children while we built our savings. The kids all graduated debt free, except the one who paid for his law degree, but he can pay his debt easily with the salary he makes. We are practical, drive our cars till they fall apart, don't take lavish trips, eat well but don't drink much or smoke and buy what we need, not what we want unless the cash is sitting there. We do not dip into savings for anything other than the plan--buy a house, college tuition, etc.

As young marrieds setting up our first house, we overdid the credit cards for furniture, cut them up, and got ourselves on track with credit use and now pay off our bills monthly.

We live below our means and pretty much always have. We have a nice house that could use some attention here and there, but it is comfortable and nicely furnished. We live in an expensive area, and we see so many people spending lavishly thinking life will always be a bowl of cherries. Then they learn otherwise.

Chi83, I think you hit the nail on the head, and I think you're right. There are three things can cause an egregious financial setback (that I can readily think of):

1) Medical problems. Insurance is refusing to cover more and more legitimate medical needs.

2) Divorce. When you go through a divorce, you really do hit the financial reset button.

3) Job loss. It can take years to recover from a job loss, if there's been prolonged unemployment and/or lack of medical insurance.

Those are just the three I can think of. My point is, I think the "average American" is scrambling to keep their head above water.

And I think that young people have the financial deck stacked against them right now, between the obscene cost of housing and the HUGE burden of student loans.

Here in my neighborhood, a modest little house rents for $1,500 a month, and a decent apartment is about the same. How are newlyweds supposed to come up with that kind of rent money? And those are the cheap seats. When we were looking at rentals (last summer), a nice house with 2,000 square feet was $2,300 a month and up.

Rose

The people who carry credit card debt and eat poorly don't want to admit it.

Yep, my little 995 square foot 2 bedroom apartment is $2,200 in rent. I rent out one of the rooms to help a little but between that, and utilities, and food, and miscellaneous expenses, I can't put much away each month. I don't know how I will be able to buy a house someday.

But it's where the job is so you just do the best you can.

another one of those amazing people signing in Just paid off off my Visa bill.

At one time I let my bills pile up only paying the minimu but tht was years ago (I think at that time you could deduct the interest on the card from your income tax)
no more. I have to thank my mom who kept a lovely home and family by "paying on time" as it was called in those days. Taught me not to be afraid of it.

Divorce can throw you for a loop. But, I am still looking for what I know, I can afford. I want a little house... that I can pay for out right. I don't want debt, and I want off this paying rent cycle.. and out of this apartment.

I will get a 600 dollar raise.. LOL, when I can quit paying rent.

here, you can get a little starter house between 55 and 150 thousand dollars.... and they come nice, as well as torn up, real fixer uppers.

My rent goes for a one bedroom apartment on the third floor.

Moni

Sue_va,
You gave a poignant post about your life.

You are 87 years old!! I am so impressed with your honesty. Yes, I agree it can be very hard to eat fresh to be healthy. Transportation is one issue and it is not at all cheap as some proclaim. You have shown that you have a wealth of experience on staying healthy with your thoughtful way of living. I am glad you are doing well, woman, and am impressed with your fortitude and insight which should be highlighted. I won't forget your post.

Sue_va,
87 times around the sun !!!
You are an inspiration to us all !!
I get a bag of those little cutie tangerine/oranges and peel them and keep in the fridge so easy to grab one and snack on it. I also buy a bag of those big juicy red grapes. Wash them good and keep in little bunches. I feel at least I'm getting something fresh into my system.
I cant really bite down on celery or things like that but try to make up for it in some cole slaws which will keep in the fridge.

Well I'm in debt and not ashamed to admit it. I'm not proud, but not ashamed. It's due to a long divorce and I'd rather be where I am now than where I was then! I know I will get things cleaned up eventually. And if you look at the whole picture (my retirement account, my emergency fund, some other things I was left with) I'm really not that far in the hole and most of my debt is at a low interest.

I paid for my college education, fortunately at a time when there were more grants and education was not that expensive. My student loans were only about $15K for a four-year degree that took more than four years since I starting working full-time before I finished. They were paid off before I was 30. I've been on my own since my junior year of college (went home the first two summers during college and that was it) and mostly lived alone before I was married, even in a big city.

I had no debt besides a mortgage and car payment before the divorce and that was with 2 young children in daycare. Oh, and I am only on my second car ever (I am 42!) and it's just a Ford Focus - not an SUV. So I don't like having this extra debt but it is what it is right now.

We actually had decent equity in our house at one time but it was just bad luck that the market was at it's worst when we finalized the divorce settlement. I did get something at least.

I am actually quite happy renting now, considering how little I accomplished financially by being a responsible homeowner for so long (we bought before the bubble, didn't over improve, paid ahead on the mortgage before we had two kids in daycare, etc). My ex kept the house and is starting to face expensive problems but I only need to worry about my fridge, washer and dryer in my rental. (Moni, don't forget - even if you pay for that house outright you are going to be paying taxes, insurance and maintenance on it.)

The way child support works out and with shared custody, since I make more money, the ex keeps all of his money and I have to spend the difference in our salaries (plus a little more)on daycare and health insurance for the boys (I pay both 100% - and he tried and failed to get more child support on top of that!) It's hard to get ahead financially right now but I have other things going for me and I sleep well at night knowing I am providing for my boys whereas the ex is depending on me and his parents to keep it all going.

I do have have trouble with willpower, when it comes to money and food, but I keep trying to keep some sort of balance in both respects as best I can, never expecting to achieve perfection in either but still enjoying life.

We started out with nothing, but always lived within our means. When our mortgage was new and our income was lower, we had nice, but simple Christmas holiday celebrations. We tried to be careful to buy quality without having to buy "the best". We seemed to spend less than our friends did, and they all seemed to have lower incomes than us. They didn't seem to be any happier though. We paid our cc cards in full except for a couple of times- in those cases we paid them off the next month, but that was years ago. We too , love our CDC points. Not all, but most people with cc debt spend more than they need to. I see it all the time.

paula_pa
Sounds like you have your situation well in hand and are going about things sensibly. IMHO I agree about paying off the house to quote you."even if you pay for that house outright you are going to be paying taxes, insurance and maintenance on it." That is one reason I prefer to keep paying my small mtge payment.

Paula, sounds like you are doing a real balancing act there. You sound very intelligent, and I have no doubt you "will get things cleaned up eventually." Good for you!!

I'm in that group that pays off the credit card each month....We married young, 57 years ago, raised 5 children, sending them all through college and they are all in good jobs....But, when we married, we struggled as most young couples do but we lived within our means..A lot of the time, hubby would be layed off and would pick up odd jobs to get by...If we didn't have the money, we didn't buy and at that time, we didn't have a credit card....We've never had to carry a mortgage on either of the 2 houses we've lived in or ever owed on a car...Hubby took a job with a large company and advanced to a pretty good position until the company left the state and he retired at an early age...He then again, picked up odd jobs......We are far from being rich but we're comfortable...Hubby teases me about the card...We use the card because we get money back...And we shop at a certain grocery because we get points and get gas cheaper and I also use the card and he says, we're double dipping, lol....But you got to do what you got to do!
Now if I could just talk him into that little place in sunny Florida, I'd really be happy, lol.......

Sjerin, Ellie, Minnie, those are mighty nice words, more than I deserve, though.

I just live my life and make decisions using basic common sense and logic. I think people are too easily swayed by the latest "study" on this, that and the other thing.

I have neighbors here in the Retirement Community who are older than I am. The oldest (are is that eldest?) gentleman here is 97. I was talking to him recently and he was telling me about the new car he bought. I saw it. I don't remember what it was but it is RED. He still drives.

I still drive, but only when I have to, vision is not the best, but my eye doc says it is okay to drive, so I do.

I hope you all live to be 87, at least. I'm hoping for 100, at least.

Sue

Did I mention I use a cane?
{{gwi:1587494}}

Sue, I like your spirit. You and I have to get together.

I finished a 2nd Masters 3 years ago at George Washington. Had to pay out of pocket. My life expectancy is not long enough to get student loans. A sad reality but that's OK.

I only have a debit card and I know I need to get a credit card again. Just need help figuring out which is best for me. Always have worked a 2nd job when possible and used that money to save for the next car.Never thought I could afford car payments when raising 3 kids I adopted on my own.

Think I have retired and then know I can't so continue working. My place is paid off which used to be a no no as you always wanted the deductions. Once I got into the cancer game I knew my choices were limited and tried to feel like I was secure if only I had a roof over my head.

Everyone has a story and it gets complicated.

I KNOW I do not eat healthy. Also, I made no New Year's resolutions to Start eating healthy. I probably need to change this "eat what you want" attitude, but at this time I maintain a fairly decent weight, I guess I could loose about 15 lbs. but not starting a diet. i have gained that over the years and when I diet and take it off, it always seems to find its way back so I have just quit trying to take the extra weight off. LOL

As far as being wealthy..I am NOT that either. But, we are out of debt, and glad of it. I always say it is not what you earn, but what you save, and that has always been my husband and my lifestyle. Give the Lord 10% of your income, save 10% of your income, pay your bills, and then what is left is yours...(if there IS any left, LOL) We have done that for the 43 years we have been married. We did not have much money until we got the kids out of college and it is then when we had less financial responsibilites. That was hard back then financially but we got through it.

Thanks, Ellie. I think getting together would be fun.

I have hoped for a long time that there would be a
get-to-gether for us Virginians, especially if it could be here in the Valley. I guess that would be selfish though.

You are right, everybody has a story, and it is so good to hear them. Yours would be inspirational. Have you ever put it on paper? If not, I suggest you do. I would love to read/hear it.

Sue

Sue, It would be great to see you.

Buzzed around Harris Teeter and didn't see the NY Teaxas things. That does not mean they aren't there. I'm fast and then I talk to someone and then speed up - nothing is for certain.It's senior day and the gang is all shopping.

If you miss Harris Teeter, we can go together.

Sue, I capitalized part of the email address so here it is again.I am a terrible typist without spell check and with it.

ellieisnothome@gmail.com