Financial News

[iamshack]

Lost, how long have you been married? And how on earth did you convince your wife that your monies should remain separate?

[lostfan]

Lost, how long have you been married? And how on earth did you convince your wife that your monies should remain separate?

a) will be 5 years this spring

B) because she is a walking financial disaster, everything she touches turns to s***

[iamshack]

a) will be 5 years this spring

B) because she is a walking financial disaster, everything she touches turns to s***

You must be one smooth mf'er, Keith

[mr_genius]

Gallup has unemployment at 10.2 / Underemployment at 19.7

 

 

 

http://www.gallup.com/poll/125639/Gallup-D...-Workforce.aspx

[Balta1701]

Gallup has unemployment at 10.2 / Underemployment at 19.7

Because results are not seasonally adjusted, they are not directly comparable to numbers reported by the U.S. Bureau of Labor Statistics, which are based on workers 16 and older

[Balta1701]

[mr_genius]

Because results are not seasonally adjusted, they are not directly comparable to numbers reported by the U.S. Bureau of Labor Statistics, which are based on workers 16 and older

 

whats your point lol? the link was obviously posted to show a different method.

Edited February 13, 2011 by mr_genius

[Balta1701]

whats your point lol? the link was obviously posted to show a different method.

Because January/Feb is typically at the down-turn of a non-seasonally-adjusted employment number, since it's right after the X-mas layoffs. It really doesn't tell you anything more than the BLS number; they're pretty much telling you the exact same thing, and the BLS numbers sample a much large pool of employers/employees.

[mr_genius]

Because January/Feb is typically at the down-turn of a non-seasonally-adjusted employment number, since it's right after the X-mas layoffs. It really doesn't tell you anything more than the BLS number; they're pretty much telling you the exact same thing, and the BLS numbers sample a much large pool of employers/employees.

 

BLS samples 60k from what i know. Gallup is 30k. So you are telling me that the BLS is going to normalize to the Gallup?

 

You know, based on the BLS stats, we could lose a sum of 50k jobs next month and unemployment would still magically decrease. even with a number of +125,000 needed just to keep pace with new entrants into the job market.

Edited February 13, 2011 by mr_genius

[Balta1701]

You know, based on the BLS stats, we could lose a sum of 50k jobs next month and unemployment would still magically decrease. even with a number of +125,000 needed just to keep pace with new entrants into the job market.

And if you simply read Gallup's numbers, you'd think we'd be going into a depression every year in Jan/Feb.

 

Each survey is telling you something, these 2 are essentially telling you the same thing, as long as you understand the adjustments that are made to them.

[mr_genius]

And if you simply read Gallup's numbers, you'd think we'd be going into a depression every year in Jan/Feb.

 

Each survey is telling you something, these 2 are essentially telling you the same thing, as long as you understand the adjustments that are made to them.

 

if that's the case, when do they reconcile? care to make a prediction?

[Balta1701]

if that's the case, when do they reconcile? care to make a prediction?

Over the summer, just like they did last year, when Gallup's numbers crossed underneath the BLS numbers by quite a bit.

 

 

(The BLS numbers hung around 9.5% all last year before declining at the end. Gallup's went under the BLS numbers and then now is over the BLS numbers...because they don't seasonally adjust).

[Iwritecode]

I think I would classify myself as solidly in the middle class. Our house is a little less than 1000 square feet.

 

We have 5 TVs but only one is a flat-screen and 2 of them were given to us for free. One of them is at least 20 years old and doesn’t even use a remote.

 

We have 2 desktop computers but only 1 is actually connected to the internet. The other is 5+ years old and still runs on XP.

 

We have a family plan with 4 cell phones but we got 2 of them for free and none of them connect to the web. All we can do is talk or text.

 

We have basic cable and don’t subscribe to Netflix or anything like that.

 

We only have 1 everyday car that is 8 years old with 120,000 miles on it. It was paid off but we had to take a loan out on it again when the engine blew last year.

 

Our one “luxury” is our pop-up trailer and 1993 Suburban to tow it. Both are paid off though.

 

We also have 2 dogs and 3 cats so we have to add pet food, treats and cat litter into our grocery bill.

 

We could be a one-income family because I basically make enough myself to pay our regular bills but we are still trying to catch up from my wife being unemployed for about 9 months a few years ago and me being unemployed for 5 months just last year. I also believe I was quite underpaid for several years prior.

 

We figure we’ll finally catch up on everything including most outstanding debt and repairs in about 3 years. Of course that’s also about the time my oldest daughter will be graduating HS/moving out/heading to college.

 

We’ll finally be able to afford the bigger/better things that we needed when the kids were younger.

 

[Chisoxfn]

I'm pretty anal about what I spend on and when I spend it. That said I have two nice tv's (one nicer plasma that is a year old and than a 5 year old DLP). Desktop & Laptop (for my wife and I), plus a PS3.

 

We eat at home a lot and tend to eat pretty healthy (good cuts of meat, but we shop and buy when the meat is on sale).

 

From a car perspective, we have two cars, one we own free and clear and the other we just bought (put a pretty good amount down and pay it off over about 3.5 years) and it is nice (both are nice in my opinion) but we plan on owning each of our vehicles for an extended period (about 10 years). So it works well for us.

 

Our cost where we live right now is cheap and we are just saving whatever we can, but luckily, we have pretty much zero debt at this point in our lives, and even after forking up for our wedding, we have a good amount in savings and hope it can keep growing.

 

Of course, we have our vices and enjoy traveling (trying to go on an international vacation later this year) and my vice of having the baseball package, but we eat at home most of the time and bring our own lunches to work 3 to 4 days a week which helps.

[Y2HH]

I'm pretty anal about what I spend on and when I spend it. That said I have two nice tv's (one nicer plasma that is a year old and than a 5 year old DLP). Desktop & Laptop (for my wife and I), plus a PS3.

 

We eat at home a lot and tend to eat pretty healthy (good cuts of meat, but we shop and buy when the meat is on sale).

 

From a car perspective, we have two cars, one we own free and clear and the other we just bought (put a pretty good amount down and pay it off over about 3.5 years) and it is nice (both are nice in my opinion) but we plan on owning each of our vehicles for an extended period (about 10 years). So it works well for us.

 

Our cost where we live right now is cheap and we are just saving whatever we can, but luckily, we have pretty much zero debt at this point in our lives, and even after forking up for our wedding, we have a good amount in savings and hope it can keep growing.

 

Of course, we have our vices and enjoy traveling (trying to go on an international vacation later this year) and my vice of having the baseball package, but we eat at home most of the time and bring our own lunches to work 3 to 4 days a week which helps.

 

Good man.

 

It means you are living within your means. Now, you could always do what 80% of the country does, and live above and beyond your means, and then b**** about your credit card interest rates...

 

While I guessed at the 80% number, and it's been a while since I've looked it up, a vast majority of the country is in something like 5000$+ credit card debt (not counting other debt).

[Chisoxfn]

Good man.

 

It means you are living within your means. Now, you could always do what 80% of the country does, and live above and beyond your means, and then b**** about your credit card interest rates...

 

While I guessed at the 80% number, and it's been a while since I've looked it up, a vast majority of the country is in something like 5000$+ credit card debt (not counting other debt).

The other thing we both do that we feel is a important and I'm amazing at how many people don't do it, but both of us put aside a minimum of 12% of our income into our retirement funds. Never touch and never change and each of us have done so since our first professional jobs.

 

But than again, we are both accountants, so I guess it shouldn't be a surprise, haha.

 

It makes it easier that we make good money, but even when I was single and at my first job, I was able to find ways to save and always stay within the means. I think the key is that as you income grows, try not to just leasurely spend more. Think about saving more.

 

I've always said I don't need much more than a nice car. Sure it would be nice to have every single bell and whistle in a BMW or Lexus but for me, that wasn't a priority. I'll take the pretty nice version of the other cars, still a good cost, but it is safe, spacious and has all the key features I need. But each has there own priority.

 

And for us, since we are in the process of saving up for a bigger home and planning to start a family (hopefully with a nice savings since we know that there will be periods of time where we drop into being a one income family and on top of it see increased expenses associated with a kid), it has became more important to try and increase that savings.

[Chisoxfn]

All of the above said, I would have a hard time telling generically telling someone what an idiot they are for spenidng money. It all depends on their income and situation and incomes/situations can fluctuate a huge amount between people (even within classes), but the reality is if you don't make as much money than you shouldn't spend as much. Spend on the essentials and maybe you can't have all the luxury items you want, but whatever. For example, you live on your own you have more leeway than if you have to take care of a wife and kids on one income (so 50K for a single person might be middle class where as for a family of 4 I'm gonna say its much more lower middle class).

 

They are luxury items for a reason. And yes, buying an iphone and having a ridiculously expensive plan is a luxury item. If you can afford it great, but if you are barely getting by than you probably don't need it. Just have a basic internet connection at home and use your cell phone for voice calls. Or if you really need data, get one of the free data phones and the cheapest data plans out there. Of course, most of the people I know with Iphones probably shouldn't have them because they have loads of credit card debt but every year find ways to buy that new iphone (and I mean every year).

 

Credit Card debt is awful. It is like the worst kind of debt, the kind where you get raped at double digit interest rates.

[Y2HH]

Credit Card debt is awful. It is like the worst kind of debt, the kind where you get raped at double digit interest rates.

 

What credit card debt really is, without putting it nicely, is modern day slavery.

 

The interest rates are high enough (immorally high, IMO) that they know you will never pay it off, and will essentially be on the hook paying them for the rest of your life.

 

The top 5% that pay off 100% of their debt and the bottom 5% that default are easily canceled out by the middle 90% that get by with minimum payments and an ever growing balance.

[StrangeSox]

I'm too lazy to find it now, but there's studies out there. The "Americans have an average of $X000 of revolving debt" statement is true, but doesn't give the full story. Something like 40% of Americans don't carry any revolving debt. Something in the 10-20% range carry tens of thousands, distorting the per capita measurements. Kinda like putting me and Bill Gates in a room and taking the average wealth.

 

But it goes back to ever-rising costs of living and stagnant or shrinking real wages for most Americans. Our economy has grown over the past two decades, but that growth has been funneled mainly to a handful in the financial sectors. When your bills keep rising but your wages don't, you still have to make ends meet somehow.

 

And how well would our economy function without all of this consumerism? Demand creates jobs. If everyone cut back spending substantially, wouldn't that just close a lot of businesses and put a lot of people out of work?

[StrangeSox]

One of the nice things in the recent CC reform legislation is the requirements for CC companies to more clearly spell out what making the minimum payments will result in.

[Y2HH]

One of the nice things in the recent CC reform legislation is the requirements for CC companies to more clearly spell out what making the minimum payments will result in.

 

Too bad they've created a culture of non-understanding that spans 20 years and nobody bothers reading the new 'easy to understand' rules, since they've not been able to understand them for over 20 years...

 

While I applaud the effort to reform, the [most] people are still uninformed.

[Chisoxfn]

I don't really get what was so hard to understand.

[Iwritecode]

What credit card debt really is, without putting it nicely, is modern day slavery.

 

The interest rates are high enough (immorally high, IMO) that they know you will never pay it off, and will essentially be on the hook paying them for the rest of your life.

 

The top 5% that pay off 100% of their debt and the bottom 5% that default are easily canceled out by the middle 90% that get by with minimum payments and an ever growing balance.

 

We put nearly all of our purchases on 1 or 2 credit cards and then pay the balance off every month. The biggest reason is for the cashback bonus we get. So essentially we are getting paid to use our credit card. We haven't paid in interest/late fees in years.

[Balta1701]

I don't really get what was so hard to understand.

Hell, I know my deal pretty well, I pay it off every month as with the previous poster, and they've still found casual ways to ding me with fees. Currency conversion, or not cashing in points fast enough, or not buying enough from their approved list of merchants.

[Chisoxfn]

Hell, I know my deal pretty well, I pay it off every month as with the previous poster, and they've still found casual ways to ding me with fees. Currency conversion, or not cashing in points fast enough, or not buying enough from their approved list of merchants.

I don't think currency conversion is a way to necessarily ding you. There are costs associated with dealing with that.

 

And there is no requirement for any credit card I have to pay from approved merchants or cashing in my points. People need to spend time and review what CC they end up signing up for.

 

Get one with zero annual fee and a good point system, but understand that point system. Outside of that, interest rate won't matter too much, unless you plan on carrying a balance.

 

And what you are referring to relates to your rewards program. That is a completely seperate point anyway and it has nothing to do why people carry a debt. You don't win paying double digit interest, ever. Increasing the required minimum payment was a good start, but why people think that paying the minimum is a good idea (while still spending on luxury items, instead of cutting back) just blows my mind.

 

Note: I think in my entire credit card history, I got dinged like one, $15 dollar late fee. I called the CC company up and they waived it. It had to do with me switching my main bank account but forgetting to update my auto pay info.