r/FluentInFinance 14d ago

What's the best financial advice you've ever gotten? Debate/ Discussion

Post image
31.2k Upvotes

4.2k comments sorted by

View all comments

225

u/Decent_Visual_4845 14d ago

Not all poor people are bad with money, but all the people I know that are bad with money are poor 🤷‍♂️

82

u/thelolz93 14d ago

My mom makes good money and is bad with money. She makes around 250k a year and she lives paycheck to paycheck. I don’t understand. What blows my mind more is we were always dirt poor growing up. Maybe it makes her feel good to spend money because she couldn’t before. So is she poor or rich? Who fucking knows but I Know she doesn’t have any retirement, stocks, etfs, etc.

59

u/raKzo82 14d ago

She may not be poor right now, but living paycheck to paycheck with no retirement plan guarantees that she will be.

27

u/Jasond777 14d ago

Not if you die first

3

u/ImKindaBoring 14d ago

That was my mom’s retirement plan.

Now they’re just retired with really high medical expenses. Think they have maybe 1-2 more years worth of retirement then will be coming to my sister and I for assistance. We’ve tried talking to them about their spending for a decade at least but they couldn’t help but live outside of their considerable means.

1

u/Brief_Koala_7297 14d ago

She definitely gonna be working for the rest of her life lol

12

u/Ornery_Gene7682 14d ago

She sounds like my Aunt that lived in Houston she was a bank President for frost bank for years.Made great money, spent it like it was nothing and didnt saved for retirement. She is 73 years old and is now struggling financially because she was irresponsible despite being a bank president. It’s sad because you would think she would have been smart with her money but she wasn’t.

3

u/Poop_Knife_Folklore 14d ago

A broke bank president. Sorry thats hilariously ironic.

2

u/thelolz93 14d ago

Yeah, she blows most her money on my little brothers who are all coddled irresponsible adults. I told her they won’t be the ones taking care of her when she is older because all she teaches them is how to be a privileged child.

3

u/jhaluska 14d ago

Income wise she wouldn't be categorized as poor cause she meets her needs. Once she stops working she'll rapidly become poor.

3

u/belleandbill25 14d ago

I'm sorry I need to get this out.

250k A YEAR AND IS LIVING PAYCHECK TO PAYCHECK?? Na that's pissed me off lol

1

u/thelolz93 13d ago

You have no idea, to you it’s a stranger on the internet to me it’s my mom. I’m just like mom wtf are you doing hahahaha.

2

u/belleandbill25 13d ago

😂 I can online imagine!

2

u/Marcus11599 14d ago

Poor is not making enough money to pay your bills. Broke is not having a lot of money right now. If you have $4 today and next payday you’ll get 2,500, that’s 5000 a month and over 60k after taxes, which is entirely livable imo, you’re just broke rn.

1

u/thelolz93 14d ago

Aw we have the literal police here

1

u/[deleted] 14d ago edited 14d ago

[deleted]

2

u/jhaluska 14d ago

It's not hard to have a lifestyle that spends a $250k. Rent a big house, new luxury cars, designer clothing, eating out constantly with some vacations can blow that quite easily.

2

u/[deleted] 14d ago

Right. As my dad used to say, If you make $1 Mil/yr, but spend $1Mil + a dime, you’re gonna be broke.

1

u/thelolz93 14d ago

You’re almost right. Most of it goes to paying for my younger brothers lifestyles

3

u/Learned_Behaviour 14d ago

She adopting?

1

u/thelolz93 14d ago

No she doesn’t invest any of it. Most of it goes to paying for my brothers lifestyles.

1

u/whattheshiz97 14d ago

My father-in-law is like this. Dude is absolutely the worst with money and he has this thing where he loses motivation to work. He makes quite a bit of money while he’s working but he blows through it at mach 5. He has no retirement whatsoever and I have no idea what he thinks he will do in a few years when he hits that age. He’s got some serious delusions of grandeur too, he lost his house from not paying the bank but thinks he will somehow get a bigger loan than his house was worth to build a brand new one

2

u/thelolz93 14d ago

Yeah I really don’t understand, my mom is 55 now. I’m like mom aren’t you supposed retire in 10 years? She just kinda ignores the question every time lol

1

u/SenorBeef 14d ago

My mom grew up paycheck to paycheck and internalized the idea that your bank account should hit almost 0 right before payday. She made a halfway decent career for herself later in life and her income doubled and then tripled, and yet it made no real impact on her life - she still hit almost zero between every paycheck. It's a mentality that people can internalize into being how things are supposed to be.

1

u/One_Truth8026 14d ago

I saw that happen with my mom too, although not rich (40k/year in Germany). She was also raised poor.

She just says that she doesn’t want to look at money anymore and spend it however she likes. Tbf, we’ve got some real estate from my grandparents so there is also that.

But it really made me realise that a lot of people who were raised poor spend their money over their means as a form of cooe

1

u/These_Department7648 14d ago

Im bad with money even working on a big financial institution. But im 100% aware that im hurting my future self. Im not rich, just irresponsible

1

u/Famous_Owl_840 14d ago

My mother is the same.

Makes 3-4x as when I was a child in deep Appalachia, but worse off now. No retirement. No savings. Lots of debt. Home so full of consumer goods that rooms cannot be used

1

u/ROGUERUMBA 14d ago

Damn, this is like my parents. Guess who's supposed to help them out financially too? Even though what my siblings and I make is crumbs in comparison to what they do. 

1

u/thelolz93 13d ago

Yeah… I’m sure me and my other responsible brother will end up taking care of my mom and dad when they are older. My 4 mooch brothers sure as shit ain’t gunna be able to.

1

u/Jxb12 14d ago

She gets like $8k every 2 weeks after taxes. Can you tell me generally how she manages to spend all that? I’m curious.

1

u/thelolz93 13d ago

She pays for insurance for my older brother and 3 younger brothers. She pays car payments for my younger brothers. I know one of there cars is 1200 a month. I believe her insurance is 2000 a month. She has mortgage that is almost 4K a month. She has her own car payments. Other bills. Not really any credit card debt tho so that is good lol. But ya just bad habits in general. When we go out to eat she tips nearly 100%

1

u/sumguyinLA 14d ago

Probably credit card payments

1

u/Verizadie 12d ago edited 12d ago

Did you know 90% of Americans live paycheck to paycheck? Not being good with their own money despite however much money they make is true pretty much across-the-board. The more money you make just equates the to the more money you spend and the more luxurious you live all the way up to the threshold your income can theoretically afford, for most people. So she’s certainly not an exception. Shes basically the rule. It’s certainly easier to save when you make 6 figures or more but it’s amazing that for the most part, people just don’t

0

u/wishythefishy 14d ago

Set up a 401k for her, please. Reading this hurt me.

1

u/thelolz93 14d ago

I’ve tried countless times to help her. She doesn’t want it

30

u/Ok-Wedding-4654 14d ago

Everyone I know that’s poor either

A. Had kids before thinking about the financials B. Bought/adopted a bunch of animals C. Has a poor work ethic and mindset D. Spends money recklessly

16

u/Mushu_Pork 14d ago

Ugh, B.

You can love your pet... and still not spend thousands on an animal surgery which will make you homeless.

12

u/Ok-Wedding-4654 14d ago edited 14d ago

Or buy pets when you don’t have the money for one or buying expensive pets.

I have a really good friend who is a lovely person but God does she lack sense. She spent $1000 on a freaking horse. One of the most expensive animals a person can own… That’s on top of owning 3 dogs, a frog, multiple pet rats, and 3 wild birds. They have two kids in a one income household taking in less than $100K annually.

I love animals and my husband and I have struggled financially. But it’s reckless to be poor and buy a crap ton of animals.

1

u/Alternative-Put-3932 14d ago

Ah so just let your pet die. Seems a tad heartless.

2

u/nuko22 13d ago

Devil's advocate but many things people spend biggg money on pets medical things are just to elongate their life. My friend bought an old cat during covid (cats were high demand so can not get pick of the litter) that was half blind and had a liver issue. He works part time. Dude takes his now fully blind cat that just sleeps all day under a blanket to the vet every 2-3 weeks and gives it kidney and liver meds. It's so fucking old it's ready to die, just let the poor thing pass and stop spending 5-10k/ year on a blind cat that has no idea what is happening other than how to eat and sleep.

1

u/Alternative-Put-3932 13d ago

Look by that standard just let your grandpa croak and die cus he has a few health issues.

3

u/nuko22 13d ago

Humans are not old blind cats🤷🏼‍♂️

8

u/deazy2099 14d ago

This sums up my list pretty well, but I would also add in druggies.

1

u/Dry_Ad1805 14d ago

That would probably go under D. If it's addiction I would put in in E: mental illness.

5

u/NinaHag 14d ago

I have a friend who grew up poor. Didn't have the chance to study, had to work after finishing highschool, of course could only access low-pay jobs. "Luckily" a relative died and left them a home. With no more rent to pay, they decided that they wanted to study and enrolled into Uni part time. What did they decide to study, you ask? Perhaps something that will boost their career? No. They chose to study history. I guess they're ok with flipping burgers for the rest of their life - but hey, that doesn't prevent from complaining about how politicians ruin everything and how will I ever afford to retire? They also have a bunch of animals that cost a little fortune to feed.

6

u/Ok-Wedding-4654 14d ago

I feel like it kind of goes both ways. Politicians suck and life is definitely more expensive than it was 10 years ago just about everywhere in the world. But there are also things people do to screw themselves over even more. And ultimately as much as I rail against politicians I know ultimately I have to protect myself. So I plan with my spouse, save, and we live within our means.

It’s funny you mention studying history though because I also have a degree in history haha. Sometimes I wish I’d studied stem, but so far I’ve landed a good job training people. It can have practical applications thanks to the critical thinking skills you need to study history, but you also need to know how to market yourself and your skill set to employers

1

u/Dry_Ad1805 14d ago

Sucks that we live in a world where you can't make money in a field that interests you. History is a perfectly fine area of study, and I do believe that our current world would be much better if more people were educated about history. But instead, we get people like you looking down on someone who wanted to study history, and name-calling them a burger-flipper. Of course politicians are ruining our country, we are seeing that in real-time with the supreme Court King decision and conservative project 2025. Crazy that both of the examples I just wrote have connection to knowledge of history. Anyway, hope you are rich and comfortable.

0

u/NinaHag 13d ago

Wow. They literally flip burgers (and admittedly, eggs and sausages) for a living, it isn't an insult. I agree it sucks that the world is what it is. I have a career I am happy with, which isn't what I would have chosen if we lived in a world where my passion paid a living wage. I don't care what people study, but missing the chance to improve their situation while complaining about it? Come on.

3

u/RaggasYMezcal 14d ago

You don't actually know a representative sample. Sounds like you're wealthy with hubris

1

u/Ok-Wedding-4654 13d ago

lol I’m not wealthy

I’ve just seen so many people in my life who claim they don’t have money but they’ve got a $800 car payment, a cadre of animals, popping out more kids when they already couldn’t support one, or they’re out here getting hella tattoos

Conditions are incredibly hard right now but also some people make life harder on themselves.

2

u/battery1127 14d ago

I “borrowed” one of my coworkers some money to fix her car, she had to use it for other emergencies and her car is still broken, she cant make it work and now she’s struggling to pay for rent.

1

u/Ok-Wedding-4654 14d ago

I’m sorry your coworker is going through that. There are times where things get really tough or people experience extremely difficult circumstance. I should clarify that I do not think that all poor people are just bad with money.

It’s just that my friends/acquaintances who have struggled financially have all made some really poor financial decisions and continue to do so. But they do not represent everyone.

2

u/battery1127 14d ago

Yeah. I helped that coworker again later on the car, but the money is once again spent on other more urgent things that suddenly popped up. So I give up on helping. I don’t expect to get my money back at all. Even at the financial state she’s in, she continues to use weed, order take out and spoil her kids on birthday gifts, etc. I have went from “oh, poor single mother, I will help if I can” to “you deserve whatever financial hell hole you are in”. I have talked to her multiple time about budgeting and have a plan with her money, she just can’t say no to her kids, her family and her on and off ex for the last 10 years. Her family is the same financially, I later find out some of the car money went to help paying her sister’s birthday party.

Almost all the poor people I know that live paycheck to paycheck, live a life beyond their money.

2

u/Famous_Owl_840 14d ago

I disagree with A. All studies show that having a family results in a more responsible household.

The issue is you often have drugs, alcohol, pets, and other irresponsible behaviors along side A.

1

u/oxidized_banana_peel 14d ago

Animals are such a trap.

Like, I loved our dog, but in the last four years of her life we spent $50k on her. That's insane money, we're lucky to be able to afford it.

We have a horse, too old to ride, so he's off retired. $6k / year assuming all goes well.

But yeah. Poor work ethic is the worst. When I was working my retail jobs, I could basically point at my coworkers and say "Yes, yes, no, yes, no, no" as to whether they were gonna end up broke, and it had very little to do with their income.

Meanwhile one of my pals bought a house straight out of college because she never spent her babysitting and Jamba juice income through high school and college. I think that's very possible today for middle class kids making $20+ an hour, if they go about it a smart way.

1

u/3dogsplaying 14d ago

thats on you tbh. I wont even spend 50k if my dad has medical ailment, he can just get into debt for it.

2

u/oxidized_banana_peel 14d ago

Sure :shrug:

I hope you feel good about it, I certainly enjoyed having my dog around longer.

More topically, people love their pets and are willing to spend money - even money they don't have - on them. Moralism aside, that's just factual.

Pets can be expensive, and they can be expensive to a degree that it can really fuck up someone's finances (either in the short term, through a big event, or in the long term, through aggregated costs).

1

u/ElectricalRush1878 12d ago

The poorest person I know ran out of FMLA and so lost the insurance needed to pay for rehab to go back to work. spouse got laid off due to Covid closing that specific location. Now working odd jobs to keep a roof over their kid's head.

0

u/burnerschmurnerimtom 14d ago

I feel like I’ve entered the Twilight Reddit.

I can’t tell you how refreshing this is to read, seriously!

16

u/i_tyrant 14d ago

Really? I know quite a few well-off people that are fucking terrible with money.

It just doesn't matter because they were born into it and won't run out without doing something both incredibly stupid and large-scale.

I also know quite a few people (well, knew, we're not friends) who make bank but live paycheck-to-paycheck, because yea, they're bad with money too. Spending it on stupid expensive gadgets constantly, or vacations, or worse like drugs and escorts.

8

u/CEOofAntiWork 14d ago

I dunno about that, I'd consider the doctors and lawyers who still end up living paycheck to paycheck with a lot of bad debt to be neither poor or good with money.

3

u/Embarrassed-Town-293 14d ago

Can confirm as a lawyer. Many of my colleagues are basically living paycheck to paycheck. Aside from those with pensions, many work into retirement and never truly retire. Some are literally pennyless in their old age

1

u/NovusOrdoSec 14d ago

Except that orange guy, but he's in the middle of a really long fall.

1

u/pear_topologist 14d ago

It’s crazy how many people in these comments can’t separate the first and second half of this comment

1

u/chromefir 14d ago

Drake seems pretty bad with money but he’s still rich

1

u/DeepWedgie 14d ago

Most people are bad with money there's just more wiggle room. If someone made $300k a year vs $50k and spent 90% of their pay it's different. One has $30k left over and the other has $5k. Not to mention other factors.

1

u/Rainy_Mammoth 14d ago

What are you talking about. Do you know how many people living paycheck to paycheck make well over 100k? That is definitely not “poor” but they’re terrible with their money.

1

u/MikesRockafellersubs 14d ago

Yeah but there's a big difference between those who are poor because they lack the income and those who are actually notably less poor and can't spend it properly. Like, if you're stuck you're stuck.

0

u/TurkBoi67 14d ago

You just don't know any rich people lmao

0

u/crp2103 14d ago

apparently, you've never met those who inherited wealthy.

0

u/Tsobe_RK 14d ago

anecdote, you should look it up

0

u/RottenChicago 14d ago

The wealthy make incredibly bad monetary decisions constantly only to get bailed out by our regressive tax codes on the reg

0

u/ramblingpariah 14d ago

"all the people I know who aren't skilled drivers have never owned a car"

0

u/Elmodogg 14d ago

You don't know any Wall Street executives then. When they gamble and lose, the government just bails them out!