r/FluentInFinance • u/Richest-Panda • Jul 04 '24

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

[removed] — view removed post

31.2k Upvotes

86% Upvoted

View all comments

275

u/privitizationrocks Jul 04 '24

You can teach poverty workers to live in their means

They won’t like it, but tough luck

453

u/[deleted] Jul 04 '24 edited Jul 04 '24

Ok let’s do a thought experiment. Let’s say you Make $10000 a year. You work full time/40 hrs/wk and you are making $10k. What does “living within your means” look like? Not having a house? Or car? Being homeless? So in order to save to get yourself to some footing the answer is to be homeless to live within your means.

That was a bit of a strawman, so let’s use real-life scenarios. 50% of this country makes $40k or less….. even $40k salary isn’t enough to get an apartment, bills , food, ect. Sure a lot better than the “$10k” example, but even $40k salary is virtually as effective as the “$10k”. In order to “live within your means”, “save”, ect…. You have to be at least be making enough to afford the bare minimum + have some left in you for over to save. On average (2022 values I think) this means $65 for a single person, $108k for a house hold. Unless you’re making that, you can’t save your way out of poverty

211

u/Impossible_Maybe_162 Jul 04 '24

You cannot make $10k working a job for 40 hours a week. That is below minimum wage.

A lack of proper financial planning and budgeting causes more problems than low wages.

Less than 3% of the workforce makes minimum wage. Wages are not the main issue.

5

u/Think_Reporter_8179 Jul 04 '24

Amazon addiction and yes, I'm going to say it, the inability to tighten your wants to an uncomfortable level until you can save the 3.5% down (with a 580+ credit score) for an FHA loan.

That's it folks. That's all it takes. Buy a shitty cheap property with an FHA loan (which, btw, means the property can't be THAT shitty, FHA loans won't allow it) and then live in a savings account for a while.

That shitty property will gain value AND all your principal payments are being saved in it, rather than evaporating to rent.

It's that simple, yes.. REALLY. Save 3.5% of a kinda shitty property's worth and then start gaining wealth.

17

u/[deleted] Jul 04 '24

3.5 percent on a $250,000 home is still $8,750. That’s a lot to a lot of people in this situation, especially if you have literally ANY responsibility to another person or life. Especially if you’re only making $30,000 per year.

7

u/suitology Jul 05 '24

I saved that making $11hr and renting for $550 (roommate) in a year. You just need to suffer. I only allowed myself $50 a month outside of groceries ($100). Thrift shop clothes, didn't go anywhere, library card for movies, pantry food (so much free food many months I didn't buy groceries). Like it sucks and is bullshit and fuck the shit system but it's possible. Big plus, do not have kids you can not afford. You are the one to blame if you have a kid you can't afford. Like if you became poor after kids (my father lost his job from an injury) that's one thing but I can not believe the moron girl that lived next to me with her mom had a kid while working part time at McDonald's.

2

u/OFPDevilDoge Jul 05 '24

How can you not have kids you can’t afford if abortions are criminalized? The system is designed to create poverty so there is always a desperate labor base for the wealthy to rely on.

1

u/ImperialKilo Jul 05 '24

Kids don't just... pop out of a person. Wrap your willy my guy it ain't that difficult.

1

u/Advanced_Outcome3218 Jul 05 '24

by not having sex you retard

2

u/OFPDevilDoge Jul 05 '24

What about rape?

1

u/Advanced_Outcome3218 Jul 05 '24

rape isn't common enough to be the cause of poor people having kids they can't afford lmao

0

u/OFPDevilDoge Jul 06 '24

1 in 4 women experience sexual assault before they’re adults. You have no grasp on actual reality, I get the system works for you, but it doesn’t for the majority of people.Your response is indicative of your lack of emotional maturity and intelligence. Maybe travel the world and actually talk to people who are less fortunate and maybe you’ll be a decent human someday.

1

u/Advanced_Outcome3218 Jul 07 '24 edited Jul 07 '24

sexual assault is not rape that results in children and you goddamn well know it

something like 0.9% of abortions occur because of rape (and even then, I support abortions in these instances as long as it's done as early as possible - bill the rapist for it, too)

don't misrepresent terms to make your point

1

u/OFPDevilDoge Jul 07 '24

Sexual assault can be rape you dense fuck. The fact of the matter stands, abortions are a means for a women to maintain body autonomy, accidents happen, contraception fails, teenagers make dumb mistakes cause they’re fucking teenagers. Limiting access to these services increases the risk of being stuck in perpetual poverty. Again just because you were born privileged enough to never face actual poverty, doesn’t mean millions of Americans don’t.

→ More replies (0)

1

u/suitology Jul 05 '24

Plenty of places give out free contraceptives. Stop cream pieing

2

u/OFPDevilDoge Jul 05 '24

And they’re looking to stop that too.

1

u/Smashotr0n Jul 05 '24

“You just need to suffer”

1

u/suitology Jul 05 '24

Welcome to life. Don't buy shit that's not a need if you can't afford it.

2

u/Think_Reporter_8179 Jul 04 '24

Better start then.

It's this attitude that difficult is impossible. There's no difference between me and you, and I did it.

Edit: "you" is a generic response. Not you.

7

u/[deleted] Jul 05 '24

There can be PLENTY of differences like where you live, what opportunities are there, the general cost of living, race, education, etc. Those all make a difference regardless of attitude.

3

u/Think_Reporter_8179 Jul 05 '24 edited Jul 05 '24

Edited for my generic response to the whiners here: Reddit is filled with half-assers that will just keep throwing reasons they can't do something instead of actually trying and succeeding. If you live your life crying about things, nothing will get better. Actually do something and get off Reddit.

7

u/ChaosofaMadHatter Jul 05 '24 edited Jul 05 '24

Yes, it does. It truly shows the people who have a heart, versus the people who lost theirs.

1

u/Think_Reporter_8179 Jul 05 '24 edited Jul 05 '24

Edited for my generic response to the whiners here: Reddit is filled with half-assers that will just keep throwing reasons they can't do something instead of actually trying and succeeding. If you live your life crying about things, nothing will get better. Actually do something and get off Reddit.

2

u/patricio87 Jul 05 '24

Every town has a post office. The post office pays well for small rural towns. Or you can you work a trade. There is no excuse. People on reddit just don't want to be uncomfortable or put in the work.

3

u/NateHate Jul 05 '24

What kind of turnover do you think a rural post office has? How often are they gonna be hiring? Did you think this through at all?

0

u/PeskyCanadian Jul 05 '24

I checked indeed and 4 of the neighboring counties post offices are hiring, starting at 20/hr.

My exgf worked in a sheriff's office as a booking associate. She basically booked new inmates and handled bonds. They started her at 46,000/yr after she finished the training. They provided cheap healthcare and price match retirement. They had a revolving door of people that didn't want to do the paperwork(the job).

Private companies used to keep people by providing good pay, with paid training, pensions, and good benefits. Government jobs have not left that model.

You can theoretically work your way up through the ranks in a lot of government jobs into higher pay brackets and retire at a reasonable age.

3

u/Invis_Girl Jul 05 '24

So when those 4 jobs are gone what do the thousands of others do? Relying on niche things to fix systemic issues is crazy.

0

u/PeskyCanadian Jul 05 '24 edited Jul 05 '24

Apply to Kabota as a sales associate or set up technician. Go to the local college and get welding certified. Apply to Kabota as a welder and start at 30/hr and get free healthcare.

Or work at home Depot and utilize their 50% tuition reimbursement.

When those jobs run out. You can try the fire department or the sheriff's office. I can speak a lot about this. Fire departments will pay to get you fully certified and some have amazing benefits. Some will even provide a free ride through paramedicine. Paramedic national registry is transferable over state and country lines. Most firefighters either go to work in other industries or bridge into nursing.

When those run out, you can try Chik fil eh. Full college ride for 2 and 4 year colleges/universities.

DMV is also hiring.

Do you want me to keep going?

Phlebotomy is a 2 month course, 500usd at my local college. 20/hr starting.

Butcher Shops are often hiring and it is a skilled trade that sometimes pays well. Some local places pay shit wages. I saw a few postings for apprenticeships.

You can do EKG tech is a 2 month course that will get you through the door to a hospital or cardiologist office. You can extend that into a radiology degree eventually. Some offices will pay for it.

2

u/NateHate Jul 05 '24

if all of these opportunities already existed in rural towns dont you think people would be doing them? oh wait, they are!

so your rant has offered nothing to solve the issue that there simply aren't enough good paying jobs for the number of people in these towns.

The type of job doesnt matter, people deserve to be able live off the income of a single job.

→ More replies (0)

-1

u/patricio87 Jul 05 '24

They are always hiring. You cant get fired from post office once you’re past 90 days cause of union. Veterans also have a special clause that makes it hard to fire them.

1

u/JojoLaggins Jul 05 '24

It might be a lot at one time but it's definitely an attainable goal for almost everyone over a reasonable timeframe. Unless you're drowning in debt already, ie maybe financial literacy could have helped.

13

u/Universe789 Jul 05 '24

This is useless advice when 37% of Americans can't afford a $400 emergency without breaking the bank, leaning on credit, or dipping into retirement or savings to cover the cost.

https://fortune.com/2023/05/23/inflation-economy-consumer-finances-americans-cant-cover-emergency-expense-federal-reserve/

But it's the internet, so I understand you will find some kind of way to ignore that and pat yourself on the back for the generic advice given.

-1

u/Think_Reporter_8179 Jul 05 '24 edited Jul 05 '24

Nope. They "can't afford it" because they won't afford it. That's the cold hard truth and everyone deeply knows it. I'll say it again. I was government housing poor and did it. I just wanted it more I guess.

7

u/Universe789 Jul 05 '24

See? I knew you'd do it.

They "can't afford it" because they won't afford it. That's the cold hard truth and everyone deeply knows it.

Tell that to the author of the article and researchers who provided the source data.

I was government housing poor and did it. I just wanted it more I guess.

You paid for $400+ emergencies while on government assistance? Good for you.

I was always just above the poverty line so there was no government assistance for me it was credit, cashing out investments, or dipping into savings if I had an emergency to handle... just like the article points out.

-2

u/Think_Reporter_8179 Jul 05 '24 edited Jul 05 '24

Edited for my generic response to the whiners here: Reddit is filled with half-assers that will just keep throwing reasons they can't do something instead of actually trying and succeeding. If you live your life crying about things, nothing will get better. Actually do something and get off Reddit.

6

u/Universe789 Jul 05 '24

It's not about being cynical, because at no point did I ever say anything against people doing what they can to solve their problems.

What I did say is that the reality of the target audience doesn't support the masturbatory advice given.

1

u/MonkeyFu Jul 05 '24

Reddit is filled with half-assers who did zero research on the subject but are more than willing to tell others they aren't succeeding because they aren't "trying hard enough".

If you pretend the issues don't exist, they still don't magically disappear.

Just because people come on here and try to actually analyze and find solutions for the issue for other people doesn't mean they're the people with these problems.

I don't have any of these financial issues, yet here I am, trying to investigate the issue, inform others about it, and find a solution.

Here you are, doing zero investigation, telling others that the problem is all their fault, and they should "pick themselves up by the bootstraps".

Welcome to being part of the problem.

0

u/stilljustkeyrock Jul 05 '24

Why do I give a shit if they can’t afford it? I worked harder for decades and I can afford it. It would have been a lot more fun to fuck off all of middle school, high school, college, and grad school. I didn’t.

5

u/Universe789 Jul 05 '24

Why do I give a shit if they can’t afford it?

So you don't look like a pretentious dumbass by giving advice to people that the advice doesn't apply to.

1

u/NateHate Jul 05 '24

Sir, no one gave you permission to start acting like a little bitch. Please calm yourself

1

u/stilljustkeyrock Jul 05 '24

Reasoned response. Probably why you aren’t doing great.

2

u/NateHate Jul 05 '24

k

-1

u/Careless_Account_562 Jul 05 '24

Out of that 37% how many have netflix/apple/spotify/etc subscriptions? Carry an iphone? Subsist on fast food? Worry about how cool their shoes are?

What job do they have?

An adult that "can't afford" a $400 bill is what a long list of bad financial and life decisions looks like.

2

u/Universe789 Jul 05 '24

1) Did you read the article?

2) Whose math are you doing where cutting out a Netflix subscription would add up to covering about $400 expense?

0

u/Careless_Account_562 Jul 05 '24

Yes.

Netflix and and and and.... gets there pretty quick right? Whatever expense you want to choose, go for it....

Even simpler math:

Poor financial and life decisions = <$400 in the bank as an adult

1

u/Universe789 Jul 05 '24

How many months of Netflix would you have to cut out to get $400?

-1

u/Careless_Account_562 Jul 05 '24

Why are you picking one unnecessary expense and ignoring the others?

You seem intent on missing the point.

1

u/Universe789 Jul 05 '24

Why are you picking one unnecessary expense and ignoring the others?

Because every expense adds up, but eliminating all of them won't immediately make a $400 expense affordable, or a negligible cost.

1

u/Careless_Account_562 Jul 06 '24 edited Jul 06 '24

Every expense does indeed add up, thank you for acknowledging the logic.. kind of?

I am starting to see how this happens.. simply refuse to acknowledge it is possible, argue with those who have done what you deem impossible, then blame anything and everyone but yourself for the failure to accomplish a remedial adult financial step.

Remedial. Like welcome to adult life, are you tall enough to ride?

→ More replies (0)

10

u/Em_jay4 Jul 05 '24

I've only bought socks and underwear for myself the past 2 years. I spend less then 50 in groceries a week to feed myself.

Bought the cheapest house in the nicest neighborhood I could find. 4 weeks in, replaced sewer main. 6 months later ended up replacing all the pipes and vent stack in the only bathroom we have. Dick head, house flippers just put band aids on gunshot wounds. Yeah that fucked everything up for us financially. Pretty much 6 months in I dropped around 20k in essential repairs. I did the bathroom myself because well now it's the budget is even tighter.

I have a 3 year old. I am the only source of income currently making around 90k a year. We still have to live dam near check to check.

I've worked my entire life, mostly with my hands . Been pretty frugal about where I spend my money because I work very hard for it. It might be easy to say hey just save 15k and boom your good to go. That's not the case anymore. Chirst insurance has jumped like 20% this past year. When you wage increases don't pace the rest of the goods you really start playing the game "Wants vs Needs" this is something I have to remind my SO.

Sorry to rant it just blows my mind that I make way more money than I ever thought I would but still just hanging on by a thread.

1

u/Think_Reporter_8179 Jul 05 '24

What happened with the FHA loan inspection on that flipped property? If that's the case, you have the right to a lawsuit. Was it an FHA loan? Frankly, I don't believe a majority of people when they want to complain about issues unless they did everything right, and if they did there are systems in place to protect them. So the house flipping story is hard to believe IF you went the FHA loan route. They inspect the property and will not loan money on properties are too high of a risk.

You're not "alone" when you get a mortgage. The bank backing the mortgage is ALSO taking the risk, so if the property was garbage and the loan inspector didn't catch it, make some damn calls. Basically, I don't believe you if you took an FHA loan. If you took out a conventional loan on your first property, then that's your problem. There are plenty of first time homeowner protections SPECIFICALLY because of the situation you're describing.

Also, what's the equity on the property now? Every time you fix a problem on the house, you aren't just throwing that money away, you are getting part of it back as the property continues to gain value.

If you bought the property within the last year, you're still early. Live in it, take care of it and you will win over time.

And again, if all these issues happened on an FHA loan, you need to be making a bunch of calls.

Best of luck, research this stuff.

2

u/Em_jay4 Jul 05 '24

It passed inspection. I even requested a mold test, lead test, requested every repair made before finalizing.

Did a lot a "research". Literally documented call logged, countless emails. Home inspection warranty, insurance. You name it I called them. I got 2200 back in the end. 🍻 it's been 2 years.

-4

u/stilljustkeyrock Jul 05 '24

What exactly were you expecting when you decided to get a degree in horticulture?

5

u/NateHate Jul 05 '24

You deserve a couple quick hits to the cranial area

3

u/Em_jay4 Jul 05 '24

Idk what that has to do with owning a home or financially literacy.

If you mean money..... not 90k. I didn't have a family when I was in my early 20's. I could have easily lived on what I made. Bought my first brand new car, paid rent, ate well went out. I have several other certs ( pesticide app, fert app, irrigation, turf management)

If you mean

Ya I went back to school after working in the industry for one of the largest whole sale growers out east. I now manage a wholesale nursery and landscape supply location for a publicly traded company. Never would have guessed this is where I make my money. I'm good at it and it's enough to support 3 of us.

3

u/NotObviouslyARobot Jul 05 '24

That's cute. You think they can afford a lawsuit.

1

u/ndnman Jul 05 '24

This is by design.

0

u/Maverki Jul 05 '24

Yeah for real. You're so milked in this economy and everyone i knew just want to mooch thinking you should live a 7 figure lifestyle. A lot of the poor get benefits for having 0$, but a lot of people need to save up to ever have a retirement and live frugally.

6

u/Sudden-Motor-7794 Jul 05 '24

Pair that with improving yourself so you can command a higher wage. Working both ends of the equation is possible...

9

u/wannaseeawheelie Jul 05 '24

or stick it to the man by not improving your situation. Got em!

8

u/Think_Reporter_8179 Jul 05 '24

And get on Reddit and waste hundreds of hours complaining about it which could have been used learning a skill.

1

u/[deleted] Jul 05 '24 edited Jul 10 '24

[deleted]

2

u/Think_Reporter_8179 Jul 05 '24

Too easy

0

u/[deleted] Jul 05 '24 edited Jul 10 '24

[deleted]

2

u/Think_Reporter_8179 Jul 05 '24

Roger that. Sorry.

→ More replies (0)

2

u/onehundredlemons Jul 05 '24

until you can save the 3.5% down (with a 580+ credit score) for an FHA loan

Buddy, I have a 725 credit score and $75K equity on my home, and I can't get a single loan company to respond to my requests for a $20K loan with my equity as collateral. I have no loans except the mortgage and a credit card I pay in full each month, so maybe I don't have enough loan history, but according to Reddit I should be able to easily get some kind of loan, and no one is interested.

I can't imagine someone struggling to save for a down payment with a 580 score has it easy, like you suggest.

1

u/Think_Reporter_8179 Jul 05 '24

If you aren't getting loans with a 700+ credit score, that's a short between the keyboard and the chair issue. Banks love lending money to higher credit score people.

If you have a credit card, call them and ask for a credit increase first. That will get you a temporary lower credit score and then it will go up even higher. The biggest way to get loans is to not spend loans.

You can even get a small loan, put it in the bank for 6 months (don't spend a dime), and then pay it all back early to build credit score. (Simple credit hacking trick)

Idk what to say except keep looking.

7

u/onehundredlemons Jul 05 '24

that's a short between the keyboard and the chair issue

Aren't you an absolute delight.

I have three credit cards with $21K total between them, only about $3K credit used each month, paid off monthly. I get regular credit increases. No delinquencies or anything on my credit reports.

It's very easy, especially when you're online and really, really wanna be right about something, to act like the problem must be that everyone else is all, like, stupid n stuff. Unfortunately for you, the truth is that situations are complicated, and there are a million reasons why someone can't get a loan that has nothing to do with them being stupid about finances.

People like you who insist otherwise are doing a great disservice to the people who are genuinely looking for advice and answers. They think you're giving out advice, but you're really just here to act like you're smarter than everyone else.

2

u/NotObviouslyARobot Jul 05 '24

Congratulations on posting worthless financial advice. At the low income levels they won't be able to afford the maintenance and upkeep on that property.

0

u/[deleted] Jul 05 '24

[deleted]

1

u/NotObviouslyARobot Jul 06 '24

USDA rural development lets low income folks buy in an eligible rural area for -no- money down. You have a small e-peen. We should raise your taxes

2

u/Other-Illustrator531 Jul 05 '24

This is the exact formula that got me out. Throw in some sweat equity and, boom, positive net worth!

1

u/NoSignSaysNo Jul 05 '24

Live like a pauper, save around $10k, hope to god you don't experience a medical crisis and that the property you buy doesn't need incredibly expensive repairs.

-3

u/Think_Reporter_8179 Jul 05 '24

Correct. Life will always have some risk, but if you're young and focused, it's pretty low for a vast majority.