More than half of Canadians living paycheque to paycheque

[red sky]

Originally Posted by peter12

Outside of having kids, the realm of personal finance is dominated by opportunity cost. Some people are better at making those trade-offs than others. I'm a grad student, make very little money, and I own a pair of $500 shoes. That's not bragging. I sacrificed lots of other things over a long period of time to afford them. It's about choosing to be frugal in some areas, and choosing to splurge in others. I just find that lots of people lack that basic skill.

As many here have said... the extravagance of my fellow generation just blows me away. Lots of peers and friends don't seem to understand that you just can't have it all.

Peter doesn't sound like a girls name?

[THE SCUD]

Originally Posted by peter12

Outside of having kids, the realm of personal finance is dominated by opportunity cost. Some people are better at making those trade-offs than others. I'm a grad student, make very little money, and I own a pair of $500 shoes. That's not bragging. I sacrificed lots of other things over a long period of time to afford them. It's about choosing to be frugal in some areas, and choosing to splurge in others. I just find that lots of people lack that basic skill.

As many here have said... the extravagance of my fellow generation just blows me away. Lots of peers and friends don't seem to understand that you just can't have it all.

You can if you don't go to school studying 'whimsical thinking' into your late 20's.

[eddly]

This isn't all that surprising. Imagine what things would look like if we didn't have credit "freely" available to us. This economic crisis that is lingering would look a lot worse. I graduated from university in late 2008, just in time for the recession!

[Azure]

Originally Posted by Muta

I go shopping for clothes once a year, use as many coupons as I possibly can wherever I can, and I've cut down going out on the town (well, not recently). Spend less that you make, and there's the basic starting principal.

I honestly don't understand how people can live decadent lifestyles and not be able to afford it. I know a couple people like this. I also know people who whine about not having any money, but then have no problem suggesting going to Mercato for dinner on a Friday night.

Boogles the mind, I tell yaz....

Credit, credit, credit with minimum payments being made each month.

[Azure]

Originally Posted by 8sPOT

It's not always overspending that puts people in these situations. My wife and I were living comfortably and decided to purchase a local business. Tried running the business with employees but felt we were not maximizing the potential. Wife took a 5 year leave from Canada Post to concentrate on the business full time and BAM, just like that we are basically down to one pay cheque.

Our mindset is 2 years from now we will 'hopefully' be better off than we are now. But, at the moment, we are absolutely living pay cheque to pay cheque and it's a horrible thing.

I would venture a guess that people like you make up 10% of the people that live paycheck to paycheck. Maybe even 5%. The other 95% just spend more than they make, or simply can't afford to make ends meet.

[Azure]

Originally Posted by Hesla

My wife and I were able to save up quite a bit of money and service our debt when we were both working. Now that she is on Mat leave we are living paycheque to paycheque while still servicing the debt. This experience has taught us that the $1000 a month spent on fancy dinners and bottles of wine is something that we can do without (for now).

I could never understand what people have against leasing your vehicle. It is going to depreciate anyways. May as well think of it as renting a vehicle for 3 or 4 years and then dropping it off and renting a new one for the next 3 or 4 years.

If you have the $300/month that it costs to lease a lower-end vehicle, I would lease too.

Some people like to pay slightly more for 3 years, own the vehicle, and then not pay anything for 5 more years while they drive it into the ground.

And during that 5 years you put away a large down payment to buy your next car, and only rent to own for 2 years, and then drive it into the ground for another 5 years. I know a couple people who have done it like that, and they say they're better off and actually save money in the end.

[Azure]

Originally Posted by eddly

This isn't all that surprising. Imagine what things would look like if we didn't have credit "freely" available to us. This economic crisis that is lingering would look a lot worse. I graduated from university in late 2008, just in time for the recession!

What would happen? Credit is important for businesses, and it makes things a lot more easier for people who can afford to make their monthly payments because the bill is always paid for on the same day, but freely available credit is a big problem. Maybe not as bad as a sub-prime mortgage, but the amount of credit available to people without any history of making payments should be VERY low.

[shermanator]

Furthering the credit debate, how many people in their late 20's have numerous credit cards? Most of my friends have 3 or 4, and most of them are maxed.

[Kybosh]

Originally Posted by shermanator

Furthering the credit debate, how many people in their late 20's have numerous credit cards? Most of my friends have 3 or 4, and most of them are maxed.

I shouldn't be surprised, but that is insanely stupid on their part.

I have a single credit card, and I try my damnedest to keep nothing on it. It's not always possible, but I try. Shockingly if you pay off your debts, life is quite a bit less stressful even if you don't have the newest smart phone to show for it.

[The Yen Man]

Originally Posted by Kybosh

I shouldn't be surprised, but that is insanely stupid on their part.

I have a single credit card, and I try my damnedest to keep nothing on it. It's not always possible, but I try. Shockingly if you pay off your debts, life is quite a bit less stressful even if you don't have the newest smart phone to show for it.

I dunno, credit cards are great if used properly. I have 3 which all give their own rewards. I put everything that I can on them. Depending on the time of the month, I use whichever has the longest time until the statement date. I've had credit cards for over 12 years now, and I have never once carried a balance. But its sure nice to get a nice rebate payment every year, thats for sure.

[Kybosh]

Originally Posted by The Yen Man

I dunno, credit cards are great if used properly. I have 3 which all give their own rewards. I put everything that I can on them. Depending on the time of the month, I use whichever has the longest time until the statement date. I've had credit cards for over 12 years now, and I have never once carried a balance. But its sure nice to get a nice rebate payment every year, thats for sure.

Yeah, but you're cards aren't maxed out. Maxing multiple cards out is the insanely stupid part.

[shermanator]

Originally Posted by The Yen Man

I dunno, credit cards are great if used properly. I have 3 which all give their own rewards. I put everything that I can on them. Depending on the time of the month, I use whichever has the longest time until the statement date. I've had credit cards for over 12 years now, and I have never once carried a balance. But its sure nice to get a nice rebate payment every year, thats for sure.

They have their rewards if paid off every month, of course. I put a lot one my one credit card to get cash back but it's always paid off. Most of my friends can't say the same.

[chemgear]

Originally Posted by eddly

Imagine what things would look like if we didn't have credit "freely" available to us. This economic crisis that is lingering would look a lot worse. I graduated from university in late 2008, just in time for the recession!

The impression that I get is that the lingering economic crisis is heavily due to individuals, households and especially nations having racked up so much debt in the first place.

Europe doesn't really seem to have a solution, perhaps just delaying the inevitable? The US looks to be fighting over how/if to deal with their national debt as well.

Mind you, I'm no expert but it is interesting to watch.

[Sylvanfan]

Considering that 40% of men from my dads side of the family didn't make it to 67 years old, and my wife's health is worse than mine, why the fart shouldn't I live pay cheque to pay cheque?

I swear saving money has been a curse for me. Dog blows a tendon in his knee...that's 2000 bucks or a dirt nap for the dog...window on my vehicle gets smashed out that's only 600 bucks. Wife insists that she needs this $5000 mouth orthodox to stop her constant head aches. This run of scheisen luck has me living like a desperate peasant, and spending like a high roller. I should have blown my money on more vacations, clothes, liquour, and fancy cars....I bet none of this other crap would happen.

[GirlySports]

if you blew your money on all the stuff you wouldn't have a dog anymore.

[MoneyGuy]

Originally Posted by red sky

Peter doesn't sound like a girls name?

Peter is a girl who chose to celebrate her favorite male part in her username. It was that or Dick.

[North East Goon]

Originally Posted by peter12

Outside of having kids, the realm of personal finance is dominated by opportunity cost. Some people are better at making those trade-offs than others. I'm a grad student, make very little money, and I own a pair of $500 shoes. That's not bragging. I sacrificed lots of other things over a long period of time to afford them. It's about choosing to be frugal in some areas, and choosing to splurge in others. I just find that lots of people lack that basic skill.

As many here have said... the extravagance of my fellow generation just blows me away. Lots of peers and friends don't seem to understand that you just can't have it all.

I have never seen a mens pair of $500 dollar shoes, do they come with a built in TV or something?

[VladtheImpaler]

Originally Posted by North East Goon

I have never seen a mens pair of $500 dollar shoes, do they come with a built in TV or something?

He didn't say they were men's did he?

[North East Goon]

Ahhh, one of those...

[valo403]

Originally Posted by North East Goon

I have never seen a mens pair of $500 dollar shoes, do they come with a built in TV or something?

Seriously? They aren't uncommon. At all.