Do You Stress About Money?

[Picus]

Stress about money? Er, yes. Detailing full time in a climate with 5 months of winter = good times. My wife recently left her job of 12 years and took a 300% pay cut so, well, you know. My biggest indulgence is my car, I've been toying with the idea of selling it so who knows.

[yrebel7tpx]

the only thing i have to say about money is
DAVE RAMSEY
that is all you need to know

[Joel_MD]

There was a time when I was severely stressed about money. It was 1997-1998, and I was a recent college grad on active duty with the military. I owed a ton of money for college loans, credit cards, and a car loan. I lived in a crappy apartment and had zero money for fun or frivolity. I didn't even have a phone! The interest alone was hundreds of dollars each month and I was making no headway on my debt. My credit rating was really bad due to late payments. I was to the point where I had to either get a huge loan to pay everything off or declare bankruptcy. Fortunately my mother took pity on me and raided her retirement account to give me a zero interest loan. I paid off everything except the Federal student loans. I sold my car and bought a cheaper one with cash. Then I paid my mom a huge payment each month for about four years to pay off the loan. I lived like a pauper for a few years.

I learned some valuable lessons from that rough period in my life. I pledged to myself that I would never buy myself a new car unless I could pay cash for it. Finally in 2007 I bought a brand new Dodge Ram. It felt good to write the check for the full amount, knowing I would never have to make monthly payments, no interest, and no bank lien. Also, I have been investing a lot of money each month for retirement. I max out my IRA and 401k contributions. The only debt is my home mortgage, and the balance is only about half of what the house is worth.

For you guys having financial trouble out there, I know what it's like. Do the best you can, and don't be afraid to ask for help. For you guys just starting out in the world, remember it's not about how much money you make. The important thing is how much you spend as a percentage of your income. Personally, I make enough money now where I could afford a payment on a $100,000 car or other frivolous toys. But I don't go there, knowing the satisfaction of debt free living and financial stability are much more rewarding than having some flashy toy that is depreciating as fast as I can pay it off.

[backwoods_lex]

I'm very impressed. You made a huge turnaround in only about 10 years.

[KnuckleBuckett]

Originally Posted by Flashtime

Stay in school...

Excellent advice.

However IMO it should be paired with, "Get a degree that can actually help you to suceed in the real world". I see so many high school graduates getting degrees that are useless in the job market. When I talk to them and or their parents, the main reasons for doing this are usually that it was an easy degree. Or that their are lots of those jobs out there. Nevermind at their best they pay below the poverty line.

Honestly what's the point of wasting four years of a students life and upwards of thirty grand on a degree that will offer a career(s) that is essentially a McJob. I personally know many of these folks that have graduated with their bachelors in Easy4Me and are still living off of their parents well into their late twenties and beyond.

I apologize for rambling.

My point was, if you are going to get a higher education, get one that can financially pay you for your efforts. And. Work your *** off. You, your significant other, and family will reap the benefits of those short years in university for the rest of your lives.

[hondaguy2582]

Honestly, people would stress less about money if they saved more and spent little. Pay your bills off on time(especially on credit cards so you dont get interest added), and live within your means. That is buying what you need, not necessarily what you want.

As Dave Ramsey says, "If you live like no one else, later on you will live like no one else."

Be smart with your money. Your only payment should be the house and try do it with a fixed 15k mortgage, or a 30 if you are able to double up on payments!!!

[razr007]

it sucks but what can you do just have to deal and stay afloat or give up an sink it is a catch 22 no matter how you go crazy world we live in unless your really rich than your only stress is what color to buy your maybach exelero in lol

[Labster]

do I stress about money? Yes, then again I'm 23 and I'm 48k in debt for school. Thank god a lot of that will be taken care of once I graduate with my masters. I currently have an assistantship that takes care of all my school fees, books and housing and my only monthly payment is my Jeep (which looking back probably wasn't a bad decision) and I make the monthly payment on time every month. I recently dug myself out of 7k in credit card debt because of some injuries which left me without work for a good while and stupid spending on an ex gf who sucked the life out of me and the money out my wallet while I was chasing her around the US. Now I'm just keeping my head above water and hoping to get a good job once I'm done with my masters.

[jfelbab]

Money, or lack thereof, has been every mans problem since the beginning. Unless you were born with a silver spoon in your mouth, you struggle through the early years and hopefully, manage to improve your place in life. As you get to retirement age you think you may be ok until the market takes 35% of your nest egg net away. But don't despair, things could and may get worse and you will need all your energy and cunning to muck through it.

How could they get worse? Well Social Security, Medicare & Medicade have to change, for one thing. The benefits paid out cannot be supported. Expect major cuts in benefits for those who will be retiring.

What else? Well the interest on the debt is skyrocketing. Unless it is gotten under control soon it will be unfixable and the whole economy will collapse. Lot's of luck with that as our congress (both parties) seems to pander for our votes with our money. Most of our congress is bought and paid for by industry lobbyists. Pork and their greed may well cause the demise of our economy. Take a look at this report from the GAO: U.S. GAO - Fiscal Year 2007 Financial Report of the United States Government

Some highlights of the report:

Key dates
•2007 Medicare Part A benefit payments began to exceed the program’s tax revenue.

•2017 Social Security benefit payments will begin to exceed the program’s tax revenue.

•2019 Medicare Part A Trust Fund assets will not be enough to pay full benefits. Under current law, benefits would be reduced to 79 percent of scheduled benefits in 2019, declining to 29 percent by 2081.

•2040 Federal debt held by the public will exceed the historical high of 109 percent of GDP.

•2041 Social Security Trust Funds’ assets will not be enough to pay full benefits. Under current law, benefits
for all retirees would be reduced to 75 percent of scheduled benefits in 2041, declining to 70 percent by 2081.

•2080 Total government cost will be more than three times revenue.


Where We Are Now?
•Strong growth in individual incomes and corporate profits contributed to 4 consecutive years of tax revenue growth—revenue was up by 46 percent since 2003 to $2.6 trillion in 2007. Social Security and Medicare tax withholdings accounted for almost a third of total revenue in 2007.

•Social Security Trust Funds’ revenue exceeded what the government paid out in benefits by $86 billion in 2007. This surplus was credited to the Trust Funds.

•The government’s total operating cost remained relatively constant—$2.9 trillion in 2006 and in 2007.

•Revenue increases and relative cost stability resulted in a drop in the government’s net operating cost—to $276 billion—and a decline in the unified budget deficit (budget deficit)—to $63 billion in 2007.

•To fund cumulative budget deficits, the government has borrowed a total of $5 trillion from the public as of the end of fiscal year 2007. The government has also borrowed excess annual cash flows from the Social Security and Medicare Trust Funds and similar funds to finance other government cost. Including interest, the government owes $4 trillion to these funds, which is backed by the full faith and credit of the government, resulting in total federal debt of $9 trillion.

Where We Are Headed?

•As baby boomers retire and health care cost continue to rapidly rise, the cost of the Social Security, Medicare, and Medicaid programs will account for a growing portion of government cost.

•Absent reforms, the Social Security Trust Funds will be exhausted in 2041 and the Medicare Part A Trust Fund will be exhausted in 2019. Revenue dedicated to these entitlement programs under current law will not be enough to pay for scheduled Social Security and Medicare Part A benefits.

•The projected cost of all federal programs will exceed available resources. Unless the government brings program cost in line with available resources, resulting budget deficits will be so large that the government will not be able to borrow enough to fund them.

•Our children and grandchildren will bear a greater burden of the cost if we delay in implementing fundamental reforms.

One more thing, this report was prepared before the current market crisis. We have now spent and will continue to spend countless hundreds of billions/trillions in an attempt to save our drowning economy. Wait to see the 2008 report. It will show a staggering debt load. So when did you plan to retire? Better have lots of kids and hope they will take care of you in your "Golden Years."

Hope I was able to soothe your anxiety over financial matters. LOL. Now where is that soup line?

[askjeffro]

With regards to the U.S. spending frenzy, here is a video that discusses some of the same points Jim has in his post:
YouTube - U.S. Headed For Fiscal Crisis?

Regarding money stress:
I worry sometimes, but I always have. In reality I've been fortunate in life. My wife and I purposely have set up our expenses so that in "theory" we could service all debt and live the same if one of lost a job or got hurt etc. That takes a lot of pressure off in my opinion.

Trying to find the balance between saving/investing for the future vs. servicing current debt is what I worry about the most these days, but ask me again in 3 months...

[calgarydetail]

who dosent worry about money, in all honestly?

I am a college student with a mortgage, bills, and daily expenses. It seems there is never enough money.
Please dont take my post the wrong way, i got myself into this situation and very happy to be in it. I have been very fortunte in life. I have drawn a good hand and lived well up to this point.

I have been around many very wealthy people in my life, the one thing I have learned is the more money you have the more you worry about it. I know guys worth hundreds of millions who worry about money managment more then those with 1mill. I gueess thats part of how they made so much.

Worrying about money and fincial issues is just a part of life. (a part im happy to have to deal with, i do love money after alll )

[BigAl3]

Originally Posted by KnuckleBuckett

Excellent advice.

However IMO it should be paired with, "Get a degree that can actually help you to suceed in the real world". I see so many high school graduates getting degrees that are useless in the job market. When I talk to them and or their parents, the main reasons for doing this are usually that it was an easy degree. Or that their are lots of those jobs out there. Nevermind at their best they pay below the poverty line.

Honestly what's the point of wasting four years of a students life and upwards of thirty grand on a degree that will offer a career(s) that is essentially a McJob. I personally know many of these folks that have graduated with their bachelors in Easy4Me and are still living off of their parents well into their late twenties and beyond.

I apologize for rambling.

My point was, if you are going to get a higher education, get one that can financially pay you for your efforts. And. Work your *** off. You, your significant other, and family will reap the benefits of those short years in university for the rest of your lives.

i also notice this with many as well...