30 Things Broke People Say (That Keep Them Broke)

[keepinitreal]

January 11, 2011

1. If I earn interest, I have to pay more taxes.
2. There’s no shame in being poor, just in dressing poorly.
3. At my age, it’s too late anyway.
4. Why save money? You can’t take it with you when you die!
5. We’re only young once!
6. But it’s only zero percent interest!
7. I’ll pay it off next month!
8. Old cars just aren’t safe.
9. Whatever you want, dear.
10. I’ll start my budget next month.
11. It’s for the kids.
12. I work hard so I deserve to have it!
13. I’ll just keep paying the minimum payment.
14. My rich grandparents are going to die soon.
15. I want my kids to have it better than I did.
16. It’s cheaper to eat out than eat at home.
17. Always keep a house payment for tax purposes.
18. I’ll save next year when I’m making more money.
19. We’ll pay it off when the tax refund comes in.
20. You have to leverage debt to become rich!
21. I need to invest in a car.
22. Why save? The Lord is coming back soon!
23. If I make more money, I will lose my food stamps!
24. If everybody got out of debt, the economy would collapse!
25. You’ll always have a car note.
26. Just put it on the card and we will worry about it when it comes in..
27. Being debt free isn’t for everyone.
28. It’s only money! We’ll make more.
29. I must be able to afford this (car, house, etc.) since I was approved for the loan.
30. I’ll just use a cash advance from my Mastercard to pay down my VISA.

http://www.smartonmoney.com/30-things-broke-people-say-that-keep-the-broke/

[keepinitreal]

16. It’s cheaper to eat out than eat at home.

I used to say that a lot.

I would be comparing the cost of ingredients for making each of us different main courses and different sides at home, compared to going to a restaurant.

Now I realize that when we eat at home, we're going to eat the same main course and side dishes, so it's usually cheaper at home.

It may still be true though, if we eat at McDonald's using the $1 menu. Hmm...

[HHM]

Excellent post

[tobee43]

i had to chuckle about the $1 menu....we heard it was gone!!! now you have to ask if there are any $1 items...at least that was our experience in north carolina when we thought we were bringing a "cheap" lunch for the grandkids....nope...the burgers there were $1.50!!! i could have made 3 lunches for what we ended up spending....just wish someone ELSE would do the cooking! ..now that's expensive!

[HHM]

I suppose if you ate only ONE Meal a day and it was particularly unhealthy (huge calories), on a per calorie basis, you could eat out for the same cost as a reasonably healthy diet cooked at home

I think the "car" excuses are most prevalent.

Also, a tad off topic, but a "financial" expert was on my local news this morning, actually recommending that housing expense should be 40% or less, that is house payment (PITI) and utilities. FORTY PERCENT, that is outrageous to spend that much of your income toward housing, that amount is a one way ticket to foreclosure. My personal opinion is that a house payment should be 20% or less of gross monthly income. Any amount above that and the budget simply gets too tight and you will be living on the edge financially.

[chrisdfw]

My personal opinion is that a house payment should be 20% or less of gross monthly income. Any amount above that and the budget simply gets too tight and you will be living on the edge financially.

The only reason I still have my house is that I had a really low payment compared to my old income.

It is pretty high high on my reduced income, but so many people I know had payments based on two high incomes during the good times and no longer have their homes or won't soon.

cars... a whole different matter, I only have my cars because I didn't have car notes... I never could have kept them up after the income drop. I have a small note now <$250 but I don't like it and plan to get rid of it shortly. I looked at a lot of vehicles and can't see whey anyone needs to spend more than 15,000 on a car... on the high end. I saw a lot of almost new compact through midsize cars under 10,000 with some as low as 6 or 7 thousand. Why spend 30,000 or more on a car if you don't have the cash? Cars are a depreciating asset (worse even than houses in most cases)

I think cars loans are a big problem. Many people spend as much on vehicles as their homes.

[tyson24]

Number 13 was totally me. Minimum payments me you feel that you can afford things that you really cannot. If it takes you 10 years to pay something off like that with the interest, can you really afford it? You cannot really afford it unless you can pay cash and still have money to live and pay your bills on time.

I have to say, that I was just discharged yesterday. I filed in 1998 also (when I was single) and with the new rules (debtor education) I find I am so much more well prepared for my financial future. To save and live within my means. I cringed yesterday when I made my car payment and I asked Wells Fargo how many months I signed my note for. 72!!!!! That was 3 years ago, but WTH was I thinking? Everyone that has taken the post course knows that you do not buy a car on a 72 month loan...EVER!

I have learned from my mistakes

[HHM]

Well, as the list says, many people assume they will always have a car payment.

I have one car payment now (spouses car, of course), but will pay off the car before the end of the year.

However, I probably will go against my own advice for my next car purchase and buy something new or nearly new. There is enough of a technology difference and increase in efficiency between today's cars and even those made 4-5 years ago, that I might just invest in a sub $20K new car and carry a car payment. My present car is 9 years old. Many standard features on today's entry level cars (Ford Fiesta, Nissan Versa, Honda Fit, Toyota Yaris etc) could only be found on mid-level and high end cars just 4-5 years ago). I will probably do 60 month terms, but pay it as if on 48 month terms. But I will not do this until late this year or early next year when I can grab a deal in a new 2010 model that needs to be offloaded to make room for 2011 models.

[RichM]

You can still find one-dollar hamburgers. They just cost three dollars now.

-Rich

[AngelinaCatHub]

The best way to buy a car is to buy a like new used car. Most of the value of a new car is lost the minute it is removed from the lot. Now it is a use car. Never finance more than three years. Two if you can. In seven years that car would be warn out, but the prices are so high now that they have to finance 7 years or not sell any. Too many people get car lust and stop thinking right when they see the "new and improved". Paid for cars get better mileage in all cases. 'Hub

[tobee43]

I suppose if you ate only ONE Meal a day and it was particularly unhealthy (huge calories), on a per calorie basis, you could eat out for the same cost as a reasonably healthy diet cooked at home

I think the "car" excuses are most prevalent.

Also, a tad off topic, but a "financial" expert was on my local news this morning, actually recommending that housing expense should be 40% or less, that is house payment (PITI) and utilities. FORTY PERCENT, that is outrageous to spend that much of your income toward housing, that amount is a one way ticket to foreclosure. My personal opinion is that a house payment should be 20% or less of gross monthly income. Any amount above that and the budget simply gets too tight and you will be living on the edge financially.

interesting point about the reference to the percentage of what a "housing" payment....or how much of your income should go towards housing....i remember in our "old" days...when we purchased out first house the bank used the "rule of thumb" as no MORE than 1/4 of your gross monthly income. i think the inflation in the housing market as certainly reflected the "acceptable" income percentage which one puts towards housing. shoot...what can one say today with such deflation going on in the housing market??

now...back to FOOD!! LOL!!! 1 pot roast, 2 onions....left of anything in frig.. =...2 dinners
3 lunches
4 servings of a pot of french onion soup
and a partridge in a pear tree......@ approx. .35 cents per serving...( not using extra cheese on the onion soup).....add .15 for xtra cheese...!!<^..^>

[dneil]

When I cook now, compared to the past (pre bankruptcy) I typically plan for meals to have leftovers that can be used the next day in another way. For example, Tacos one night, Taco salad the next. Pot roast one night, and bbq sandwiches for the next night. My favorite night of the week is Wednesday.... that is "free for all" night. It means you can take whatever is left in the fridge or have yourself a frozen pizza (dollar pizza from save a lot) and dinner is served.

No worries though.... most nights we have wonderful meals. Tonight is spaghetti as I had left over meatloaf from last nights meal to make a most excellent spaghetti sauce!

[dneil]

I also made hamburger stew..... (had left over burgers) Husband was hesitant to eat it, until I told him it was all we had

[Gladysw]

actually I agree with some of these, number 2 and number 4 are true and number 24 is also correct.

[shark66]

I absolutely love # 23...was my laugh for the day...