How mush cash?

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herofan

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I've had financial topics on here before because people's financial situations just continue to amaze me. For one, it's how much stuff people can have, yet they act as though they don't have much.

I know a couple of guys who each bought a newdisk mower for $9,000. It wasn't like either of them were in desperate need, but they just thought it was a good deal and nice to have. The think is, their appearance and talk doesn't seem to be any better off than I am, but they apparently are.

I was also talking with a lady recently who said she had certain things automatically paid with her checking account, and often got nervous because she hoped there would be enough to cover it until payday. Then she started talking about her boat, her vacations, and all the money she spent on a birthday part with a live band and 150 guests.

I often wonder how much cash a middle class person have could get their hands at any given time. I'm not talking about investments or net worth, but just how much cash they have.

I know this is not something people share with each other at coffee breaks, but nobody knows me here, so who cares. I make about 55k a year and have about 27k in my bank account. Unlike most people, however, I don't have a lot of stuff. I live in an old farm house that is not fixed up. I don't have boats, campers, 4-wheelers, and have just enough farm equipment to get by, most of which remembers when Ronald Reagan was president.

That 27k came from several years of not spending every dime I make. It's not a total "hands off" amount. I dip into it when I need to. I'm sure i could spend it and have a few more things, but with my income, it wouldn't replenish very quickly.

So, does my income and accessible cash sound anywhere near what you all consider normal? Do I just not make as much as most? It won't hurt my feeling if you say no.
Is 27k in the bank a decent amount, chickenfeed, or would some struggle to get their hands on $3,000.
 

tater74

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You have a 6 month reserve. My guess is that is better than 60% of the rest of the population. Not necessarily this board, but everyone on this continent. Keep it up.
 

AllForage

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I think that 60% might be a little low. I bet the majority are a paycheck or two from losing everything. Money is so cheap with these interest rates and it the hurts savers.

Nothing wrong with lots of toys as long as they are all paid for.
 
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herofan

herofan

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AllForage":2obfqxrj said:
Nothing wrong with lots of toys as long as they are all paid for.

No argument there, I'm just curious as to how everybody pays for their toys when they appear to be in my league. I wonder if they actually make a lot more than I do, or just have some other way of managing their money.

For those who are a paycheck or two from losing everything, how do they survive long term? Do no unexpected expenses ever happen?
 

branguscowgirl

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There is an enormous amount of debt in this country. Most people that I know under 45 (and some older) have "toys" that are financed. I know a lot of folks in their 50s and 60s that have worked hard all their lives and have no retirement saved. A lot of folks get hit hard with divorce, job loss, or the real estate drop, and struggle to recover in middle age.

First a divorce and then the real estate plunge sucked me dry. (Ex got half my retirement.) I had to start over in my 40s. (No fun.) But I do fine. I have a good stable income and a good life.
All I am saying is that there are a lot of "life events" that throw even the best made plans out the window. Staying debt free and having several months of reserve is always a good thing.

Sounds like you are better off than most herofan. :)
 

branguscowgirl

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herofan":2tftjkvo said:
AllForage":2tftjkvo said:
Nothing wrong with lots of toys as long as they are all paid for.

No argument there, I'm just curious as to how everybody pays for their toys when they appear to be in my league. I wonder if they actually make a lot more than I do, or just have some other way of managing their money.

For those who are a paycheck or two from losing everything, how do they survive long term? Do no unexpected expenses ever happen?
Many are 2 income households. And some have family that bail them out.
 

Jogeephus

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herofan":zsya01cu said:
For those who are a paycheck or two from losing everything, how do they survive long term? Do no unexpected expenses ever happen?

At one time I was in these shoes and it was scary. Unexpected expenses to me was having to fill the LP gas tank in the winter. It was tough but I didn't have any toys like many I see today. I worked as many jobs as I could. Anything to get some money put aside. When I bought a toy - something like a rotary tiller - the job I was going to use it on would pay for it. I avoided debt like I would avoid a leper but I always paid my bills. The idea of being homeless doesn't appeal to me and to this day I still live pretty frugal because I know there are only inches difference between a seat in a nice car and a seat on the curb.
 

hurleyjd

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herofan":3smgeqo5 said:
I've had financial topics on here before because people's financial situations just continue to amaze me. For one, it's how much stuff people can have, yet they act as though they don't have much.

I know a couple of guys who each bought a newdisk mower for $9,000. It wasn't like either of them were in desperate need, but they just thought it was a good deal and nice to have. The think is, their appearance and talk doesn't seem to be any better off than I am, but they apparently are.

I was also talking with a lady recently who said she had certain things automatically paid with her checking account, and often got nervous because she hoped there would be enough to cover it until payday. Then she started talking about her boat, her vacations, and all the money she spent on a birthday part with a live band and 150 guests.

I often wonder how much cash a middle class person have could get their hands at any given time. I'm not talking about


investments or net worth, but just how much cash they have.




I know this is not something people share with each other at coffee breaks, but nobody knows me here, so who cares. I make about 55k a year and have about 27k in my bank account. Unlike most people, however, I don't have a lot of stuff. I live in an old farm house that is not fixed up. I don't have boats, campers, 4-wheelers, and have just enough farm equipment to get by, most of which remembers when Ronald Reagan was president.

That 27k came from several years of not spending every dime I make. It's not a total "hands off" amount. I dip into it when I need to. I'm sure i could spend it and have a few more things, but with my income, it wouldn't replenish very quickly.

So, does my income and accessible cash sound anywhere near what you all consider normal? Do I just not make as much as most? It won't hurt my feeling if you say no.
Is 27k in the bank a decent amount, chickenfeed, or would some struggle to get their hands on $3,000.

http://www.ehow.com/info_7747729_averag ... ehold.html
 

dun

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herofan":3dmikfgj said:
For those who are a paycheck or two from losing everything, how do they survive long term? Do no unexpected expenses ever happen?
They do like my sister, decide which bills they can skip paying this month without any serious repurcussions.
 

Rafter S

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My theory is "If I can't pay cash, I can get along without it." Sadly, many folks go by "If I want it, and I can find someone to finance it for me, I'm going to get it."

My income is pretty close to yours, but I don't have as much cash. I'll admit that I've never had the discipline to save much. I could lay my hands on about $12,000 immediately if I had to, and give me a few days to sell some cows I could get quite a bit more.

However, I don't feel like I need as big a cushion as some folks, since I don't owe anyone a dime.
 

AllForage

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branguscowgirl":2f5zl1xy said:
There is an enormous amount of debt in this country. Most people that I know under 45 (and some older) have "toys" that are financed. I know a lot of folks in their 50s and 60s that have worked hard all their lives and have no retirement saved. A lot of folks get hit hard with divorce, job loss, or the real estate drop, and struggle to recover in middle age.

First a divorce and then the real estate plunge sucked me dry. (Ex got half my retirement.) I had to start over in my 40s. (No fun.) But I do fine. I have a good stable income and a good life.
All I am saying is that there are a lot of "life events" that throw even the best made plans out the window. Staying debt free and having several months of reserve is always a good thing.

Sounds like you are better off than most herofan. :)


Brangus don't forget folks in their 50's and 60's supporting adult children as well. And that is after they paid interest only home loans to pay for their useless degrees.
 

TexasBred

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I have no idea if that is good bad or what but it sounds like you know how to handle money which so many don't. I have no debt so I don't worry but I know too that nobody knows what tomorrow holds for any of us. I know a lot of folks with multiple vehicles, a camper trailer, a big a$$ 4 wheeler and a deer lease and live in a mobile home. All they do is make payments and save enough every month to pay the deer lease next month. Had a man tell me one day he bought his wife a new car and put the down payment on his credit card. Got to thinking about it, still had some credit on his credit card so went and got him a pickup....all he was interested in was "how much is hte payment".

But I also hate to hear people say they did without things they really needed in order to save money. That never made sense to me.
 

Ouachita

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TexasBred":y4ozx2e8 said:
....... I know a lot of folks with multiple vehicles, a camper trailer, a big a$$ 4 wheeler and a deer lease and live in a mobile home. All they do is make payments and save enough every month to pay the deer lease next month.........

Sounds like the makin's of a reality TV series depicting our county.
 

denvermartinfarms

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Sounds good and responsible for what you make, I figure it's a small percent of the country that makes 55k and has 27 in cash.
 

Bigfoot

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Saving money, is an attribute that few possess. Consumer credit, on the other hand is a very growing business. Not sure how long the trend will continue. You'd think the end is somewhere in sight though. It would surprise, someone like you to know how many people use the equity in their home to finance their "toys".
 
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herofan

herofan

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Bigfoot":1x7a0y46 said:
Saving money, is an attribute that few possess.

That's apparently true. I guess I was taught to be more of a saver than spender. If I had a big income, like $500k plus, that would be more money than i would even know what to do with. I'd probably have everything I needed, and after that, I'm sure I'd have a huge bank account.
 

Aaron

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I would never have that much cash at hand at all times, just on principle. I'd rather invest it into physical goods that benefit me such as tools, machinery, cattle, etc. Problem with cash is that it is just paper and $5 today can be worth $1 tomorrow. I agree to stay out of major debt, but to just hoard cash is not benefiting you to any great extent, other than being the favorite family relation with the juicy inheritance in his will.
 

HDRider

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Feel good Hero, real good.

A study released today by Bankrate.com (NYSE: RATE) found that only 24% of Americans have a six-month emergency savings cushion and 24% have no emergency savings whatsoever. These are especially sobering statistics because 6.2 million Americans have currently been out of work for six months or more.

http://www.prnewswire.com/news-releases ... 79479.html
 

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