The Fed Cuts Rate...

[ExiledInIllinois]

Everybody tells us to save, pay off our bills, hunker down... Then they say... Go buy a car, home, lets go shopping... Kohls and Pennies are down. Maybe take a vacation?

 

WTF?

 

[YellowLinesandArmadillos]

Ain't gonna happen, back to living pay check to pay check and trying to save a little for a rainy day.

[meazza]

Everybody tells us to save, pay off our bills, hunker down... Then they say... Go buy a car, home, lets go shopping... Kohls and Pennies are down. Maybe take a vacation?

 

WTF?

 

 

The rate cuts are for companies to spend on production, you know so they can hire employees, increase consumption etc.

 

If everybody drastically starts saving, the market will crash even more, which will cause stock values to go down which will cause more panic.

 

Jesus Christ open a book.

[Chef Jim]

Ain't gonna happen, back to living pay check to pay check and trying to save a little for a rainy day.

 

Back to living paycheck to paycheck? Unless your income has dropped the only way you can go back to living paycheck to paycheck is if your spending or savings went up.

[erynthered]

Jesus Christ open a book.

 

 

Dont give him any new ideas.

[ExiledInIllinois]

The rate cuts are for companies to spend on production, you know so they can hire employees, increase consumption etc.

 

If everybody drastically starts saving, the market will crash even more, which will cause stock values to go down which will cause more panic.

 

Jesus Christ open a book.

 

 

I know.

 

Just tell me what to do... Do I save and pay off debt... Or do I spend?

 

So you want me to do both.

 

NewsFlash: Most people can't.

[ExiledInIllinois]

Dont give him any new ideas.

 

[meazza]

I know.

 

Just tell me what to do... Do I save and pay off debt... Or do I spend?

 

So you want me to do both.

 

NewsFlash: Most people can't.

 

If you're in debt, by all means pay it off. The interest rate cut is to prevent a complete cut-off of spending.

 

The fed isn't telling you what to do, it's just trying to stimulate whatevers left of the market. If most people put themselves in debt again because of a small interest rate cut, then their !@#$ing morons and will always be morons.

[ExiledInIllinois]

Back to living paycheck to paycheck? Unless your income has dropped the only way you can go back to living paycheck to paycheck is if your spending or savings went up.

 

Spending has gone up and pay has leveled off if not went down.

 

Health cost up

Fuel up

 

Wages stayed flat.

 

Of course many "bridged the gap" (and wrongly IMO) with credit.

[ExiledInIllinois]

If you're in debt, by all means pay it off. The interest rate cut is to prevent a complete cut-off of spending.

 

The fed isn't telling you what to do, it's just trying to stimulate whatevers left of the market. If most people put themselves in debt again because of a small interest rate cut, then their !@#$ing morons and will always be morons.

 

I agree. Pay it off if you want... Or walk away from your bad choices like others have.

[meazza]

I agree. Pay it off if you want... Or walk away from your bad choices like others have.

 

Welcome to the American dream.

[Chef Jim]

I agree. Pay it off if you want... Or walk away from your bad choices like others have.

 

I say bring back debtor's prisons.

[YellowLinesandArmadillos]

Back to living paycheck to paycheck? Unless your income has dropped the only way you can go back to living paycheck to paycheck is if your spending or savings went up.

I am married with kids, not sure which is a bigger drain, the wife or kids.... but yeh and the economy doesn't help.

[ExiledInIllinois]

I say bring back debtor's prisons.

 

I agree. For failed business too!

[ExiledInIllinois]

Welcome to the American dream.

 

Hey... I am not the one with a million dollar golden 'chute.

 

I am all for turning this fugger into a class war.

 

I am paying for it... Why can't I use my fists?

[Chef Jim]

I am married with kids, not sure which is a bigger drain, the wife or kids.... but yeh and the economy doesn't help.

 

My wife and I made a decision long ago, before we got married, that we were not going to have kids. It makes a huge difference these days with how much is being spent on kids. When I was a kid (in the dark ages) we made due with a bike, a bat, ball and glove (and lots of times we just shared), a tin can and a sled in the winter. And those things were all good for several years and handed down. I'm not sure how it is in other parts of the country but here in Orange county people just need to have all the toys and the need to keep up with the Joneses.

 

I had a case just yesterday of a couple with a combined income of over $160k. They had a modest mortgage of around $1500 but they had all the toys. An RV, four wheelers, dirt bikes, brand new truck etc, etc. On that income they had only $3k in the bank and my rep had to squeeze them to save $200 per month. They were ok with retirement but if they lost their jobs they had three weeks of fixed expenses put aside and no life insurance. They had no idea where their money was going and kept saying "we don't have to do anything right?". I understand the paycheck to paycheck thing for some people. But for most it's a spending issue. They're just out of control.

[Chef Jim]

I agree. For failed business too!

 

No not for businesses. That would reduce the risk that many people take to start a business and succeed. Maybe there could be a failed business court. The verdicts are: Nice try you worked hard and dumbass, you're going to jail.

[Taro T]

My wife and I made a decision long ago, before we got married, that we were not going to have kids. It makes a huge difference these days with how much is being spent on kids. When I was a kid (in the dark ages) we made due with a bike, a bat, ball and glove (and lots of times we just shared), a tin can and a sled in the winter. And those things were all good for several years and handed down. I'm not sure how it is in other parts of the country but here in Orange county people just need to have all the toys and the need to keep up with the Joneses.

 

I had a case just yesterday of a couple with a combined income of over $160k. They had a modest mortgage of around $1500 but they had all the toys. An RV, four wheelers, dirt bikes, brand new truck etc, etc. On that income they had only $3k in the bank and my rep had to squeeze them to save $200 per month. They were ok with retirement but if they lost their jobs they had three weeks of fixed expenses put aside and no life insurance. They had no idea where their money was going and kept saying "we don't have to do anything right?". I understand the paycheck to paycheck thing for some people. But for most it's a spending issue. They're just out of control.

Which is why the absolute best advice you can give someone entering the workforce is to put at least the minimum to get full company match in their 401k, and everytime they get a raise they should put part of that into their 401k as well until it is maxed out.

 

If you never see the money in your pocket and never get used to spending it, it is a lot easier to keep yourself living w/in your means, and setting yourself up to actually be able to afford to retire in 40 years.

[ExiledInIllinois]

My wife and I made a decision long ago, before we got married, that we were not going to have kids. It makes a huge difference these days with how much is being spent on kids. When I was a kid (in the dark ages) we made due with a bike, a bat, ball and glove (and lots of times we just shared), a tin can and a sled in the winter. And those things were all good for several years and handed down. I'm not sure how it is in other parts of the country but here in Orange county people just need to have all the toys and the need to keep up with the Joneses.

 

I had a case just yesterday of a couple with a combined income of over $160k. They had a modest mortgage of around $1500 but they had all the toys. An RV, four wheelers, dirt bikes, brand new truck etc, etc. On that income they had only $3k in the bank and my rep had to squeeze them to save $200 per month. They were ok with retirement but if they lost their jobs they had three weeks of fixed expenses put aside and no life insurance. They had no idea where their money was going and kept saying "we don't have to do anything right?". I understand the paycheck to paycheck thing for some people. But for most it's a spending issue. They're just out of control.

 

I had to walk up hill BOTH WAYS to school in the pouring rain and whipping snow!

 

 

And yes... I sort of agree with you. Again, should I spend or save. What happens like meazza said when we stop spending?

 

You know what? The sad and disturbing thing is that the economy actually needs people to be out of control.

 

 

And:

 

No not for businesses. That would reduce the risk that many people take to start a business and succeed. Maybe there could be a failed business court. The verdicts are: Nice try you worked hard and dumbass, you're going to jail

 

I figured you would say that. I like the idea about a failed business court though.

 

I also corrected it to:

 

The verdicts are: Nice try you worked hard, got sick you dumbass, you're going to jail.

[ExiledInIllinois]

Which is why the absolute best advice you can give someone entering the workforce is to put at least the minimum to get full company match in their 401k, and everytime they get a raise they should put part of that into their 401k as well until it is maxed out.

 

If you never see the money in your pocket and never get used to spending it, it is a lot easier to keep yourself living w/in your means, and setting yourself up to actually be able to afford to retire in 40 years.

 

 

I was also wondering if people can allocate their money into different funds themselves... Are people offered a place to put their money into a safe, no risk fund? Working for the gov't, I know that is one thing I can do... Pull it all out of the risk areas and plop it into a no risk fund. The great thing now, is everything can be done online and daily... Not like the past where there was huge waiting periods.