How are people not good with money?

PhilOssophy · 21-02-2020 1:00pm

Never tell anybody how to spend their money, just like every other part of our society I hate people who scoff "Oh look at that idiot, spending €3 on a coffee". If I want it I want it and will buy it.
I did all the wild things in my 20s, drank a load, travelled, several holidays, etc. Once I hit 30, I started saving seriously, went on 0 holidays and had a deposit within a few years. Bought house, re-evaluated, over-pay on mortgage, have just about enough for the rainy day, but my #1 priority is clearing my mortgage.
But then, I do love going out for a few pints, I do like a take away coffee now and then. Go on 1 holiday a year.
And lets face it, if our society was full of super-thrifty people, half the service industry wouldn't have jobs.
Everything in moderation.

BrianD3 · 21-02-2020 1:10pm

Look at the bigger picture here and how things relate to each other. Many people are "not good with money" as:

-Human beings, like all animals, are competing with each other for resources

-Many people are not particularly intelligent, don't have good critical thinking skills, are not good at assessing risks or planning ahead, are not able to override their instincts or the effects of certain neurotransmitters in their brains

-Others spot an opportunity to separate these people from their money (resources) through persuasion and manipulation e.g. marketing

-A large proportion of the world economy is based around this

-If everyone was frugal then it would have major implications

-People who waste their money are not punished as much as they might be due to the existence of social welfare. If splurging money on crap resulted in people starving as they could no longer afford food, they would quickly learn not to splurge on crap. OTOH, if everyone adopted the mentality that the state will bail them out, then that would have major implications.

On the last point has anyone recently checked the cost of public nursing homes. Many of us will need nursing home care when we are elderly and charges are currently 2 grand or more per WEEK in many places. If you are frugal and acquire considerable assets you will end up paying a large proportion of this under the so called Fair Deal scheme. But Johnny down the road who earned the same as you but who "enjoyed his life" through splurging pays fcuk all. In that case, which one of you was better with money?

mrcheez · 21-02-2020 1:15pm

What fascinates me most is how far more people walk the streets smoking cigarettes in deprived areas than you see in more affluent areas.

i.e. the people who least can afford to waste money on cigarettes are the majority consumers.

Stevieluvsye · 21-02-2020 1:24pm

mrcheez wrote: »

What fascinates me most is how far more people walk the streets smoking cigarettes in deprived areas than you see in more affluent areas.

i.e. the people who least can afford to waste money on cigarettes are the majority consumers.

I can gaurentee you they are cheap replicas. €5 packet!!!

Banana Republic. · 21-02-2020 1:24pm

charlietheminxx wrote: »

I am generally one of the lads

haha

Banana Republic. · 21-02-2020 1:29pm

Kaylie Future Jazz wrote: »

I don’t consider money spent on drink as wasted as I get a lot of enjoyment out of it. I always save a decent amount I’d rather enjoy regular nights out than save more.

True but if I saved a decent amount then that wouldn't bother me so much. Yea the enjoyment is defo needed but it's finding the balance that screws me alot.

pgj2015 · 21-02-2020 1:32pm

I was unemployed in 2015 with about 700 euro in the bank and so decided to start a business, I knew I would need around 10,000 euro to start the business so I saved nearly ever cent of the 188 euro a week I got from social welfare and I also did online surveys to add a little extra to my savings. it wasnt the most exciting year saving but i was busy doing research and business plans etc I loved a night out at the time but id say I just had about 2 nights out that year because I was saving my money. I was living at home at the time and had no real expenses except petrol for my car.

A year later I had my 10,000 euro and was able to start the business.

Stevieluvsye · 21-02-2020 1:33pm

pgj2015 wrote: »

I was unemployed in 2015 with about 700 euro in the bank and so decided to start a business, I knew I would need around 10,000 euro to start the business so I saved nearly ever cent of the 188 euro a week I got from social welfare and I also did online surveys to add a little extra to my savings. it wasnt the most exciting year saving but i was busy doing research and business plans etc I loved a night out at the time but id say I just had about 2 nights out that year because I was saving my money. I was living at home at the time and had no real expenses except petrol for my car.

A year later I had my 10,000 euro and was able to start the business.

Is the business still trading?

pgj2015 · 21-02-2020 1:36pm

Stevieluvsye wrote: »

Is the business still trading?

yes.

stratowide · 21-02-2020 1:44pm

Used to work with a fella who would brag "We don't keep up with the Jones's,we are the Jones's."

He'd be bringing home over €1,200 to €1,500 a week racking up the overtime.

Jaysus he never had a cent.Couldnt stop spending it.
Changed the car twice a year.Kids got anything they asked for.
Shopping trips to New York.

He could afford it but was always waiting for the wages to be deposited into his account.

His Missus had to leave a trolley of shopping in Tesco one time as the account was empty.
She waited in the car eagerly logging onto Banking365 before she went back in.

Mental stuff.

Emme · 21-02-2020 1:51pm

Airyfairy12 wrote: »

Im terrible with money. I try to save as much as I can but I just love buying things, its like an impulse, ill see something I want and I just buy it. Im trying to stop myself now, like I dont bring my card with me everytime I leave the house, im trying to use up all the skincare and makeup that I have before buying more, when I do grocery shopping I dont buy things on impulse now like I used to.
At one stage I was spending from 300 up to 600 euro a week on clothes, food, makeup, skincare, shoes, facials, getting my hair and nails done, going for lunch with friends, it was ridiculous.
I think I was like that because I never had money growing up and my parents were extremely frugal, like we'd cut mold off bread, clothes were from second hand shops or my mother would ask her friends to give her their childrens old clothes that theyd grown out of and I used to get bullied for my clothes.
So when I started earning money I went crazy with it.

My friend is very bad with money, worse than me, but she had a totally diffierent upbringing, she was an only child, her dad owns a business and is a millionaire, he buys vintage cars like their toy dinkies so she had everything growing up. Now she's in her thirties and cant budget at all, she has no concept of money what so ever.

I thin upbringing effects how you deal with money.

I'm an only child and like you I went mad when I started earning first. Mostly clothes and shoes and I got stuff for my mother as well. Unlike your friend I came from a very frugal patriarchal household and every penny was accounted for. My mother would have to beg my father for a new coat or shoes even when it was clear she needed it. She worked her fingers to the bone in the family business but had very little financial autonomy and got no credit for what she did.

I was expected to go into the family business as well and work for zilch when I left school in the late 80s. I did for a while but any money I made was "reinvested" by my father. I escaped the family business and started working independently. The excitement of having my OWN money for myself and the freedom to go where I liked and do what I liked was like catnip and I went mad for about a year. I never got into debt but I didn't save much either.

I copped on with money after a while but still treated mum and myself whenever I could.

Graces7 · 21-02-2020 2:12pm

mrcheez wrote: »

What fascinates me most is how far more people walk the streets smoking cigarettes in deprived areas than you see in more affluent areas.

i.e. the people who least can afford to waste money on cigarettes are the majority consumers.

I asked someone that once and they opined that that was all the means they had to relieve the stress of money problems. It makes sense. People smoke to ease tension; the tension of being in dire need is appalling

Doctors room ghost · 21-02-2020 2:19pm

Graces7 wrote: »

I asked someone that once and they opined that that was all the means they had to relieve the stress of money problems. It makes sense. People smoke to ease tension; the tension of being in dire need is appalling

I was beside a lad at the till last week.40 cigarette he ordered.27 euro it cost.fcuk they are expensive

beggars_bush · 21-02-2020 2:27pm

Fattybojangles wrote: »

Christ almighty 24 years of age and this boring already your 20s are for spending and living you've the rest of your life to be a boring **** with a mortgage savings and kids etc believe me

Better to have money and no debts in your 40s and 50s though

lainey_d_123 · 21-02-2020 2:35pm

Shefwedfan wrote: »

Don’t know what the LOL is about.....

Junior sales person will walk in door in my office on 40k+ basic with a 55/45 sales plan so 72k if they hit target and they are right out of college

Do software development and your pushing close to 100k starting.....

LOL! What planet are you on? This must be a p1ss take, surely.

Absolutely nobody is anywhere near 100k starting, not even in software development. I know developers with 10-15 years' experience who are not even on that. We have talented junior devs coming from college starting on 35-40k, and that is still very decent compared to most industries.

You are totally out of touch with reality.

u140acro3xs7dm · 21-02-2020 3:45pm

On the outside, I probably look like one of those people, but I'm perfectly aware of what I am doing. I have a mortgage, but my car, phone etc. are paid for, and I've no other loans. I would say 80% of my disposable income gets spent every month on whatever I like.

I have about 2 months salary saved, and I'm in a pension scheme, but the rest is spent on nights out, holidays and whatever else takes my fancy. I know I should be saving at least 30 or 40% of whatever is left after my mortgage, and paying extra into my pensions, but I just like having fun too much. Maybe I will become more responsible if I ever have kids, but for now, I am here to enjoy myself, not worry about what will happen in 30 years.

Galwayguy35 · 21-02-2020 5:24pm

Christopher Limited Vegan wrote: »

On the outside, I probably look like one of those people, but I'm perfectly aware of what I am doing. I have a mortgage, but my car, phone etc. are paid for, and I've no other loans. I would say 80% of my disposable income gets spent every month on whatever I like.

I have about 2 months salary saved, and I'm in a pension scheme, but the rest is spent on nights out, holidays and whatever else takes my fancy. I know I should be saving at least 30 or 40% of whatever is left after my mortgage, and paying extra into my pensions, but I just like having fun too much. Maybe I will become more responsible if I ever have kids, but for now, I am here to enjoy myself, not worry about what will happen in 30 years.

Nothing wrong with any of that, you keep your bills paid and you are entilted to spend the rest of your own money however you like.

It's those who ignore the bills and sill keep spending that I can't understand.

PmMeUrDogs · 21-02-2020 5:33pm

I used to be awful with money, I'd literally be borrowing on payday.

I'm absolutely fine now, and I earn a lot less now than I did then. I don't set out to save a particular amount each pay period, it's entirely dependent on what I'm doing that month.

However, I have no debts, bills are always paid in full on time and I have a buffer of about 4 lots of wages in my account in case unforseen expenses or emergencies pop up.

It's honestly a massive, incredible relief to have that in my account. To know I can go get dental or medical work done when necessary and not worry about the financial implications. It makes life an awful lot easier and I wish I'd started saving younger.

beejee · 21-02-2020 5:46pm

I was reading earlier about this year, that rents are up 4%, mortgage rates like 3.8%, oil is up, electricity is up.

Same article states that there are one bedroom apartments in Harold's cross for 2000 a month, 2800 for a one bed in the docklands (as best I can recall).

In one way, people, especially younger people (under 30?) are point blank screwed. Can you blame them for throwing what relative pittance they have away on crap? Sure why not?

It's not like buying a cup of tea is going to make a dent in a mortgage or obscene rent.

Sure, you could live like a miserly git and scrape every single penny together just to qualify to have a practically lifelong debt tied around your neck. But what kind of life is that? What kind of dystopian future is that?

Congratulations, Mary, you saved and scrimped your entire life and now we can reward you with your own home at the age of 63. When you die soon the government will swoop in to grab what it can too. Congratulations again and well done!

This country can't see the forest for the trees. It has sold out the future for profit today.

Enjoy your cup of coffee and fook the lot of them telling you how you're "stupid" for not keeping this sinking ship afloat for another couple years. When it sinks they'll be back to you, and you can take that to the bank.

tom_murphy112 · 21-02-2020 5:50pm

I work with a guy, who is in his late 40's. Chatting to him the other day, he bought a house in the mid 2000's. Last year it was sold to a vulture fund as he has been on a interest only mortgage for the last few years.

Few months back his 4 year old car broke down (gearbox failure), so guess what he does.. Goes to the main deal and swaps the faulty car for a brand new one. He was then talking about how in a few years, he can access some of his pension and his idea is to buy a car with the cash !

He also buys lunch everyday at work and buys 2 or 3 coffees.. Which is all grand, but then at the same time keeps moaning to me how money is tight. Moral of the story, some people are genuinely ****e with their money..

I pity the fool, when he comes to the end of his mortgage and the bank is look for the capital payment on his mortage or the keys to the house.

feelthepower · 21-02-2020 5:51pm

Throughout my 20s I spent like a mad man living pay check to pay check. Nice car, nice phone with a big contract, out drinking every weekend, three or four foreign holidays a year. I loved every minute of it. Paid a few percent into a pension.

Since I've hit 30 I've been ultra frugal with money and watch every euro. Any bog standard car will do me that costs 2K and has a new NCT as only a 10 minute drive from work, phone will do me until it dies, I've upped my pension another few percent and plan on buying a house in the next 6-8 months with a 15 year mortgage.
I'll never understand why people buy new card when it means they will be half broke.

I had a great life throughout my 20's but it's now time to grow up a bit.

I want to be able to retire as early as possible.

12gauge dave · 21-02-2020 5:58pm

If everyone was a tight miser there would be no coffee shops restaurants open, nothing fun at all around the place only credit unions and banks everywhere.

So be grateful when you have your monthly big mac that everyone is not as tight as you in this world.

kenmm · 21-02-2020 6:03pm

lainey_d_123 wrote: »

LOL! What planet are you on? This must be a p1ss take, surely.

Absolutely nobody is anywhere near 100k starting, not even in software development. I know developers with 10-15 years' experience who are not even on that. We have talented junior devs coming from college starting on 35-40k, and that is still very decent compared to most industries.

You are totally out of touch with reality.

IT contracting would easily take you over 100k as a salary. And plenty of savy junior devs would get decent rates in specialised fields..

Ush1 · 21-02-2020 6:08pm

kenmm wrote: »

IT contracting would easily take you over 100k as a salary. And plenty of savy junior devs would get decent rates in specialised fields..

What headcase is hiring a contractor software dev with literally no experience for 400 odd per day??

You hire contractors because they already have the experience.

Titclamp · 21-02-2020 6:09pm

When prostitutes and cocaine are free then I'll always be broke.

joeguevara · 21-02-2020 6:10pm

I went to university in cork. Massive room was 35 pounds a week. We went out twice a week and 5 cans of mcewans was 5 quid before we went out. Nightclub was a penny on students nights. Could go out for 20 quid which included a small pizza and the delivery guy would drop us home.

Went working foreign holidays every summer and with tax back meant had a big wad.

When left university travelled the world for 4 years. Then came back.

I was lucky with property and work. I really don’t know how younger people can even think about a mortgage in Dublin. I own my house and the mortgage on tracker is ridiculously cheap. If it was rented it would be 3 times the mortgage.

Saying that my parents have been trying to sell their house down the country for a while. If it was in Dublin would be valued at least 1.75 mil. But there is just over 300k. Rent is dirt cheap too. So there is value if can work outside Dublin. A girl i know commutes 4 hours every day though and it’s crazy.

beejee · 21-02-2020 6:11pm

kenmm wrote: »

IT contracting would easily take you over 100k as a salary. And plenty of savy junior devs would get decent rates in specialised fields..

I know a couple of people in the general area of IT. Essentially, they got it to the field because of all the "big salaries".

Now that theyve been in it a few years they say it's a very small handful of people that make anything near 100k, never mind "easily more than 100k".

My impression is that it's all a bit of porkie pies. Like saying all the big financial places are in or moving to Dublin, big potential for money. Except when you look carefully, it's all the lower paid stuff. Sure, the average pay in goldman sachs is 500 trillion quid a second, but the average wage in goldman sachs here is barely above the average industrial, if at all.

I could go on, but anyone saying "it's easy to be rich!" is probably full of it, and I wouldn't go betting my future on the sentiment.

kenmm · 21-02-2020 6:17pm

Ush1 wrote: »

What headcase is hiring a contractor software dev with literally no experience for 400 odd per day??

You hire contractors because they already have the experience.

You would think that, wouldn't you?

kenmm · 21-02-2020 6:19pm

beejee wrote: »

Now that theyve been in it a few years they say it's a very small handful of people that make anything near 100k, never mind "easily more than 100k".

Anyone with a few years experience in IT in Dublin right now that isn't on at least 110 equivalent is doing it wrong.

beejee · 21-02-2020 6:31pm

kenmm wrote: »

Anyone with a few years experience in IT in Dublin right now that isn't on at least 110 equivalent is doing it wrong.

Very believable, all right

How are people not good with money?

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