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December 2011 Moms
What do you consider "broke"?
This will be a P&R but I will be back!
This is stemming from the gas bill post. I see so many people saying they are "broke" because of the holiday season. What exactly do you consider broke?
No extra spending money for fun? Not enough money to pay bills? Less than 5k in the bank? Less than $50 in the bank? Borrowing money from parents for food/bills?
I think everyone has a different opinion on the topic and I think it also has a lot to do with where live or are from. I just think it's interesting to see all the different lifestyles on here.
This discussion has been closed.
Re: What do you consider "broke"?
not being able to pay basic bills (food, water, shelter).
ETA: everything else can be cut back. even vehicles... carpool, bike, public transporation, unless you're in BFE. and yes, i've been there-no car, crappy public transportation, but yet i still managed to get myself to work.
I think broke is if you regularly spend more than you make, and need to put monthly expenses on credit card, basically if you are living beyond your means.
I don't think it has anything to do with how much you have in savings, retirement, etc. but how you overall manage your money. Spend less than you make and you will never be broke.
Yep, this.
This.
However, I personally start to panic when our checking account gets low. This means that our expenses>income. It doesn't matter to me that we have savings that could be shifted, retirement accounts, home equity, etc. I still panic, because I consider those as mostly untouchable.
I considered us broke up until a month ago, where I was the only one supporting us, we were falling behind on bills and could barely afford enough food for me to eat to get through a work day.
I consider us not broke because we can afford what we need, we are caught up on bills and still able to slowly pay off our credit cards now.
For us broke = only enough money to pay bills therefore we cant afford to buy anything else.
Tight= a small amount left over but nothing left to do anything fun
Less than $50 in the bank= Holy crap we arent leaving the house except to go to work until we get paid!
Not enough money to pay bills-= IDK because we havent been in that boat since college thank goodness, but that definitely = broke too
Less than 5K but more than 4K in the bank= feeling pretty good about having my emergency fund started. But I definitely dont consider that broke. For me that's doing pretty well, granted we put all our extra cash in to paying off our big loans instead of saving it right now.
I lost my full time job in July (40+ hours a week) and now only have my part time job (6 hours a week). So my total contribution to our home is less than $160 a month-I buy groceries for 3 people on that and spend 5 hrs a week coupon hunting so non of us do without.
Husbands take home in $1680 and he pays our rent, utilities, gas, car note, insurance and whatever odds and ends need taking care of. So by the time the 4th rolls around we're broke. Literally. We usually have $50 bucks to get by on from the 4th of the month until payday on the 1st of the next month (with the exception of my part time job checks). We don't use any government assistance and do not ask for assistance from family or friends.
For us we have no "fun" money. Christmas for SD was bought with gift cards from my baby shower and if it wasn't for the blessings from my family and church we would be in one hell of a hole for Carter...We went from a $4000+ month housheold to barely scraping by and its been a very humbling experience. Work in my area is dead and while I get plenty of interviews no one has wanted to hire me yet.
So for us "broke" is just an everyday occurence. I would probably have a stroke if we had $40 in our bank account at the end of the month. Sorry this post is kind of a downer- Its weird because people bash those in our economic circumstances for havign kids and all that jazz but I'm living proof how quickly you can go from having PLENTY to scraping the bottom of the barrel. I would LOVE a haircut and can't even do that lol!
I'm not flaming but since I'm the gas bill post.... I never said "broke". Our bills are covered just fine. I just hate being an adult...aka spending money on grown up things like gas, insurance.
We're responsible...we save a little each month to cover these "shocking" bills. I just hate to part with the cash. lol. I HATE putting things on credit cards...even if it means just 2-3 easier payments (which is what we do with the holiday expenses).
I consider "broke" as putting everything on credit cards and not being able to afford the needs. Robbing Peter to pay Paul sort of situation. Funny though...most people that I've heard claim that they are "broke" are the ones that spend the most money on unneccessary things.
DH and I have separate finances and he budgets very well so I don?t think he is ever "broke". For me though, broke is when I spend too much on fluff (etsy is a dirty dirty money sucking website) when I get first my check and don't have much spending money by the time my next check comes.
I pay my bills before I spend anything on clothes or decor, but sometimes I panic if I only have $30 or so spending money left.
I should also mention that neither DH or I have any debt except our cars (we don't own a home).
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Dream of a better world...where chickens can cross the road without having their motives questioned.
This has really made me think. I am sorry that you are going through this right now. Thoughts and Prayers for you amd your family.
This is one of those times I wish we really knew eachother so I could take you for a haircut. : )
We have a fairly stable monthly budget, so I start to get stressed when random extra things pop up and would use the term 'broke' sarcastically (dramatically to my husband, lol) like if I just spent $500 on new brakes and then we went to the ER and had that bill and then my kids wanted Halloween costumes and then we had to buy Christmas presents, etc. Just a lot of extra expenses piling on top of each other is what I call broke in our house. I know we are fortunate in that we do have a good savings, no CC debt, so to me if we had to use a credit card, that would stress me out too.
I assume broke to most would mean not being able to afford basic necessities (food/house bill/gas). I was very tight at one point (single mom for several years) and it sucked. On the plus side I was super duper skinny because I literally had no money to buy food and refused to take assistance (stupid now that I think about it, I needed it then, but at 19/20 I was stubborn).
and after 82 days in the NICU, our little girl is home!
To us, broke is when we only have enough money to cover bills and fuel for our cars, but nothing left over. However, that doesn't happen very often, because DH gets paid once a week and I get paid every other week. So we might be "broke" for a day or two if we've made a big purchase that week or something, but then we get a paycheck and we aren't "broke" anymore.
This is how it is for us, too. We had a nice savings account (well, for us anyways...about $10,000 saved up) but we had to buy a family car. We had been saving for the car, so that what it was there for. We have a backup savings that we have been dipping into to pay the basic bills and that's where we are hurting. We only have about $2,000 in savings at the moment and it makes us uncomfortable.
H has not gotten overtime in a long time so we are getting used to living off of his base pay. Usually he works a couple long nights or over nights a month and he hasn't the past few months. We really are blessed with everything we have and what we are able to pay for monthly (we feel panicked and broke but aren't late on any bills). We just have to budget better, I guess.
This was also the first month I had to put our horses monthly hay bill on a credit card...and groceries. I don't like that.
This is how it is for us, too. We had a nice savings account (well, for us anyways...about $10,000 saved up) but we had to buy a family car. We had been saving for the car, so that what it was there for. We have a backup savings that we have been dipping into to pay the basic bills and that's where we are hurting. We only have about $2,000 in savings at the moment and it makes us uncomfortable.
H has not gotten overtime in a long time so we are getting used to living off of his base pay. Usually he works a couple long nights or over nights a month and he hasn't the past few months. We really are blessed with everything we have and what we are able to pay for monthly (we feel panicked and broke but aren't late on any bills). We just have to budget better, I guess.
This was also the first month I had to put our horses monthly hay bill on a credit card...and groceries. I don't like that.
This is totally my opinion and I'm in NO way directing any of my opinions to any of you lovely ladies on the board....
I see "broke" as not being able to pay for basic necessities (shelter, food, etc...)....or literally not have any funds.
"Living beyond your means" is a whole other category IMO - I think of it more as not managing money well/not setting money priorities.
People throw around the word "broke" a lot, I know. I'm guilty of it too!!!!
But I know my priorities...if I have a bill to pay vs.a chance to go out and have fun doing something....I would much rather take care of the bill and not have it weigh on my mind, and tell my friends "sorry I'm broke" and can't participate in the fun.
Buuuuut if you are the type of person to save a little here an there for a rainy day, then I say go for it! It's yours to splurge with
Especially if you feel comfortable enough that you can handle bills on top of it! I live paycheck-to-paycheck, but certain times of the year I am able to save up a little extra....it scares me to drop money on myself because I'm always thinking "what if I need it later..."...but once I mull over it and finally do it, it feels nice and deserved.
As someone else on the board posted....to be an adult or not...that is the question lol
?Little Love of my Life?
To me:
Busted = Income not covering housing, basic necessities and monthly bills. So dipping into savings, skipping payments or doing cash advances on credit cards - the same "rob Peter to pay Paul" thing as a PP mentioned above. Or for the 20 year old me, who worked 3 jobs and still couldn't afford toilet paper, putting a pack of Charmin on my Amoco card.
Broke = Income covering housing, basic necessities and monthly bills but discretionary spending is either pulled from savings or put on credit.
Tight = Income covering housing, basic necessities and monthly bills. A small amount of money is left over for discretionary spending.
Thank you lol I'll tell you what it definitly makes you appreciate the little things. I am grateful though for one thing- I grew up with a single dad who raised three kids on his own (mom walked out) and I never realized how many little *tricks* I learned from him. I called him laughing the other day as I was making a giant batch of waffles to freeze for SD's breakfasts because it was what he used to do
Plus I never realized just how wonderful people you don't know can be. I work for a church nursery (thats my part time job) and they wanted to throw me a shower and I went along with it expecting it to be bad and embarassed because I had no one I could invite (plus I didn't know anyone really beyond my boss and coworker). When I walked into that room and saw all these wonderful happy woman who wanted nothing more than to help us with our new baby I just about bawled- I had never seen such kindness in my life. I really look forward to being able to contribute back to everyone when things get better- I can't wait. I used to be such a snob but I'm glad for the experience because I've really learned whats important!
I don't know where the line is, just that I'm on the broke side of things. Both myself and my husband are unemployed, and the savings that we've been tapping into to get by runs out this month. I'm sure family will help us out, but I hate asking.
I wrote out a long post, but it was too personal to post, I think.
Broke can be living paycheck-to-paycheck just to get by, or basically anything that means you have no money.
I have a family member that claims to be broke, but all of their bills are paid, and they have spending money. They could choose not to spending money on frivolous things, and save, but they don't. To me, that isn't broke. Said family member also tried to say that I have it better off than they do because I don't have bills? Where they got this, I have no idea. I do have bills, I have more bills than they do, because of where I live. Even if I somehow had no bills, I wouldn't be better off, because I have no income, and even food costs money.
DS #2 - 4/2/14
This drives me nuts. I have a friend that constantly complains about being broke, but has ALL of the most expensive things and her kid is always dressed in mini-Boden/Baby Gap/Janie & Jack, etc. That's like $100 an outfit. She even said they cant pay their heat bill. Ummm WTF. Priorities!?!
I agree with you. When I was young (early 20s), I lived pay check to pay check and still didn't always make ends meet. I was broke. I couldn't afford to do anything and if some unplanned for expense came up (like a car repair), I had to borrow money from my mom. I hated it, and I hope to never live that way again.
My husband and I are never "broke". We always have money to pay our bills, we have no credit card debt, and we have savings in the bank. There are months when we don't have as much disposable income due to an unexpected expense, but we still always have money.
For us:
broke=having to take money out to cover the necessities (food, housing, utilities), i.e., not even having enough take home pay to cover the basics
tight=having only enough to cover the necessities
bad= not having anything left over at the end of the month to put into savings.
We are very careful with our money, and I start to panic a little if we are not putting a substantial amount into savings every month. I have the outlook that our financial situation could change in a heartbeat, so I like to have enough in the bank for us to manage for at least a year with neither one of us employed.
I get really annoyed with people who say they are broke but still find money for take-out, cigarettes, cable, holiday presents, etc. To me that isn't broke- that's called not knowing how to manage your money.
Ella born 12/21/11
I want to expand (again) on my previous post.
I have very little tolerance for people who say they're broke but they go out and spend money on luxury items (cable, nice car, etc.) and complain about their lack of money. While these things are great to some, there has to be some balance.
Oh I know! Someone else mentioned it inside of that post and it made me think of this. I definitely throw the word broke around way too much. I typically say we are broke if we have spent a lot of money recently, even if we still have 4k in the bank. I would consider us broke now even though we have 2+ months of income built up in savings just because I know that soon I will be without income for 6 weeks and it is DH's slow time at work (until February). I would absolutely freak out if we had less than 1,000 in our bank acct...when just a year ago that would have seemed like we were living the high life. lol.
I guess the typical view of being "broke" is living paycheck to paycheck and having to "beat the bank" when you write your rent/car check.
This is a great breakdown. I seriously want to steal this and post it on facebook for some friends who have no concept of money management.
For us broke would be having to dip into savings for day to day or monthly expenses.
I agree, to me, being broke is when you can't pay for the necessities of life. I get so sick of people complaining about being broke when they are going to movies, out to eat, getting Starbucks several times a week, etc. DH and I live on a zero-based budget (Thanks, Dave Ramsey), so we budget everything till there is nothing left to budget. If we got to the point where food, electric, gas, housing, etc. were a problem, we'd cut our internet, satelite, drop my smart phone, take my Starbucks category, gift category, blow category, and any other non-essentials out of our budget.
I agree with most PP. Broke to me is not being able to pay the necessities.
That being said, I know people that are "broke" after paying a $4500 house payment, $2000 on cars, $2000 on credit card debt, etc. That to me is just stupidity. If you can pay all that and have money left over, more power to you!
OK so this is on and off the subject....What ever happened to proceeding through life in the correct sequence. You know....finish school(whether it be just high school or college etc), find a job, save money and become independent, find a SO(I am fairly liberal, so I won't say get married), become mutually financially stable, create a home, then have a baby/start a family??
I understand that our poor economy has created tough situations for some, but others created the situation themselves. For instance: A family member and his wife chose to have a baby. At the time that they began TTC both were working, but they lived way beyond their means. Once pregnant she quit her job. They couldn't afford to pay their bills and started asking family for help. (while still going to concerts, eating out etc) They eventual moved in with family and have mooched ever since. (Not cleaning up after themselves, not pay ANY bills to help out) This seems to be happening more and more. It drives me crazy.
This is a perfect article on just that (and it's hilarious)
https://www.theonion.com/articles/nation-down-to-last-hundred-grownups,20491/
One can say we're financially stable, but what exactly does that mean? I'm still carrying $35k in student loans; I paid (and am still paying) for school without any parental support. We owe on 2 cars and our house, but to some that may mean we're not financially stable. We have no issues saving every month and we could easily sell the 3rd "fun" car. Now, our retirement isn't 100% funded, we don't have a line set aside for DS and college in our regular budget, but where does the definition of financially stable fall?
But I do have to agree, more often than not, the situation of being broke is caused by someone living beyond their means.
Like I said, I completely understand that the poor economy has created hardships for even the most responsible. I am simple frustrated by those who make decisions without considering how it will affect those around them. To me being financially stable is being able to consistently save a certain percentage of your monthly income. But as you said it will be different for everyone.
MH and I were high school sweet hearts. We both have worked full time since high school. I went to a CC college which was paid for by Pell Grant. (My family was not financially stable. Broke doesn't begin to describe that situation!) We live frugally. The only debt we have is our home. We own all 3 of our vehicles. (No fun car here, 2 nice and a beater for daily driving.) We make sure that we pay ourselves a certain amount each pay period.(Save) That is our definition of stable.
I would like to point out to a PP that some of us did go through the correct life sequence but things happen. I didn't expect to lose my job and was completely blindsided- we had just gotten married and found out about Carter and two weeks later I was being escorted out of my workplace. Also would like to point out please don't begrudge those of us on hard times for having one nice thing. That one thing is what makes this crap bearable. In our case we chose to keep my horse-she makes me happy and with 20 safely fenced acres to herself out at his parents we can keep her and I was smart enough to stock up on her wormer/vaccinations when sh!t hit the fan. Not saying that these morons with their nails/hair done and an iPhone deserve anything other than an eyeroll but I do get kind of tired of feeling like I have to justify having SOME kind of joy in my life.
To me: broke is not being able to pay for necessities (rent, food, gas, clothes, etc.) or putting expenses such as basic bills on credit cards you can't pay off.
DH and I have never been broke and am I completely thankful and blessed.