My older sister(Age 61) and her husband are part of those boomers who are in for some rough times ahead. They had always made excellent money but saved none of it. Instead they bought things. Furniture, electronics, and all the latest and greatest cars. Now they are sitting on two houses which they can't sell and one of their tenants has lost her job and hasn't paid rent for 3 months. Of course they took out second mortgages for trips to Jamaica and Europe. So they owe a lot more then the orginal cost of the house.
I was over there helping them move from a $170,000 dollar house bought 5 years ago into a house that is worth $50,000. My sister and my wife went to get some pizza for us men and my sister pulled out a mass of credit cards my wife described as like cards in a playing deck. It took her three different cards to find one that worked. My wife offered to pay for the meal with cash but my sister insisted on using a credit card. They have $50,000 in credit card debts, the most expensive furniture and appliances that you can buy but they can't buy a darn pizza with cash. Its just a matter of time until they lose it all. My sister didn't even know what a Dollar General store was until my wife suggested she go there to price shop for some packing boxes.
They haven't learned a thing. When things are good you save and pay down debt. I hope my sister isn't typical of the boomer generation who bought into the whole borrow and spend mentality but I'm afraid she might be.
Needless to say when the real doom events happen they are going to be totally clueless about how to react. When I started prepping two years ago, for events un-related to Peak Oil and this economic crisis, I suggested that they might want to start simplifying their life and gets some savings together. But she would have none of it. After all, what could go wrong? Turns out, from her perspective, nearly everything.
PeakOil is You
My sister the big spender
My sister the big spender
by Cog » Sun 11 Jan 2009, 20:58:31
-
Cog - Fusion
- Posts: 13416
- Joined: Sat 17 May 2008, 03:00:00
- Location: Northern Kekistan
Re: My sister the big spender
by threadbear » Sun 11 Jan 2009, 21:12:14
Like many people, their chronological age isn't an indication of their emotional age. They are like little children. Do you wonder why you are frugal and she is not? Is it familial, cultural, a product of the times? This interests me.
-
threadbear - Expert
- Posts: 7577
- Joined: Sat 22 Jan 2005, 04:00:00
Re: My sister the big spender
by Cog » Sun 11 Jan 2009, 21:50:46
$this->bbcode_second_pass_quote('threadbear', 'L')ike many people, their chronological age isn't an indication of their emotional age. They are like little children. Do you wonder why you are frugal and she is not? Is it familial, cultural, a product of the times? This interests me.
My father and mother were born in 1923 and grew up during the Depression. I listened to their stories and was interested in the era for as long as I can remember. My father and mother were always very frugal and my father who is still alive, has done very well for himself. Both of my sisters are irresponsible with money so maybe they chafed under my parents miserly ways, while as a boy growing up under it, I accepted it as a normal way to live. Its not like we didn't have enough to eat or clothes to wear since we never lacked the necessities of life. Just none of the frills.
I've always disliked owing money to people even though I do have a mortgage. I find it hard to relax knowing I owe people money or to be late with a payment but that apparently doesn't bother my sisters any. My father always stressed staying out of debt and keeping your word to someone when you gave it. Like many of the GI's coming back from WW2, he did take a mortgage and he paid it off quickly. I know it bothered him to owe money.
-
Cog - Fusion
- Posts: 13416
- Joined: Sat 17 May 2008, 03:00:00
- Location: Northern Kekistan
Re: My sister the big spender
by JJ » Mon 12 Jan 2009, 08:23:03
$this->bbcode_second_pass_quote('Cog', 'M')y older sister(Age 61) and her husband are part of those boomers who are in for some rough times ahead. They had always made excellent money but saved none of it. Instead they bought things. Furniture, electronics, and all the latest and greatest cars. --snip--
Needless to say when the real doom events happen they are going to be totally clueless about how to react. When I started prepping two years ago, for events un-related to Peak Oil and this economic crisis, I suggested that they might want to start simplifying their life and gets some savings together. But she would have none of it. After all, what could go wrong? Turns out, from her perspective, nearly everything.
Needless to say when the real doom events happen they are going to be totally clueless about how to react. When I started prepping two years ago, for events un-related to Peak Oil and this economic crisis, I suggested that they might want to start simplifying their life and gets some savings together. But she would have none of it. After all, what could go wrong? Turns out, from her perspective, nearly everything.
my sister is similar, married into money and living more or less off the grid in Pagosa Springs, Co. Growing food in a giant dome greenhouse. The last time they were down here in Texas visiting and bragging how they are off the grid and don't need city services as they are solar, etc. I asked them weren't they concerned about their neighbors when the food gets scarce. To which her husband replied, "no. we don't care about the neighbors." Also, they think I'm a lunatic and the economy is about to turn around "it always does".
-
JJ - Heavy Crude
- Posts: 1422
- Joined: Tue 07 Aug 2007, 03:00:00
Re: My sister the big spender
by Maddog78 » Mon 12 Jan 2009, 09:43:04
Pretty astonishing story, Cog.
I bet there are many others like her though.
I bet there are many others like her though.
-
Maddog78 - Heavy Crude
- Posts: 1626
- Joined: Mon 14 Jul 2008, 03:00:00
Re: My sister the big spender
by kam3Oen » Mon 12 Jan 2009, 10:05:18
$this->bbcode_second_pass_quote('', 'L')ike many people, their chronological age isn't an indication of their emotional age. They are like little children. Do you wonder why you are frugal and she is not? Is it familial, cultural, a product of the times? This interests me.
I think it's a combination of all those things. But I definitely think people who've never suffered (been poor, and I mean real poor, not America poor) are more susceptible to economic stupidity. Just like a drug addict, you need to hit rock bottom before you can turn your life around. Unfortunately for most of these people, they won't get a chance to recover.
-
kam3Oen - Peat
- Posts: 163
- Joined: Sun 09 Sep 2007, 03:00:00
Re: My sister the big spender
by AlexdeLarge » Mon 12 Jan 2009, 11:07:12
Your sister represents the norm. For the past of couple of decades we have been encouraged by government and the mass media to spend. Heck, the whole point of marketing is to create a desire.
Now...........people are finding out the merits our grandparents taught us of thrift and savings. Look at How popular Dave Ramsey has become.
I'm sure they had this same discussion in 1929.
Now...........people are finding out the merits our grandparents taught us of thrift and savings. Look at How popular Dave Ramsey has become.
I'm sure they had this same discussion in 1929.
Viddy well, little brother. Viddy well.
-
AlexdeLarge - Heavy Crude
- Posts: 1806
- Joined: Tue 20 May 2008, 03:00:00
- Location: I have a whole ward
Re: My sister the big spender
by pup55 » Mon 12 Jan 2009, 12:10:21
Thanks for sharing this story.
This is all pretty simple, really. Don't spend as much as you take in. You would be surprised how pretty high level accountants and others that should know better forget this simple rule.
As for the downsizing, they are quite lucky to find a place that is habitable for $50K. However, they appear to be doing the right thing by cutting down their overhead.
This is all pretty simple, really. Don't spend as much as you take in. You would be surprised how pretty high level accountants and others that should know better forget this simple rule.
As for the downsizing, they are quite lucky to find a place that is habitable for $50K. However, they appear to be doing the right thing by cutting down their overhead.
-
pup55 - Light Sweet Crude
- Posts: 5249
- Joined: Wed 26 May 2004, 03:00:00
Re: My sister the big spender
by TWilliam » Mon 12 Jan 2009, 12:52:11
$this->bbcode_second_pass_quote('Cog', 'I') hope my sister isn't typical of the boomer generation who bought into the whole borrow and spend mentality but I'm afraid she might be.
Unfortunately Cog, she's very typical. A large percentage of her generation have mortgaged their grandchildrens' future so they could have fun. Remember the bumper sticker, "I'm spending my grandchildren's inheritance"? That would be the clarion call of the Boomers, and it's deplorable. I don't think I've met a Boomer couple in the last decade or more who doesn't eat out nearly every night because they can't be bothered to cook (even tho' they certainly have the time). Selfish, plain and simple.
No sympathy whatsoever for that mindset...
"It means buckle your seatbelt, Dorothy, because Kansas? Is goin' bye-bye... "
-
TWilliam - Expert
- Posts: 2591
- Joined: Sun 28 Nov 2004, 04:00:00
