Elizabeth Warren's two Income Trap
Find a Conversation
| Tue, 01-04-2005 - 3:15pm |
Is a great book that I highly recommend. She was also featured on NBC Nightly News. Her premise is that unlike the couple on Dr. Phil most people do not overspend (or at least not outrageously so) but are still in very bad financial shape. She talks about the deregulation of banking laws and lending practices that conspire to put people in a very risky position. Add to that the pressure of living in a good school district or sending your kids to decent daycare/preschool. Those are not luxuries, those are necessities for most parents.
I watched a bit of Dr. Phil and turned it off after the first couple. I thought it seemed kind of ridiculous and that those people were picked because they were so extreme and easy to ridicule. It seemed kind of a cheap shot for entertainment value. The truer story is about hard working people who use good judgement and still are in trouble. Warren says over consumption makes a good story but isn't the whole story. I have to agree although I am very guilty (or at least have been in the past) of overconsuming and have been trying to change my ways. Just my two cents. Jenny

I totally agree with you. Money just does not go as far as it used to. I like to use the example of my parents when I was young. My father made around $30,000. He bought his first house for exactly that amount - $30,000. Now how many people today can buy a house roughly the same amount as their annual income? The price of everything is outrageous, just the basics.
My husband makes almost $100K. I am a work at home mom that basically earns spending money. We bought a 3 bedroom home in a good school district. Our cars are a 1995 and 1996. I don't shop at The Pottery Barn or Polo. All of our furniture, with the exception of our bedroom set, is hand me downs. We have basic cable, and I cook most nights. We go on one vacation a year where we split a beach house with family members and pay about $250. Are we spending outrageously? No. What is outrageous is that 10 large trash bags cost $4.79 in the supermarket.
Dr Phil needs to get real!!!!!
I completely agree with you--money definitely does not go as far as it used to. I realized this at Christmas, and when I called my Mom to talk to her about it, she found it was true also. Last year, at Christmas, I purchased $75 worth of toys/books for my son, and it looked like a lot under the tree. This year, I spent the same amount on my son, and it looked like nothing. I literally fit everything into two plastic shopping bags from Walmart. And they weren't stuffed. And it wasn't that I bought small-sized items, it's just that things cost so much more, so a few sets of legos, a few action figures, some bionicles, and books took my whole $75. And like I said, my Mom found the same thing. She and my Dad spend a set dollar amount on each of their Grandkids each year. Last year, their gifts for my son filled two huge boxes. This year, one small one. Same amount of money, but items cost so much more.
My Dh just about had a cow when he went grocery shopping with me recently (sticking to the list we'd made out together, and even shopping sales and using coupons). When the cashier hit the total button, my husband said, "Wow.....". Even going down the aisles, he'd say, "This much for a can of powdered gatorade mix??" "This much for coke?" "How come everything is so expensive?"
Pat
Pat, Jenny and Walden05 i sat here shaking my head in agreement as i read each of your posts. you all expressed my feelings perfectly
mary anne