thank you...I feel bad for the family, but it appears as if they had no money in savings. He was laid off six months ago and he is six months behind in his house payments. That means even with a six figure salary he was living pay check to pay check.
thank you...Wake up. That is how 90% of America lives, regardless of income level. Paycheck to paycheck.
I did taxes from 1981 through 1990. In that time, I saw both extremes, families living and prospering on half the income I made (along with lots of determination and hard work), and people with six-figure incomes who didn't have squat to show for it.
I would imagine that there is not an income that could not be outspent, if one were truly determined to do so.
Read the book “The Millionaire Next Door”. The book has a whole chapter about why people making tons of money end up broke. Paycheck to paycheck is the main reason, and the author pointed out that these types of families exist in all types of neighborhoods, including upper middle class and working wealthy ones. Made my son read the book when he was in junior high school. At the time he hated it, but today he is a sophmore in high school and he thinks the book was awesome because it outlined the main causes how well to do people go bankrupt and how these stories are appearing in the news as the recession hits the country. He actually reread the book.
“That means even with a six figure salary he was living pay check to pay check.”
Yeah, but I bet he was “living large.”
In a lot of urban areas, if you have a mortgage and a couple of kids, $100k is NOT a lot of money. It doesn't take much financial mismanagement or bad luck to put you in a tough situation. I would point out that the untold story of the expense of living in those areas is the taxes - property taxes, sales taxes, income taxes, to the point where the Commies who dominate our political culture pretty well achieve what they want "economic equality". Someone with a six figure income isn't much better off than the next guy, even though he may have invested several years and lots of his money into an education.
“That means even with a six figure salary he was living pay check to pay check.”
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That seems to be fairly common. I have never been able to understand why someone spends years learning to make a sizable income and then goes to the limit on spending so that they still live with no cushion as if they were earning ten dollars an hour.