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> Hacker news readers often live in a bubble that is well insulated from the outside world. A world where everyone is very smart and money and opportunities are

> Hacker news readers often live in a bubble that is well insulated from the outside world. A world where everyone is very smart and money and opportunities are a dime a dozen. I think the main issue is having other mouths depend on you. I react favorably to his position because my personal finance strategy is having soft/fuzzy (as in "fuzzy set") targets, never spend more than I earn and set automatic transfers to a retirement account that look like expenses when I see the bottom number on my bank statement. But I see how that balance becomes disconnected from one's resolve and voluntary actions as your finances begin representing an entire (even if small) community. > Overspending is very easy for the average person. This is what I don't wholly get: doesn't the average person read the bottom number on their bank statement? I mean, cutting back on expenses is painful, but it's not a matter of tracking pennies anymore. If you have a negative balance you're spending too much money, and most of your choices regarding that are personal to the point of being existential -- what should I sacrifice, my yoga classes or my kid's GameNetwork subscription?

infinite8s 10y ago
You are forgetting about the easy access to credit. Most people not only live at their means but way over it because of credit card debt. I can't find the link but there was a survey recently where over 50% of respondents said they'd be hard pressed to come up with $500 for an emergency.
- nommm-nommm 10y ago
  The thing about credit too - it can by manipulated to make someone feel like they can afford something when they really can't. If you stretch a car loan out for 8-10 years and only look at $200/month it looks like you can afford it, you don't think "I will be in car debt for the rest of my life." Repeat this a few times because each time it also appears affordable. Now you have no savings and are living paycheck to paycheck and can't get out of the debt cycle. You have some unexpected expense (furnace goes) and suddenly you are in massive financial trouble. This can sneak up on you if you aren't careful.

infinite8s 10y ago

You are forgetting about the easy access to credit. Most people not only live at their means but way over it because of credit card debt. I can't find the link but there was a survey recently where over 50% of respondents said they'd be hard pressed to come up with $500 for an emergency.

nommm-nommm 10y ago
The thing about credit too - it can by manipulated to make someone feel like they can afford something when they really can't. If you stretch a car loan out for 8-10 years and only look at $200/month it looks like you can afford it, you don't think "I will be in car debt for the rest of my life." Repeat this a few times because each time it also appears affordable. Now you have no savings and are living paycheck to paycheck and can't get out of the debt cycle. You have some unexpected expense (furnace goes) and suddenly you are in massive financial trouble. This can sneak up on you if you aren't careful.