3 ms·

mrmoneymustache.com If you own two cars, one being a mercedes (don't care it's old) and are on foodstamps then you may want to read that site. It's not a knoc

by hoopism 12y ago

mrmoneymustache.com If you own two cars, one being a mercedes (don't care it's old) and are on foodstamps then you may want to read that site. It's not a knock. But you can live a lot cheaper than you think... and still save money... and be happy. REVISE: No problem with public assistance. But I did want to emphasize that there are people who are very happy living on wages far below what these two were capable of.

deleted 12y ago
[deleted]
nilkn 12y ago
That site might have helped them more before they were faced with sudden financial difficulties. Since they'd already paid for it in full, I don't really know how much it would have helped to sell off the Mercedes. They could have traded it in for a cheaper car and got a few grand, but that would have probably taken a fair amount of time and effort -- would it have really been worth it? It's also worth noting that the low-tier Mercedes models are not much more expensive than a Honda Accord. To be fair, though, regarding their lifestyle before the crisis, a $250k home on a $120k income is very conservative by most modern standards. They were leveraging their income far less than is typical in the Bay Area in fact.
- FireBeyond 12y ago
  "We're struggling to feed ourselves and our children!" "but that would have probably taken a fair amount of time and effort -- would it have really been worth it?" After the first statement? Yes. Heaven forbid it takes time and effort to try to improve your situation.
  - nilkn 12y ago
    This is effectively a non-response. Focusing on regaining employment would be a FAR better way to improve the situation, and it's not even clear if the car was worth enough to pay for a decent replacement. Just because it's a Mercedes does not mean that it magically retains its value or even that it was that expensive to begin with. If they are in such a bad situation that they have to sell off their car in order to pay for some meals, then clearly they needed the support they got. Giving up personal transportation in exchange for food is not even remotely a solution to the problem. It actually makes it far more difficult to regain employment (their Honda broke down, remember?), and the cash from the car sale is only a temporary bandaid--it does nothing at all to solve the fundamental problem of "income < expenses." It's beyond me how you could think that someone who is in such trouble that they have to sell off all means of personal transportation so their children don't die of starvation would not deserve some sort of aid. In any case, the couple in this story, having regained a comfortable income, is now paying taxes every month so that if you face severe financial trouble you too can receive some aid without having to immediately liquidate every asset you own so your family doesn't die, even those assets that are critical to finding a real resolution of your difficulties.
    - hoopism 12y ago
      "It's beyond me how you could think that someone who is in such trouble that they have to sell off all means of personal transportation so their children don't die of starvation would not deserve some sort of aid...." We can kill that straw man together if you'd like... Who's saying they didn't deserve assistance? I am simply saying that reducing one's liabilities and conveniences can do as much for your bottom line as going and getting a high paying job. In fact, if you reduce your outgoing costs significantly enough (two cars, two insurances) you may be able to find employment that at a lower wage that will allow you to feed your kids comfortably.
      - nilkn 12y ago
        The post you're quoting was in response to FireBeyond, not you. My post was reduced to one snarky line of disagreement. If FireBeyond had a more nuanced point than outright disagreeing with everything I wrote, the onus was on him or her to clarify that. > if you reduce your outgoing costs significantly enough (two cars, two insurances) you may be able to find employment that at a lower wage that will allow you to feed your kids comfortably. Now they have one car (which broke down) and an income which is just enough to feed their kids comfortably. While the threat of starvation has been eliminated, the difficulty of regaining their original income has been increased, as they're now time-poor as well and even potentially lack personal transportation. MMM is not about how to deal with a financial emergency that you weren't prepared for. It's about how to prepare for emergencies in the first place.
        hoopism 12y ago
        Partially true. It's just as much about realizing your finances are in crisis and confronting it as much as it is preventing it. In fact there's large sections of the forum dedicated to just that. Or see here: http://www.mrmoneymustache.com/2013/12/03/reader-case-study-hair-on-fire/ http://www.mrmoneymustache.com/2013/12/03/reader-case-study-... or here: http://www.mrmoneymustache.com/2012/04/18/news-flash-your-debt-is-an-emergency/ http://www.mrmoneymustache.com/2012/04/18/news-flash-your-de... or here: http://www.mrmoneymustache.com/2012/09/15/reader-case-study-the-long-road-to-mustachianism/ http://www.mrmoneymustache.com/2012/09/15/reader-case-study-... Hate to sounds like a MMM fanboy... but they do offer as much helpful advice for those in crisis as they do for those striving to improve. It's just more painful measures when speaking of the former.

by hoopism 12y ago

deleted 12y ago

[deleted]

nilkn 12y ago

That site might have helped them more before they were faced with sudden financial difficulties. Since they'd already paid for it in full, I don't really know how much it would have helped to sell off the Mercedes. They could have traded it in for a cheaper car and got a few grand, but that would have probably taken a fair amount of time and effort -- would it have really been worth it? It's also worth noting that the low-tier Mercedes models are not much more expensive than a Honda Accord. To be fair, though, regarding their lifestyle before the crisis, a $250k home on a $120k income is very conservative by most modern standards. They were leveraging their income far less than is typical in the Bay Area in fact.

FireBeyond 12y ago
"We're struggling to feed ourselves and our children!" "but that would have probably taken a fair amount of time and effort -- would it have really been worth it?" After the first statement? Yes. Heaven forbid it takes time and effort to try to improve your situation.
- nilkn 12y ago
  This is effectively a non-response. Focusing on regaining employment would be a FAR better way to improve the situation, and it's not even clear if the car was worth enough to pay for a decent replacement. Just because it's a Mercedes does not mean that it magically retains its value or even that it was that expensive to begin with. If they are in such a bad situation that they have to sell off their car in order to pay for some meals, then clearly they needed the support they got. Giving up personal transportation in exchange for food is not even remotely a solution to the problem. It actually makes it far more difficult to regain employment (their Honda broke down, remember?), and the cash from the car sale is only a temporary bandaid--it does nothing at all to solve the fundamental problem of "income < expenses." It's beyond me how you could think that someone who is in such trouble that they have to sell off all means of personal transportation so their children don't die of starvation would not deserve some sort of aid. In any case, the couple in this story, having regained a comfortable income, is now paying taxes every month so that if you face severe financial trouble you too can receive some aid without having to immediately liquidate every asset you own so your family doesn't die, even those assets that are critical to finding a real resolution of your difficulties.
  - hoopism 12y ago
    "It's beyond me how you could think that someone who is in such trouble that they have to sell off all means of personal transportation so their children don't die of starvation would not deserve some sort of aid...." We can kill that straw man together if you'd like... Who's saying they didn't deserve assistance? I am simply saying that reducing one's liabilities and conveniences can do as much for your bottom line as going and getting a high paying job. In fact, if you reduce your outgoing costs significantly enough (two cars, two insurances) you may be able to find employment that at a lower wage that will allow you to feed your kids comfortably.
    - nilkn 12y ago
      The post you're quoting was in response to FireBeyond, not you. My post was reduced to one snarky line of disagreement. If FireBeyond had a more nuanced point than outright disagreeing with everything I wrote, the onus was on him or her to clarify that. > if you reduce your outgoing costs significantly enough (two cars, two insurances) you may be able to find employment that at a lower wage that will allow you to feed your kids comfortably. Now they have one car (which broke down) and an income which is just enough to feed their kids comfortably. While the threat of starvation has been eliminated, the difficulty of regaining their original income has been increased, as they're now time-poor as well and even potentially lack personal transportation. MMM is not about how to deal with a financial emergency that you weren't prepared for. It's about how to prepare for emergencies in the first place.
      - hoopism 12y ago
        Partially true. It's just as much about realizing your finances are in crisis and confronting it as much as it is preventing it. In fact there's large sections of the forum dedicated to just that. Or see here: http://www.mrmoneymustache.com/2013/12/03/reader-case-study-hair-on-fire/ http://www.mrmoneymustache.com/2013/12/03/reader-case-study-... or here: http://www.mrmoneymustache.com/2012/04/18/news-flash-your-debt-is-an-emergency/ http://www.mrmoneymustache.com/2012/04/18/news-flash-your-de... or here: http://www.mrmoneymustache.com/2012/09/15/reader-case-study-the-long-road-to-mustachianism/ http://www.mrmoneymustache.com/2012/09/15/reader-case-study-... Hate to sounds like a MMM fanboy... but they do offer as much helpful advice for those in crisis as they do for those striving to improve. It's just more painful measures when speaking of the former.