>
> The "household" argument seems specious, as well. When a "household"
> is "underemployed," does the mortgage payment go down? Does the amount of
> food needed go down?
>
This may actually happen through downsizing of various things. For example,
there are people who got new vehicles every three years. They may have
adapted by instead of getting a new vehicle lease, they bought a used
vehicle (or possibly bought their shiny 3-year old vehicle as it came off
lease). This, of course, hurts the auto industry, but given how the prices
of vehicles are so highly inflated as a percentage of income, they somewhat
deserve it.
Or, in our own case, we stopped eating out as much. By modestly trimming
discretionary spending, we've swung our household budget by nearly $500 per
month. We could do more and trim another $500 if we had to. I'm not going
hungry--as any casual observer can attest.
I went through 21 months of unemployment/underemployment myself a few years
ago. It was horrid. Two factors really cratered us, though. First one was
that we bought a house based on the PROMISE of income which never
materialized. The second was my wife's fight with cancer. We're still
digging out from that period as well as her second round and the various
surgeries between them. Even with good insurance, that's many tens of
thousands of dollars.
Thank you, Maytag.
You know how they say you should have x-number of months worth of income
saved? We did. And over 21 months we ate it all up.
A year and a half ago we downsized when we moved. By buying and moving into
a condo/townhouse we are saving somewhere around $750 per month. Instead of
constantly living off of credit cards, we're actually paying them off and
have a date for debt-free life on the calendar as well as investing money.
We had nearly ten years of dismal finances where our outflow always exceeded
our inflow. Unfortunately, local market conditions predated the national
market by years and it took forever for us to sell our house. (almost five
years on the market all told). Twice, it was close, but we managed to avoid
bankruptcy.
I've been "underemployed" for about fifteen years now, and am
> thoroughly enjoying it. But I rather suspect the vast majority of
> those tagged with this moniker do not share my joy.
>
Only because, unlike you, they haven't adjusted their lifestyle to the
income adjustment.
The biggest mistake a couple can make is base their mortgage and monthly
expenses on TWO incomes. One income should provide 100% of all the living
costs and the second income should be for discretionary spending and
savings/investments. If one income doesn't do it, then you are living
outside of your means and WILL get bit.
By no means are we "in the money". Far from it. We scrimp and save as well
as work two full-time jobs plus have two businesses on the side. This is
what it is taking for us to expunge our debts. If it means not buying new
digital cameras, laptops, cars, etc., so be it.
AG
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