What does “financially stable” mean to you?

[QueenIsabella]

Won’t hurt them to do a menial job or two either. It teaches kids humility and that they aren’t too good to have to wash a dish or bus a table. Getting paid for a job well done is great experience for anyone, whether it’s at a fast food restaurant or a career position. It starts at school but it continues through entry level jobs then into a life’s work.

Exactly! Every job has value, even low-skill ones, like sweeping the floor. And I've heard from numerous people who, say, spent the summer picking vegetables or hauling boxes, that it encouraged them to do well in school, so they wouldn't have to do it for a lifetime.

My two youngest are both baristas--not a bad skill, they can always keep the wolves from the door. They do it for spending money--both really like having control of their own money. But they're also learning useful skills, from customer service to doing jobs you don't care for. Even, how to deal with a boss who's difficult.

 

[ABDUL-RAFIU]

To me, being financially stable means having enough money to cover all my needs without stressing about it. It's about having a steady income, manageable expenses, no debt and some savings for emergencies or future plans.

 

[barkley]

Exactly! Every job has value, even low-skill ones, like sweeping the floor. And I've heard from numerous people who, say, spent the summer picking vegetables or hauling boxes, that it encouraged them to do well in school, so they wouldn't have to do it for a lifetime.

My two youngest are both baristas--not a bad skill, they can always keep the wolves from the door. They do it for spending money--both really like having control of their own money. But they're also learning useful skills, from customer service to doing jobs you don't care for. Even, how to deal with a boss who's difficult.

dh attended private schools. the system he attended was primarily boarding schools once you hit high school (9-12th grade). a requirement of that system was that ALL students had to be employed during the academic year. there were on campus jobs and ones arranged around academic hours with nearby buisnesses. everyone was paid at least the minimum wage of the state they were located in and handled exactly like every other employee (taxed, hr rules unchanged...) BUT they were required to turn a set percentage of their pay over to the school to be credited towards their tuition/boarding fees. this was not optional and parents could not pay everything in full so their student could opt out. the reasoning behind this requirement was so that students would develop a work ethic, gain insight into balancing work and other obligations, learn some financial literacy with money they had earned-and have a dog in the fight as far as the cost of their education (with first hand knowledge of the work that went in to pay for it). dh has shared how there were def. preferable jobs that entailed less physical labor and paid a bit more but they tended to be ones that you had to have specific skills to do so it encouraged the students to seek out learning and experiental opportunities if they wanted to advance in their employment. dh said they grumbled about it as students but in hindsight he realizes how valuable it was to him personaly and professionaly.

 

[QueenIsabella]

dh attended private schools. the system he attended was primarily boarding schools once you hit high school (9-12th grade). a requirement of that system was that ALL students had to be employed during the academic year. there were on campus jobs and ones arranged around academic hours with nearby buisnesses. everyone was paid at least the minimum wage of the state they were located in and handled exactly like every other employee (taxed, hr rules unchanged...) BUT they were required to turn a set percentage of their pay over to the school to be credited towards their tuition/boarding fees. this was not optional and parents could not pay everything in full so their student could opt out. the reasoning behind this requirement was so that students would develop a work ethic, gain insight into balancing work and other obligations, learn some financial literacy with money they had earned-and have a dog in the fight as far as the cost of their education (with first hand knowledge of the work that went in to pay for it). dh has shared how there were def. preferable jobs that entailed less physical labor and paid a bit more but they tended to be ones that you had to have specific skills to do so it encouraged the students to seek out learning and experiental opportunities if they wanted to advance in their employment. dh said they grumbled about it as students but in hindsight he realizes how valuable it was to him personaly and professionaly.

Sounds like a good system. We're blessed to have the resources to pay for our kids' college--it helps that the three currently attending are going close and cheap. But, we require them to pay for their books and incidentals. These days, you can save a lot on books, renting, getting the subject matter online, etc. It's up to them if they want a cheap option or not. And of course, they're much more judicious in their spending, when it's their own money.

DS18 whacked a pole while in his brother's car--no biggie, but $2000 to fix. He knows he has to pay for it. No whining, no fuss--he accepts responsibility. On the good side, the repair shop found the replacement part at a junkyard, which saved him a few bucks.

 

[NotUrsula]

I'd say that "financially stable" and "financially secure" are not quite the same thing in my mind.

The first implies that you have a solid steady income, some savings, and perhaps manageable debt, but will be just fine if a major (but not catastrophic) emergency strikes (say, something costing up to about maybe $25K).

"Financially secure" implies that you have no debt at all, plus enough savings stashed away to handle just about any catastrophe that might befall you, including a member of the family becoming fully disabled on a permanent basis.

I'm financially stable. I am debt-free and own my own home free and clear, but my savings isn't yet large enough to carry me indefinately if I cannot work at all. Technically, I'll be eligible for Medicare soon, but I'm going to hold off on collecting my SS until I reach full retirement age. (We still have a 16 yo to educate.)

 

[gmi3804]

My friends were buying motorhomes and boats and burning through their money I bough a home and set out to pay it off.
Joined two pension savings plans.
Enjoying it all now without any serious bills other than occasional fuel and water bill.

Solar on the house charges the cars and no electric bill.
Live below your means.

Don't say to heck with the future, the future says to heck with you.

Yes. I wonder how many of the seniors in a previous post who had to decide which items to put back on the grocery shelves because of lack of money had a YOLO attitude towards things like Disney vacations and keeping up with the Joneses-type items when they were younger.

 

[Dive Bar Casanova]

Yes. I wonder how many of the seniors in a previous post who had to decide which items to put back on the grocery shelves because of lack of money had a YOLO attitude towards things like Disney vacations and keeping up with the Joneses-type items when they were younger.

I'd say that "financially stable" and "financially secure" are not quite the same thing in my mind.

The first implies that you have a solid steady income, some savings, and perhaps manageable debt, but will be just fine if a major (but not catastrophic) emergency strikes (say, something costing up to about maybe $25K).

"Financially secure" implies that you have no debt at all, plus enough savings stashed away to handle just about any catastrophe that might befall you, including a member of the family becoming fully disabled on a permanent basis.

I'm financially stable. I am debt-free and own my own home free and clear, but my savings isn't yet large enough to carry me indefinately if I cannot work at all. Technically, I'll be eligible for Medicare soon, but I'm going to hold off on collecting my SS until I reach full retirement age. (We still have a 16 yo to educate.)

Wife was planning on waiting for the full Social Security but cancer has her wanting to retire and collect it early in January. The cushion of cash we saved will help that. Early Social Security draw means about $640 less per month.

Remember your Medicare isn't free, it's deducted from your Social Security and an essential PPO medicare supplement is out of ones own pocket. My retirement reimburses us for all that. Wife paid no mind to that benefit over the years but now sees what a big deal and amazing benefit that is.

I walk down to a nice little pub for a drink and watch the Ball game and amazing how many people I meet that didn't plan to retire. They skipped paying or paid little into their Social Security and have very little to live on. Cougars hitting on guys with solid financial lives is pretty common. They can barely afford the room they rent at over age 60. They wait for someone to buy a round of drinks because they are that broke or a happy hour $3 special and nurse it for 2 hours.

Under achievers don't like achievers so one must be selective on who they make company with.

I worked a stressful job and dealt with awful people but reached my financial goal. Ain't rich, but I can enjoy the fruits of my toil.

I'm much older than my wife and when I tap out their's enough assets for her to be the crazy cat, dog and Burro rescue & adoption lady.
"European girls look more for a solid, financially stable guy to marry, USA girls want a tall guy that's "wrong" for them." - Jenny Jones.
To my Swiss wife I'm just an older guy, being tall helps get noticed I guess. She asked me to marry. I was blindsided with that.

We can afford to RV travel and wife has the time to volunteer in a local animal adoption center. She's placed 100 German Shepard's in good homes. Tough standards to qualify to adopt one. Brushing German Shepard number 101 we adopted: :

Three years ago diesel fuel was $2.99 a gallon here, now $6.99! We run that same diesel Disney parks run. Renewable / sustainable made from farm silage that's ultra low emission that was 50 cents a gallon cheaper than fossil fuel. Now, the same price. So we drive less and skip the $8 Big Mac.

 

[dpswift]

Yes. I wonder how many of the seniors in a previous post who had to decide which items to put back on the grocery shelves because of lack of money had a YOLO attitude towards things like Disney vacations and keeping up with the Joneses-type items when they were younger.

There is a lot to consider. A lot of changes were made that put many of the current and near to be seniors at risk. When we were bringing up our children in the 90s there were many layoff. People either had to move or find new jobs. Pensions that they were expecting disappeared. 401k savings plans did not start well. You had to be in a job for a year before you could join and then the companies match was in limbo for the next 5 years.

Despite many layoffs my husband did manage to put away a fair amount in a 401k many people our age at or near retirement age have little or nothing put away.

 

[Dive Bar Casanova]

There is a lot to consider. A lot of changes were made that put many of the current and near to be seniors at risk. When we were bringing up our children in the 90s there were many layoff. People either had to move or find new jobs. Pensions that they were expecting disappeared. 401k savings plans did not start well. You had to be in a job for a year before you could join and then the companies match was in limbo for the next 5 years.

Despite many layoffs my husband did manage to put away a fair amount in a 401k many people our age at or near retirement age have little or nothing put away.

Good takes good observation.
Do you remember 7% interest paid on pre-taxed pension plan savings? That's gone, so plans aren't producing their projected goal. Credit Union plans paid an additional 1/2% on every dollar invested that was in the plan per year.

 

[Dive Bar Casanova]

Financial planing check this out:

Critical speciality nurse shortage and high cost of living here mean't my wife's Hospital had a tough time recruiting RN's.

Romania had a hospital workers slow down and strike over tragically low wages sometime back.
Wife's hospital recruited 5 nurses from there. Good educations. The girls came to the USA, got cost of living reimbursement and high pay, then after 5 years US citizenship.

Easily dovetailed into the tough nursing positions and got up to speed fast.

Very first thing these 24 year old girls did when they came to the USA was wisely buy residential property in Florida and Texas. Then when their 5 year contract was up, they relocated there. 10% less pay but 30% less cost of living and no State income tax. Many hospitals offered 20 year at 60% pension plans at no cost to the employee.