1. My First Computer Build

    It was something I’ve wanted to do for a long, long time … but never really had the guts to attempt.

    Until several weeks ago.

    After perusing Dell’s website for a while, and being not at all impressed with the price/performance ratios I saw, I determined that I was going to build my own computer. For the first time. At age forty.

    It’s now done. The computer works, even. And because of that, the build was actually quite fun. Here’s my wrapup, for those interested. (Hey, it’s related to personal finance, because if nothing else, I saved some money!)

    Our History with PCs

    Lisa and I have owned quite a few PCs over the years, starting with Acers and Compaqs (both were crap) many moons ago. Our latest desktop PC was a Dell, as was the one prior to that.

    We bought the current Dell Dimension desktop back in 2003; it’s been a solid and durable machine over the years, requiring only modest upgrades here and there. (I think I added a 256mb Nvidia video card at one time, plus a second hard drive. And maybe some RAM as well.)

    These days it languishes in our home’s “computer room.” Due to its age, the Dell is little more than a dust-collecting hub of sorts for our printer, wireless router, and our several household laptops … and it’s an occasional gateway to the interwebs for our daughter. (When she’s not able to get on a laptop because Mommy and Daddy are using them, that is.)

    Time for a New Computer: Our Goals

    Lisa and I aren’t diehard “gamerz,” but when we find games we like, we’ll play the crap out of ‘em. Such is the case with current offerings like Elder Scrolls V: Skyrim, Civilization V, and the various Sims concoctions. (Not to mention the upcoming Diablo III, assuming it ever actually hits the shelves.)

    In recent years, what games our family has played have been on our PS3 and Wii. This is fine … to a point. The PS3 is nice, but it has always been our opinion that, while game consoles have their merits, the more involved games (i.e., not button-mashers) are best played on PC. Mods and cheats … yay!

    (In our pre-kid years, Lisa and I had great fun staying up ’til 3 or 4am playing the Civilization series, and darker stuff like Nocturne, on our desktop.)

    Obviously, a 2003 Dell Dimension with a Pentium 4 and a 256mb video card isn’t gonna play Skyrim at any sort of acceptable level. Nor will it run Civ V. Nor will any of our laptops. (Well, our laptops will play Civ V okay, but that’s about as far as they’ll go.)

    And given the fact that our Dell is now making all kinds of noise while it’s running (pretty much 24/7), is useless for the sort of gaming we really want to be able to do, and is long past the end of its upgrade cycle, we decided that a new computer was in the cards.

    Now, the choice: Buy prebuilt, or build our own?

    Comparing, Contrasting, Considering

    Remember how I mentioned that I’d always kind of wanted to build my own computer, using components selected by me? Well, that’s absolutely true. But even this time, my first inclination was to shop Dell, since we’d had such good luck with their desktops in the past.

    But the more I perused Dell’s site, the more I understood that I was going to be spending around $1,400 to get a computer that would do what I wanted, gaming-wise. That seemed a bit stout. Add onto that the fact that that computer would come preloaded with lots of Dell crapware that I didn’t want, and you have the foundations for my going the self-built route.

    1) I want a computer that’s built from decent components. I want to know what’s “in the box.” I want to know that the PC maker didn’t give me a nice video card, but cut corners with a cheapo motherboard or power supply.

    2) Improved price/performance. Sure, I could find a Dell PC that games all night. But to get one comparable to what I built myself (for $1,100) would’ve cost me at least $1,400 from Dell. And even then, it would be “dirty.” That’s explained next.

    3) I don’t want a PC that’s preloaded with gigs of crapware. Experience has taught me that OEM bloatware is a royal PITA to remove. Frankly, I’m tired of dealing with it, and I’m damn sure tired of paying for it. Figuring out what can go, and what can’t, is a gargantuan task in itself, and often fraught with compu-peril. (Of course, you can always just reformat the hard drive on Day One, installing a clean MS Windows, Linux, or whatever. That’s what I’ve done with a couple of laptops. But hunting down the correct drivers wasn’t much fun.)

    4) Upgradeability. If you choose the components, you’ll know what they can handle going forward. If you build the system, you’ll know what’s involved as upgrades become necessary (new hardware, drivers, etc.). This, to me, is a big plus.

    5) Nom nom nom: Brain food. Building a computer is fun — when everything works, of course. Plus it’s just a good hands-on learning experience. For me, there’s a certain measure of pride in building something that doesn’t just look nice, but is also productive and useful in some way. Certainly that can apply to “computer building” just as it does to other things I enjoy (woodworking, software, and so on).

    Research … And Choices Made

    So those were my reasons. As I’d never built a PC before, it was a certainty that lots of research was going to have to take place. Hours of message-board reading at sites like Tom’s Hardware was a given, but I also wanted to grab a book of some sort on the topic. For this, I chose Building the Perfect PC, and read it front-to-back a couple of times on my Kindle app.

    I found Building the Perfect PC to be extremely informative, and — perhaps more importantly — quite reassuring for a newbie builder. Among other things, it gave me some idea of “good reputation” PC-component manufacturers. And if nothing else, having such a book in my Kindle archives pretty much certifies my 100% Geekitude.

    For those folks interested in such things, I’ll list out the components I chose, along with a brief bit of reasoning on each:

    CPU: Intel Core i5 2500K ($220 @ Amazon)
    As of the time of this post, the Intel i5 2500K is an overwhelming choice of gaming-PC builders. Its stability when overclocked (maybe something I’d consider later) is unsurpassed. The fact that it’s not Intel’s current Top of the Line CPU means it costs ~$100 less than an i7 … but with no real performance drop-off for the things I’ll be doing.

    Video Card: Sapphire Radeon HD 6970 2gb ($340 @ Amazon)
    Contemporary video cards are rather pricey, and because we wanted one that would last us for a while, the video card was always going to be the single most expensive component of the build. With lots of great reviews, the HD 6970 seemed to be a very strong graphics card. Again, it’s not top-of-the-line, but certainly strong enough to keep us in HD gaming bliss for years to come.

    Motherboard: ASUS P8Z68-V/GEN3 ($185 @ Amazon)
    Calls to a couple of professional PC builders (friends of friends) suggested to me that ASUS was one of the two or three premier mobo manufacturers today. From there, it was just a matter of finding an ASUS mobo with the correct size factor (ATX), processor setup (LGA 1155, matching Intel Core i3 / i5 / i7), and features to do the job I wanted. This one fit the bill nicely.

    RAM: Corsair 8gb (2x4gb) PC3-12800 1600mHz DDR3 ($49 @ Amazon)
    RAM seems pretty darn cheap these days, and 8gb should be quite enough to keep Windows 7 Pro, plus any games, running smoothly for a long time.

    Power Supply: Corsair 550-Watt Modular Power Supply ($98 @ Amazon)
    The Corsair brand of power supplies came highly recommended, over and over again, on the PC-builder forums I read. If I ever wanted to add a second video card, I’d have to go to a larger power supply. But for now, 550 watts should do the trick. (I also read that power supplies are often the first component that mainline PC makers like Dell, HP, and so on will skimp on to keep prices down.)

    Hard Drive: Seagate 7200rpm 500gb SATA Hard Drive ($85 @ Amazon)
    Meh, it’s a hard drive, and you gotta have one. Seagate has been good to me over the years, so I went with them. As of right now, hard-drive prices are quite dear, thanks to flooding in Thailand which decimated all the HD manufacturers’ factories. Prices which would’ve gotten me a 1TB hard drive (or larger) last year are getting me only a 500gb version now. Bah.

    But, when prices come back down, this can always be upgraded pretty easily. And I’m open to adding a solid-state drive later, as well, for just the operating system and related files.

    DVD Drive: Lite-On 24X DVD+/-RW Dual-Layer Drive ($25 @ Amazon)
    Meh, it’s a DVD drive. These things are expendable. You’ll pay more for dinner out at a decent BBQ joint.

    Case: Cooler Master Storm Enforcer Mid Tower ATX Case ($89 @ Amazon)
    Lots of great reviews on Amazon helped this case catch my eye. I wanted a full-sized case, since space isn’t really an issue for us at the moment. Plus, it needed to be compatible with ATX-form motherboards like the ASUS one I chose above. The newbie-friendliness (spacious, good wiring management, durability) of the Enforcer was also a plus.

    Operating System: Windows 7 Professional
    I had a new and unopened copy of Windows 7 Pro from a previous laptop cleanup that never materialized. Already having this OS disc ready to go meant I would save at least $100 on this build. (To save money, one could always go the open-source Linux route, too. But that was never really an option for me.)

    Peripherals
    We already had an unused wireless keyboard/mouse setup in our stash, as well as a set of PC speakers. Had I wished to do so, I could’ve used the LCD monitor attached to our Dell. I went ahead and upgraded both the speakers and the monitor once the new computer was built and functioning, but those items weren’t integral to the build.

    The Final Price Tag

    And those are the components I chose. For the wallet-watchers keeping track, the tally goes like this:

    Pricing

    If a Windows 7 operating system disc had been needed, I’d have added another $100 (at least) to that total.

    Putting It All Together

    There are skads of YouTube videos showing how to build a desktop PC, step by step. And I watched a lot of them.

    All in all, the build went very smoothly. I’d estimate that it took a Very Nervous Me about half of a Saturday to piece everything together, creeping toward that “Okay, time to press the power button!” moment. I did lots of precautionary static-discharging, as well as lots of double- and triple-checking of my cables and connections.

    The rest of my build day was taken up with installing the OS, updating drivers, getting acquainted with BIOS options, and loading some basic software (virus protection, Adobe Reader, Flash, etc.) on the machine. And let me tell you: Heaven is firing up your brand new, self-built PC, and finding a Windows desktop with nothing on it other than Recycle Bin. Glory, glory, hallelujah, and so on.

    The ASUS motherboard fit perfectly in the Cooler Master case; I didn’t have to flex or bend the board a bit for it to line up with the mounting screw-holes. I did have to remove one of the two drive cages in order for the Radeon video card to fit, as it’s pretty darn large. No biggie, though, as I’m not interested in throwing an additional five or six drives (DVD, hard disc, or otherwise) into this machine.

    I am extremely happy with the Cooler Master case. It is sturdy as heck, and looks great. Front USB and audio jacks are at the top of the case, so they’re super-convenient to access. (Contrast this to our current Dell, where the front USB ports are at the bottom, angled down, and covered by a door that obscures them from view, even when open. You can’t see which way to plug in a USB device unless you’re laying on the floor, OR unless you keep the PC on your desk, at eye level. Nice design, huh?)

    Internally, the Cooler Master’s nooks/crannies for running SATA and all the other cables are plentiful. Air flow (via the case’s two fans) seems great. The DVD and hard drives were ridiculously easy to install.

    Summary

    Pretty much as I’d figured, building a computer was fun. This stands to reason, as I am, obviously, a total geek.

    The computer’s been running and gaming for a couple of weeks now. I still get giddy whenever it fires up and I have that spotless, crapware-free Windows desktop shining up at me. (Please — no comments about how Windows itself is crapware. Its drawbacks, certainly, are many.)

    Yes, I had a blast putting together a machine that actually works and does something. Sure, this one’s mostly for gaming and ‘net surfing. But if you’re a guy like me, who remembers so vividly that glorious moment in 1980 when you first placed your fourth-grade hands on a computer (a Radio Shack TRS-80, in my case) and watched, astounded, as its green screen responded, text-adventure-style, to your typed commands … well, the fact that you JUST BUILT ONE OF THOSE THINGS AND IT ACTUALLY FREAKIN’ WORKS is a mighty, mighty achievement indeed.

    How far things have come. How wonderfully, amazingly far.




     

     

  2. So Why Save?

    Talk about fantastic news: My email inbox showered me with a couple of interest-rate notices this past week … the same sort of notices that have been so pervasive for the last several years:

    Dear Affiliate,

    ING DIRECT’s Orange Savings Account and Kids Savings Account rate has changed to 0.80%.

    ING DIRECT’s Business Savings Account rate has changed to 0.50%.

    Electric Orange Checking Account rates have changed…

    While ING’s savings rates have been below 1% for a while now, and consistently dropping to new lows (for them), the update that really smarted came courtesy of my preferred credit union. Their rewards checking account had been paying me 4.38% ever since I’d signed up back in August of 2010. The new rate as of January 1, 2012?

    Try 3.38%.

    While that’s still a pretty nice rate, relatively speaking, that doesn’t mean I have to be happy about the drop in yield. This is “rewards checking,” after all, where I actually have to expend some effort — like using a debit card at least 12 times per month, which I’d otherwise never do — to earn that rate. And even then, it’s only on the first $15,000 of deposited funds.

    It’s not necessarily the pure dollar figures that tick me off, either. Where my dividends in this account had been running in the $50 area each month, I’ll now be getting somewhere in the vicinity of $42. Eight bucks less per month? No big whoop.

    Rather, what gripes me is the fact that rates are being anchored to the floor, and pushed ever lower, because there’s so much STUPID (yeah, that’s a noun) in the system that allowing rates to rise to a market-clearing level would apparently bring about financial chaos. I mean, heaven forbid true risk get priced in anywhere. Financially-spotty paper assets getting repriced to true, “non-easy money” values? Lord, no! Insanity! Why, think of the children!

    (At this point, Watson, if you’ve surmised that I’m not a fan of the Federal Reserve, you’d be correct.)

    So Why Save?

    It’s quite obvious at this point that, while their PR firms say otherwise, the absolute last thing that The Powers That Be want us middle-class folk to do is save our money. (Neat corollary: One of the reasons we inhabit the economic muck of today is that no one has been saving, really saving, for decades. And if any of us were to do something crazy and start saving now on any kind of sizeable scale, well, we’d be in the soup. Since no one has been saving for years, and instead has been taking on “cheap” debt like there’s no tomorrow, we certainly can’t afford to save now. See how it all makes perfect sense?)

    But if you’re me, and you like to be able to sleep at night, you save anyway.

    You save, because somewhere down the line you’re going to need a new truck, and paying interest on top of the already-silly prices on cars just wouldn’t be kosher.

    You save, because while you replaced your central heat/air system just a few years ago, experience tells you that Murphy likes to show up unannounced and make roadkill of pretty much any four- or five-digit home repair item he can find.

    You save, because deep inside, there’s that vindictive inner self who believes that cramming hundred-dollar bills into a bank bag stored in your home safe means that somewhere, a banker or Federal Reserve governor breaks down in tears. (Or, if you prefer, with each crisp Benjamin you take out of the system, a hefty .0000000137 jobs are destroyed. I don’t have any evidence to back that up, of course, but then my inner self isn’t actually a stickler for facts, either.)

    So go ahead, Federal Reserve, and keep massaging those rates down, down, down. Our beloved banks will have choice but to follow suit. And keep huffing and puffing to prop asset prices up, up, up. There won’t be any negative repercussions to any of this; no, of course there won’t. History has shown us, time and again, that there never are. It always works out well.

    For somebody.

    Just never the savers.




     

     

  3. Nope, No Savings Here. Or Here. Or There.

    From DSNews we get this encouraging tidbit:

    DSNews: Job Loss Would Make 1 in 3 Homeless

    And by “encouraging,” I mean that the last thirty years of insane financialization and ridiculous consumption is making itself evident everywhere you turn. While the use of “homeless” in the article is a touch misleading, it still paints a pretty yucky picture:

    One in three Americans would be unable to make their mortgage or rent payment beyond one month if they lost their job, according to the results of a national survey taken in mid-September.

    Despite being more affluent, the poll found that even those with higher annual household incomes indicate they are not guaranteed to make their next housing payment if they lost their source of income. Ten percent of survey respondents earning $100K or more a year say they would immediately miss a payment.

    And this:

    Sixty-one percent of those surveyed said if they were handed a pink slip, they would not be able to continue to make their mortgage or rent payment longer than five months.

    Chalk this up to too many folks borrowing for (or against) homes they couldn’t really afford, and it logically follows that these same households couldn’t build up savings even if they wanted to do so. Throw a dead-weight economy on top of it, and you have the makings of a mighty tenuous situation for a lot of Americans.




     

     

  4. Can You Come Up With $2k in a Hurry?

    Sure, the data is a couple of years old, but I don’t doubt it a bit:

    WSJ: Nearly Half of Americans ‘Financially Fragile’

    According to the study, roughly half of Americans reported that they “probably” or “definitely” could not come up with $2,000 if needed within 30 days.

    From the WSJ:

    The survey asked a simple question, “If you were to face a $2,000 unexpected expense in the next month, how would you get the funds you need?” In the U.S., 24.9% of respondents reported being certainly able, 25.1% probably able, 22.2% probably unable and 27.9% certainly unable.

    Other recent, similar surveys have told us that more than 3/4 of us live paycheck-to-paycheck, and 27 percent of us have no personal savings. So it’s not as if this WSJ article’s story is a surprise.




     

     

  5. Boomers: Retirement Trouble Ahead

    Ah, the perils of basing one’s retirement on double-digit asset-price appreciation … and carrying large debts in the meantime:

    WSJ: Retiring Boomers Find 401k Plans Fall Short

    Who knew retirement could be so perilous? And who knew it was all the stock market’s fault?

    Bad stock market. Bad.




     

     

  6. Harris: 27% of Americans Have No Personal Savings

    If you’re a money-stats junkie like me, you live for figures like these from this recent Harris Poll:

    PR Newswire: More Americans Report No Personal or Retirement Savings

    Amazing, I know. Even though our economy just surged through a dotGov-sponsored Recovery Summer™, it seems that as of November, 2010, fewer of us reported having any personal or retirement savings.

    Here’s one of the survey’s more salient points to consider, if you’re a Gen Xer (as I am):

    Generationally, one-in-four (25%) Baby Boomers (aged 46-64) have no retirement savings, with 22% of Matures (aged 65 and over) stating the same. Gen Xers (aged 34-45) are struggling with more immediate issues; 32% have no personal savings.

    When one in three 34-to-45-year-olds reports having no personal savings, then you know our consume-it-all economic setup is working precisely as designed. And as one of the accompanying tables shows, the same percentage of Gen Xers report having no retirement savings.

    Couple this sort of data with that from other late-2010 surveys — CareerBuilder, for instance, found that 77 percent of us survive paycheck-to-paycheck, even $100k earners — and the picture that emerges is downright scary.




     

     

  7. Save Up for Christmas

    It’s time for my yearly admonition:

    Those of you who don’t save up for your Christmas giving by putting aside some cash every month in your Freedom Account — well, all I can say is that you’re probably doing it wrong.

    (On the other hand, if you’re sitting on $10 million in liquid savings AND can manage to NOT piss it all away, then I suppose you can handle your Santa spending however you like, yessir.)

    In any case, the idea is to have your gift money saved and ready to go by the end of November next year. That way you won’t have to rely on FANTASTIC BANKING DEALS like this one:

    Or, even worse, slapping the bills on your credit cards … and letting them simmer for months.

    Even if you can’t be debt-free today, take steps now to make sure that next year’s holiday-season spending won’t dig the hole even deeper!




     

     

  8. Quicken: Cash Flow Forecast

    Over the years, Intuit has added lots of tools to Quicken — mostly, I would argue, to encourage its users to adapt an annual upgrade cycle of the software. While I adore Quicken for its performance at tracking accounts, spending, and net worth, I find myself using very few of the additional tools that its Deluxe and Premium versions offer. (As of this post, I’m using Quicken 2010 Deluxe.)

    One such tool — brought to my attention by an email a few months back — is Quicken’s Cash Flow Forecast. It’s meant to help with long-range (say, a year out or more) cashflow planning. Quicken’s Help Files explain it like this:

    For long term forecasting use Quicken’s Cash Flow Forecast feature. A cash flow forecast lets you project your cash flow for the future, based on scheduled bills and deposits and estimated amounts. Quicken can forecast your spending patterns for up to two years, and displays your account balances in a graph.

    You can get to the Cash Flow Forecast via the menubar:

    PLANNING → CASH FLOW FORECAST

    When I select that, Quicken displays a graph like this:

    That awfully smooth, upward-sloping line is meant to show me how my bank-account balances will steadily increase over the next year IF my monthly “Income Items” and “Expense Items” meet the parameters I’ve set up. (Displayed figures above have been certified by the Congressional Budget Office. So you know they’re, uh, reliable.)

    Forecasting: It’s a Lot of Work

    The graph is all fine and dandy, I suppose. However, it took me a patience-testing hour or so to get Quicken’s Cash Flow Forecast set up in a way that’d reflect anything close to reality. Initially, Quicken’s “brain” had taken my next year’s worth of Scheduled Transactions, combined it with my average monthly categorized income and expenses, and applied all of that to my household financial cash flow in a manner that I can only describe as MADDENINGLY RANDOM.

    Some “income items” appeared twice. Many “expense items” appeared three and four times. Now, I’m all for conservative planning, but come on. Those initial figures were a disaster, and way out of whack.

    I can’t imagine that any large chunk of Quicken users would be willing to plow through their incomes and expenses, category by category, Scheduled Transaction by Scheduled Transaction, just to get this thing running at a somewhat realistic clip. I did it, but only because I’m a money dork. The rest of you probably have lives.

    Just Start Over?

    The Cash Flow Forecast allows you to create and save different scenarios, which is probably pretty useful IF you have a few hours to kill. I wasn’t even willing to approach this feature, given what it took just to get the thing set up. (When making changes, income and expense items aren’t even listed in alphabetical order, for crying out loud. Who the hell came up with this?)

    I think that, if I were going to rely on the Cash Flow Forecast at all, I would start by scrapping ALL of the estimated items Quicken creates. I’d then simply enter the categories I wanted, by hand, starting with my largest categories (taxes, food, insurance, etc.) first. I’d likely keep the “Known Items,” as Quicken creates these from Scheduled Transactions, which ought to be fairly ironclad. (Ironclad, that is, IF you’re good about setting up all your recurring transactions as “Scheduled Transactions.”)

    Like a lot of Quicken “tool” offerings, there’s probably some value in the Cash Flow Forecast … but if you’re like me, it might take you so long to rebuild the Forecast data that you simply ignore it altogether.

    Sorry, Intuit. I’m opting instead for dumping a few months’ of Quicken report data into Excel, and working from there!




     

     

  9. Debt-Free is Nice, But…

    A couple of weeks back, I spent some time thumping on How to Get What You Want in Life With the Money You Already Have, a book written by Carol Keeffe in the early 1990s. While not a literary prize by any stretch, the book deserves some credit: It did get me started in the world of personal-finance reading.

    One of Keeffe’s particularly egregious recommendations — and this is just kerfuffle waiting to happen — is for folks to make minimum payments on all their bills and credit cards until they’ve saved up six months’ worth of salary as an emergency fund. To me, such a plan would almost guarantee failure. How many folks do you know with the financial (and disciplinary) ability to pull that off?

    Not many, is my guess.

    I much prefer Dave Ramsey’s Baby Steps plan, and its suggestion to make “minimum payments only” until one saves $1,000 (or $500, if you’re a low-income household) … and THEN to attack the debts full-force and head-on.

    However, as I was finger-flipping through How to Get What You Want a little more, I managed to find a few paragraphs that stood out — in a good way! Actually, I found this to be quite insightful, and a bit Suze-Orman-esque:

    For most of us there are two things that would make a big difference in the quality of our lives: (1) having the deeply satisfying feeling of knowing we’re directing money toward making our dreams come true, and (2) having the secure feeling of knowing money is available for today’s emergencies as well as tomorrow’s needs.

    Well, I’m not so sure about the “making dreams come true” part, but I’ll vouch for the utter goodness of financial security. Having money available for emergencies changes everything. Life looks far different when you’re ready for the speedbumps and potholes.

    Keeffe continues:

    If you were thinking that eliminating a bill would make a significant difference in the quality of your life, watch out. It’s only a diversionary tactic of the mind. Of course things would be better if the bills were more under control or gone altogether. But eliminating a bill creates only a temporary feeling of relief compared with the deep and lasting feelings of power and security that money in hand creates. The availability of money means choices, and choices mean control. Lack of bills will never compare to the potency of having choices (money).

    You know what? I agree with this. One. Hundred. Percent.

    As a guy who’s made it through Step 3 of Ramsey’s Baby Steps (no debt except for the mortgage; fully-funded emergency fund is in place), I found that for me, while paying off that last debt felt great, hitting my savings mark felt even better.

    As Keeffe notes, “Eliminating a bill creates only a temporary feeling of relief, compared with the deep and lasting feelings of power and security that money in hand creates.” To this I say: AMEN.

    Debt-free is sweet, but there is no substitute for savings.

    But We Gotta Qualify This…

    As much as I love what Keeffe says here, she is still presenting it in the context of “You need to have a bunch of money saved BEFORE you begin seriously paying off your debts.” The logic of this baffles me entirely. While it sounds silly, I want to scream at her, “Hey! The longer your readers stay in debt, the less likely they’re ever going to get out of it!”

    Though of course I have no quantifiable evidence to support this, everything I’ve learned to date, and everything I’ve seen, points toward the assertion that the more you muddle through life, simply “living with” your bills and debts, the less likely you are to ever get out from under them. Let’s face it: Banks and other lending institutions endeavor to make it so.

    At some point the lack of progress, the years of frustration and stress — all of it accumulates into the deadly “This is just how everyone lives!” attitude.

    At which point, you’re sunk.




     

     

  10. $100k Workers: Paycheck to Paycheck

    Well, for a minute there, I was almost felt a tinge of sympathy.

    Almost.

    CNBC: More Upper Incomers Living Paycheck to Paycheck

    The centerpiece finding of the above article, I’d say, is this juicy tidbit:

    Thirty percent of workers with salaries of $100,000 or more said they are living paycheck to paycheck, up from 21 percent last year, according to the survey of 4,400 workers nationwide.

    Overall, 61 percent said they always or usually live paycheck to paycheck, up from 49 percent in 2008 and 43 percent in 2007.

    I mean, those $100k salaries don’t go as far as they used to. Thankfully, we can be sure that the reason these folks are feeling stretched money-thin is that they’re cramming as much cash as they can into retirement savings, which can leave them FEELING as if they’re living paycheck-to-paycheck.

    Thirty-six percent said they don’t contribute anything to retirement savings, like a 401(k) or a IRA.

    As for short-term savings, 33 percent of those surveyed reported that they don’t put any money aside each month, up from 25 percent in 2008.

    Okay. Forget I said that.

    We’re screwed.