Do gays manage their money badly?

  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:11 AM GMT
    I've picked up lots of hints here that most guys spend too much, save too little, and often don't earn much. For example in the car thread, few people bought their cars for cash and few people drove nice cars. Am I off base?
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:13 AM GMT
    yes. my 401K lost 19% over the past quarter. fucking company stock. FML. icon_rolleyes.gif
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:16 AM GMT
    In regards to the car thread, paying cash for cars is definitely fiscally responsible. Though there is nothing wrong with financing a car as long as you're not being suckered into a 10 year plan at 15%.
  • Suetonius

    Posts: 1842

    Dec 08, 2011 4:16 AM GMT
    My guess is that gays manage money at about the same level of competence as anyone else. As a group they may spend more on luxuries or pleasure, but that is because most of them don't and won't have any kids, and can thus afford to.
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:17 AM GMT
    closer85 saidyes. my 401K lost 19% over the past quarter. fucking company stock. FML. icon_rolleyes.gif


    You got to look at it in the long haul. Now that stocks have nearly bottomed out, if you keep investing the same amount of money, you're going to be getting a ton of more shares for that price! Meaning that if/when the stock of that goes up, you'll be singing a different tune!

    Now about that "if/when the stock goes up"....
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:17 AM GMT
    I'm not sure how you'd say that gays manage their money badly. I think there are a lot of Americans in general who manage their money badly.
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:19 AM GMT
    What money?
  • dcmacguy

    Posts: 102

    Dec 08, 2011 4:43 AM GMT
    As I've read/seen it, Gays tend to make more money but spend more money.

    I'm very comfortable personally, but I was raised to respect and understand credit and how it can hurt/help you, I make good money and I live below my means.

    I have to admit, I find it to be a huge personality turnoff when a guy can't manage his money or bitches about his money problems. Don't get me wrong though, in my mind there's a difference between using a flip phone and being strapped because of student loans versus always having the latest and greatest with an overdrawn checking account and then crying about it.
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:50 AM GMT
    smthjock said...Now that stocks have nearly bottomed out,....


    I can't even spot a bottom in a gay bar. Nikkei down 77.8% from its peak yet we're down just 18.5%? You must be endowed with some sort of marketdar to know that.

    http://advisorperspectives.com/dshort/charts/markets/mega-bear-weekly-2000.html?mega-bear-2000-nominal.gif

    mega-bear-2000-nominal.gif
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 2:26 PM GMT
    theantijock said
    smthjock said...Now that stocks have nearly bottomed out,....


    I can't even spot a bottom in a gay bar. Nikkei down 77.8% from its peak yet we're down just 18.5%? You must be endowed with some sort of marketdar to know that.

    http://advisorperspectives.com/dshort/charts/markets/mega-bear-weekly-2000.html?mega-bear-2000-nominal.gif

    mega-bear-2000-nominal.gif


    Excellent point about trying to time the market.

    Am I the only one who disliked the idea of having a bunch of stock in one company?

    Lastly, a financial advisor I know says that gay men don't save 'cause they think they won't make old age. (He's a shit, but I worry he might be right.)
  • Suetonius

    Posts: 1842

    Dec 08, 2011 2:33 PM GMT
    swimguychicago said
    theantijock said
    smthjock said...Now that stocks have nearly bottomed out,....

    Lastly, a financial advisor I know says that gay men don't save 'cause they think they won't make old age. (He's a shit, but I worry he might be right.)

    That may have been true in the 80's and 90's when everyone was dying of AIDS, but is not today. I think most guys, with big student loans, etc., are not able to save/invest much until into their 30's (and we are in a recession -we are, though not by technical definition), which no doubt had affected a lot of men) . Then most of them that are well employed do - how else would they have bought houses/apartments?
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 2:35 PM GMT
    I'd have to say that a lot of the guys that I know get caught up in their materialistic ideals and spend a lot more then they should, but to each their own.
  • CuriousJockAZ

    Posts: 19133

    Dec 08, 2011 2:37 PM GMT
    All I know is that I sure could do a better job of it. icon_confused.gif
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 2:40 PM GMT
    My partner and I don't make as much as some, but we also pay cash for everything whether it is vehicles, cattle, or land. Interest and debt are designed to make a profit for the lenders... There is no other reason why they exist.

    I think gay men are just as responsible as straight when it comes to managing money. However, a few years ago, I saw some stats that show that the average gay household has much more dispensible income... Part of that may be due to the fact that a gay household can be a two income household without the family related expenses providing much more money to spend on luxury items.
  • vintovka

    Posts: 588

    Dec 08, 2011 2:52 PM GMT
    Uh...the fact that someone payed for a car in cash is certainly a good thing financially, but the fact that they don't have "nice" cars could be evidence of sound financial management, since a car is and EXPENSE not an investment. Cars depreciate terribly, so they are really expensive toys once you go past what you need for transportation. Having said that I think gay men do get sucked into consumer culture and spend too much on the wrong things (from the standpoint of building wealth). Gay men do tend to make out better than straight people in terms of income, particularly if there are two male earners and no kids, but if that all goes to Gucci and Lucky jeans then it doesn't amount to much.

    Of course what do I know? I've spent too many years in school and doing whatever the fuck I want, so I'm never going to amass a great fortune.
  • vintovka

    Posts: 588

    Dec 08, 2011 3:06 PM GMT
    Trollileo said
    vintovka saidUh...the fact that someone payed for a car in cash is certainly a good thing financially, but the fact that they don't have "nice" cars could be evidence of sound financial management, since a car is and EXPENSE not an investment. Cars depreciate terribly, so they are really expensive toys once you go past what you need for transportation. Having said that I think gay men do get sucked into consumer culture and spend too much on the wrong things (from the standpoint of building wealth). Gay men do tend to make out better than straight people in terms of income, particularly if there are two male earners and no kids, but if that all goes to Gucci and Lucky jeans then it doesn't amount to much.

    Of course what do I know? I've spent too many years in school and doing whatever the fuck I want, so I'm never going to amass a great fortune.


    http://www.realjock.com/gayforums/1888325

    Huh. You don't say...


    Well played, sir.
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 3:25 PM GMT
    swimguychicago saidI've picked up lots of hints here that most guys spend too much, save too little, and often don't earn much. For example in the car thread, few people bought their cars for cash and few people drove nice cars. Am I off base?


    I have a nice car. But cars and clothes are my "thing". I have a 401K and I make a good salary. I think I am doing ok. Life is meant to be enjoyed.
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 3:45 PM GMT
    I make good money and manage it very well. I have all the fun I want and need because I'm financially responsible. I don't put all my eggs in one basket and I have a nest egg which is getting fatter every day. I plan on living comfortably in my old age. Heck, I'm doing that now and I thank my folks for teaching my the value of dollar and teaching me how to save and make more from it.

    All comes down to common sense and a good upbringing. I don't think a persons sexual orientation has any bearing on how they manage their money. If you have expensive taste then you better be able to back that habit up otherwise you're in in for a world of hurt which shit hits the fan.
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:04 PM GMT
    smthjock said
    closer85 saidyes. my 401K lost 19% over the past quarter.


    You got to look at it in the long haul. Now that stocks have nearly bottomed out, if you keep investing the same amount of money, you're going to be getting a ton of more shares for that price! Meaning that if/when the stock of that goes up, you'll be singing a different tune!

    Now about that "if/when the stock goes up"....
    This is exactly true except it's not so much about picking up more shares as it is that the lower priced shares you're purchasing, offset the lost you have incurred from the shares purchased prior to the market decline. You can dig out of your losses sooner and if the price gets back up to the original purchase price, the lower priced shares are a great deal!

    As for stock in a single company, foolish. Diversification is the name of the game. I've been told that you should have no more than 4 - 5% of your portfolio in any one single stock. Invest in a variety of sectors (finance, health, retail, etc) and you've covered more areas of the economy so that if one declines, your entire portfolio doesn't decline too. One only needs to remember all the Enron folks who had their eggs in one basket when the basket fell apart. Now they're all working menial jobs when they should have been retired.

    Financing makes sense when you need to reserve capital (cash) for reserves or the interest rate is below what you can make on the money elsewhere. So if you can finance a car for 3.5% and the expected market growth is 6%, you're better off placing your money in a money fund and financing the car. You then are making 2.5% difference and have the cash available for an emergency.

    To answer your original post now, I think most people avoid managing their money out of ignorance. Most need to educate themselves, it's intimidating but really it's not rocket science. There are also plenty of people to help but unfortunately there are also plenty that will charge you so much that you can't make a good return on your investments.
  • dabcrt

    Posts: 512

    Dec 08, 2011 4:10 PM GMT
    In his spending my partner is a tight ass......my spending..well more like Chainers ass..........but togather it works out wellicon_rolleyes.gif
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:15 PM GMT
    I think gays are more likely to seize the day and shirk long term financial planning. The same is true regarding health behaviours. Many might include the possibility of 'not being around' later to see the benefits.
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:16 PM GMT
    Damn kids get in the way of everything. They're quite overrated. I'd rather spend my money on more fun things if I can afford it icon_rolleyes.gif
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:21 PM GMT
    swimguychicago said
    Excellent point about trying to time the market.

    Am I the only one who disliked the idea of having a bunch of stock in one company?

    Lastly, a financial advisor I know says that gay men don't save 'cause they think they won't make old age. (He's a shit, but I worry he might be right.)


    1) Even in my economics 101 class last spring, we discussed investments, and my professor (who I want to also say sounds like Bullwinkle from the cartoon if he had a Korean accent) lectured about investments, and he advised us that it was not a good idea to put all our eggs in one basket.

    2) That sounds really harsh, but mind if I ask you why you're worried about your sexuality determining how much you spend when it's irrelevant?
  • LuckyPierre

    Posts: 192

    Dec 08, 2011 4:27 PM GMT
    mint.com is a great site that accesses all of your online accounts and shows you a complete picture of your finances. It also allows you to set and track budgets. And it's free and very secure (there are ads but they are not intrusive). There is also an app you can use to enter cash transactions so that those are tracked as well.

    I've found it very enlightening. Well the amount of money I was spending on frivolous things anyway. It's also nice to be able to track retirement accounts as well as cash and securities accounts all in one place. It's made me a lot more aware of what's happening in the markets and with my own money.
  • Posted by a hidden member.
    Log in to view his profile

    Dec 08, 2011 4:45 PM GMT
    kandsk saidI think gays are more likely to seize the day and shirk long term financial planning. The same is true regarding health behaviours. Many might include the possibility of 'not being around' later to see the benefits.
    I think there's some truth to this which is very unfortunate because with a steady income and pretty much only 'self' to spend it on, gay's could really save nicely for a 'rainy day' or retirement AND usually live a pretty lavish life too. This of course, unless you live in a city like SF where most of your salary goes towards the roof over your head, then it's a bit more of a challenge.