The growing middle-class homeless

[Mountain Girl]

A former loan processor, the 67-year-old mother of three grown children said she never thought she'd spend her golden years sleeping in her car in a parking lot.

More at.......

http://edition.cnn.com/2008/LIVING/wayoflife/05/19/homeless.mom/index.html?eref=edition

[HSmomto4]

Without even reading the story, what in the world is a MOTHER of 3 GROWN children doing sleeping in a car??? Someone should aslap her children, unless they themselves are homeless as well.

Edited to add: OK I read it and now it sounds like a pride issue! However, there are lots of people who said thye did reach out to family and were turned away so I stand by my SLAPPING remark. As long as I have a floor I will welcome my family!

[saulteux]

That woman's youngest daughter is only 19, and the other two are overseas. Also, the woman didn't want to burden them with her problem, so she didn't tell them she was homeless.

Edited to add: It is a pride issue, and no family member of mine is going to sleep in a car, either, as long as I have a home to house them.

[Jaybird74]

While the story is indeed a tragic one, why in the WORLD would you spend 75% of your take-home pay each month on MORTGAGE ALONE?!? Did any of her family know that she was paying SO MUCH (in addition to LITTLE TO NO SAVINGS)?!? There are some things being left out of this story, I think.

In case people don't realize this, a good rule of thumb as far as monthly finances are concerned, your rent/mortgage should constitute 25% - 33% (at the very most) of your net take-home pay, so that you can scrimp and save where you can. Granted a lot of people can't/don't do this, but I was taught this at a young age - never try to live above your means, because there WILL COME a rainy-day period when you're going to need that little nest egg for emergency purposes.

I'm sorry about this woman's situation. But also, since I live in the SoCal area, Santa Barbara has some of the highest, if not THE HIGHEST property values in the NATION. You should not come out here - or continue to live out here - if you don't have the income to afford the bare cost of living out here. The ONLY reason I've stayed as long as I have is I'm waiting for my retirement to become 100% vested with my company. After that - it's "vaya con Dios".

The scenery ain't THAT nice out here - especially for the price that's being asked.

Interesting note: the woman is 67 years old. No Social Security savings?? What about retirement savings from prior jobs? It's a sad day when you're homeless - but you're employed. Hopefully she's feeding those dogs the 99-cent brand of dog food.

[HSmomto4]

While the story is indeed a tragic one, why in the WORLD would you spend 75% of your take-home pay each month on MORTGAGE ALONE?!? Did any of her family know that she was paying SO MUCH (in addition to LITTLE TO NO SAVINGS)?!? There are some things being left out of this story, I think.

In case people don't realize this, a good rule of thumb as far as monthly finances are concerned, your rent/mortgage should constitute 25% - 33% (at the very most) of your net take-home pay, so that you can scrimp and save where you can. Granted a lot of people can't/don't do this, but I was taught this at a young age - never try to live above your means, because there WILL COME a rainy-day period when you're going to need that little nest egg for emergency purposes.

I'm sorry about this woman's situation. But also, since I live in the SoCal area, Santa Barbara has some of the highest, if not THE HIGHEST property values in the NATION. You should not come out here - or continue to live out here - if you don't have the income to afford the bare cost of living out here. The ONLY reason I've stayed as long as I have is I'm waiting for my retirement to become 100% vested with my company. After that - it's "vaya con Dios".

The scenery ain't THAT nice out here - especially for the price that's being asked.

Interesting note: the woman is 67 years old. No Social Security savings?? What about retirement savings from prior jobs? It's a sad day when you're homeless - but you're employed. Hopefully she's feeding those dogs the 99-cent brand of dog food.


With a cell phone no less. Someone doesn't know how to handle money! She needs to move and get a place to live.

[Katrina]

With a cell phone no less. Someone doesn't know how to handle money! She needs to move and get a place to live.

Cell phone contracts which we all sign for can run for 12, 18, 24 months. It only takes one or two bad months to be become homeless. Last summer I was homeless...and I had a cell phone...I must have been irresponsible to have not forseen all possible scenerios when I signed that contract huh?

[Jaybird74]

Cell phone contracts which we all sign for can run for 12, 18, 24 months. It only takes one or two bad months to be become homeless. Last summer I was homeless...and I had a cell phone...I must have been irresponsible to have not forseen all possible scenerios when I signed that contract huh?

Katrina - I don't think the poster meant it in that fashion. Those of us who don't have cell phones (me included) see them more of a luxury when land lines are available - and we aren't educated on how much they cost.

I guess what some of us are thinking that if you're keeping a monthly ledger - and tracking how much you're spending, how much is going to savings / nest egg, etc. then perhaps someone could plan BETTER in advance for a possible misfortune of losing one's job.

I've lost a job before - and I know what it's like to panic about finances. Which is why I'm probably as frugal and cautious with my money as I am. It only takes one time to put one in a panic - at least for me. From that point forward, if I don't ABSOLUTELY NEED IT, I don't purchase it.

I'm sorry you took the poster's comment the wrong way.

[RebMel]

Here's a breakdown of where the Average American Household's money goes (and don't ask me where I got it, I can't remember. But I keep it with my budge and track whether we are above or below the trends).

Housing (includes mortgage, insurance and utilities as well as maintenance and repairs: 32%

Auto (includes auto loans, fuel, insurance, maintenance and repairs): 19%

Groceries: 15%

Clothing: 10%

Entertainment: 10%

Other: 14%

Our household is 17% under on clothing and entertainment. But our housing is nearly 40% (because of higher utility bills) and our auto is about 2% higher, and we only have one auto loan and one vehicle being driven for work. I imagine that two car loan, both spouses working households are probably going to be quite a bit higher than the previous 'average' shown here for auto expense with the price of gas where it is.

[firstoftwelve]

If you go to Crown.org and click their tools tab. There's a percentage calculator. YOu put in your yearly salary, and subtract taxes and it'll compute how much in percentage your income should go to various categories. It's a pretty neat tool. Then you can see if perhaps there's an area you're over spending on.....

[Logicon]

The problem is with the housing market there, not how she spends her money. You can't find a place to live without having a large income. This is a growing problem all over the US. Home prices and rent are exhorbitant and not too many people make the kind of money it takes to pay the high prices.

When prices are adjusted for inflation and the cost of fuel, that cost is passed down to the lowest man on the totem pole and we all know who that is; the poorest people.

I can relate to her not wanting to be a burden on her family. She wants to be independent and take care of herself, and with her daughter being homeless as well, and the other two over seas, she really doesn't have much of a choice anyway.