Being poor has nothing to do with income.

[Rick Lee]

Thought I'd follow up on this old thread I started.

What a ride the last few months have been. I had to walk from two deals today, both in mid-application, because the people sprung health conditions on me after I had asked them about health conditions and meds while trying to qualify them. Wouldn't matter much to me except that it took me 30 min to get to the point of taking the app for one guy for whom I was getting $1000 more coverage for less premium and $530 cash back to him ($530 was all the money in the world to him and he hadn't heard about the 8.7% SS COLA increase next month). He just couldn't process that $5000 was more than $4000. When he finally agreed, after saying he was in excellent health, and once I was halfway through the app, he told me he had HIV. "Keep what you got. Have a nice day."

Another one from two weeks ago, I was able to get $6800 more coverage for $20/mo less than she was already paying. She had to go wake up her deadbeat daughter to ask her if she thought it was a good deal. I said, "Karen, do you think your daughter would rather get $13,200 or $20,000 upon your death? And would you rather pay $92/mo for the $13,200 or $72/mo for the $20,000?" She didn't know. Her daughter set her straight and I got the deal.

This is why they're poor.

[Baz]

I could have told you how slow people were by the way they drive.....

Then today picking up a few bags of Pine Bark...waiting for the guy in front to finish his business and pull out, so I could pull up next to the stack I needed.

He finally pulls out and the two workers there and I load my 5 bags and I say "I didn't think that guy would ever pull out!"

Their reply..."He works for the hospital....that should explain it."

Live and let live but please --- slower traffic keep right!

[KFC911]

The vast majority of folks on this board are fairly sharp, though we differ greatly and have diverse lives and backgrounds.

The vast majority of the general population is different from this board

[Rick Lee]

Originally Posted by KC911

The vast majority of folks on this board are fairly sharp, though we differ greatly and have diverse lives and backgrounds.

The vast majority of the general population is different from this board

They breed and they vote. Their votes count as much as yours and mine, but they're much easier to get.

[Aurel]

Being poor has everything to do with paying more for less, or spending more than you make.
It is such a simple equation, but apparently many lack the basic math skills to get it.
Math skills correlate with IQ, and so does income and wealth. Those are some hard facts.

[Shaun @ Tru6]

Being poor is all about being stuck in a cycle.

[hbueno]

Gotta say, it seems pretty exoensive for such small coverage amounts.

[LWJ]

In my life, I lived way under my means early on for benefits to be reaped later. It worked out well, providing I live a few more years.

Second hand televisions, goodwill clothes, remodeling houses, slaving at rentals, never a new car...

Brought me to 911sc, 930, and now a Boxster.

Funny that my frugal existence has lead to people envious of my lifestyle.

Choices.

[Rick Lee]

Originally Posted by hbueno

Gotta say, it seems pretty exoensive for such small coverage amounts.

Well, when you're on insulin, in your 60s and want whole life, it's not cheap. This demographic generally wants to take their funeral costs off the shoulders of their equally poor kids. I don't want to sell them if they've never had life insurance. But if I can replace what they have for more coverage and/or less premium and/or get them cash back, it's a good thing.

[sc_rufctr]

Originally Posted by Aurel

Being poor has everything to do with paying more for less, or spending more than you make.
It is such a simple equation, but apparently many lack the basic math skills to get it.
Math skills correlate with IQ, and so does income and wealth. Those are some hard facts.

This.

[GH85Carrera]

I worked with a guy that was nice enough, but not real bright. After 6 months of a paycheck he was looking to buy a brand new car, he did not care at all what the car was, the only criteria he looked at was the monthly payment. He had a Japanese econo box already, but it was 5 years old, and had never had maintenance, and he was afraid it would break down and he would have no car. He still had many years to pay on it. He ended up upside down on the new that I think he was close to double the cost of the car for his loan. But his monthly payment was what he wanted. He had a 7 year not on some crappy super cheap econobox.

Of course he thought I was "lucky" that I could work on my own car. I told him luck had noting to do with it, just hours of greasy hands, and uncomfortable positions performing the required maintenance and the determination to fix it right. I told him I had not had a car payment since 1996 and he said I must be rich.

[stevej37]

Buying on time because a person can only make the payments is a sure way to go poor.

I am fortunate because I've never had a car payment in my life.
The home mortgage was started in the early eighties and it was paid off 11 years later.
The only thing I buy using credit...is with a CC and I always pay the full balance each month.

[KFC911]

Originally Posted by Aurel

Being poor has everything to do with paying more for less, or spending more than you make.
It is such a simple equation, but apparently many lack the basic math skills to get it.
Math skills correlate with IQ, and so does income and wealth. Those are some hard facts.

Maf is hard!

If you don't have any financial cents ... you are probably gonna be poor

[Rick Lee]

The perfect example of these people's mindset is the sheer number of Dollar General and Family Dollar stores in poor areas. Even though the stuff in those stores is dirt cheap, the unit cost is many times higher than if you bought in bulk somewhere else. I will buy the largest amount of paper towels I can buy at Costco and it will last me eight months. Ok, it costs $18 for 36 rolls. But go to a dollar store and pay $1/per roll and go there every other week for a new roll. That's how these folks "roll." And don't even get me started on the CarShield warranties they buy. I've seen plenty of these dirt poor folks paying north of $140/mo for it and their car isn't worth what they've paid into the warranty.

[GH85Carrera]

And some of them work at coffee shops.

[NYNick]

Why is someone who is "poor" buying Life Insurance? I mean, really?

[KFC911]

You can't fix $toopid, but Car $hield can save you money if you are ....

Idiot$.....

[KFC911]

Originally Posted by GH85Carrera

And some of them work at coffee shops.

LOL .... and some buy $4 coffee there

[Rick Lee]

Originally Posted by NYNick

Why is someone who is "poor" buying Life Insurance? I mean, really?

Because they don't want their funeral costs to be borne by their equally poor kids. Many of them got religion on life insurance after having to cough up $7-10k to bury a loved one and don't want that pain to fall on their own kids. Some demographics just have a near religious fanaticism about getting coverage even for small children. And I've run into a few whose kids did die young and then they're even more fervent in getting more life insurance.

Hey, I don't want to sell anyone anything they don't want or can't afford. But when they already have it, thus demonstrating a desire for it and ability to pay for it, and I can get them more coverage for less premium, I try to close them.

[masraum]

Originally Posted by NYNick

Why is someone who is "poor" buying Life Insurance? I mean, really?

Now you know.

Originally Posted by Rick Lee

This demographic generally wants to take their funeral costs off the shoulders of their equally poor kids.