How Broke is broke?

footfootfoot · 02-06-2009, 02:12 PM

I was talking with a friend the other day about what people mean when they say they are broke. Our mutual acquaintance was crying poverty and asking for free construction labor since she had already dipped into her 401k and was now down to a mere 420 grand. She is in her late 40s, btw, plenty of work left in her.

I've heard many people complain of being broke then taking three transcontinental flights for week long visits that same year.

So, how broke is broke? Don't include the value of your house, (I think we learned that lesson) just liquid assets.

Flint · 02-06-2009, 02:19 PM

Do these numbers represent total assets? Savings? The balance in your bank account?

footfootfoot · 02-06-2009, 02:20 PM

You replied while I clarified that point.

glatt · 02-06-2009, 02:38 PM

I think it has to do with liquidity.

When my wife and I were younger, we both worked and had no kids or mortgage. The money flowed more freely, but our net worth wasn't really anything. If we wanted a new TV, we'd go out and buy one. Need a new couch, buy one. We ate out all the time. Went on nice vacations.

On paper, we are a lot richer now, but we don't do all that stuff like we used to. The money is tied up in 401ks, 529 college savings, and the house.

We're certainly not broke, but we don't have the lifestyle we had before.

If a person can afford to fly cross country several times a year, they aren't broke. And I wouldn't do free work for anyone if I were you. Barter maybe, but not free labor. Unless I considered it charity or volunteer work.

Pie · 02-06-2009, 02:40 PM

I am uncomfortable without 3-6 months of burn rate in my liquid assets column.

But then, I am a very risk-adverse person.

Clodfobble · 02-06-2009, 02:45 PM

I have a hard time drawing a definitive line. As the asset value shrinks, I become more and more uncomfortable and scale back accordingly. To consider ourselves "broke" I think we'd have to be both out of money and unemployed.

footfootfoot · 02-06-2009, 03:02 PM

Quote:

Originally Posted by glatt

I think it has to do with liquidity.

When my wife and I were younger, we both worked and had no kids or mortgage. The money flowed more freely, but our net worth wasn't really anything. If we wanted a new TV, we'd go out and buy one. Need a new couch, buy one. We ate out all the time. Went on nice vacations.

On paper, we are a lot richer now, but we don't do all that stuff like we used to. The money is tied up in 401ks, 529 college savings, and the house.

We're certainly not broke, but we don't have the lifestyle we had before.

If a person can afford to fly cross country several times a year, they aren't broke. And I wouldn't do free work for anyone if I were you. Barter maybe, but not free labor. Unless I considered it charity or volunteer work.

Oh yeah, no free lunches given out here. And not to pick nits but they were transatlantic flights.

Yeah, there is the small "b" I'm broke, meaning I don't have any ready cash and the big "B" I'm broke meaning I don't have any assests to tap into.

I'm talking about big B Broke.

And what Clod says is also true, when you see the value of your stocks shrivel up it is worrisome since their shrinkage has nothing to do with your spending habits.

Sundae · 02-06-2009, 03:11 PM

I have $0 in my account.

Rowed with Mum tonight.
No idea what will happen tomorrow (she went to a village pantomime I also had tickets for).

I'm still angry. If I am, she is too.
I learned holding a grudge from her.
Am gonna go to bed with earplugs in and hope either I or her (v bad grammer!) work it out overnight.

Because right now I think she's a fucking bitch that seeks out someone's weak spot in order to dig into it. Then when it bleeds, she displays it as a sign of weakness.

Like getting my brother to call me "Droopy Eye!" when I was younger.
Some peple shouldn't have children.

Undertoad · 02-06-2009, 03:13 PM

I am Broke.

Shawnee123 · 02-06-2009, 03:17 PM

I lived a few years being VERY lucky if I wasn't overdrawn: to get the bills paid I took a chance the bank would cover the check (with all the charges therein.)

I don't think you should even use the word broke unless you're like what Sinbad (the comedian) spoke about: "College broke." You find a dollar on the street and the birds start singing. You say to yourself "I think I'll just hang out with my dollar tonight."

Other than that, you don't know broke.

I'm sure many of us have been there, though.

People who cry broke because they can't buy a new luxury car to replace the year old car they have and the like: they make me itchy.

HungLikeJesus · 02-06-2009, 03:29 PM

Big B itchy or little b itchy?

Shawnee123 · 02-06-2009, 03:35 PM

No itchy...as in scratchy.

footfootfoot · 02-06-2009, 03:37 PM

Quote:

Originally Posted by HungLikeJesus

Big B itchy or little b itchy?

Audibly laughing, I am.

Shawnee123 · 02-06-2009, 03:40 PM

Uh-huh...yuck it up guys.

DanaC · 02-06-2009, 03:40 PM

'Broke' is a relative thing for me mainly. If I can afford to do the things i need/want to do then I am not broke. If someone invites me to a party that might involve me spending £50 and I only have £70 in the bank, I might say no on the grounds I am broke, or that it would leave me broke.

But if I am not planning on going anywhere and I have food in my kitchen a packet of fags and bus fare for my two days in uni, then I can have a fiver in my purse and nothing in the bank and not feel broke. Depends.

I'm at my comfort level if I have over £150 in the bank with less than 2 weeks til payday. That rarely happens :P Mind you.....actually that never happens, because I am always in overdraft. I am only out of overdraft three times a year when my student finance goes in :P By £150 in the bank, I really mean £150 in available funds.

View Poll Results: What's your comfort level? How low can your account go before you are broke?
Less than $50.	8	32.00%
Less than $250.	7	28.00%
Less than $1000.	5	20.00%
Less than $2500.	0	0%
Less than $5000.	1	4.00%
Less than $10,000.	3	12.00%
Less than $20,000.	0	0%
Less than $50,000.	0	0%
Less than $100,000.	0	0%
Less than $250,000.	1	4.00%
Voters: 25. You may not vote on this poll

02-06-2009, 02:12 PM	#1
footfootfoot To shreds, you say? Join Date: Aug 2004 Location: in the house and on the street-how many, many feet we meet! Posts: 18,449	How Broke is broke? I was talking with a friend the other day about what people mean when they say they are broke. Our mutual acquaintance was crying poverty and asking for free construction labor since she had already dipped into her 401k and was now down to a mere 420 grand. She is in her late 40s, btw, plenty of work left in her. I've heard many people complain of being broke then taking three transcontinental flights for week long visits that same year. So, how broke is broke? Don't include the value of your house, (I think we learned that lesson) just liquid assets. __________________ The internet is a hateful stew of vomit you can never take completely seriously. - Her Fobs Last edited by footfootfoot; 02-06-2009 at 02:18 PM.

02-06-2009, 02:19 PM	#2
Flint Snowflake Join Date: Mar 2006 Location: Dystopia Posts: 13,136	Do these numbers represent total assets? Savings? The balance in your bank account? __________________ **************** There's a level of facility that everyone needs to accomplish, and from there it's a matter of deciding for yourself how important ultra-facility is to your expression. ... I found, like Joseph Campbell said, if you just follow whatever gives you a little joy or excitement or awe, then you're on the right track. . . . . . . . . . . . . . . . . . . . . . . . . . . Terry Bozzio**

02-06-2009, 02:20 PM	#3
footfootfoot To shreds, you say? Join Date: Aug 2004 Location: in the house and on the street-how many, many feet we meet! Posts: 18,449	You replied while I clarified that point. __________________ The internet is a hateful stew of vomit you can never take completely seriously. - Her Fobs

02-06-2009, 02:40 PM	#5
Pie Gone and done Join Date: Sep 2001 Posts: 4,808	I am uncomfortable without 3-6 months of burn rate in my liquid assets column. But then, I am a very risk-adverse person. __________________ per·son \ˈpər-sən\ (noun) - an ephemeral collection of small, irrational decisions The fun thing about evolution (and science in general) is that it happens whether you believe in it or not.

02-06-2009, 02:38 PM	#4
glatt ™ Join Date: Jul 2003 Location: Arlington, VA Posts: 27,717	I think it has to do with liquidity. When my wife and I were younger, we both worked and had no kids or mortgage. The money flowed more freely, but our net worth wasn't really anything. If we wanted a new TV, we'd go out and buy one. Need a new couch, buy one. We ate out all the time. Went on nice vacations. On paper, we are a lot richer now, but we don't do all that stuff like we used to. The money is tied up in 401ks, 529 college savings, and the house. We're certainly not broke, but we don't have the lifestyle we had before. If a person can afford to fly cross country several times a year, they aren't broke. And I wouldn't do free work for anyone if I were you. Barter maybe, but not free labor. Unless I considered it charity or volunteer work.

02-06-2009, 02:45 PM	#6
Clodfobble UNDER CONDITIONAL MITIGATION Join Date: Mar 2004 Location: Austin, TX Posts: 20,012	I have a hard time drawing a definitive line. As the asset value shrinks, I become more and more uncomfortable and scale back accordingly. To consider ourselves "broke" I think we'd have to be both out of money and unemployed. __________________ My book My other book My spirit animal

02-06-2009, 03:11 PM	#8
Sundae polaroid of perfection Join Date: Sep 2005 Location: West Yorkshire Posts: 24,185	I have $0 in my account. Rowed with Mum tonight. No idea what will happen tomorrow (she went to a village pantomime I also had tickets for). I'm still angry. If I am, she is too. I learned holding a grudge from her. Am gonna go to bed with earplugs in and hope either I or her (v bad grammer!) work it out overnight. Because right now I think she's a fucking bitch that seeks out someone's weak spot in order to dig into it. Then when it bleeds, she displays it as a sign of weakness. Like getting my brother to call me "Droopy Eye!" when I was younger. Some peple shouldn't have children. __________________ Life's hard you know, so strike a pose on a Cadillac

02-06-2009, 03:13 PM	#9
Undertoad Radical Centrist Join Date: Jan 2001 Location: Cottage of Prussia Posts: 31,423	I am Broke.

02-06-2009, 03:17 PM	#10
Shawnee123 Why, you're a regular Alfred E Einstein, ain't ya? Join Date: Jun 2006 Posts: 21,206	I lived a few years being VERY lucky if I wasn't overdrawn: to get the bills paid I took a chance the bank would cover the check (with all the charges therein.) I don't think you should even use the word broke unless you're like what Sinbad (the comedian) spoke about: "College broke." You find a dollar on the street and the birds start singing. You say to yourself "I think I'll just hang out with my dollar tonight." Other than that, you don't know broke. I'm sure many of us have been there, though. People who cry broke because they can't buy a new luxury car to replace the year old car they have and the like: they make me itchy. __________________ A word to the wise ain't necessary - it's the stupid ones who need the advice. --Bill Cosby

02-06-2009, 03:29 PM	#11
HungLikeJesus Only looks like a disaster tourist Join Date: Feb 2007 Location: above 7,000 feet Posts: 7,208	Big B itchy or little b itchy? __________________ Keep Your Bodies Off My Lawn SteveDallas's Random Thread Picker.

02-06-2009, 03:35 PM	#12
Shawnee123 Why, you're a regular Alfred E Einstein, ain't ya? Join Date: Jun 2006 Posts: 21,206	No itchy...as in scratchy. __________________ A word to the wise ain't necessary - it's the stupid ones who need the advice. --Bill Cosby

02-06-2009, 03:40 PM	#14
Shawnee123 Why, you're a regular Alfred E Einstein, ain't ya? Join Date: Jun 2006 Posts: 21,206	Uh-huh...yuck it up guys. __________________ A word to the wise ain't necessary - it's the stupid ones who need the advice. --Bill Cosby

02-06-2009, 03:40 PM	#15
DanaC We have to go back, Kate! Join Date: Apr 2004 Location: Yorkshire Posts: 25,964	'Broke' is a relative thing for me mainly. If I can afford to do the things i need/want to do then I am not broke. If someone invites me to a party that might involve me spending £50 and I only have £70 in the bank, I might say no on the grounds I am broke, or that it would leave me broke. But if I am not planning on going anywhere and I have food in my kitchen a packet of fags and bus fare for my two days in uni, then I can have a fiver in my purse and nothing in the bank and not feel broke. Depends. I'm at my comfort level if I have over £150 in the bank with less than 2 weeks til payday. That rarely happens :P Mind you.....actually that never happens, because I am always in overdraft. I am only out of overdraft three times a year when my student finance goes in :P By £150 in the bank, I really mean £150 in available funds.

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