How Broke is broke?

[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.

[footfootfoot]

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.