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A couple of folks here in GA recently won a small sum in the lottery ($500K) and immediately both parties talked about their future home ownership. One was going to pay off their mortage with little $ leftover, the other was to use their winnings on a cash purchase of a home (again, no $ for the bank). Just shook my head on both accounts.
Assuming $500K was after taxes, I would do the following with that money:
Pay cash for nice house in our neighborhood: $275k
Fund 12-month emergency fund: $60k
Fund HSA with three years of max-out-of pocket medical expenses: $30k
Pay off car, student and personal loans: $67k
Divide the rest evenly ($17k each) between furnishing new house, child's education fund, retirement fund and vacation fund.
All I have left is this mortgage which will take me about 7-10 years.
Ouch. My whole mortgage only took five years (house was 2X annual income with 10% down). Compared to the rest of my peers who took out 30 year notes, I have an extra 25 years to put that mortgage money into my pocket instead of the bank.
A couple of folks here in GA recently won a small sum in the lottery ($500K) and immediately both parties talked about their future home ownership. One was going to pay off their mortage with little $ leftover, the other was to use their winnings on a cash purchase of a home (again, no $ for the bank). Just shook my head on both accounts.
Right, but the difference between them and I? I have a lot of money in the bank.
Last edited by ufcrules1; 01-03-2010 at 07:05 PM..
Ouch. My whole mortgage only took five years (house was 2X annual income with 10% down). Compared to the rest of my peers who took out 30 year notes, I have an extra 25 years to put that mortgage money into my pocket instead of the bank.
Yes, unless you have a very high salary.. I live in a more expensive house than you in a very sought after area. (Few Dallas Cowboys live here) 7-10 years to pay off this house is very fast considering most others have 30 year mortgages with no intention to pay them off early.
Could I have bought a house that was half as much? Sure, but it wouldn't be where I want to live nor be as sought after. With that said, its very much within our means considering we can afford the mortgage and all bills on my wifes salary alone. She makes a lot less than me too.
All of that said, I applaud what you have done and wish millions more would live the same way you and I do.
Boose, meanwhile, struggles with the loss of professional stature. "I've been used to being in firms that make and spend a lot of money and meeting with very senior people. Now, I'm looking at the guy in Home Depot, thinking how lucky he is to have a job."
I'm sorry...but he's lying. Pretty smug of you there, Boose Man.
"They're dead set on hiring people with health care experience," says Ryan, of New Orleans.
Now, that's a nugget you can take. Before I came back out here to Iraq, I had a job interview with Verizon. They called me back and said I was second choice... that they needed someone with Wireless Experience, who could do the job tomorrow, and not someone who would take a week or two to "ramp up."
I've been working in telecom..installs, Network operations centers, project manager...lead tech, senior network engineer, blah, blah since 1991....(except for when I was out of work and when I worked for Caterpillar) and this was a NOC job that paid 18 bucks an hour. Was close to home, tho. It was monkey work. You sit in a desk, click a GUI and do remote loopback testing. Then you call a remote tech who goes out and switches out whatever piece of equipment that died. I got a call. I was second choice. SO, I made a few calls and emails, and I'm back out in IRaq, where you make a little more than 18 bucks an hour.
the economy is pretty bad when a skilled working person has to go to iraq to get a job. it is also bad when US money is diverted to iraq so you can get a job in iraq, instead of here.
i see that the post office is going to have their first layoffs ever (although locally they are going to try to fight the 600 person layoff/shutdown in swedesboro). all those people who think that they are going to be "immune" from the selling out of jobs are going to be in for a surprise at some point. with more layoffs, revenue collections will be down and layoffs are a direct result of insufficient revenue.
I do feel sorry for some people, and I can rationalize high salaries from industries that I think deserve it - tech for example. But the huge salaries in New York City in these fields like banking, insurance and advertising make my life more difficult, as a working American.
I work for a Wall Street firm and it is no picnic. Most of the people working those so-called glamorous Wall Street jobs are miserable and highly stressed.
Good.
I hope they all stroke out or have heart attacks.
High-income earners are not all that much different from everybody else
You are right. Once they are kicked in the jewels, you realize, they aren't much different then everyone else.
BTW, loving the good posts. Reputation for all, minus the high horse supporters.
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