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Old 10-29-2011, 10:28 AM
 
Location: Wisconsin
7,215 posts, read 7,579,308 times
Reputation: 7717

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The OP's post is four years old. It would be interesting to see how some of the people they were referencing are doing now.

A lot of people seem to live quite well, but often it is built on a house of cards. They are financing their cars, buying things on credit, and own more house than they should. It just takes one job layoff or other calamity to bring it all down.
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Old 10-29-2011, 10:34 AM
 
18,856 posts, read 30,500,354 times
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That is true, the difference between income and wealth. Many don't know or understand it. As a single woman, I have income, I work, pay bills, live pay check to pay check. When I was married, we had wealth, extra money to buy property, stocks, savings. Which in turn generated more wealth, not just income.
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Old 10-29-2011, 11:55 AM
 
Location: Olympus Mons, Mars
5,000 posts, read 8,049,769 times
Reputation: 4935
Quote:
Originally Posted by forest beekeeper View Post
We paid no income taxes. My salary job was tax-free, and our portfolio was tax-sheltering; so it sheltered our small business incomes.
Wait a second... you paid no income taxes and you're saying my assumptions that single individuals making 6 figures have income taxes to pay are not realistic?
Wish I lived in your "realistic" world and paid no income taxes either
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Old 10-29-2011, 03:34 PM
 
Location: Forests of Maine
29,742 posts, read 47,557,573 times
Reputation: 17605
Quote:
Originally Posted by k374 View Post
Wait a second... you paid no income taxes and you're saying my assumptions that single individuals making 6 figures have income taxes to pay are not realistic?
Wish I lived in your "realistic" world and paid no income taxes either
Marry an accountant.
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Old 10-29-2011, 04:03 PM
 
Location: denison,tx
866 posts, read 934,870 times
Reputation: 1531
Am doing the same, making due on 900 amonth and 16 in food stamps.
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Old 10-29-2011, 07:10 PM
 
24,511 posts, read 34,174,767 times
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Quote:
Originally Posted by leftmyheartintennessee View Post
Am doing the same, making due on 900 amonth and 16 in food stamps.
$16 in food stamps?
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Old 10-31-2011, 08:20 AM
 
Location: Whereever we have our RV parked
8,057 posts, read 7,079,669 times
Reputation: 13500
You're obviously wasting a lot of money someplace. Time to do a detailed accounting. My wife and I live pretty much on one pay check and bank the other one and we are in a the high 5 figures. We drive older cars like you, but I also don't bother with rental property. I've always had serious doubts about it paying off, unless you inherit it. By the time you make the payments insurance and then have to cover your losses from damage/unpaid rent/legal expenses, I have a hard time understanding how you can come out ahead. I'm sure some do, but then I always wondered if all the hastle is worth the extra income.
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Old 10-31-2011, 08:25 AM
 
Location: Whereever we have our RV parked
8,057 posts, read 7,079,669 times
Reputation: 13500
Maseman: Your observation is right on. A lot of the people that look like they are living beyond their means because they have no savings and have a lot of credit card debt. I have friends at a motorcycle dealership. When I bought my last one, I paid cash. He said that almost never happens. In fact, he assumes that nearly everyone who comes into his business has poor or no credit, and they will have to struggle to find a lender to borrow the money.
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Old 10-31-2011, 10:46 AM
 
11,439 posts, read 19,473,376 times
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Quote:
Originally Posted by NJBest View Post
$16 in food stamps?
Yep -- my mom qualified for food stamps and that's what she got. Single person, SS retiree....

Food stamps are given on a sliding scale. And they aren't accepted everywhere that sells groceries. That's one of the reasons why on Christmas, we gave her gift cards to her favorite boutique food stores.

Really glad we did -- she had fun with those.
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Old 11-03-2011, 09:04 AM
 
2,401 posts, read 3,812,314 times
Reputation: 2169
I think what OP can blame is the "housing bubble" for this economy.

If one family is $60K - $100K ave. underwater in this housing economy for ONE house...
OP would be 3X that for 3 houses... just like buying bad stock and losing money... can cause even the most affluent wealthy to become bankrupt.

I know of one retired acquaintance that have 3 houses, one paid for (bought in the 80s), 2 still have more than half to go on the mortgages (at least 750K to a mil to pay) and these 2 are underwater. Well, both couples have to come out of retirement, borrow & leverage against all their property to try to start another business "in hopes" that they can pay off their homes and retire again...

Their annual taxes for all these houses alone... around $20K. That is not inclusive of any other house maintenance, energy bills, HOA for the 2 of them, water, sewage etc....

It is all about choices... be it a wise choice or that unwise one.

Still... about how much debt one thought they can handle and "willingly" took that risk.
That ultimate decision, still lies on the decision maker.
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