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Luckily for me I don't eat cat food on that budget. I am able to go out to dinner sometimes and I wear a gold watch and rings to reflect my upward wealth mobility. I'm doing okay. I just hope I qualify for financial aid still despite being independent.
At least until the IRS catches up with you for not paying taxes, anyway.
At least until the IRS catches up with you for not paying taxes, anyway.
I do pay my taxes actually. Before I used to survive on scant amounts of money. I'd live on a few thousand dollars a year and survive with gift income. If there's one thing I am it's a tax payer. I'm not hiding anything because I fear the IRS more than anything. I just live a comfortable yet frugal life.
Now that I work I'll use some of my savings to pay my owed taxes.
My mom and I know an EA who does our taxes and files them for us every year.
And maybe my investment income is more like 70%. Yeah. I'd say that's more realistic. I don't keep track. I just dump money into my brokerage and buy funds.
Save 90% of your income. Invest invest and invest some more. Don't rent. Own. If you do this you can be a millionaire in your 40s and avoid the rat race.
So do you plan on living with your parents for your entire life? I moved out at 17. It was actually one of the best things I've ever done. I'd do it all over again versus staying home and having the ability to save a ton of my income.
It's possible. You'd have to live at home like I do though. Of course I live an extremely minimalistic life. The way I see it I can act poor now and live like Frank Sinatra in my 40s.
If you don't mind living w Mommy and Daddy forever I guess you can save a lot. Of course, that might indicate "other" things about you, but at least you could save!
Because I'll kick them out at a certain age. They'll have access to the money to become Physicians if they wish so they don't have to rely on living here.
So you are living with Mommy, but you would kick your own kids out. LOL. Nice. You may need a lot of money because you probably won't have any friends.
It's possible. You'd have to live at home like I do though. Of course I live an extremely minimalistic life. The way I see it I can act poor now and live like Frank Sinatra in my 40s.
No, "home" for me is 1,000 miles away from work. The commute would be by air and cost about $8,000/month. With a monthly income of $2000, I would thus be saving only about -300% of my income if I lived at home.
As do I. When I sit on the beach near my miami beach house with a cigar in hand next to a beautiful woman I won't care how I got there. Just that I AM there.
Yeah, 'cuz living at home with mom is a real draw for the ladies.
Thomas Sowell says statistically you will stay out of poverty if (assuming one works): you graduate from high school, marry after 20, and don't have a baby until after marriage. I have always found that interesting at how simple that formula is.
I read a theory in my 30's that if you invest 20% of your gross income from initial employment forward, you can retire at 40 (or thereabouts) at the same income standard you are living at (current wages -taxes -20% gross earnings). I don't remember the math specifics behind it, but it was realistic.
Saving 20% of your gross may be near impossible for most people at the front end of their careers (it was for me!), and the ACA does change expenditure rates/costs from back when I read about the theory (it would still work if you bought catastrophic insurance for cheap, but under the ACA, that option is no longer available), so ACA requirements may extend out the retirement time line by a few years - still, an interesting concept.
Last edited by Marka; 02-20-2015 at 01:12 AM..
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