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Old 08-15-2014, 11:51 AM
 
33,046 posts, read 22,034,672 times
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Quote:
Originally Posted by creepy View Post
Getting back to the original question. For those who do not want to end up later in life with no money here is my take on what to do.

One thing the investor folks recommend lately is if it come down to choosing to put $ in retirement vs. a kid's education they say now to not spend your money on your kids education. Put money in the bank for retirement and let your kids save money and work through college. Help them some but not completely.

Another thing is to as my Mom called it "live below your means".

If you end up in life making say $35,000.00 a year then don't try and have a lifestyle of someone who makes $60,000 or $80,000 a year.

If one day you get married and you and your mate have a combined income of $80,000 a year and you go to buy a house and they tell you to pay 40% of your income on your mortgage. Don't, get a smaller house than they tell you you qualify for.

The agents told us we should get a house with a monthly payment of $1200.00-$1400.00 we said no and got one with a monthly payment of $900.00. This way if one of us loses our job (which just happened btw) the other if we live on the cheap, can still make our payments off one's salary.

Please be smart-beat the system that tries to tell you - you need everything right now, the latest phones, the newest cars, the bigger house-all lies!

??? OMG. If you make $15,000 a year, how do you live below your means?
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Old 08-15-2014, 12:14 PM
 
Location: Baltimore, MD
3,745 posts, read 4,213,572 times
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Originally Posted by freemkt View Post
??? HowTF did i have the opportunity to graduate law school when I couldn't afford to go to law school?
Sorry. I guess I assumed (oops) that you attended law school because almost everyone who wants to attend law school takes out loans. Same with medical students.
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Old 08-15-2014, 01:26 PM
 
8,815 posts, read 5,119,154 times
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Quote:
Originally Posted by freemkt View Post
??? OMG. If you make $15,000 a year, how do you live below your means?
Are you living on 15k, freemkt? Have you ever heard of the blog Early Retirement Extreme? The blogger there lives on 7k annually. He earns more, but saves/invests the rest. You might pick up some good cost reduction strategies on his site. I have, though I am unwilling to utilize all of his strategies.

http://earlyretirementextreme.com


I think the site is down for maintenance at the moment, but should be available soon.
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Old 08-15-2014, 02:24 PM
 
Location: Tennessee
23,541 posts, read 17,525,434 times
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Originally Posted by freemkt View Post
??? OMG. If you make $15,000 a year, how do you live below your means?
Then you need to make more money. This is below the federal minimum wage.
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Old 08-15-2014, 03:25 PM
 
33,046 posts, read 22,034,672 times
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Originally Posted by lenora View Post
Sorry. I guess I assumed (oops) that you attended law school because almost everyone who wants to attend law school takes out loans. Same with medical students.

One of the advantages of getting an undergraduate degree taking classes part time is that by the time I graduated, friends were coming out of law school. I saw graduates of third-tier law schools fail to get law jobs and proceed to struggle with their student loan debt.

One friend graduated from a second-tier law school and toiled as a stockboy to make his student loan payments. He never did practice law but went into politics and became a county commissioner.

I developed an acute case of risk aversion and was unwilling to borrow up to my eyeballs to go to law school in the face of a doubtful ROI.
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Old 08-15-2014, 03:39 PM
 
33,046 posts, read 22,034,672 times
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Quote:
Originally Posted by Petunia 100 View Post
Are you living on 15k, freemkt? Have you ever heard of the blog Early Retirement Extreme? The blogger there lives on 7k annually. He earns more, but saves/invests the rest. You might pick up some good cost reduction strategies on his site. I have, though I am unwilling to utilize all of his strategies.

Early Retirement Extreme: — a combination of simple living, anticonsumerism, DIY ethics, self-reliance, and applied capitalism


I think the site is down for maintenance at the moment, but should be available soon.

I was reading that blog several years ago and your prompt sent me back there.

My two budget killers are housing - I pay $500/mo to rent a room - and student loan debt. The blogger shares housing and pays only $270. I don't know if he's sharing a house or apartment or what; I live in a house with four others but I do not enjoy the economy of scale one expects when living with other people - and which the blogger clearly enjoys. The blogger got a free college education in his native Denmark, and thus no student loan debt.
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Old 08-15-2014, 03:48 PM
 
33,046 posts, read 22,034,672 times
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Originally Posted by Emigrations View Post
Then you need to make more money. This is below the federal minimum wage.

??? Only for someone who gets a full 40 hours every week. MW employers hate to pay overtime and deliberately underschedule employees to keep them under 40 hours.
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Old 08-15-2014, 07:05 PM
 
Location: Sierra Vista, AZ
16,133 posts, read 20,812,641 times
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Quote:
Originally Posted by cdelena View Post
In a country where 50% take government assistance of one kind or another it is not surprising.
How many take Social Security or Medicare
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Old 08-15-2014, 07:32 PM
 
12,704 posts, read 9,959,474 times
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Quote:
Originally Posted by mathjak107 View Post
Current research is showing that the old method of getting more and more conservative as you age was doing more harm then good.

Current data suggests you tone down equities a few years prior to retiring and glide down to 25-35% equities.

That protects you from being hurt to badly from bad markets and sequences early on but you dollar cost average back in at the rate of 1% a year increasing equities .

The higher equity positions make up down the road for poor markets early on and the 25-35% will add enough ooomph to grow the portfolio just fine if early on markets are up.
Do you have a reference?
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Old 08-15-2014, 07:50 PM
 
Location: Chesapeake Bay
6,048 posts, read 3,868,534 times
Reputation: 3502
Quote:
Originally Posted by freemkt View Post
One of the advantages of getting an undergraduate degree taking classes part time is that by the time I graduated, friends were coming out of law school. I saw graduates of third-tier law schools fail to get law jobs and proceed to struggle with their student loan debt.

One friend graduated from a second-tier law school and toiled as a stockboy to make his student loan payments. He never did practice law but went into politics and became a county commissioner.

I developed an acute case of risk aversion and was unwilling to borrow up to my eyeballs to go to law school in the face of a doubtful ROI.
Something about your posting seems kind of odd.

You graduated from college more than 35 years ago. Back in those days tuition wasn't nearly as high as it is today. It was entirely possible back then to work part-time and in the summers and essentially cover your costs. If you went to say CUNY their tuition then was very low even for those times.

Several universities offered co-op programs at that time which students could enroll in that paid most if not all of their tuition plus living expenses. The one that I am most familiar with is Ga Tech. I went to graduate school there way back when (a few years before your time) and this program was very popular among the students then. I know that other universities around the country offered the same types of program back then (but don't know about today, haven't checked).

In short, there were very viable ways to graduate from a university with little (if any) debt in those times. And if your GPA and SAT were as high as you say, you could have found ways to avoid student loans I'm thinking.
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