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These are 3 easy things someone with some wealth can do that gives them a leg up on those who are less fortunate.
Energy costs are rising. I purchased a $25k solar system that produces more than I consume so I heated my home primarily with electricity this past winter. My utility bill (gas + electricity) for the year was ~$300 (2000 sq ft house). Before solar, it was over $2500/yr. I had estimated payback for the solar system to take 7 years. I overestimated and with the increase in energy costs, it will payback in 5-6 years.
Bought an EV and pay nothing in gas. Converted lawn care tools to all electric. Although gas prices have come down considerably, but when they invariably go back up, I won't feel the pain that ICE car drivers will. At 15-18k miles/year, that's a $1500 annual savings.
Interest rates and treasury yields have risen so a large portion of my investments and savings have been converted to high yield accounts. If I were poor, I would not be able to take advantage of the fed raising interest rates.
So someone that can't afford solar power, an EV and have a substantial amount of savings is at a marked disadvantage to wealthier folks. To make matters worse, I took advantage of gov tax rebates on the first two bullet points.
These advantages will just compound as the cost of living rises. The gap between the rich and poor is only going to get worse.
- Energy costs are rising. YES they are and so will electric power on the grid since users are increasing.
Here's the hidden costs of owning an EV from Bob Vila. Don't shoot the messenger or dispute me.
- Costs for EV;
--1. As electric vehicles don’t use gas, states apply an additional registration fee of around $50 to $200 to EVs
-- 2. Most car insurance companies charge higher rates for electric cars because they’re more expensive to repair and replace. Expect to pay 5 to 20 percent more for electric car insurance than you would for a gas-powered car.
-- 3. Public charging facilities differ markedly in pricing, with some demanding payment for minutes spent charging and others going by the kWh of electricity used. DC fast chargers can add 100 miles of range in 10 minutes, they are also the most expensive public charging option.
-- 4. Home level charger. A Level 1 charger using a standard 120-volt outlet isn’t practical if you drive your car daily since this type of charging can take 24 to 36 hours (or longer in cold climates). This means daily commuters need to have a more expensive Level 2 electric car charger professionally installed for convenient overnight charging. Electric car charger costs are typically around $2500 for both the charger and installation, and EV chargers have a lifespan of about ten years. If your home needs an electrical upgrade to accommodate a Level 2 charger, expect to pay even more.
-- 5. an electric vehicle battery is not cheap. They’re good for 100,000 miles but come with a hefty price tag of $10,000 to $20,000.
-- 6. New electric cars come with a $7,500 tax credit (which comes with certain restrictions). Once that tax credit is voided, a car’s value can plummet by as much as 60 percent when a three-year lease expires, for example. EVs lose up to 20 percent of their maximum range after five years.
--7. A recent analysis of insurance claims by CCC Intelligent Solutions Inc. revealed that owners of luxury-brand mid-size electric SUVs could expect to pay more than 50 percent more for repairs than they would for gas vehicles.
-- 8. time spent charging is less time spent working. ~ this is a problem and a big inconvenience. DC fast chargers can be really expensive.
I don't drive a lot in my ice car, 8k/yr, but I am a big anti-pollutant and anti-deforestation advocate. The U.S. and industrialized societies around the world talk but don't enforce laws to stop the crisis. They pick and choose what they want to focus on like ice. Our trees and sea life ecosystem are far more important than millions of vehicles on the road.
- According to the UN, desertification is potentially the biggest threat to the world's ecosystems. Why is deforestation the biggest problem? Deforestation and forest degradation are responsible for around 15% of all greenhouse gas emissions. These greenhouse gas emissions contribute to rising temperatures, changes in patterns of weather and water, and an increased frequency of extreme weather events.
The ocean is increasingly becoming a plastic soup that is killing hundreds of marine animals on a daily basis. fertilizers and pesticides, non-biodegradable waste, such as plastics, overfishing, marine engineering and oil drilling, increased levels of CO2 in the atmosphere cause changes in the pH of the oceans.
Million dollar question? There's countless biographies of the rich. Warren Buffet's life has been examined with a fine tooth comb.
Breaking news, they had to work really damn hard and take a lot of damn risks. And then their grand kids blow it because they never learned how to manage it. Rinse and repeat.
How is it that the descendants of rich people end up blowing their wealth?
What greater privilege can anybody ask for than to have a grandparent who figured out how to become rich?
I mean, this stuff should almost be in their genes, right? It is mind-boggling.
Being poor also comes with a set of advantages. It changes the risk equation and opportunity cost to allow for chances, innovation, and bold moves. It’s freeing in many ways. You’re not bound by tradition or rules. They’re disrupters. People who have had it hard can be destroyed mentally and give up, but for some this constant cloud and bad news eventually makes them unbreakable because they’ve overcome obstacles time and time again. A common example of it was London during the blitz from Nazi Germany. The terror bombing eventually became a siren that people would ignore and go about their day. “a near miss leaves you traumatized, a remote miss makes you feel invincible.” If you being poor isn’t traumatic enough to break you, it can be the single greatest advantage a person can have.
It’s why some of histories greatest empires have been brought down by guerrillas. It’s why generational wealth is gone within 3 generations across most cultures. You can’t duplicate an underdog mentality that isn’t real.
“If you came from a place of nothing, that’s everything you need”.
IMO, this is more theoretical.
When are you really, truly poor, your energy is going mostly toward day-to-day survival. IMany of the truly poor are burned out and have way more on their plates than they can handle.
I'm a relatively well-paid government WFH IT person. I have great health insurance, so I don't have to worry about ended up broke if I need to go to the doctor. I have enough income to pay my routine expenses without worrying. I have a relatively new (2020) paid for car. I don't worry about breaking down. I don't have kids, so no expenses or hassles related to that.
I have a friend that's a detailer at a detail shop. He's just an employee. No insurance through his job. He probably makes 30%-40% of what I do. Onsite everyday. He's always trying to get OT. Two kids and money is always tight.
- Energy costs are rising. YES they are and so will electric power on the grid since users are increasing.
Here's the hidden costs of owning an EV from Bob Vila. Don't shoot the messenger or dispute me.
- Costs for EV;
--1. As electric vehicles don’t use gas, states apply an additional registration fee of around $50 to $200 to EVs
-- 2. Most car insurance companies charge higher rates for electric cars because they’re more expensive to repair and replace. Expect to pay 5 to 20 percent more for electric car insurance than you would for a gas-powered car.
-- 3. Public charging facilities differ markedly in pricing, with some demanding payment for minutes spent charging and others going by the kWh of electricity used. DC fast chargers can add 100 miles of range in 10 minutes, they are also the most expensive public charging option.
-- 4. Home level charger. A Level 1 charger using a standard 120-volt outlet isn’t practical if you drive your car daily since this type of charging can take 24 to 36 hours (or longer in cold climates). This means daily commuters need to have a more expensive Level 2 electric car charger professionally installed for convenient overnight charging. Electric car charger costs are typically around $2500 for both the charger and installation, and EV chargers have a lifespan of about ten years. If your home needs an electrical upgrade to accommodate a Level 2 charger, expect to pay even more.
-- 5. an electric vehicle battery is not cheap. They’re good for 100,000 miles but come with a hefty price tag of $10,000 to $20,000.
-- 6. New electric cars come with a $7,500 tax credit (which comes with certain restrictions). Once that tax credit is voided, a car’s value can plummet by as much as 60 percent when a three-year lease expires, for example. EVs lose up to 20 percent of their maximum range after five years.
--7. A recent analysis of insurance claims by CCC Intelligent Solutions Inc. revealed that owners of luxury-brand mid-size electric SUVs could expect to pay more than 50 percent more for repairs than they would for gas vehicles.
-- 8. time spent charging is less time spent working. ~ this is a problem and a big inconvenience. DC fast chargers can be really expensive.
I don't drive a lot in my ice car, 8k/yr, but I am a big anti-pollutant and anti-deforestation advocate. The U.S. and industrialized societies around the world talk but don't enforce laws to stop the crisis. They pick and choose what they want to focus on like ice. Our trees and sea life ecosystem are far more important than millions of vehicles on the road.
- According to the UN, desertification is potentially the biggest threat to the world's ecosystems. Why is deforestation the biggest problem? Deforestation and forest degradation are responsible for around 15% of all greenhouse gas emissions. These greenhouse gas emissions contribute to rising temperatures, changes in patterns of weather and water, and an increased frequency of extreme weather events.
The ocean is increasingly becoming a plastic soup that is killing hundreds of marine animals on a daily basis. fertilizers and pesticides, non-biodegradable waste, such as plastics, overfishing, marine engineering and oil drilling, increased levels of CO2 in the atmosphere cause changes in the pH of the oceans.
I was curious what an ice car is? Internal Combustion Engine perhaps.
These are 3 easy things someone with some wealth can do that gives them a leg up on those who are less fortunate.
Energy costs are rising. I purchased a $25k solar system that produces more than I consume so I heated my home primarily with electricity this past winter. My utility bill (gas + electricity) for the year was ~$300 (2000 sq ft house). Before solar, it was over $2500/yr. I had estimated payback for the solar system to take 7 years. I overestimated and with the increase in energy costs, it will payback in 5-6 years.
Bought an EV and pay nothing in gas. Converted lawn care tools to all electric. Although gas prices have come down considerably, but when they invariably go back up, I won't feel the pain that ICE car drivers will. At 15-18k miles/year, that's a $1500 annual savings.
Interest rates and treasury yields have risen so a large portion of my investments and savings have been converted to high yield accounts. If I were poor, I would not be able to take advantage of the fed raising interest rates.
So someone that can't afford solar power, an EV and have a substantial amount of savings is at a marked disadvantage to wealthier folks. To make matters worse, I took advantage of gov tax rebates on the first two bullet points.
These advantages will just compound as the cost of living rises. The gap between the rich and poor is only going to get worse.
So, how much was the EV (and the payback period on that)? Other equipment? It sounds like you did not do the whole Tesla system with the roof shingles and batteries?
I see it as you have prepaid expenses; but, what is yet to be determined is whether you overpaid...
My gas and electric combined is $1,500 a year. I now drive a maximum of 5,000 miles a year. I maybe have 25 years left to live. I do not see a payback period working for me. I will drive my ICE car until it dies and maybe consider a hybrid after that. I really do not like the idea of a solar system on top of my roof. It requires maintenance and removal to maintain the roofs here in the PNW. I see it as just another maintenance nightmare. I would not want one if it was free.
How is it that the descendants of rich people end up blowing their wealth?
What greater privilege can anybody ask for than to have a grandparent who figured out how to become rich?
I mean, this stuff should almost be in their genes, right? It is mind-boggling.
Kind of makes the argument for nurture rather than nature.
Clearly the accumulate and keep wealth gene does not get passed on to later generations. Rather, being supported and given everything from a young age diminishes any financial savvy that might be in their genes.
On a personal note however, my parents' financial sense which was developed and grown in the depression, made a huge impression on me.
I've always been a "Use it up, wear it out, make it do or do without kind of gal."
The income stats often posted clearly showing more Americans moved up from the middle classes than down over the years invalidates the OPs claim, decreasing poverty rates as well.
Side note. Poverty thresholds are applied before transfers..............no one really knows the numbers but some estimate that 50%+ of those in poverty aren't after transfers.
Our working poor have only a little less buying power than those at median income in The UK.
These are 3 easy things someone with some wealth can do that gives them a leg up on those who are less fortunate.
Energy costs are rising. I purchased a $25k solar system that produces more than I consume so I heated my home primarily with electricity this past winter. My utility bill (gas + electricity) for the year was ~$300 (2000 sq ft house). Before solar, it was over $2500/yr. I had estimated payback for the solar system to take 7 years. I overestimated and with the increase in energy costs, it will payback in 5-6 years.
Bought an EV and pay nothing in gas. Converted lawn care tools to all electric. Although gas prices have come down considerably, but when they invariably go back up, I won't feel the pain that ICE car drivers will. At 15-18k miles/year, that's a $1500 annual savings.
Interest rates and treasury yields have risen so a large portion of my investments and savings have been converted to high yield accounts. If I were poor, I would not be able to take advantage of the fed raising interest rates.
So someone that can't afford solar power, an EV and have a substantial amount of savings is at a marked disadvantage to wealthier folks. To make matters worse, I took advantage of gov tax rebates on the first two bullet points.
These advantages will just compound as the cost of living rises. The gap between the rich and poor is only going to get worse.
Yes, America has gone even farther away from "equal opportunity." I guess that's what happens when the people making the laws are all millionaires and the executive branch is ruled by the ultra-wealthy, and the Supreme Court members were born with silver spoons in their mouths, for the most part. We are increasingly ruled by an aristocracy that has a members-only mentality. Other First World countries are ruled by the ultra-wealthy, too, but interestingly have maintained a better balance and more opportunity for the populace than America. A large part of that is health care, a huge cost to the average person. As long as that albatross is hanging around his neck, he can't advance as much as in older days, compared with the ultra-wealthy whose health costs are just a fraction of their expendable income. So the rich get richer, and the middle class gets poorer.
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