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I've got to have the safest steel cage I can get, and that means a new car every 5 years or so. I see it as an extra insurance premium, and honeslty I still can live really well and save mid 20%'s of gross on my income with a car payment.
I think this is a classic example of not being good at evaluating safety. The safest thing you could do is not let your kids in the car....Sounds extreme, but so is buying a car every 5 years for safety reasons.
I think this is a classic example of not being good at evaluating safety. The safest thing you could do is not let your kids in the car....Sounds extreme, but so is buying a car every 5 years for safety reasons.
If the safest thing would be too limiting, then go for the next safest. I think this is the idea behind the new car every 5 years.
Over all a good list starting out in life. However, as you grow financially other factors may take precedence. Yes, I'm the kind of individual that will buy a new 70 inch 3D TV and hookup 9 speakers for great sound. I have not had a TV that lasts 10 years. I will buy a new car every now and then. Just finish building a new computer and didn’t spare expenses.
There is some misconception that after you retire you also lose the ability to earn. I have not added one dollar to my IRA in 12 years and must withdraw RMD about 4% annually and its still growing. I'm in my spending years now that I'm old and can't think of anything to buy.
I do not have 10 that would be commandments, meant to always be followed, but do have three.
1. Live for today, while planning for tomorrow.
2. Manage your assets, do not let them manage you.
3. Remember that your life's goal should not be to acquire more money and assets, but the goal should be to use the money and assets you have to improve your quality of life and the lives of those you care about.
I do not have 10 that would be commandments, meant to always be followed, but do have three.
1. Live for today, while planning for tomorrow.
2. Manage your assets, do not let them manage you.
3. Remember that your life's goal should not be to acquire more money and assets, but the goal should be to use the money and assets you have to improve your quality of life and the lives of those you care about.
No Scrooges
If you have no money and no assets, your first goal should be to acquire some money and assets.
If you have no money and no assets, your first goal should be to acquire some money and assets.
hmmm, I have a job, money, and assets, but I enjoy life too.
My retirement account has 7 times my annual salary.
My home in California is paid for in full, and has been for several years.
I have a car for regular commuting, and camper van for, well, camping, and a suburban for longer trips with extra folks, all paid for in full.
I have bought the home that I will retire in and have about 40% equity now. It will be paid for in full when I sell the current CA home and retire, with plenty left over.
I have adopted 4 special needs children, 2 domestically and 2 internationally and have paid for all of there extensive medical needs in full.
And I have a savings account to cover about a years worth of expenses.
And on top of that I live my life, managing and spending money as I have needs and desire to have a decent quality of life and teach my children to manage money as well as supporting others through gifts, donations, and their current favorite activity--choosing people for micro loans through Kiva.
Not sure why you directed that comment to me, maybe you were looking in a mirror and got confused???
or at least plan and worrk at getting a job that pays well. when you think you can't do something you never will.
hmmm, have a job, and have had it for 27 years and 11 months so far. I have 2 years and 1 month until I retire And before this job I had several others. I have had a job since I was 16, though they were part time through college.
Current job pays fine, part time jobs over 27 years ago, some did and some did not pay well, but all gave me a chance to improve my skills and gain knowledge to move on to a better job.
I save roughly 100k a year on 200k in income. Could I save more? Sure. Could I live a poverty lifestyle? Sure but why? It has nothing to do with low expectations but rather realistic expectations and balance. Balance is important in life in many facets. So back to my orginal post, it actually makes better financial sense to go against some of the OP and others are extreme of which the OP actually later admits to also not following
hmm...
So are you saving that 100K for your pay interest only for the first 5 years adjustable rate mortgage (foolish) or for your retirement?
$200 K
- $28k - 14% federal taxes (//www.city-data.com/forum/39308875-post335.html)
- $0.00 - You don't pay state taxes
= $172,000.00
- $100,000.00 per year
= $72,000.00
- 5/1 io arm
- house insurance
- local taxes
- car insurance
- upkeep on house
- toys / tv's
- gambling losses
- gas/ groceries, internet, electric, tv service, and more
- that extra check to give to the government
It doesn't sound like your living it up. It will be funny to see if your still so arrogant when interest rates go up, or if the housing market crashes, or when your 5 years are up, if you get ill and can't work.. so much can go wrong but hey, you think you know it all.
Originally Posted by Lowexpectations View Post
I save roughly 100k a year on 200k in income. Could I save more? Sure. Could I live a poverty lifestyle? Sure but why? It has nothing to do with low expectations but rather realistic expectations and balance. Balance is important in life in many facets. So back to my orginal post, it actually makes better financial sense to go against some of the OP and others are extreme of which the OP actually later admits to also not following
Quote:
Originally Posted by Lowexpectations View Post
but I do have a 5/1 io arm in full disclosure
When is your 5 years up?
Quote:
Originally Posted by dmills
Good for you! You have the luxury of being able to play it fast and loose with sound financial principles because you have a good income. I'm not understanding your argument though. Are you saying you save $100k a year, but still carry a monthly balance on your credit card? Which of the OP's "10 Commandments" did you find unreasonable?
Read his post above your post. Making $200k a year and Lowexpections has a 5/1... pay interest only for the first 5 years adjustable rate mortgage.
When he makes a payment to his mortgage company he is paying the interest only portion of the mortgage and nothing goes toward the pay down of the principle, there will be nothing going towards the equity of his home. All ARM products are based on a 30 year amortization schedule. He can send in more money and have it applied to the principle without any penalty as long as you don't go over 20% in a given year for the 5 years. The ARM will adjust every 12 months starting in the 6th year. The principal would then be amortized over the remainder of the term of the loan (25 more years).
I'm not sure why anyone would get a mortgage with an adjustable interest rate when we are in a period of the lowest interest rates I can remember or in my life time... interest rates can only go up from here.
There is a lot of risk with arm's especially now during a low interest period where they may raise interest rates. When the 5 years is up he pays the adjustable interest rate whatever that interest rate may be plus the principle payment. He said he is saving $100k a month but doesn't say if he is putting that money aside to pay his mortgage principle or putting it away for retirement, maybe both.
Last edited by petch751; 04-22-2015 at 06:54 PM..
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