Are times getting hard for the average?
My wife and I are an average American couple, we make a little over $100,000.00 a yr her making more than me, and were not big spenders. We are blessed we have our home paid for, but we have a mortgage on a cabin we had built in the country. My old 02 S-10 extended cab is paid for but Im looking at some new trucks, we owe for my wifes Honda SUV, and have the same bills most other people have utilities etc. In the past we have managed to save money every yr, except this one and it looks like were going to have to spend some savings. We had to replace a heat pump and a few other small things that we set back contingency funds for. We dont have to do this but its our best option to cash in on a $5,000.00 CD that has matured and put it in our interest checking for use as needed. Our electric bill is nearly twice as much as last yrs, buts thats it that I can think of. I have spoke with alot of my friends who are in the same income bracket and they all are dealing with the same issues we are. Some of my friends that are in a lower income bracket say this is the best yr they have had? Why is the Goverment squezing the life out of the average American family? My wife is a CPA and knows how to manage our money but we still looks as if we may spend as much as we make this yr. Maybe its just me but I feel the squeeze?
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WElllll, that makes two of us/ I do not spend on frivolous things,,Ameren electric doubled its rates and gas over 3.00 its puts a squeeze on things. Perhaps anarchy would set a few things right? /?nambu 0 -
If you don't mind, what does your interest checking pay in APR? 0 -
$100,000 is not "average" or even "normal". Try living on a US Navy disability retirement check. 0 -
quote: Why is the Goverment squezing the life out of the average American family? My wife is a CPA and knows how to manage our money but we still looks as if we may spend as much as we make this yr. Maybe its just me but I feel the squeeze?
The honest answer is the most hurtful one too.
That answer is; Your Government could not give a flying crap about you and yours. The elected masters, from local County boards to POTUS himself are in it for POWER, MONEY and to get re-elected. You are the source for the money and they stole the power we loaned them to serve themselves. The constitution is a document they ignore every day for more power and money.0 -
100k is way more than the average American's earnings. 40-50k is probably more accurate. 0 -
Maybe you just had a bad year, but 100,000 is not average. The average American family income in 40,000. Now I live in a community where probably the average income is between 40-100k. And nobody seems to be hurting. You might want to evaluate where your spending all of your money. If your paying out a bunch of payments on houses, cars, etc. then its probably your own doing. If you have kids and your paying their college and for their cars, you may want to cut that off. But with your income bracket and making the right choices, you should be living pretty good. But with that said somebody making the average, life might be hard. 0 -
quote:Originally posted by badwrench
... I think a quote from Ken "Von Dutch" Howard sums it up for me:
"I make a point of staying right at the edge of poverty. I don't have a pair of pants without a hole in them, and the only pair of boots I have are on my feet. I don't mess around with unnecessary stuff, so I don't need much money. I believe it's meant to be that way. There's a 'struggle' you have to go through, and if you make a lot of money it doesn't make the 'struggle' go away. It just makes it more complicated. If you keep poor, the struggle is simple. "
Much truth to this.0 -
...About everyone I know is doing as good or better than in years past; from professional's to "regular" working folks.
...Always ups and downs in every economic bracket.
...If you think the "government" is squeezing you now, wait until the dims impliment their PROPOSED largest tax increase in American history, national(ized) health care, allowing the tax cuts to go down with the sunset all come to pass if a dim president is elected...you have no idea what "squeezed by the government" is, yet...[;)]
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I was asking the previous question because I was going to tell you what I do with my short term "reserves".
https://savings.eloan.com/savings?context=deposits&sid=EJX6Sa0EMCUkcl03ehXJW1kmZAk&user=ELOAN&mcode=null;
I have an account with them, and one with another similar rate.
No minimum, and it is linked to your regular checking account,.......you can transfer in, and out, in a couple of days.
I have not had a problem this year, even though I have had some unexpected circumstances also. That is why I keep these short term accounts that still make a decent amount of return.
I like nice things,........but I save up for them before I purchase.
I would be called "frugal" I believe,.........nice word for cheap!0 -
I am very thankful and Blessed to have what we have its all temporary anyway. You are right about the cost of living being low here in Va. But they also base alot of things on your income bracket. Its like punishing you for working hard to have a pull behind camper and a small fishing boat. And most of all a second home even though it brings us no income. I think our interest checking pays 1.9% interest on anything up $7000.00 = $10.000.00 Or at least I think thats what we get, compounded by the lowest figure anually. We will have to pay taxes on that money even if its used. We have to pay extra taxes on our Garage because it has an upstairs that could be used as living quarters even though we dont use it for that. What I guess what Im saying is it feels like punishment to have anything, even though you have worked your life for what you have. There is really no tax relief here like in most bigger cities, and it hurts your so called yearly income. If we made less we would be eligable for tax relief. 0 -
Read my post above to do better!!
The gov is gonna get it from you,.......one way, or the other![;)]
Also getting personal,......but what are you getting from your CD's?0 -
If two people with no mortgage payment on thier primary residence, one vehicle payment, there's no reasonable answer for why you would be in the red. That cabin should be an "investment" property which should have a number of tax advantages, your married, again tax advantages. When I left the military and entered into the corporate world and started making decent money, is when I really started looking at ways not to spend money that I didn't need to spend. I started riding the train to work (annual cost $45.00 my company built and donated a train station so we get a very discounted rate), called the ins. company and told them I don't drive the car everyday. I switched to a interest checking account that is linked to my long time savings account. That one move is worth at least $50.00 a month, probably closer to $100 a month. My car insurance was nearly cut in half savings of $60.00 or so a month, and of course the best difference is instead of five or six tanks of gas a month, I might use one tank a month (if I don't go on any road trips for the weekend of course). I turned the internet off on my cell phone because work gave me a phone with full internet use, no need to walk around with two internet capable phones. ($60 a month savings). Now all of the sudden the money I save from just a few changes more than covers my car payment each month.
-Marc1301 ingdirect offers a great PAPERLESS (not even a checkbook) interest checking account that 4.00 APR. The savings account linked to it draws 4.5 % interest, and many ingdirect CD's pull in 5.25% interest. Really check it out, if you need to write a check you go online fill it out and they 2 day ship a check to whoever you need to send it to, drawn against your account. http://home.ingdirect.com/
My whole point Nighthawk is that although nambu has suggested anarchy as a plausable solution, look at your money where it sits and decide if it's doing enough for you there. Look at your expenses every month, maybe public transportation is more of a pain than you want to deal with everyday, if you look into doing it twice a week, both you and your wife, and you will cut your direct cost of fuel for commuting by 40% monthly (then subtract the cost of the train/bus tickets) maybe a 30% savings monthly. Look at your cell phone plan and decide you want it 20% smaller and go talk to the cell phone people looking for a smaller plan or fewer features. Then consider doing the same with your cable and internet provider. Go find a different insurance company if you've had the same guys for more than 4 or 5 years, chances are they're taking you for a ride and you can do better somewhere else. Finally if you truely feel that it's the "government squeezing the life out of you" then what you need to do is make as much of your income tax free before the fact. Both you and your wife should be able to put 10% into 401K's, maybe you have a health savings account (also tax free money). Try to figure out a way to load up there and get your tax bracket lowered a notch. If both of you maxed your 401K's alone wouldn't that be a large enough tax break to get your taxable income under 100K?
Hopefully there's a few options you can look at that could relieve you of the squeeze your feeling right now.0 -
Dave,.......I used to use ING, but they have fallen way behind. I have no need for the check feature, as I keep my Wachovia checking account sufficient, and simply transfer back and forth, as needed.
I use online bill pay, or CC, for most everything,........save on postage too!
Also getting 6.25 to 6.5% APR on my CD's. Lowest is 5.83% APR, not APY.0 -
Well, then.... what should I do with my dollar ?? pop, or gas ??
Doug0 -
We don't even make close to $100,000 grand a year. Savings???? Whats that??? Five kids depletes that!!!! I do save in my 401 K, and xmas club other than that it 's week to week!!! Has been all my life!!!
House is mortgaged, car payments, we get by and are happy!!! $$$$$ can't buy you happiness!!!!0 -
i have an ideal
i make half what you do, send me half of this years income, and then you can get an actual ideal of what the average person lives like, and i can let you know how i can manage your level of income0 -
quote:Originally posted by Doug Wilson
Well, then.... what should I do with my dollar ?? pop, or gas ??
Doug
If you need gas at the time,.....I would suggest gas!
If the tank is full, and you're thirsty, "pop".0 -
I think i does'nt matter if u have 50 or 150k to spend every year...
People get used to spending whatever income they have.
and then it always hurts if your yearly income goes down.0 -
quote:House is mortgaged, car payments, we get by and are happy!!! $$$$$ can't buy you happiness!!!!
You are totally correct!
But many folks do not live within their "means",.....not referring to you BTW, and that path is to destruction!
Money does not make happiness, but if one is a dumbass in their life decisions, and overextends themselves, it can turn into a nightmare,........not lead to happiness.0 -
Unless your in your 60s and getting ready to retire, you should have almost nothing in CDs, they are a really bad investment and you can do much better. You don't get rich by saving your money in a mattress or a savings account, and those that do, deserve their lot in life. Your money should be in high return mutual funds that are returning at least 20%. Several of mine are returning over 50% - one that I have that is doing really well is flatx, its 3 years average is 59%, 5 year is 38% and 10 year is 15% (all of mine are at leats 20%). Of course, do your own research.
Some people can't sleep at night knowing their money is in higher risk investments. Me? I can't sleep if it is in a shiddy one like a bank.
Make your money work for you!
example
$50k invested for just 5 years:
your 5% CD - $64,167
my 38% "high risk" - $324,589 (I used the 5 year average)
Don't think you can maintain this return over time? Think again and look at the (any) funds history. My 401k is fully funded meaning I don't have to put in another dime and I will retire quite well. I still do contribute however at the fed max.0 -
I dont know how you are in the red. Lets say you have 2,000 a month in loan payments for your car, cabin, etc. Then you spend another generous 2000 a month on utilities,food,etc. Thats 48,000 a year. Lets say after taxes your probably making in the 80's. There should be at least 20-30k somewhere. Not to bring anything up, but is it a possibiluty your wife is spending money on somethings without your knowledge? i dont want to butt in, but that does happen. Do you have any expensive hobbies,other bills, kids, etc. 0 -
Slipgate,.....thanks for the advice!
That IS where the majority of my money is,........I only look at 10 year return or more on mutuals. Mine are all over 15% APY per year.
I keep savings for very short term needs, and then a few CD's for interim investments.
The big stuff is in mutual funds,........multiple IRA's, Roth, and traditional.
Also individual dividend bearing stocks,........haved owned C since around 1992, and a few BDC's that have been kicking butt for several years.
Sincerely thanks though, for the info![;)]0 -
Toss College tuition for your wife and a kid on top of it and see how fast it all goes out the window.... 0 -
Nighthawk, our financial situation is similar to yours, with some extenuating circumstances. My wife and I started out (separately) with nothing, and if it weren't for her, I would still have nothing. My point is, I've been poor, really poor, with absolutely no one to turn to, and I didn't care for it. I wake up every day wondering when I am going to lose everything I have. Does anyone else get that feeling? 0 -
quote:Originally posted by pabooger
We don't even make close to $100,000 grand a year. Savings???? Whats that??? Five kids depletes that!!!! I do save in my 401 K, and xmas club other than that it 's week to week!!! Has been all my life!!!
House is mortgaged, car payments, we get by and are happy!!! $$$$$ can't buy you happiness!!!!
Must be a family thing...[;)]
Money may not buy happiness, but it does help with open up OPTIONS toward finding happiness...0 -
slipgate, you might want to check some of those numbers again.
$50,000 x 1.38 is $69,000 (1)
x 1.38 is $95,220 (2)
x 1.38 is $131,403.60 (3)
x 1.38 is $181,336.969 (4)
x 1.38 is $250,245.01584 (5)
I believe these figures to be correct, but you might want to run the numbers again.
It's still a very good return, but I don't get $325,000 @ 38%.0 -
quote:Originally posted by dlrjj
slipgate, you might want to check some of those numbers again.
$50,000 x 1.38 is $69,000 (1)
x 1.38 is $95,220 (2)
x 1.38 is $131,403.60 (3)
x 1.38 is $181,336.969 (4)
x 1.38 is $250,245.01584 (5)
I believe these figures to be correct, but you might want to run the numbers again.
It's still a very good return, but I don't get $325,000 @ 38%.
I didn't either,.......but was trying to be polite.
I responded here trying to tell the poster how to make a higher return on short term reserves,.........not to get into a portfolio re-balancing![8D]
My "stuff", whatever it is,.......is doing fine, Thanks!
Dlrjj,.......we have spoken before, even if you don't recall.0 -
If you are living in one of the big square states then your income is well ahead of the curve, but if you were living here in SoCal you would be just getting by. Housing here in Orange County is so damned expensive that $2,000+ mortgages are quite common and when you add on taxes and association fees, lots of folks are spending $3K per month just keeping a roof over their heads. Over the past several years many of my employees purchased homes out in Riverside County because the price per square foot was lower but now that the price of gasoline has double (or more), what money they saved on their mortgage is eaten up by the rising fuel costs. These are factors which I have no control over as their employer, but they do impact the quality of life for the people who work for me. Speaking as a business owner is is in my best interest to keep the same people and avoid turn overs but I can only pay my employees what their jobs are actually worth and not a wage which attempts to provide them with the sort of lifestyle which they may feel that they deserve. Looking over our salaries; an Engineering Technician is the lowest paid tech job which we have and at the top step this pay nearly $60K per year, not including benefits. If you were single you could get by on this amount but if you were married with a couple of kids it would be nearly impossible to survive unless your wife also worked. While an EngTech is an important job at our firm, the guys holding these positions are not engineers and do not have four year degrees so I cannot justify paying them the money that I have to pay a licensed civil engineer (over $90K at the top step plus another 10% for a MS degree). Many people are attracted to the seemingly high wages paid here in California but the reaility is that your money does not go very far out here. My personal situation is much different since I own my own business and the firm has done extrmely well over the past decade. My wife, who is a university prosessor, earns a good salary (about $10K per month) and we bought our home many years ago when the housing market was soft and our mortgage payment was much lower than most folks would have ever suspected. Life always tends to be hard for the middle class, but then the middle class tends to have pretty high expectations: A nice house, two cars, nice vacations, some toys and (hopefully) putting the kids through college. In most cases these things can not be done on a single income and even two incomes makes "The American Dream" darned hard to reach. 0 -
Marc
I'm guessing that he just grabbed the wrong set of numbers when he ran his calculations and that's something we have all done on occasion. He generally knows what he is talking about.[:)]0 -
Life is life,.......no matter where you live, or your tax rates, or cost of living.
If it is absurdly high,........move, or accept it! Especially if you own your business! If you are worth your salt, you can succeed anywhere.
If you enjoy living in one of the very high tax areas, and real estate speculation gone awry,........deal with it, and quit crying.
So far, we are still in a free country, for now!0
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