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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$100,000 is average? 
... maybe a little high on the outside.
[:D]0 -
please remmber those of use on SS love you keep working. 0 -
I know,.........I know! 0 -
At 100K a year of course you are still taxed. You might want to consider talking to a financial planner to fine tune your money. Lose the bank for investment purposes. 0 -
Try living on Air Force E-3 pay. Even with my housing allowance, it barely works out to 25,000 a year. 0 -
you gotta be making more then 25k, your forget that only about 60% of that is taxed and your health care is free. So in civilian pay your probably making more like 35-40 a year. 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%.
Use Excel's FV (future value) formula. You may not be compounding!0 -
We're in our mid 20s. With a bunch of over-time, my salary and the wife's income, we'll be pushing 60k this year. I lived beyond my means while I was living at home and now I'm paying for it. We won't save much this year or next but by 2009/2010, we'll be in great shape.
I take care of the majority of our finances and I do have a lot more frivolous spending (mainly on my reef tank) than the average joe. We're still going to take a nice vacation this year for 12 days and pay cash. My car will be paid off in 2 months, after 5 years of payments. School loan will be paid off at the end of this year. Then I can work on the wife's school loans and we should be doing pretty good. Now that we're married, I'm hoping to see somewhat of a tax break this year, but not expecting much.
Overall, I'm happier after every month that passes. Can't complain. Isn't much that I want that I don't get. We quit using credit cards. I love my car, am happy with my small to average house. Mortgage isn't killing me. Despite the high gas prices, we're actually doing ok, but not saving like we'd like to.
Really need another year or two. Holding off from buying new vehicles for a few years. Won't know what to do without a 400 dollar a month car payment. Our utilities aren't that bad and I run the AC a lot.0 -
quote:Originally posted by nards444
you gotta be making more then 25k, your forget that only about 60% of that is taxed and your health care is free. So in civilian pay your probably making more like 35-40 a year.
I'll try to remind myself the next time I pay the rent and bills that really I'm making 40k a year. That warm fuzzy alone will hide the fact that I don't get paid jack.0 -
quote:Originally posted by jimdeere
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?
Every day. I to would have nothing if it weren't for my wife, (she keeps me grounded, and makes sure the bills get paid on time. I'm just not real good at that). I pretty much spend what I want, when I want. And she makes sure it gets covered. "But", I still think every day how easy it could all come crashing down.0 -
I wish I was making $100k a year. Yippee!!
Sales for me this year are down about 70%.....it sucks lately.
Merc0 -
If you owe money and are having a hard time on that kind money then you my friend are doing something very very wrong. Either that or you are living awful high on the hog. My wife and me live on $1.800.00 a month and even save some out of it! We pay cash for everything and buy the Grand babies anything they want. 0 -
quote:Originally posted by slipgate
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%.
Use Excel's FV (future value) formula. You may not be compounding!
Your future value formula may have a built-in default value for inflation, etc.
The figures I listed show that the returns were calculated at each level at 1.38 times (138%) the previous cumulative amount, and that's compounding.0 -
Come on Mr. Economist, you were the same guy who denied that corn was selling for ten cents per bushell, there by invalidating a carefully thought out formula. You continue to ruin things for everyone so your new user name will now be wet blanket.
Happy Father's Day to you.0 -
quote:Originally posted by kristov
Come on Mr. Economist, you were the same guy who denied that corn was selling for ten cents per bushell, there by invalidating a carefully thought out formula. You continue to ruin things for everyone so your new user name will now be wet blanket.
Happy Father's Day to you.
And to you, may none of your buildings fall down this year.[:D]0 -
I barely make it by the skin of my teeth making less that 60k per year. In my household there are six of us. I have a house and two cars and no money left over. But it is a cooincidence that you say people need to make about 100k a year to live comfortably. My brother and his wife always cry poor and they make over 100k per year. but keep in mind if you have expensive tastes- even eating out all of the time then you will be broke. In my house we eat every meal at home. We go out to eat about once a month only. What is spent in one meal at a restarant could be four or five days worth of groceries. 0 -
hell, crystal and i combined made a little over $40k. since i lost my job, all we have is her income, aprox. $23k until i find a new job. i made $10.50 per @ 40-45 hour weeks. she makes $11.53 per @ 40 hours. $1100 mortgage monthly, plus power, water, gas, phone, car insurance on 2 cars is the normal stuff plus food, gasoline, 4 cats and a dog. if either of us made what you guys are saying you do, i wouldn't be as scared about losing my house as i am right now. 2 payments behind and i still don't have a job yet. yet i still hope and pray i find one to make up our missing income. that's one reason i'm up til 4am everyday...cruising the help wanted ads. this place is my only place to find a break from the stresses we're going through. 0 -
quote:Originally posted by dlrjj
quote:Originally posted by slipgate
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%.
Use Excel's FV (future value) formula. You may not be compounding!
Your future value formula may have a built-in default value for inflation, etc.
The figures I listed show that the returns were calculated at each level at 1.38 times (138%) the previous cumulative amount, and that's compounding.
You are compounding annually, which is totally wrong for this type of problem. The particular fund that I chose for the example, flatx, is very stable in its return, so compounding monthly is the correct way to calculate the return. FV does not adjust for inflation, it is all in the compounding.
Thank you for your response! This helps to articulate my point that there is an ENORMOUS misunderstanding of how your money can work for you. With just a seamingly minor miscalclulation, you managed to reduce our investment by $75,000 - more than our original principle!0 -
We all should have your difficulties.
$100K+ income, vacation cabin, money in bank, and whining?
CPA? Should be making more than that, I would think.0 -
quote:Originally posted by Old Fool
$100,000 is not "average or even "normal".
your doing well.0 -
according to the democrats you about twice what is considered rich, at its time you paid your "fair share"[:I] 0 -
We have a war with no end in sight, arguably the most pathetic and incompetent politicians in history, a steady erosion of rights, an immigration problem of massive proportions, etc., and you are whining about not being able to get by on $100k? 0 -
quote:Originally posted by catpealer111
quote:Originally posted by nards444
you gotta be making more then 25k, your forget that only about 60% of that is taxed and your health care is free. So in civilian pay your probably making more like 35-40 a year.
I'll try to remind myself the next time I pay the rent and bills that really I'm making 40k a year. That warm fuzzy alone will hide the fact that I don't get paid jack.
Im in the military and I know the pay charts, an e-3 with dependents averages 1000 a month, without 200 less, so right there your at 30, and like i said only 60% of that is taxed. Im not saying I dont feel for you. But you have to look into benefits and realize somebody in the civilian world making 40-50k a year would actually take home the same as you if not less.0 -
Times are hard because more people want your money to give you the right to live. 0 -
[8D]-Well Nighthawk, I think that you have adjusted your lifestyle to 20%, 30% more than your income--
--My wife and I live in Northern California,there's almost NOTHING we can't conveniently do here and our income(private),although more than your stated amount,allows us to go to mountains (SIERRA) and ocean (PACIFIC) twice per month, gas is ($3.30 gal).She fly's to Bolivia/Venezuela twice per year and we're not squeezed by anybody--
--The only place I'd like to move to would be SAN DIEGO (near Zip)--
--[:p][:p]--JIMBO0
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