Stop Pissing Your Money Away Or Else.....

[GNBRETT]

Yep, Jersey is like Cali. The cost to live there is outrageous. When my parents left CT and moved to Tenn they told me they were saving $8000 a year which mean u have to earn $11000 more just to live in Connecticut. What a joke.

The taxes on their house in CT was $6500 and that's actually cheap compared to many others here in Ct. Their taxes in Tenn were $800. No income tax in Tenn either. Registration fees were like $60.

No matter where you live the cost of a truck, gas, vacation, clothes, food, etc. is all very close. It's the taxes that get you. Not to mention the cost of a house down south is probably $75-100k cheaper then in the Northeast or out West.

Tolls can be VERY expensive as well if you look at what you spend yearly. Jersey is the most densely populated state in the nation and you will pay heavily to live there. Same in CT and same in Cali. Supply and demand.

 

["Turbo-T"]

Good post...but saving $150 a week is a dream when you don't make a lot to begin with. Plus being married and having one child plus another on the way and being the only working person in the house hold. I don't smoke or dip or chew, I don't gamble and I'll have a beer every now and then.

In fact my family and I recently moved into government quarters so we could save on money, since we were paying more out of pocket to live elsewhere. Before I was married I had a full $10k to my name I earned from deployments. I got back and I had a project car sitting in the garage that needed my attention. I spent a little here and there buying parts for it but I never went hog wild with the money, like some people.

So if you don't want to piss your money away, here's a word of advice...don't get into the car hobby....because rest assured it will be a really good way of pissing your money away. And if you do decide that you still want to get into the car hobby, then pick one car to piss your cash away on, and don't ever sell it. Trust me....I've had some cool rides, and I've spent a ton of $$ on them and then sold them for one reason or another...I tallied up a rough number on how much $$ I've spent doing car hobby stuff. In the amount I've ever pissed away on all my projects, I could have rebuilt one of them at least once over, the way I wished I could now.

I do concur to save for the future...but not invest every single dime you have. Life is too short. You have to cut loose once in a while. You really want to live a life of nothing but work and no play what so ever? The big thing here is how you regulate yourself and manage your finances.

And it's sad to see social security will not be there for those of us paying into it when we finally get to be old enough to get it. Makes me wonder why the hell am I even paying into something I'll never even get to use...the money would be better in my pocket...or buried in a jar in my backyard, waiting for me to use when I get old enough.

Maybe some of you will consider joining the military and do a 20 + year active duty service, so you can get a pension once you're out...it's not enough to live off of but every little bit counts right? Then you can invest that into something, though the stock market has me feeling a little skeptical about investing into.

 

[benoitthegr8]

Good post...but saving $150 a week is a dream when you don't make a lot to begin with. Plus being married and having one child plus another on the way and being the only working person in the house hold. I don't smoke or dip or chew, I don't gamble and I'll have a beer every now and then.

In fact my family and I recently moved into government quarters so we could save on money, since we were paying more out of pocket to live elsewhere.

TSP, TSP, TSP.... I started putting 15% of my paycheck away a few years back, I did it while deployed so when I got back it wasn't like I even missed the money. I have owned a house for a bit now, my BAH pays my mortgage and then some. When I sell the house everything that I get back goes in my pocket. That is like a short term investment as I picked the house up really cheap right after the market dumped. That is the nice thing about being homesteaded for a while. I'm going onto my 20th year on active duty, looking forward to that pension... I plan on doing 4-5 more and calling it a day. The pension is not great, but it will at least supplement an existing income.

Your right life is too short and you should enjoy things while you’re alive to do it. Allot of people really do not understand the thought process behind that, seeing your life flash before your eyes a few times seemed to change my thinking a little bit....

 

[INEEDAGN]

So, thinking back on the original theme of retired people going bankrupt. Could alot of this stem from them trusting the government blindly when social security was created? Obviously I wasn't around then, don't even know the exact year, but I could see how a LOT of people would have backed the government 100% and never saved a dime for their retirement because their infallable government was going to take care of all that for them. And now they think we need the government in health care! History repeats itself.

 

[Pronto]

Nothing to do with government "trust". My parents (second gen Italian immigrants) saved for everything. My Dad never had a car loan, he paid cash. When the mortgage was almost paid up, he couldn't wait and paid it off. Although they knew they would have retirement pay from my Dad's Army annutiy they saved. They knew they would get some Social Security money but they saved. Fortunately I learned from them and have saved. My situation will not be as good b/c I picked a career that has bad pay and no retirement-my bad. My son is recently out of college and it funding his 401K with as much as he can. He's saw us save and be careful how we spend. Bottom line, many people today simply just don't save. They live way beyond their means with credit cards, payday loans (a total ripoff), car loans and car title buyers. It's just plain stupid. My boss has rental properties and I see the morons that rent everyday. They don't know how to live. They spend eveything on booze, butts and drugs. That's what their brood learns and the next gen is just as stupid.
Although my parents "trusted" the government for SS, they didn't count on it as the only way they would live after retirement. I feel the same. I've contributed to SS since I was 15. I expect to recieve some of that back but I don't plan it being the only way I'm going live in 19 years when I retire at 70.

 

[Little6pack]

I expect to recieve some of that back but I don't plan it being the only way I'm going live in 19 years when I retire at 70.

Smart, your Uncle Obama & friends in DC will make sure we get SCREWED outta SS.
Its a good thing you have saved.

MOTTO = DEPEND on YOURSELF NOT the GOVERMENT.

 

[Pronto]

You're right, the Republicans and the Tea Baggers want to take away all that we've paid into all these years and deserve to get back. They also want give the millionairs a tax break. But that's a discussion for Political forum that I have sworn off.

 

[GNBRETT]

Good post...but saving $150 a week is a dream when you don't make a lot to begin with.

Maybe, but $50 a week isnt. Unfortunately, most think if they cant save a LOT of money each week then they save nothing at all.

Its usually just an excuse to themselves to not save any money because they would rather spend it on boos and cigarettes or go out to diner at some restraunt each week instead. Or make that $50 a week payment on their jetski or motorcycle or other toy.

Over time with compounding interest saving even $50 a week adds up a lot. It takes time tho and people are just irresponsible with their savings and that saved money starts burning a hole in their pocket.

Again, you will NEED money as you grow older. You will not NEED ur toys. You sure will want them tho. Seperating wants from needs. Americas greatest battle with themselves.

 

[turbofabricator]

But, ALAS.....soon ALL of that presiously saved money will be COMPLETELY WORHTLESS!! I really hope I am wrong, but with TRILLIONS in unfunded debt, we as americans currently owe $125,100 EACH!! SO even if you have 100K saved, it is worthless. The Gov't just bought 900 BILLION of our own debt. That;s like using your Visa card to make a Mastercard payment. It NEVER ends.

U.S. National Debt Clock : Real Time

Read these numbers and tell me where I am wrong? Food, clothing, and protection of your choice to keep it all.

 

[GNBRETT]

But, ALAS.....soon ALL of that presiously saved money will be COMPLETELY WORHTLESS!! I really hope I am wrong, but with TRILLIONS in unfunded debt, we as americans currently owe $125,100 EACH!! SO even if you have 100K saved, it is worthless. The Gov't just bought 900 BILLION of our own debt. That;s like using your Visa card to make a Mastercard payment. It NEVER ends.

U.S. National Debt Clock : Real Time

Read these numbers and tell me where I am wrong? Food, clothing, and protection of your choice to keep it all.

You are wrong. Since when is the government entitled to your investments? The national debt has nothing to do with individuals personal accounts.

 

[turbofabricator]

Well, lets see...........You work public service (if I remember correctly) And you are paid by private sector taxes. In reality, YOU (and everyone else working for the gov't) do NOT add to the tax pot. You are paid from the pot that private sector pays into and then, when you pay ANY taxes, you are just refunding some of the money they paid you. In my state, in 2001 51% of the workforce was employed by the gov't- city, state, federal gov't. NONE of those people added to the tax pot. So, now that 60% of the folks recieve more from the feds than they pay in, things start falling apart. Nearly 90% of the new jobs in the last two years have been gov't jobs or jobs that are paid by gov't contracts. Most of our local gov't employees make ALOT of money, more than I do. (and I do OK, currently anyway) Google your county employee pay and see what I mean. Seattle city employees have thousands that make OVER 100K/year. Government Employee Salary Nationwide Directory | Private Investigator Public Records Internet Search Privacy Reporting - PI Buzz
If you work for the GOV your salary is public info. Look it up yourself. Nothing against making big money, but when more people are standing at the slop trough of life, sooner or later it becomes empty. (they'll just print more money until it completely fails)
So, I see the U.S. following in the foot steps of Greece, Ireland, Portugal, and Spain. The EU is FINISHED! We, the US tax payer have also given BILLIONS of dollars to the EU in the last couple of years. All of Europe is sucking the teet of Germany right now. Share the wealth is going great in Europe Eh?
Mutually Assured Economic Destruction (Just like Mutually Asurred Nuclear Destruction)
Now, many of us that have lost thousands in the stock market and the housing market are only feeling "some" of the pain. (more to come I think, but pray not)
We ARE the gov't, cept it really isn't looking like that lately.
Investing is still needed and I was probably being a bit synical, and I REALLY hope that what I posted doesn't come to pass, and if it doesn't I will HAPPILY buy you (Brett) dinner. (and I'm not talkin' McDonald's either.)

Oh, to answer your statement directly, the Gov't IS entitled to your investments. They want a death tax, and do in many cases already, even though the taxes have already been paid. And if the entire economic system fails, a wheel barrow full of cash won't buy a loaf bread. It HAS happened before. (post WWI Germany) Hyperinflation: The Concise Encyclopedia of Economics | Library of Economics and Liberty
Even owning gold isn't really safe either. The feds once made it illegal to even posses the stuff, except for small amounts of jewelry, ect. (executive order 6102)
Again, I REALLY hope this is all B.S. But I don't think so. I trust my gut feelings more than I do ABC,NBC,FOX,CBS,CNN,ect. Just do the math. California is SERIOUSLY bankrupt. They are currently paying some contracts with I-O-U's They are our Greece, Ireland, Spain and Portugal COMBINED.
Hope this doesn't get moved to the political section, politics has nothing to do with this, just Gov't

 

[INEEDAGN]

And if the entire economic system fails, a wheel barrow full of cash won't buy a loaf bread. It HAS happened before. (post WWI Germany) Hyperinflation: The Concise Encyclopedia of Economics | Library of Economics and Liberty

Good read. Thanks for the link. At the bottom of that page is this link, which is also a good read: FRBSF: Economic Letter - What is the Optimal Rate of Inflation? (9/19/97)

I love reading about macroeconomics and such, for some strange reason.

ANOTHER path to venture down is how many people are penny wise and pound foolish; They are incredibly frugal and efficient in some areas, only to piss it away in others. Pretty much everyone does this to some extent, those who don't go through life with virtually nothing, and when they die they leave a huge pile of cash behind that they didn't ever "use". You CAN use money to make money if you have enough of it, but if that's ALL you do with it then it becomes essentially useless, except to thsoe who inherit it.

Case in point: I work at a car dealership, I get screamin' good deals on daily beaters. Often I sell them for more than I pay for them, after 1-3 years of usage. As such, we spend almost nothing on daily transportation. BUT, we just took those savings and bought a brand new challenger for my wife to have as a toy. Without racking up miles it will depreciate less than a brand new car would as a daily driver, but less miles=less actual enjoyment, so those who are pissing away their money on a new car to run into the ground are probably getting more smiles per dollar than we are.

 

[1980monteturbo]

saving for the future = good idea
saving fiat currency for the future = bad idea

Convert your saved rapidly depreciating fiat currency into stable real money. ( physical precious metals, gold and silver coins and bullion are the most popular - not the collector coin stuff on tv.) Then re patriot to the currency of your choice when you need it ( retirement, kids college tuition, rainy day, etc )

 

[gsgns4me]

I've never understood why people think the money that is deducted from their paycheck for social security is going into some sort of "pot" and will be waiting for them. That money coming out is sending a check to the previous generation (or two).

 

[V8Assassin]

Gonna keep this short, Shane is correct about SS and the next five years btw. I have always been blessed financially, never really had to worry about money or savings, was just always there. When I was 29 I was making over 20k/month and never saw the money running out. Well, I made one financial mistake, a house, and in the last two years have seen my entire life savings get chewed up. I thought I was doing the right thing and put my money into the house thinking it would always be there in the form of "equity", boy was I wrong. When I walk I will have handed over 250k in CASH to the bank and still owe almost what I borrowed (that is in three years). Have I learned a lesson, hell yeah, back to the basics for me. Back to the same plan that got me to where I was at, and to be honest the only regret I have is that my Dad is not still alive to be here during it. He always steered me right and kept me going in a good direction (of course having a Phd in accounting didn't hurt).

Bret is correct, I am 36 and young enough to bounce back and plan to. The smartest thing I have done is stay away from my asset base. Have never borrowed against anything that I own, and still have all of my assets together. I just got the go ahead from a very close friend and business companion who is older (one of my Dad's old friends) to start buying rental properties again, and that is what we are going to do.

Hard times come, easy times go. The sun never shines on the same dog's a$$ forever. The point of my post is it happens quick, things can get out of control before you know it. Keep it simple, do what works for you and like Bret said, hold onto every dollar like it's your last breath.

 

[GNBRETT]

I would say throughout my life I have been broke a couple times. To me there is no worse feeling then being broke. It modivates me to never want to feel like that again.

Things can certainly go south fast. A friend of mine was earning $20k a month and lives in a huge house with a lot of property. things went south due to a revamping of the welfare system. he became upside down in his house and will likely be walking away as well with a total loss.

there is no better feeling then knowing that no one can hurt you. you are on auto pilot and it all revolves around ur financial security. im fortunate to have family members that help steer me in the write direction but you can lead the horse to water but cant meke em drink as the saying goes.

I think a lot of people fail to realize that as they grow older they simply may not be able to earn the way they do now. Especially if your job is manual labor. You will be subject to injuries and illness. not many have money even squirled away for rainy days let alone

 

[Firechaser]

Things can certainly go south fast. A friend of mine was earning $20k a month and lives in a huge house with a lot of property. things went south due to a revamping of the welfare system. he became upside down in his house and will likely be walking away as well with a total loss.

I can relate to this, i was a very successful mortgage broker in 05' making very good money and literally within days, it all fell apart....I was fortunate enough to not be in any position of losing my home but life can change in a split-second and it usually comes when we feel "invincible" as I did back then....Taught me a good lesson in life. Remember our grandparents' beliefs, a very old and invaluable saying "cash is king", use credit wisely and live below your means always.

 

[V8Assassin]

I would say throughout my life I have been broke a couple times. To me there is no worse feeling then being broke. It modivates me to never want to feel like that again.

Things can certainly go south fast. A friend of mine was earning $20k a month and lives in a huge house with a lot of property. things went south due to a revamping of the welfare system. he became upside down in his house and will likely be walking away as well with a total loss.

there is no better feeling then knowing that no one can hurt you. you are on auto pilot and it all revolves around ur financial security. im fortunate to have family members that help steer me in the write direction but you can lead the horse to water but cant meke em drink as the saying goes.

I think a lot of people fail to realize that as they grow older they simply may not be able to earn the way they do now. Especially if your job is manual labor. You will be subject to injuries and illness. not many have money even squirled away for rainy days let alone

Yep, the most important part of a mistake is the learning. I figured out a long time ago strength of the back was not the way to go. My Dad used to ask me when I was younger if I got sick how would I make money. I was on 100% commission back then. Like I said, it's time to simplify and get back to basics. I know what works, just got to apply the same formula that has worked over and over. That and quit spending like a drunken sailor

 

[JP112_89]

I enjoy my toyz like the rest of you but those of you who fail to seperate their wants from their needs and fail to prioritize and prepare for the future will find themselves miserable and broke as they grow older. It's supposed to get easier as you grow older, not more difficult.

Savings is only a place to set aside some cash when you need it quick to say buy a car for example.... lol... bad example but I would never tell anyone to put more then maybe $30-40k somewhere like that. And maybe another $20k at home but that would definately be it for a savings account. Nothing wrong with some commodities.

Nice post Brett!

There are MANY positives to investing in 401k's or other market related investments. "Historically" 8% is the norm over the life of the average 401k. Plus, it is a nice easy way to save for the future.

There are some NOT so cool things about 401k's or other investment as well. * Fee's, money basically tide up till you are 59 1/2... AND who the hell knows if they raise the age from 59 1/2 to a higher age to access YOUR money. Also, after 9/11, the market crashed and before that was the dot.com bubble. MANY people wanted to retire around 2000, 2001 and 2002 and expected to live on their 401k, might not be financially ready to retire like they planned.

Yes, if you kept your money in the market and kept adding, you would be okay. BUT tell that to the people who planned on retiring during that time frame. Many people had to continue to work... Because YES, their IRA was worth 40% less (nation average).

I like to end this post by saying " if the average person added up the $$$ they have spent AND lost on vehicles, it would make a 40% loss look wonderful.


Joe

 

[GNBRETT]

A lot were greedy imo. The market was climbing very fast and people were watching their money grow daily. They should have put a cap on what they could live comfortably with and moved it to fixed to protect it. I have a goal. When I reach it I will switch to fixed immediately.

I have a few friends that lost their ass when the market dropped. They are young and can and will recover. They will recover because they had the discipline to get there in the first place.

Im not personally invested in a 401k. Im in a 457b and can withdraw on my money as soon as I retire at age 45 likely or whenever. Tomorrow if I wanted.

I had $64k in my account this time last year. Had lost more then half at the time but I stayed in and rebounded and made some solid gains. It has since trippled. You realize fast the advantage to buying tons of shares at a very low price and then seeing those shares grow rapidly. Thats how people make millions.

Many in my PD switched to fixed accounts like fools. Young guys. They never got hurt but they never gained either.

If I was at the end of my career I would opt to move it all to fixed to protect my assets cause I know it would take me another (10) years or so for my money to grow back if the market tanked.

Too much panic and ignorance.