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

[SGRIM]

I hate to burst bubbles around here but if you are under 50 DREAM ON about SS... You will never see a DIME of it... When all the pundits, on both sides agree on this you can cool believe it is history....

401k? Well as we speak they plan to vote on getting your retirement money before this lame duck session is out All these federal, state, and local pensions will be gone as well, sorry to be the one bringing the bad news... If you get anything you will be lucky...

Cash in the bank? Well chop off a 3rd of that next year... That is probably what this retarded move by the fed will cause is about a 3rd of the dollars value to go away...

I think anyone will be doing damn good to make it through the next 5 years just keeping what they got.

I have seen it from the "big end." We are in for a long ride guys...

I have lost so much money in the past 2 years on two different ventures I have learned a big lesson... If I had the money back and could do it over I would buy gold, guns, land, food, and try to get as self sufficent as possible...

 

[TR Custom Parts]

I find it odd that there's a thread on a car forum titled "Stop pissing away your money." If we all did that, the cars for sale forum would be jam packed with these money pits and all of these nice vendors would have to choose another line of work.
QUOTE]


Hit the nail on the head right there! Cars have always been my vice. Brett has me thinking I should sell my GN. Of course that is another losing proposition after putting all the time and money into that I have over the years and that is my only hobby. Maybe I should take up needlepoint or something.

My full time job is in the nursing home industry so I see first hand everyday what happens to the elderly when they get sucked into our "whirlpool". Where do you think all your savings end up?

I pissed away money in my 20's and early 30's traveling around the country with my Chevelle show car and didn't have a care in the world. Ended up getting married when I was 37 and had a kid at 40. Sold our condo when I was 47 because I thought every kid deserved a back yard. Bought at the peak of the market in a nice neighborhood and town. Property taxes just went up over $100 a month. Nursing home industry is in the crapper, previous CEO of our company stole medicaid/medicare money so our place was taken over by a company that cuts the budgets to the bone so you can imagine how my salary has increased.

My Buick business sure helps out a lot but as with most businesses has taken a big hit the past year. So I am trying to tread water and keep my head above it at this point.:smile:

My father was always a big cheerleader about saving and always tried to browbeat me into doing it but I always thought I will start "tomorrow" Well, "tomorrow" was yesterday so now what?? He had quite a bit of money tied up in the stock market and lost big time when everything crashed. Sort of made me think to just keep paying the bills and live for today and hope for the best.

 

[Gary Wells]

You guys be forewarned: because I did not save enough and I put toys before savings I am going have to starting eating small parts off of one of my cars just to stay alive. Problem is I just don't know whether to start on the '09 CTS-V or the '87 Turbo Buick. J/K, folks, I am going to start passing the hat soon.

 

[Scott A.]

I've been saving since the age of 22 (I'm 35 now) and have a fair amount in the 401k & pensions. Haven't planned on SS being there from day one either, if it is great. My savings account savings went downhill big time when the (3) kids came along (my wife is a stay at home mom). We get by today, but don't get everything we want. I love it when people without kids tell me we need to save more, or do this and that...in one ear and out the other. When we setup 529 college accounts, we were looking at $120k for 4-years in-state tuition, for each child! Probably could retire in my early 50's if I didn't have a family, but I wouldn't change anything today. Bottom line, is its your life. Do what's best for you and your family, there is no right or wrong answer.

My financial calculator says I can retire comfortably @ 58, but I don't believe it. I'm just hoping to have steady work until I get close to retirement age. When I feel its time to quit, I'll quit.

 

[T-CHRGD]

I would buy gold, guns, land, food, and try to get as self sufficent as possible...

Don't forget the ammo

 

[Sweet6]

Good post. I know a bunch of people in their late 30s that dont have a pot ot piss in. Some still work in bars and restaurants as servers and bartenders. I try to tell them their odds of making a living doing that at 50 are slim unless they make their way into a management position.

I have been put away anyhere from 10-15% a year into my 401K for 14 years and still feel like I am broke. I am pretty much debt free and will have my house paid off in 5-10 years hopefully. I still feel like I will never be able to retire. Maybe I will sell drugs on the side.

 

[Firechaser]

I plan to just sell all my TBuick parts I now have...then I can retire
I trade Forex on and off during the week, it took alot of dedication for a few years to learn and implement however being self-employed, I am my own "match" for any contributions...Nice thing is, this trading acount is linked to a self-directed IRA so I get the tax benefit too....just another idea for retirement savings for the right person, my yearly return is high but can be risky versus a Bond or something like that and does take work on a weekly basis to do versus just a 401K....but I prefer to have the control

 

[JimG]

I'm guessing you guys know all about a simple investment tool called, "The Rule of 72

Chuck,
Nobody else bit,and I haven't heard of it, so let me in on it, please?
thanks
Jim

 

[odell4o8]

money

Im 70 years old. saved money and spent a lot. my worry is dieing and some bum will get my money that i worked for, so i think i will go to the casino tonite and maybe ill get lucky,
then again save while your young not when you get old,
then again i could sell one of the four stage two engines that i have along with my regal and get a few bucks enought to go to vegas one more time,
my opinion if you dont have any money when you get my age i just hope you win the lotto, good luck, oc,

 

[Little6pack]

I been bankrupt my whole life :biggrin: So I am use to having stugats.. I had more money at 20 than I do now? SOMETHING CALLED FAMILY got in the way

 

[GregInAtl]

If you play hard, spend every dime, and end up with nothing when you retire you can get more in assistance from the government than you can investing in an unstable market and losing it in a bad economy. (Look at the avg 401k). Not literally, but you get my point.
I fully agree with your write up Brett, but the government is here to help those too foolish to do for themselves and not assist those that tried w/ all their might and finances and lost 75% or more and also won't make ends meet if things dont change. SGRIM speaks the truth... I also wanna save big $ for the future (I am 38 and a single dad, I know how expensive life is w/o any help), but in many ways what is the point when the ones that gamble big day after day and EARN millions will have it legally stolen and redistributed.
There will never been a worse time to come into money (earned of gifted) than what we will see in the next 12 months. Mark my words.

 

[GNBRETT]

If you play hard, spend every dime, and end up with nothing when you retire you can get more in assistance from the government than you can investing in an unstable market and losing it in a bad economy. (Look at the avg 401k).

I'm not sure where your getten that info from but that's incorrect. Why would anyone want assistance from the government at any time in their life unless its unemployment benifits? You mean like food stamps and wellfare? That's poverty income level.

What part of the market is unstable? Investing in mutual funds is a long term investment, not short term. I could really care less what it does from year to year. What matters is what you have averaged over 20-30 years, not what it does in a bear market. Since I have been investing I have encountered several recessions like everyone else and my average return is still just under 10%. Some years im negative, others im over 30%.

You have only lost when you sell lower then you bought. You just sit tight when the market is not gaining like it usually does. The average total yearly return of the DJIA (Dow Jones Industrial Average) from 1900 through 2009 was approximately 9.4%.

No one looses in their 401k till they sell shares. Your not buying money, ur buying shares. In fact, when it's a bear market that is when you should be buying as much as you possibly can vs. shifting ur funds into fixed for example like many did over the last few years thinking they are protecting their investment. Are they protecting their investment? I guess you could claim so but there is also ZERO chance of gaining. So what have you really accomplished? Nothing imo unless ur older and protecting that next egg. You move it to fixed and you can only put back 20% per year. If your older its wise, if ur young it's stupid.

There are intelligent ways to invest from a fixed account but you need to have knowledge of what your doing and you have to pay close attention to the market. Most people are clueless with investments so I never recommend that approach to my friends.

Buying a share at $50 (bear market) vs. $100 (bull market) means when the market bounces back (which it ALWAYS does) you now have double the money. That's how people get rich off the stock market.

No one looses during a bad economy. They lose when they sell. If someone invests their money all of their life and takes no steps to protect that money as they grow older by putting it into fixed or a US treasary bond or something similar then they are an idiot.

Reyling on some broker to handle ur investments is not wise either. They make commissions when they sell and buy which they encourage you to do. I have a broker but he knows better then to do chit unless I tell him to. They do not want their clients to stay in anything cause they dont make any money as a result which is why people need to educate themselves on investing.

The economy does not make people go broke, their lack of understanding on how the market works and what decisions to make to protect their investment as they grow older is why people loose their ass.

 

[Bruce Urie]

I'm doing pretty good in my retirement. Just last weekend, as a professional guitar player, I was at the Street Rod meet, ended up sitting in the passenger side of a '70 Chevelle 396 parked at the show, played a real '57 Fender Stratocaster and in about one hours' time, in my tin cup I put by my feet I found: One toothpick....a small corner of a credit card....a pop top aluminum tab.....one 1/4-20 bolt with a washer.......63 cents in change.....and about 1/8 ounce of belly button lint. Doin' well, my friends....doin' well. My future looks very bright.

Bruce '87 Grand National

 

[UncleDave]

If you're still single, employed, and childless, great. I hope you stay that way. Just remember, life has a funny way of sneaking up quietly and putting the whoopin' on you.

 

[need boost]

Yep, sometimes sh$t happens, know when the economy craped I went from 32.50hr job to a 12hr job. Seems like everything here is closing up period so I quess I should be happy to have that at least

 

[GNBRETT]

life has a funny way of sneaking up quietly and putting the whoopin' on you.

Could not agree more which is why it's paramont to save and spend ur money wisely and intelligently to off set those times in ur life. Few prepare for those rainly days or months or years in their life.

Having a family does not prevent one from saving money, it just prevents one from spending it foolishly. Its all about priorities. When you have a family that is ur priority, not ones Buick or watercraft or motorcycle. Sacrifices have to be made somewhere along the line.

Again, seperating wants from needs. One will NEED money as they grow older. No one NEEDS their toys. Ur money grows, ur toys depreciate. Can you have both? Some can, most can't which is why they CHOOSE not to make that sacrifice because it's hard. It's supposed to be hard.

You just cant afford everything you want. You can surely BUY most things that you want but that doesnt mean you can afford them. Id like a new ZO6. I could certainly go out today and buy one today. Doesn't mean I could afford one tho.

What's even more alarming is those who are upside down (meaning they owe more then they own) and continue to spend and live week to week, month to month and year to year.

Unfortunately that is usually a learned trait. People who are irresponsible with thier money usually had parents who were irresponsible with their money. Like drinking or gambling. Most that venture down those paths had parents that did the same. Mine didn't but just about ALL of my other family members do or did and I see how miserable they are now and will NEVER be like them.

Living beyond your means..... the American way

 

[Pat]

Creating an emergency fund first is key. Then creating a budget and sticking with it. My wife & I use this tool.NEXT STEPS: Personal Finance - Providing PRACTICAL Next Steps Toward Financial Freedom

Kids are an added expense, but you do have a 9 month timeline to prepare for them.

I just hope people realize that we as a nation are failing fast in our ability to save $$, educate people with viable skills that will improve the status of our nation & our GDP. Things will only continue to get worse than they have been. I'd love to have another TR, but it's just not a reality till we are debt free.

Debt makes you a slave to your debtor.

 

[UncleDave]

My point about life puttin' on the whoopin' is that I'm one who almost got caught with my pants down. Mid 30's, life is good, got the lovely wife, the boy, the house, the good jobs and sweet 401k plans. We were saving, but not like we should have been, did not have wills, and were underinsured. We started talking about our disaster plan but it was too late. Suddenly my wife was taken from us at age 37, and household income was cut in half. Then I was laid off. That giant sucking sound was my life savings disappearing. If we did not have even the meager amount saved that we did, I'd have been destitute.

My son and I made it through OK, but I'm all the wiser. Fortunately I have a better job than the one I lost and have been able to save up again. I'm blessed to be able to throw some disposable income toward my toys. But I pay myself first.

Not everyone who ends up destitute does so because they pi$$ed their money away. More often that not it's because of poor planning. I'm proof that even modest savings will help you through tough times.

This is a very important thread for people to read, thanks Brett.

 

[GNBRETT]

My point about life puttin' on the whoopin' is that I'm one who almost got caught with my pants down. Mid 30's, life is good, got the lovely wife, the boy, the house, the good jobs and sweet 401k plans. We were saving, but not like we should have been, did not have wills, and were underinsured. We started talking about our disaster plan but it was too late. Suddenly my wife was taken from us at age 37, and household income was cut in half. Then I was laid off. That giant sucking sound was my life savings disappearing. If we did not have even the meager amount saved that we did, I'd have been destitute.

My son and I made it through OK, but I'm all the wiser. Fortunately I have a better job than the one I lost and have been able to save up again. I'm blessed to be able to throw some disposable income toward my toys. But I pay myself first.

Not everyone who ends up destitute does so because they pi$$ed their money away. More often that not it's because of poor planning. I'm proof that even modest savings will help you through tough times.

This is a very important thread for people to read, thanks Brett.

Wow, sorry to hear about that. I cant even imagine. Wow!

Paying ones self first.... that is the key. Even if its just a little every week it will add up over time. I think the fact that I have no access to my deferred comp. account till I retire certainly makes it easier to leave it alone. Unless I claim a hardship of course.

The problem with the 401k is it's very easy to borrow against it. Those that borrow against usually never pay it back unfortunately.

If you were to take out say $10k from ur 401k you'd only net about $6,500 after paying income tax and a 10% penalty if ur under age 59 and a half. If you do pay it back you'd have to pay it back plus interest. The rate is set at usually prime plus 1 or 2 percent over 5 years normally.

But while the money is out you lose all the growth you would have had when sitting in ur retirement account.

Another risk to a 401K is if you quit your job or get fired, you'll usually be required to pay the loan back within 60 days or be subject to withdrawal taxes and penalties.

 

[benoitthegr8]

All good points, one of the things that never ceases to amaze me is how many people are living far above their annual incomes. I guess I have always been a little tight when it comes to high end investments, some of the guys I work with kinda poked fun at me when I purchased my house because it would be considered a "starter home". After their houses actually dropped in value to the point that their upside down, I wonder who the idiot was??? One other factor that I did not see mentioned was the cost of living factor. My parents who live in New Jersey are going to get run out of the state before too much longer. Insurance, property tax, income tax and the cost of driving on toll roads is killing them. I bust my dad’s chops when he visits because he always points out that gas where he live is 10 cents a gallon cheaper. I'm always like " let’s do the math, add your monthly gas cost to your monthly EZ pass bill and let’s see who's commute is cheaper"... Anyway, just wanted to make the point that even those who invest well and are smart with their spending sometimes are on the receiving end of beating....