Great tips. I like the idea of easy discussions first that lead to harder discussions of money. Better to have all expectations on the table. Less awkward in the long run.
I've tried the candle wax method with good results. Unlike the person below, I just cut out a piece and rubbed it on the dvd. It would probably be better to light the candle though to soften the wax. I just tried spray wax (auto touch up) to fix a dvd but haven't tried to play it yet. Hopefully that works because it would be a lot easier and faster.
I worked for a company where the main goal of all employees was to become a member of the "Quarter Century Club". Most employees were eligible. Those who weren't, counted the days.
That prices went up on homes not because of tax decreases but rather because of government mandates to loosen the requirements for mortgage lending to fulfill the American dream for more. This drove demand and inflationary home pricing. This of course lead to the later crash that we all are stillnsuffering for.
I retired at 54 and my wife retired at 60. I had planned for many years to retire exactly at that age, however my wife, an RN, enjoyed her job and wanted to continue until she could no longer work.
We dipped in to our retirement savings one year but her SS and my pension provide for most of our normal living expenses. Next year I will start collecting SS as well so we expect to pass on a good deal of wealth to our children.
Yes, I believe someone can be "too" wealthy it encourages a person to buy more and use more resources than necessary for one person. They would spend excessively on things and feel like they will never have enough money it will lead to greed and dangerous behavior because they might feel they are above the law. Also they may feel they are above others with less.
Here What i think I think you should keep it if u don't find the proper Identification I mean Whats the point if u post it [Someone will take it even though it isn't theirs]. I mean 10/1/10 My son lost 21$ Somewear And now its gone.
This is an interesting perspective that I've read in other sources, but what if you can't afford to retire any earlier than 65? I don't know what the state of your 401K is, but mine has suffered terribly lately and I have very, very good retirement plan in which nearly 25% of my salary goes into retirement.
I don't make an opulent salary, but I make twice as much as the mean income in the US. Plus I started a family later in life than most.
I know people CAN retire early, but after the recent economic downturn I hear more and more people saying that their plans for an early retirement has been put on hold.
I agree, there will always be disagreement on this subject. Frankly, I am envious of those who make so much- after all, my family (myself, my husband, and my three children) survive just fine on $35K a year with three cars (one paid off) and a mortgage in a popular suburb of Nashville, TN.
But I think that people who make that little and live on it really can't comprehend how people making three times as much as them - and twice the national average of 40K - can't survive. They know they can live decently on very little- so why can't people making several times that amount live on the same? And it's true that certain areas are more expensive, food and rent can be much more costly in other areas - but I truly believe that if it came down to it, a lot of the wealthier people aren't willing to give up luxuries like eating out, babysitters, and clothes shopping. Or perhaps some can't see that if they give up the expensive cars or toys, the money saved would not just be in the car or toy payment, but in insurance premiums and maintenance fees.
Anyway, all I'm trying to say is that specifics or not, it's hard to comprehend how a single person making $60K a year (see below) can't "make it" - even if they are in NYC or CA - when 5 of us live well on half that.
MyPoints has always been my way of shopping with fake money. I managed to get about $300 worth of gift cards last year; half from just reading emails alone, some from answering surveys, and the rest through small purchases throughout the year. As a person who's been on a 2-year lay off, I found that I was at least able to give cards to at least 5 close family members and keep one for myself.
I don't really know how you can be recommending people to start saving for retirement when they're middle aged, since there are millions of Americans who don't even have jobs right now. Most people will be lucky if they have anything saved by age 65, let alone enough to retire. It's nice to plan that way, but let's not be unrealistic.
Small business owners are ONLY taxed on their PROFITS. When you fill out the 1040 and include business income you file schedule C. Schedule C counts your revenue and then subtracts the expenses to find the profit. So small business owners making $250-$500k are making PROFIT of $250-$500k. That is AFTER the expenses of the business are deducted. That $250-$500k is pure take home profit and taxing that at a higher rate will not impact the solvency or ability of the business to hire people or function at all since this is PROFIT taken out of the business by the owner for their own income.
Example: I'm a doctor and I bill my patients for $800k in bills. I then pay my nurses and other employees $250k and pay $100k in rent I have other business expenses of $100k. I then file my 1040. I fill out schedule C and list revenue of $800k less expensees of $450k. The profit is $350k which goes down on my 1040 line 12 as my business income. I'm not taxed on $800k, I'm instead taxed on $350k which is my PROFIT. If I have to pay 3% more income tax on that profit, that has no impact on the $250k that I'm paying the receptionist and nurses or the other business expenses. It has an impact on how much I put in my pocket after all expenses are paid.
It all depends on the elasticity of your product, in layman terms to its sensitivity to price changes. Try those numbers with a product that when you increase 5% in price the quatities sold drop by 25%, and you'll see that you have to reverse to the low price strategy.The more comoditized your product the less likely you'll be able to increase prices, since people can get the same thing next door.
But if you have a business like antique plane rides, where it's very hard to increase supply as explained in the article and there is a steady/strong demand, then sure!!! increase prices and people will keep coming. Try that with anything WalMart sells and you'll increase the stats of dead small businesses.
I couch surfed with a couple in Berlin and was jealous. They wake go to work at 9 and come home at 3, 6 weeks of vacation when they start a job...not this building up crap we have here in the states. Complaining that they don't have freedoms is such a laugh. The German government has 5 parties...what's more free than more choice in your representatives?
This country needs more socialism, those of you who make it into a demon monster need to experience the world before you knock it.
I love the title! Being a regular WiseBread reader, I knew what the message would be (retire earlier), but many people probably thought the title was going to imply what way too many magazine and newspaper articles recommend - that you'll have to work way past your 65th birthday. I can't imagine that. That's for people who don't take responsibility for themselves. They place their future in the hands of a company and/or the government. That's garbage. I will follow Warren Buffett's advice for investing in this economy: "Invest in Yourself."
Phoenix was actually one of the areas I was thinking of, when I suggested that some areas really are uninhabitable without air conditioning (as evidenced by the fact that almost nobody lived there).
It turns out, though, that the principle problem was water rather than heat. The Hohokam indians lived there for over 1000 years, until droughts and floods made the area uninhabitable. Then it was almost desolate for hundreds of years. Then white settlers moved in even before the advent of air conditioning, and got to work on canals to bring in water.
Which, of course, just reinforces my point: You can live there without air conditioning. It's proven by the fact that people actually did.
That is the problem in a nutshell. If you don't know where it went, you did not start with a plan. If you just spend as you want without a goal, you will never be able to make ends meet on any amount.
Somewhere along the way we became a nation that has to have it all. That's fine, but if you can't pay for it, it will catch up to you.
People can't see that things have changed. We have to adjust. Your house may not be a cash cow, you salary may not increase each year, prices will go up and your spending power will probably go down. Live on less! Be realistic on what you really need, instead of buying everything you want.
BTW I make less then $45K a year. 10 years ago I made over $55k a year. I adjusted and do not live paycheck to paycheck. I did not have to make major changes, just little ones.
i would point out that re manufacturing(burning) a new one is what i do for friends with the problem. when you let a computer download a cd that is unplayable, once reburned are perfect or very near so. happy listening.......
I agree with what you wrote. These people replying to you saying Jesus is the ultimate socialist are 100% wrong. Socialism is the government taking care of the things that Jesus said we are responsible for. Jesus did not tell people the government needs to take care of the poor. Jesus said we need to take care of the poor. Socialism does not rid us of the poor, but when people feel the government is taking care of things, they are less likely to do those things themselves.
I don't think Jesus ever said He was against capitalism either. Jesus made it clear that you need to serve God and not money, but He also made it clear that you need to take care of yourself. That sounds much more capitalistic than socialist to me.
Great tips. I like the idea of easy discussions first that lead to harder discussions of money. Better to have all expectations on the table. Less awkward in the long run.
I've tried the candle wax method with good results. Unlike the person below, I just cut out a piece and rubbed it on the dvd. It would probably be better to light the candle though to soften the wax. I just tried spray wax (auto touch up) to fix a dvd but haven't tried to play it yet. Hopefully that works because it would be a lot easier and faster.
I worked for a company where the main goal of all employees was to become a member of the "Quarter Century Club". Most employees were eligible. Those who weren't, counted the days.
That prices went up on homes not because of tax decreases but rather because of government mandates to loosen the requirements for mortgage lending to fulfill the American dream for more. This drove demand and inflationary home pricing. This of course lead to the later crash that we all are stillnsuffering for.
I retired at 54 and my wife retired at 60. I had planned for many years to retire exactly at that age, however my wife, an RN, enjoyed her job and wanted to continue until she could no longer work.
We dipped in to our retirement savings one year but her SS and my pension provide for most of our normal living expenses. Next year I will start collecting SS as well so we expect to pass on a good deal of wealth to our children.
Yes, I believe someone can be "too" wealthy it encourages a person to buy more and use more resources than necessary for one person. They would spend excessively on things and feel like they will never have enough money it will lead to greed and dangerous behavior because they might feel they are above the law. Also they may feel they are above others with less.
Congrats & best of luck! Glad you found the article useful.
Here What i think I think you should keep it if u don't find the proper Identification I mean Whats the point if u post it [Someone will take it even though it isn't theirs]. I mean 10/1/10 My son lost 21$ Somewear And now its gone.
This is an interesting perspective that I've read in other sources, but what if you can't afford to retire any earlier than 65? I don't know what the state of your 401K is, but mine has suffered terribly lately and I have very, very good retirement plan in which nearly 25% of my salary goes into retirement.
I don't make an opulent salary, but I make twice as much as the mean income in the US. Plus I started a family later in life than most.
I know people CAN retire early, but after the recent economic downturn I hear more and more people saying that their plans for an early retirement has been put on hold.
I agree, there will always be disagreement on this subject. Frankly, I am envious of those who make so much- after all, my family (myself, my husband, and my three children) survive just fine on $35K a year with three cars (one paid off) and a mortgage in a popular suburb of Nashville, TN.
But I think that people who make that little and live on it really can't comprehend how people making three times as much as them - and twice the national average of 40K - can't survive. They know they can live decently on very little- so why can't people making several times that amount live on the same? And it's true that certain areas are more expensive, food and rent can be much more costly in other areas - but I truly believe that if it came down to it, a lot of the wealthier people aren't willing to give up luxuries like eating out, babysitters, and clothes shopping. Or perhaps some can't see that if they give up the expensive cars or toys, the money saved would not just be in the car or toy payment, but in insurance premiums and maintenance fees.
Anyway, all I'm trying to say is that specifics or not, it's hard to comprehend how a single person making $60K a year (see below) can't "make it" - even if they are in NYC or CA - when 5 of us live well on half that.
Why buy a dehydrator? I make sun dried tomatoes in my car on a really hot day!
MyPoints has always been my way of shopping with fake money. I managed to get about $300 worth of gift cards last year; half from just reading emails alone, some from answering surveys, and the rest through small purchases throughout the year. As a person who's been on a 2-year lay off, I found that I was at least able to give cards to at least 5 close family members and keep one for myself.
I don't really know how you can be recommending people to start saving for retirement when they're middle aged, since there are millions of Americans who don't even have jobs right now. Most people will be lucky if they have anything saved by age 65, let alone enough to retire. It's nice to plan that way, but let's not be unrealistic.
These are great tips! I'm moving in with my significant other in a few months. I'll keep some of these in mind.
I'm planning to retire by age 45, or 50 at the latest.
Meg,
Small business owners are ONLY taxed on their PROFITS. When you fill out the 1040 and include business income you file schedule C. Schedule C counts your revenue and then subtracts the expenses to find the profit. So small business owners making $250-$500k are making PROFIT of $250-$500k. That is AFTER the expenses of the business are deducted. That $250-$500k is pure take home profit and taxing that at a higher rate will not impact the solvency or ability of the business to hire people or function at all since this is PROFIT taken out of the business by the owner for their own income.
Example: I'm a doctor and I bill my patients for $800k in bills. I then pay my nurses and other employees $250k and pay $100k in rent I have other business expenses of $100k. I then file my 1040. I fill out schedule C and list revenue of $800k less expensees of $450k. The profit is $350k which goes down on my 1040 line 12 as my business income. I'm not taxed on $800k, I'm instead taxed on $350k which is my PROFIT. If I have to pay 3% more income tax on that profit, that has no impact on the $250k that I'm paying the receptionist and nurses or the other business expenses. It has an impact on how much I put in my pocket after all expenses are paid.
It all depends on the elasticity of your product, in layman terms to its sensitivity to price changes. Try those numbers with a product that when you increase 5% in price the quatities sold drop by 25%, and you'll see that you have to reverse to the low price strategy.The more comoditized your product the less likely you'll be able to increase prices, since people can get the same thing next door.
But if you have a business like antique plane rides, where it's very hard to increase supply as explained in the article and there is a steady/strong demand, then sure!!! increase prices and people will keep coming. Try that with anything WalMart sells and you'll increase the stats of dead small businesses.
I couch surfed with a couple in Berlin and was jealous. They wake go to work at 9 and come home at 3, 6 weeks of vacation when they start a job...not this building up crap we have here in the states. Complaining that they don't have freedoms is such a laugh. The German government has 5 parties...what's more free than more choice in your representatives?
This country needs more socialism, those of you who make it into a demon monster need to experience the world before you knock it.
I love the title! Being a regular WiseBread reader, I knew what the message would be (retire earlier), but many people probably thought the title was going to imply what way too many magazine and newspaper articles recommend - that you'll have to work way past your 65th birthday. I can't imagine that. That's for people who don't take responsibility for themselves. They place their future in the hands of a company and/or the government. That's garbage. I will follow Warren Buffett's advice for investing in this economy: "Invest in Yourself."
Phoenix was actually one of the areas I was thinking of, when I suggested that some areas really are uninhabitable without air conditioning (as evidenced by the fact that almost nobody lived there).
It turns out, though, that the principle problem was water rather than heat. The Hohokam indians lived there for over 1000 years, until droughts and floods made the area uninhabitable. Then it was almost desolate for hundreds of years. Then white settlers moved in even before the advent of air conditioning, and got to work on canals to bring in water.
Which, of course, just reinforces my point: You can live there without air conditioning. It's proven by the fact that people actually did.
"wondering where it all went"
That is the problem in a nutshell. If you don't know where it went, you did not start with a plan. If you just spend as you want without a goal, you will never be able to make ends meet on any amount.
Somewhere along the way we became a nation that has to have it all. That's fine, but if you can't pay for it, it will catch up to you.
People can't see that things have changed. We have to adjust. Your house may not be a cash cow, you salary may not increase each year, prices will go up and your spending power will probably go down. Live on less! Be realistic on what you really need, instead of buying everything you want.
BTW I make less then $45K a year. 10 years ago I made over $55k a year. I adjusted and do not live paycheck to paycheck. I did not have to make major changes, just little ones.
Um... a definite... typo..."Germans on average work around 1,436 hours per week, versus the 1,804 hours Americans work."
I don't work that many hours in a "week".. Probably need to modify your article to say "year".
i would point out that re manufacturing(burning) a new one is what i do for friends with the problem. when you let a computer download a cd that is unplayable, once reburned are perfect or very near so. happy listening.......
I agree with what you wrote. These people replying to you saying Jesus is the ultimate socialist are 100% wrong. Socialism is the government taking care of the things that Jesus said we are responsible for. Jesus did not tell people the government needs to take care of the poor. Jesus said we need to take care of the poor. Socialism does not rid us of the poor, but when people feel the government is taking care of things, they are less likely to do those things themselves.
I don't think Jesus ever said He was against capitalism either. Jesus made it clear that you need to serve God and not money, but He also made it clear that you need to take care of yourself. That sounds much more capitalistic than socialist to me.
IIRC, the Bible also says that if a man won't work, the community should feed him either. That ISN'T socialism.