CurtPalme.com Home Theater Forum

garyfritz · Joined: 08 Apr 2006 Posts: 12088 Location: Fort Collins, CO

I hear you there Brad. Now add in a couple of kids and it REALLY gets out of control. I'll be looking at college expenses in 6 years...

John has it right -- it's a spending issue. I'm lucky that my wife and I both have the same outlook on that. We live far below what our income might allow. We're working hard to get ourselves into a situation where we would be OK (if not all that comfortable) if our income pretty much went away. That's why I have a scrounged and no-budget HT. I built my HT, completely outfitted it with all equipment, have enjoyed it for 3+ years and I'm on my 4th projector, and yet I've put less than $4000 into it TOTAL. I'd love to throw tons of money at toys, but that's not our priorities. So I enjoy the perfectly good but not oh-my-god-awesome HT I have, we've used our money to pay off a huge amount of debt in the last 3 years, and we hope to pay off our mortgage within a year or so, 13 years early.

Cliffy is deliriously happy happy with his HT, and more power to him. I just have different priorities. But I *would* strongly recommend finding some way to pay for medical insurance -- or one accident or illness could take away the HT, the house, and more.

ecrabb · Posted: Wed Aug 22, 2007 4:09 pm Post subject:

One thing that seems different to me now, compared to when my parents were raising me (you guys can tell me if you agree or disagree)... are people's priorities, how they're willing to live, and their level of respect for others around them. Let me explain.

I'm 37... Where I grew up, practically everybody kept their lawns trimmed, house painted... simply taken care of. There were no "really nice" houses... just 50's and 60's ranches and split levels. Nothing to write home about, but a nice neighborhood with nice people in it. My parents could have afforded much nicer, but it was great, anyway. Because of the house, my dad had the means for other toys. It was great. Nice place to grow up.

Fast forward to 1998. My wife and I buy an old home and put $20k into it over the next couple of years, and shortly thereafter, we see the neighborhood changing in character a little and decided to move. We're going to have a kid soon and we don't like the schools there, anyway. So, we start shopping for a new one.

I'm frugal, and I like to do home-improvement, so I'd love to find a cool 50's ranch or something from the 70's or early 80's with "ugly-itis", retrim and repaint it, gut the bathrooms and kitchens and make it our own, right? The problem was, everything in the price range that I felt was "responsible" or "reasonable" for our income (aka how much I WANTED to spend) - the neighborhood was crap! Cars everywhere (because the garages were full of sh*t), boats or trailers in the driveways, houses in need of maintenance, unkempt lawns... just, not neat or clean. I'm talking about suburban middle-class neighborhoods.

As soon as I'd find a neighborhood that looked decent, then the prices were too high - even if the houses themselves weren't anything to write home about. So, I ended up spending way more money than I wanted to live in a neighborhood I could be happy with. I would have lived more within my means, but I couldn't do it (or, didn't want to do it?!?)!!! I even feel somewhat guilty to an extent because I feel like I put my wants above my needs... and spent more than I wanted to.

So, are people less considerate of the neighborhood (and others in general) these days? Do they just plain have a lot more sh*t than they used to and leave it all out in the drive for the rest of the neighborhood to enjoy? Do people prioritize differently nowadays, as in buying toys before painting or roofing the house? Is there a difference between when I grew up and now, or am I just romanticizing about my old neighborhood? I guess I could just be a hypersensitive elitist living beyond my means, too. What do you guys think?

Sorry for the lengthy post.

SC

Z-Photo · Posted: Wed Aug 22, 2007 4:13 pm Post subject:

Phil Smith · Joined: 08 Mar 2006 Posts: 7717

dc_pilgrim · Joined: 31 Oct 2006 Posts: 225 Location: PA

It was 13 years ago. I was pretty much back to normal (essentially) 6 months later. It was weird to get a hospital bill for $72K with a Visa/Mastercard label at the bottom. Thankfully (sort of) I had insurance (well my parents did), so that paid for it. In the inevitable lawsuits that followed (settled for less than you'd think) the medical insurance company got repaid under a right of subrogation (I think that's the term). Net result, my foot was cut off, and doctors and lawyers got a bigger piece of the settlement than I did. Still, thankful for the care and the help, but a little pissed at the judge who made some odd rulings.

The weird part is I use table saws and mitre saws in my basement work, which is essentially the same kind of machine that got me. I try to be VERY CAREFUL.

Phil Smith · Joined: 08 Mar 2006 Posts: 7717

As already mentioned, I would say very few people have earning problems. They have spending problems. Most people try to live a champaign life on beer money. It's all about being realistic about what you can and can not afford.

I'm older than most of you guys, my kid is grown and long ago I got divorced, so my expenses are much lower than for most of you and it's a lot easier for me to get ahead. But I do manage to live in a fairly decent house, have a maid and a yard guy, and I could probably go 3 or 4 years without working, without changing my lifestyle. And I don't make that much money. I'm obviously a guy that can hear a couple of nickels rattling around in my pocket and not have an uncontrollable urge to spend it.

I think it comes down to you controlling money instead of money controlling you.

Phil Smith · Joined: 08 Mar 2006 Posts: 7717

**AnalogRocks** · Posted: Wed Aug 22, 2007 6:35 pm Post subject:

Phil Smith · Joined: 08 Mar 2006 Posts: 7717

ronholm · Joined: 26 Jan 2007 Posts: 12111

ecrabb.. Just move out of the 'burbs and into to country.. My home was built in 1910... It sits on an old grain silo foundation left over from where a major steam powered railroad hub used to be.. I have a few acres and bits of the old Steam engine watering tanks and building and such around.. Bought it cheap... and I think it is way cool..

Amen to the zero debit and living on less than you make theory.. It works great.. Well at least it has for me.. I am 27 years old I have a a couple growing businesses, nice house..(not paid for yet but that is my only "payment" and it is no Problem) A sweet jet boat.. A couple of toy cars to compliment the daily drivers.. A couple vans for the business.. and a 1950 International KB6... and a whole host of other assorted junk... (a gas powered surfboard) (a HT that is coming along nicely) ( and a full service Wood shop with three industrial table saws Laughing

)

Ain't living in Beverly hills with a Viper and a 500,000 dollar pool.... But I have more fun than those guys could ever dream of...

Going tonight to pick up a Kawasaki Zr7 for the wife.. Wink

All but the home paid for in Cash

Even in my short life I had had quite a few bouts with near failure.. A accident right at the begining of my remodeling business almost put me right out of my life savings... And that business was started right after the company I was working for went under..

A blood clot in my right shoulder and the following surgery to remove a chunk of my Top rib ended my Marine Corps Career (for the time being) and My wifes Marine Corps Career was ended after a nasty car wreck left her in the hospital for a year requiring 2 open heart surgeries and a gortex graft to keep her heart together..

ANd with a WRITTEN set of PLANS, WRITTEN GOALS , spending less than you make, and keeping a big safety net in the bank my experience is that everything always seems to work out for the best...

klover · Joined: 30 Sep 2006 Posts: 124 Location: Winnipeg, Manitoba

At 30 I've saved just over 5 months of salary. Incidently, it took over 5 years to do that.

This safety fund is really nice but, at the same time, I've noticed I am becoming too frugal. Skipping on clothes I'd like to buy, getting cheaper haircuts, not going to clubs, etc. Sometimes one needs to spend a little "want" money just to keep up socially.

I'm a deal hunter and never buy anything until the salesperson is sick of me and relents.

Sometimes I wish I could just buy without all the research, haggling, etc.

ecrabb · Posted: Wed Aug 22, 2007 9:42 pm Post subject:

garyfritz · Joined: 08 Apr 2006 Posts: 12088 Location: Fort Collins, CO

ronholm · Joined: 26 Jan 2007 Posts: 12111

greg_mitch · Joined: 03 May 2006 Posts: 5320

One thing I never understood.

Why pay off your house? Don't you lose that major tax deduction then? I am still young but it seems like a good idea to me to keep your house in payments and not payoff early so you can use that deduction to reduce your tax burden.

I MAY not know what I am doing though....

Z-Photo · Posted: Sat Aug 25, 2007 10:25 pm Post subject:

I save by Forgetting about SEX during COLLEGE FOOTBALL season....

Saves all those movie/dinners/begging gifts and let me spend that money on Beer, booze, and hookers.....

garyfritz · Joined: 08 Apr 2006 Posts: 12088 Location: Fort Collins, CO

Bucketfoot · Joined: 17 Mar 2006 Posts: 698 Location: Centennial, CO

greg_mitch · Joined: 03 May 2006 Posts: 5320

Ok help me here. I think I was listening to some bad financial advice earlier....

For example:

Scenario 1
200k mortgage @ 6.25%
100k annual salary
25% tax bracket

What is my net annual income tax burden after my mortgage interest deduction?

Scenario 2
100k annual salary
25% tax bracket

What is my annual income tax burden?

wkomassa · Joined: 21 Aug 2007 Posts: 101 Location: Brookfield, WI

Need to know what year you are in in your mortgage, then look up the interest from an amortization table. You were correct though. Subtract your interest from your gross wages/tips/interest income/etc, also less any other deductions, and that (your AGI) will be what your tax burden is calculated on. Then you have tax credits as well which can dollar-for-dollar offset your tax liability.

Dunno if that helps at all Smile