My relatives make 20k a year, and live better lifestyles than me making 100k

[Gary4Liberty]

My friend calls Whole Foods "Whole Paycheck" hahahahah because its so expensive.

 

[The Goat]

150k in debt for a 100k a year income was your choice.

just like when you were going to school, your still getting ready for your future. Sorry dude.

 

[onlyrp]

My friend calls Whole Foods "Whole Paycheck" hahahahah because its so expensive.

not inaccurate at all

 

[onlyrp]

150k in debt for a 100k a year income was your choice.

just like when you were going to school, your still getting ready for your future. Sorry dude.

yeah, seriously.
I think he meant $100K for combined 2 people, but still.
Even $50K a year with $150K student debt is reasonable.

 

[Zippyjuan]

Both people made different decisions on what to do with their money. Who may or may not be better off may depend on who you ask. Some are fine with not a lot of money- others feel they need more than they have- even if that is already more than most people (and $100k is certainly more than over half the people in the country).

 

[Boss]

the point here is that incentives are being stripped away from our society. the healthcare aspect is a big part of this. essentially one family is earning 500% of what the other family is earning, yet their lifestyles are perceptibly comparable. this is hardly the only example of the problem. even if OP budgeted in accordance with the "advice" given in this thread, the problem isn't solved, its only a little less obvious. take a guess at what happens to societies that have shrinking incentives to accumulate wealth?

 

[dannno]

take a guess at what happens to societies that have shrinking incentives to accumulate wealth?

Production drops and everybody suffers.

 

[onlyrp]

the point here is that incentives are being stripped away from our society. the healthcare aspect is a big part of this. essentially one family is earning 500% of what the other family is earning, yet their lifestyles are perceptibly comparable. this is hardly the only example of the problem. even if OP budgeted in accordance with the "advice" given in this thread, the problem isn't solved, its only a little less obvious. take a guess at what happens to societies that have shrinking incentives to accumulate wealth?

Perceptibly comparable? If you ignore 2 kids, donating 10% to charity, not itemizing them in taxes, and 6 figure student debt, then yeah. He has plenty of incentives to accummulate wealth, and if he doesn't, he's free to take a pay cut.

 

[raystone]

Dave Ramsey is good for people who need to learn being debt free. Which is common sense for any Peter Schiff or Ron Paul fan. I wouldn't trust him for savings or investment advice though.

With him calling Schiff a nutjob, I certainly wouldn't patronize him or give him a nickel

 

[Cowlesy]

Can you refinance the student loans to a longer payback period? This would give you some cushion during which time you could hopefully save off and pay them off in total in 10 years. (I have only read page one of the thread and apologize in advance if someone already suggested this).

 

[onlyrp]

Can you refinance the student loans to a longer payback period? This would give you some cushion during which time you could hopefully save off and pay them off in total in 10 years. (I have only read page one of the thread and apologize in advance if someone already suggested this).

he already said he wants to pay it off ASAP, then he says he doesn't itemize his deductions when donating 10% of his income, and he can't tell you how much he puts into savings each year. So you can ask "what's the point, what does he want?"

 

[Cowlesy]

Here is a $100,000 Gross Income, with $10,000 as an itemized deduction. It looks like he should be around 21-22% all-in.

http://www.tax-rates.org/Kentucky/income-tax-calculator?do=process

Oops, you have to plug in the numbers.

Also, can't people under $100k deduct student loan interest??

 

[onlyrp]

Here is a $100,000 Gross Income, with $10,000 as an itemized deduction. It looks like he should be around 21-22% all-in.

http://www.tax-rates.org/Kentucky/income-tax-calculator?do=process

Oops, you have to plug in the numbers.

Also, can't people under $100k deduct student loan interest??

Sometimes
http://www.irs.gov/taxtopics/tc456.html

I used the page you provided, with $80,000 as starting income, and $8000 as deductions donated.
He'd have $66,600 after all taxes, that is to say $4000 KY taxes, $9300 federal taxes.

If you used $100,000 gross, with $10,000 donated.
He's left with $81,000 net.

So the difference between the claim that he pays 30% of his income in taxes, might be due to not taking deductions, or just poor math, unless we are missing something (this page includes state income tax).

 

[onlyrp]

The interesting thing is.

If used Kentucky's standard deduction, filing joint.
$100,000 , with zero deductions, he's still left with $81,000.
If that means any couple is automatically entitled to deduct $11,000 as it says on this page (standard Kentucky deduction), he has no reason to donate anything and can keep $10,000 to himself.

 

[Jordan]

I think you guys are overlooking FICA, which is like 15.3% in an ordinary tax year. FICA is a killer for people who make in the range he's talking about.

 

[onlyrp]

Contrast this guy's account with this one. They can't both be right. Unless, the key difference being that people with kids qualify for more handouts.
http://www.ronpaulforums.com/showth...-Help-Please&p=4195030&viewfull=1#post4195030

One guy says the person making $20,000 a year lives better than him making $100K. The other guy says people making $20,000 can't even pay his bills, and making $50,000 isn't enough because he "only" saves $10,000 a year. Both can be wrong though, as neither will list you all their actual expenses, one admits he's not perfectly frugal, one admits he doesn't take his allowed deductions and donates to charity.

 

[Professor8000]

I know it's my own fault, for taking out student loans before I realized what a sham they are. I just needed to vent.

This is why I never went to College. Internet FTW! So I was wondering... I make 20k a year, how do I get in on some of that lucrative welfare business that you so generously donate to?

 

[patriot2008]

I get sick of hearing about food and diets from my in laws. It is totally a fit in trend and keep up with the people around you, if you are not year round organic gardener.
Yes and whole foods is even cheap compared to some markets. My mother in law easily spends more money on eating, including eating out than I spend feeding on our family of four, and all this is without any meat at all. The rest she uses on credit card bills. We live a way better in a different town and state than her.

 

[tttppp]

This country sucks. I get so frustrated at times that I find myself wishing for a collapse in hopes that the welfare freebies go away. I just did my taxes, and had conversations--in one case, a heated argument--with family who did taxes too. Here is modern Amerika for you.

My wife and I are pulling in 85k - 100k a year. Because we "make so much," we do not qualify for government handouts. Between federal, state and local taxes, 30%+ of our income goes to government right off the bat. Then over 20% goes to student loans. We live in a nice two-bedroom apartment and can afford to eat healthy food (Whole Foods, organics, etc). But we are not rich--we have not been on vacation in almost four years; my wife has wanted/needed a new Macbook for a year but we can't afford one; we buy most of our clothes from the thrift store; we have only been out to eat two times since September; we never pay money for entertainment such as concerts, football games, movie theaters, etc.

Two different sets of relatives of mine make around 20k a year. In both families the wife does not work, only the husband. One of them makes like $10 an hour at a big-box store, the other probably makes $12ish at a hospital. One family is expecting a third child, the other the second. This means that both families get enough tax credits so that they get way more money than they pay in--one is getting almost $10k "back" this April. Whereas I have to pay my own medical bills, these guys get Medicaid; and for all I know are on food stamps and who knows what else. Both families seem to eat out as much as they want, pay for entertainment, and in the last 6 months have gone on vacation.

In short, because our government is playing Robbin Hood, we have relatives and families in my church who make a fraction of what we make, but live better lifestyles than we do.

You're account of making $100,000 a year not adding up to much seems pretty accurate. Unless you are rich, the money you make usually only covers the basics. Jobs just give you enough to afford to make it back to work the next day.

I'm not sure about your account of people making $20,000 year. I don't know anyone making $20,000 a year who can live on their own without assistance. People making $20,000 a year don't afford nice apartments or shop at whole foods. They live with their parents.

You are right that you are being scammed, but the people making $20,000 are being scammed too. People making a good living with a good job should be able to afford more than the basics. People doing hard labor should also be able to at least make a living and afford the basics without government handouts.

 

[tttppp]

Contrast this guy's account with this one. They can't both be right. Unless, the key difference being that people with kids qualify for more handouts.
http://www.ronpaulforums.com/showth...-Help-Please&p=4195030&viewfull=1#post4195030

One guy says the person making $20,000 a year lives better than him making $100K. The other guy says people making $20,000 can't even pay his bills, and making $50,000 isn't enough because he "only" saves $10,000 a year. Both can be wrong though, as neither will list you all their actual expenses, one admits he's not perfectly frugal, one admits he doesn't take his allowed deductions and donates to charity.

My account is completely accurate. My parents have been frequently sending money to my brother who makes roughly $20,000 a year. And he is stingy too. He doesn't waste money on anything. One thing you should consider though is that this guy apparently lives in Kentucky. My brother lives in L.A.