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k-289
Senior Advisor

Re: The facts on hunger??/ 2 Income Class Society/ $400,000 houses

SHAGGY  - NOW  DON'T BE LETTEN ALL THOSE NUMBERS OUT or we will have some folks come out here and buying up our garages - keep it a secert ---   "triple a post " --- 

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Kay/NC
Honored Advisor

Re: Book: MILLIONIARE NEXT DOOR

I read that one years ago, and adcribe to a lot of its principles. It is slways better to spend less than you make, than the other way around. Coming from a family where the females seriously identify with the size and style of their hiuses, I am sn anomally. I like a simple home, with comforts but not show.

We may have a couple times over the $400 K in residence values...but, that is spread over several homes, four of which we rent out, one which is an employee benefit. I find that having more houss paying us than us paying for them helps me sleep better at night.
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tree fmr
Advisor

Re: Book: MILLIONIARE NEXT DOOR

I understand the internet is becoming more and more needed today to conduct business with any government entitity.  Got it, understood.

A cell phone is not a requirement, a home land line works just the same.  Especially if you have the internet then your at home doing business anyway!

I did not have a cell phone for my first 2 years in Japan, others just could not figure out how I functioned, it was easy, I did not get annoying phone calls from them!!  They were so worried about how to get ahold of me, I said leave a msg on my home phone and I will call you back, you know, just like you do when a guy does not answer his cell phone dummy!

 

Ya know though, wether that person has a cell phone or not, the snap benefits will get approved and spent so at the end of the day I don't know what the right answer is.

 

BTW, now I have one of them smart phone thingys, why, it is cheaper to have it with the tethering internet then to have a home internet and a cell phone.  Of course my internet is limited to a certain GB per month, so what do I do when I reach that limit (only did once) I go hiking, bicycling, running, walking, sight seeing, etc, you know, all those things you don't need a cell phone or internet for.  Those things that keep you.......healthy, if anyone is interested.

tree fmr
Advisor

Re: Book: MILLIONIARE NEXT DOOR

For the record, I have used the smart phone to find how to get my lost butt home once or twice!  Would I have made it without the phone, I think so but it would have taken me a little......ur, lot longer!  So they do have there benefits.

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Kay/NC
Honored Advisor

Re: Book: MILLIONIARE NEXT DOOR

I don't think it is unreasonable for people with public help to have a cell phone. In rural areas, it can be a very significant safety issue.

I will admit that, being the kind of woman who gets a haircut only whenever I have enough to make a donation for Locks of Love, the young girls who can afford expensive cosmetic services like those acrylic nails with fancy paint jobs do seem to have a very different priority order than mine. Tattoos and piercings are simply not a necessity, and some employers are still totally put off by them.

The point about the cell phone is apt, on all scores. Yes, they can be an irritant, but they are multipurpose tools now. GPS is a boon to people like me, who are uneasy travelers. The hotspot in mine will eventually make my expensive satellite connection unnecessary. We are at the point where the remaining contract commitment in monthly fees is about what the buyout on it would be, so may as well use it to the bitter end.

Our one trie extravagance is satellite TV, but we justify it with weather report access, also for safety and planning reasons for crop purposes. Where we live, antenna TV is just not reliable enough.

I think everyone makes decisions about what they " must" have. Most of us have to consider what else we must be willing to live without in order to have that. If we have to give some grownups the means yo afford a few luxuries in order to be sure their children eat, I can live with that. It would be nice if they felt it was a gift, not an entitlement.
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rswfarms
Senior Contributor

Re: Book: MILLIONIARE NEXT DOOR/Kay

Yes Kay. the "Millioniare Next Door" was an excellent book and I have tried to follow the guidelines in it for my personal budget on running our family expenses. Our current house that we live in I bought in 1999 for only $325.000. However, my wife has done some extensive remodeling to it the last 2 years and spent around $250,000 for these remodeling projects. I however paid for this remodeling out of our cash reserves, so I didn't need a remodeling loan that many people use to remodel there house. This house would probably sell for around $600,000 today in the Twin Cities market. While $600,000 may sound like alot of money, houses are much more expensive in the Big City housing market than say in the rural Iowa housing market. So you are not really comparing Apples to Apples by comparing the house we own to houses in the country-side of Iowa. A huge difference in prices. Our MN House is around 6,500 finished square feet and has 7 bedrooms and 6 bathrooms, but again this house would only be considered an upper middle-class house in the Twin Cities and certainly not a rich house, I consider the rich houses as starting out in the $1 Million and higher range, with a square footage of 10,000 square feet. This huge difference in prices may come in handy if we sell our MN house and retire back to rural Iowa. In rural Iowa, $250,000 would buy a nice house. Anyway, I found the "Millioniare Next Door" book to be an excellent reference as to how you should run your own personal family budget. I know of many people that only recieve a middle-class salary/income, but try and live a "Rich" lifestyle by buying a huge house and driving the $50,000 GMC Yukon XL cars, but I believe they are only 4 paychecks away of losing everything if they got laid-off from there city job. That's a scary way to go though life I would say. 

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Kay/NC
Honored Advisor

Re: Book: MILLIONIARE NEXT DOOR/Kay

When I was a very young wife and stay-at-home mother, I spent quite a bit of time talking with my father's only sister, who was ten years his junior. Let's just say she was my mentor.

She and her husband owned a florring and custom cabinet business, and built and installed in all kinda of homes and businesses. Their niche did well when housing starts were high, and even in slowdowns, because families that stayed put would upgrade.

She saw and explained all kinds of family financial situations to me, never mixing names and tales, of course. They did very well financially, but never bought into the big, expensive subduvisions where most of their work was done .

I heard her say more than once thst she would bump into the women on a lot of those houses at the grocery store. Her way of saying it was that " their carts are full of beans, and mine is full of beef". Since I had done my family's grocery shopping from the ago of sixteen, that really sunk on on my young mind.

Another thing she would say was that many of those families were " two paychecks away from the street". You say four. Not that much difference, really. Just stub your toe, and you've blown it.

I hope we have a few more years of decent earnings in agriculture, given the lousy economy, our age (59), and the uncertainties of policies like Obamacare and energy supply management strategies that seem to be mostly " make it so expensive, they will sit in the dark". I would like to think I can afford to keep my Kindle charged....
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Packard27
Senior Contributor

Re: Book: MILLIONIARE NEXT DOOR/Kay

Want less than you already have, spend less than you make, and generally adopting the"Protestant Work Ethic" are the three keys to remaining fiscally solvent.

 

Good luck

rswfarms
Senior Contributor

Re: Book: MILLIONIARE NEXT DOOR/Kay

Yes Kay, I think that there are many, many, families in the big city that consider themselves to be upper middle-class or even rich because they own a $500,000 house and  are leasing a $50,000 GMC Yukon XL SUV. But are really just 2 to 4 paychecks away from losing everything if they lost there big city job that pays maybe $75,000 to $100,000 in a yearly salary. I just could not live like that myself, there would be alot of stress in your life to be spending every last penny of your paycheck every month, plus not even have a rainy day savings account with 6 to 12 months of living expenses in it if your lost your big city job..I have noticed that many, many, of these families have really expensive cars too, but I believe that they lease and not buy there cars/SUV's. Guess I was taught to actaully buy your car and pay cash for it and not take out a car loan. A good example is a big city freind of mine, I mentioned to him that I needed to buy another SUV to replace one that had over 180,000 miles on it. I told him I found one a brand new one for $22,000 and he asked me what my lease payments would be. I told him that I was actualy buying the SUV, not leasing it and also paying cash for it so no car loan was needed. He thought I was nut's for doing this, that I should lease a $60,000 SUV and not "WASTE" my money actually buying the car and paying cash for it. This is a prime example of the way many of these big city people think. They just think they need to keep up with the "Jones's" and  using borrowed money to do so is the right thing.

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