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Started By
Message
re: What percentage of people in BR have a "keeping up with the Jones" lifestyle?
Posted on 4/3/15 at 12:07 pm to LSUtigerME
Posted on 4/3/15 at 12:07 pm to LSUtigerME
I think the frugality people preach on this board is a bastardization of the original idea.
Leveraging yourself to buy significantly more than you need, especially as a status symbol is what people preach against. That changes depending on the person though.
For example:
My boss bought his wife a brand new range rover with his bonus check last year. That isn't irresponsible since he has a paid off house, no kids and financially responsible with saving. Was all unexpected income with the budget he made. I'm sure the Mrs. BossMan paid him back in full
My sister in law makes about 75k , single mom and getting divorced. She just bought a Lexus SUV and financed all of it. She is dumb as fug because she now is at risk of losing her job in corporate downsizing and still owes 500+$/mo for 3 years
There is nothing wrong with spending money. If you can find room in your budget without financially compromising yourself, the only question is do you want to share the blow with some hookers
Leveraging yourself to buy significantly more than you need, especially as a status symbol is what people preach against. That changes depending on the person though.
For example:
My boss bought his wife a brand new range rover with his bonus check last year. That isn't irresponsible since he has a paid off house, no kids and financially responsible with saving. Was all unexpected income with the budget he made. I'm sure the Mrs. BossMan paid him back in full
My sister in law makes about 75k , single mom and getting divorced. She just bought a Lexus SUV and financed all of it. She is dumb as fug because she now is at risk of losing her job in corporate downsizing and still owes 500+$/mo for 3 years
There is nothing wrong with spending money. If you can find room in your budget without financially compromising yourself, the only question is do you want to share the blow with some hookers
This post was edited on 4/3/15 at 12:09 pm
Posted on 4/3/15 at 12:15 pm to Golfer
So at $150/ month ( assuming 10% down which is generous on a 300k house) times 7 years (assuming 2008 does not happen again) is paying $12,600 in PMI for a house you really can't afford a good thing? Why not get in a modest 150K and not have PMI and in 7 years get into a house that you really want and not flushing 12.5K down the tube?
Just my humble opinion, everyone should live thier life how they want and material things mean more for some than others
Just my humble opinion, everyone should live thier life how they want and material things mean more for some than others
Posted on 4/3/15 at 12:22 pm to Golfer
quote:
It's tax deductible too
If AGI is less than 109K in 2015, phase out begins at 100K (for joint returns)
Posted on 4/3/15 at 12:25 pm to GenesChin
quote:
My boss bought his wife a brand new range rover with his bonus check last year. That isn't irresponsible since he has a paid off house, no kids and financially responsible with saving. Was all unexpected income with the budget he made. I'm sure the Mrs. BossMan paid him back in full
so you're saying a hooker is the cheaper option?
Posted on 4/3/15 at 1:20 pm to Tigerpaw123
PMI isn't the worst thing in the world. For instance, if you delay buying a house while renting just to prevent paying PMI while saving for a bigger down payment (if the difference in rent vs. owning is even large enough to allow rapid savings) you're still going to pay rent. One year of rent at $1000/mo quickly makes paying $12600 in PMI over 7 years easily palatable.
Buying and then selling a 150k house would end up costing roughly $9000 in commissions plus moving expenses.
Buying and then selling a 150k house would end up costing roughly $9000 in commissions plus moving expenses.
Posted on 4/3/15 at 1:26 pm to PeteRose
I am wired differently - I have been saving and plan to make those investments work for me.
i keep maxing out my 401k and putting away money in my taxable vanguard account....my spending habits are buys stocks, mutual funds and increasing my savings account.
I duck hunt but that expense is minimal. My golf membership is the one luxury expense I have.....and with my work schedule it gets harder each month to justify that.
i keep maxing out my 401k and putting away money in my taxable vanguard account....my spending habits are buys stocks, mutual funds and increasing my savings account.
I duck hunt but that expense is minimal. My golf membership is the one luxury expense I have.....and with my work schedule it gets harder each month to justify that.
Posted on 4/3/15 at 1:48 pm to nelatf
quote:
.my spending habits are buys stocks, mutual funds and increasing my savings account.
Love it.
Posted on 4/3/15 at 2:04 pm to GoldenD
quote:
Buying and then selling a 150k house would end up costing roughly $9000 in commissions plus moving expenses.
Hopefully there would be some appreciation in that 150k house to offset that, but like I said earlier, it is a personal choice and everybody puts their own value on how important material things are to them, no right or wrong, I choose to avoid PMI and it has worked out great for me, to each his own
This post was edited on 4/3/15 at 2:26 pm
Posted on 4/3/15 at 3:33 pm to PeteRose
I think most people try to keep up with Joneses. The Joneses just vary.
Posted on 4/3/15 at 3:42 pm to McLemore
I don't worry about Mr. and Mrs. Jones. I do spend a little and save more and that makes me happy.
I'm not offended by people who spend lavishly as long as they're paying their bills and not blaming anybody or looking for a handout when they can't pay for their shite.
I'm not offended by people who spend lavishly as long as they're paying their bills and not blaming anybody or looking for a handout when they can't pay for their shite.
Posted on 4/3/15 at 4:00 pm to PeteRose
Whats it fricking matter what people spend? Its their money. One person's priorities aren't necessarily anothers.
Some people like to spend an extra $500/mo on a car while another spends $500/mo on dining out and drinking. Theres no fricking difference. In fact, the person spending the money on a vehicle has an asset when all is said and done. You can't resell the alcohol you consumed.
You can save save save, be conservative your whole life, and drop dead before enjoying any of it.
If someone is contributing to retirement, so they aren't a drain on society when they can no longer work and blow the rest on living life and having nice things, whats it fricking matter? They earned it. More power to them.
Some people like to spend an extra $500/mo on a car while another spends $500/mo on dining out and drinking. Theres no fricking difference. In fact, the person spending the money on a vehicle has an asset when all is said and done. You can't resell the alcohol you consumed.
You can save save save, be conservative your whole life, and drop dead before enjoying any of it.
If someone is contributing to retirement, so they aren't a drain on society when they can no longer work and blow the rest on living life and having nice things, whats it fricking matter? They earned it. More power to them.
Posted on 4/3/15 at 4:40 pm to Lsut81
I save for the future for 1 luxury goal - to own a house or condo in Park City Utah paid in cash so I don't have to rent it. Today's price would be about $1.2MM for the set up I want.
If I drop dead after I get the place, my family and friends will have somewhere to go to enjoy the beauty and remember me.
If I die before I get the house, my kids will be set for multiple generations if they let my investments grow until they are in their 40s.
They will be set regardless - with life insurance, my 401k my old ROTH and my savings...plus the current house - I die knowing they will be ok financially to do what they want.
We still have a good time we just don't have a camp in cocodrie, a 24 foot sea Ray boat, a ford f250 or a bmw for the mrs....but we enjoy nice things once in a while and take vacations / mak some memories.
My goal is to be cash self reliant with our place in Louisiana and a second place in Utah that I don't have to rent.
If Utah does not work out, I will have other options from the efforts of trying to reach that goal.
If I drop dead after I get the place, my family and friends will have somewhere to go to enjoy the beauty and remember me.
If I die before I get the house, my kids will be set for multiple generations if they let my investments grow until they are in their 40s.
They will be set regardless - with life insurance, my 401k my old ROTH and my savings...plus the current house - I die knowing they will be ok financially to do what they want.
We still have a good time we just don't have a camp in cocodrie, a 24 foot sea Ray boat, a ford f250 or a bmw for the mrs....but we enjoy nice things once in a while and take vacations / mak some memories.
My goal is to be cash self reliant with our place in Louisiana and a second place in Utah that I don't have to rent.
If Utah does not work out, I will have other options from the efforts of trying to reach that goal.
This post was edited on 4/3/15 at 4:44 pm
Posted on 4/3/15 at 4:58 pm to nelatf
The key point you make is that you save a lot and spend some. Those that constantly criticize peoplw for having cable or a smart phone are annoying.
Posted on 4/3/15 at 5:05 pm to bayoudude
quote:
would think it much higher than that. When you look at all the cookie cutter homes in the $300-400k range coupled with nice cars in the driveway and realize that there are a much higher percentage of those than there are six figure salaries.
Good stuff. I have a good friend who pointed that out in Madison, MS to me.
Posted on 4/3/15 at 5:27 pm to nelatf
quote:I would have liked to seen Montana.
If Utah does not work out, I will have other options from the efforts of trying to reach that goal.
(dies)
It's great to have a goal, but there's a flip side to owning a vacation home. I won't saddle my kids with a vacation property in a place they don't care about. Maybe you'll be luckier.
I get that they can sell it, but having real estate in another state adds a bit more complexity to one's estate planning and succession.
This post was edited on 4/3/15 at 5:31 pm
Posted on 4/3/15 at 5:41 pm to theBeard
quote:
the smart people. Smart people also are not stretching out a 30yr mortgage
Such a dumb blanket statement. So many housing markets, so little perspective.
Posted on 4/3/15 at 5:53 pm to PeteRose
20% is about right. You have nearly half the population in north Baton Rouge. They are keeping up with the Washingtons so to speak, so there goes 50% right there.Then you have lots of people who live in older neighborhoods like mid city, kenilworth, southdowns.. They aren't really trying to impress. Lots of apartment complexes.
The people keeping up with the joneses live on the outskirts of baton rouge or even outside of the city proper (prairieville, dutchtown, Gonzales-but will say they live in BR) They work at the plants like in geismar or norco, have the cookie cutter house with perfect lawn and new f250. These are your people keeping up with the joneses.
20% is very realistic.
The people keeping up with the joneses live on the outskirts of baton rouge or even outside of the city proper (prairieville, dutchtown, Gonzales-but will say they live in BR) They work at the plants like in geismar or norco, have the cookie cutter house with perfect lawn and new f250. These are your people keeping up with the joneses.
20% is very realistic.
This post was edited on 4/3/15 at 5:59 pm
Posted on 4/3/15 at 5:57 pm to Lsut81
quote:
Whats it fricking matter what people spend? Its their money. One person's priorities aren't necessarily anothers.
Some people like to spend an extra $500/mo on a car while another spends $500/mo on dining out and drinking. Theres no fricking difference. In fact, the person spending the money on a vehicle has an asset when all is said and done. You can't resell the alcohol you consumed.
You can save save save, be conservative your whole life, and drop dead before enjoying any of it.
Maybe the OP is not communicating well but I what I think he is trying to say is don't become so overwhelmed with a house and car note in an attempt to display perceived wealth that you are unable to enjoy your life because you are overextended financially... thus the saying Keepin' up with the Jones'.
Sure you can comfortably afford a 300K house and 2 modest cars at 125K. But what you more likely to see in today's society is a scenario where that couple has bought a 400k house a Suburban at $70K+, and a (insert truck/luxury sedan/whatever here) for $35k+ which leaves little for life experiences, little for savings and little to enjoy life.
Posted on 4/3/15 at 6:03 pm to I Love Bama
You are horrible with money if you are single making 6 figures and feel broke.
Posted on 4/3/15 at 6:09 pm to GenesChin
quote:
My sister in law makes about 75k , single mom and getting divorced. She just bought a Lexus SUV and financed all of it. She is dumb as fug because she now is at risk of losing her job in corporate downsizing and still owes 500+$/mo for 3 years
I don't see a problem with buying an $18,000 Lexus SUV. If the model is recent, I'd say she got a good deal.
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