A different sort of challege.

[boonie stomper]

Re: A different sort of challege.

Tsk, tsk. That big ugly word, LAZY is precicely why convenience items cost so much! I'll admit to being a frequent overspender on some things because there are just some things I won't EVER do, but thing like buying a pack of 2 boiled eggs at a mini-mart rather than get 12 for the same amount of cash and boil them myself is RIDICULOUS. Yet, the high priced packages are there, so someone must be buying. Bagged lettuce is a perfect example, with 1/4 head lettuce in a $4 bag.

[Miss Phode]

Re: A different sort of challege.

I'm guilty of buying bagged lettuce. It's one of my guilty pleasures. LOL

[Atkid]

Re: A different sort of challege.

Okay, that will be my commitment this week, no bagged lettuce.

[ValidRouge]

Re: A different sort of challege.

So, last night I sat down and evaluated my financial situation. I don't know exactly what I'm going to do about it, but I at least know a little better about what's going on.
1. We're in good shape as our mortgage, credit card, and consumer debt is only 28% of our income.
2. Our wastefulness comes in eating out, me buying clothes, DH buying tools, and buying DSS toys he doesn't need...and paying for housekeeping.

I think we can do a lot better on eating out, shopping, but the housekeeping...I REALLY REALLY don't want to give that up, because, frankly, I'm messy and I'm not a good housekeeper.

Umm, I have the paperwork here today to increase my 403b contribution to 15% from about 5%. That will get me started in one right direction which is retirement savings.

[boonie stomper]

Re: A different sort of challege.

I don't even know what a 403b is, but I'll bet you save a bundle doing the paperwork yourself.

I hate to do taxes, so after 3 years of not filing I gave in and paid a preparer 2 years ago. OUCH!
Sad thing is, I'm too lazy to do it this year, too, and did'nt file for 2005 yet. I could certainly save here....

[sadie147]

Re: A different sort of challege.

I just found a fun milloinaire calculator.
http://www.savingadvice.com/calculators/millionaire.php


It turns out if i start with my 1,000 of savings, and put in 150 a month:

It will take approximately 1144 months (95 years) to make your first $1,000,000.

wow that's great!! I'll only be 133


That site actually has a few really good calendars for figuring out how to pay down credit cards etc: http://www.savingadvice.com/calculators.php

I also calculated that my husband spends $1473.33 on beer per year.

[ValidRouge]

Re: A different sort of challege.

A 403b is like a 401k, but for teachers and staff at schools, universities, etc.

I'm very paranoid about the IRS, so that stuff gets done ASAP. This year we owe a *lot* of money because DH's business did really well and while we paid quarterly, what we paid didn't even come close to covering all of it. Ouch.

I honestly am considering paying a business/financial consultant $83 a month to help us set up the budget, do the taxes, tell my DH when and how much to pay to the IRS, and be the "bad guys" when he hits me up to buy a new $125,000 Peterbilt truck...or do major renovation (paint, sleeper cab, overhaul) on the truck he has now. They'll also tell us how much we should be saving for retirement, short term savings, business savings, etc.

[boonie stomper]

Re: A different sort of challege.

If inflation is only 1% every year, in 100 years that $150 will only buy 1 case of beer. ($15 worth).

[biogeek]

Re: A different sort of challege.

I buy block cheese and shred it with my food processor. Very easy & fast!!

Joy, I think $83 is well worth the price for what you'll get. A long time ago, we paid one $150 a month to get us started and organized. My DH also has his own business & so far has managed to pay very close to what he owes each quarter. Having the "bad guy" tell your hubby no is a good idea, too. It shifts the blame off of you. By the way, I would NOT give up the housekeeper!!! If there was ever a job that should be handed out, that's it. Being financially saavy does not mean you got to give up every little luxury. I consider a housekeeper a vital necessity!!!!

Jen, that's a lot of beer!!! Does he have a kegarator?

[ValidRouge]

Re: A different sort of challege.

I'm guilty of both those convenience foods....shredded cheese and shredded lettuce. And, most of the time it goes bad before we eat all of it.

Biogeek, I definitely have to get the bookkeeping OUT of our 'marriage'. It's just causing too much trouble, and I think that having an unbiased, professional making recommendations or vetoes would solve so many of the problems.

The housekeeper has to stay I think. I'll make it up out of the money I'm going to save shredding my own lettuce, cabbage and cheese

[sadie147]

Re: A different sort of challege.

Jen, that's a lot of beer!!! Does he have a kegarator?

LOL in in defense it's probably not as much beer as it would appear, beer costs alot more here then in the US ($18.50 for 12). Glad he he isn't a pack a day smoker, they cost $8 a pack here. that would probably clean us right out! I used to smoke, i always wonder where all the money went when i quit..i seem no farther ahead.


Joy, your 401b or 401k plans there, do they have a tax benefit? we have something similar here, an RRSP, that if you contribute too, you get back tax refund $$. Problem is...when you retire and you want to use the $ you end up getting taxed on it then (or anytime you pull any of it..i've had to do it..it's a pretty hefty penalty). I often wonder if the tax benefit is really worth it in the end? I keep my contributions to only $50 a month because i'm worried it's not really worth it. I contribute more to my company stock option plan.

I use a tax s/w program to do my taxes, I've tried before to do it manually..there's no way. our returns are 23 pages long..it's a nightmare!

[biogeek]

Re: A different sort of challege.

Joy, I'm glad you're going to keep your housekeeper! It's great coming home to a clean house after working hard all day. I gave up going to the movie theater to keep mine. We only rent or borrow movies now. We will, however, see Harry Potter when it comes out in July! Hope you get the financial advisor b/c he will also see if there's been any deductions that's been overlooked on your taxes.

Jen, our retirement plans have a tax/financial benefit. In the US, when you contribute to your 401k, it's done with pre-tax dollars, so your current tax level is a bit lower. You don't get a dollar for dollar tax refund for contributing to it. Also, many companies have a certain percentage that they match per dollar that you contribute. It does get taxed when you're retired, but at that time, most people are at a lower tax bracket than when they were in the working years. I'm very ignorant of the Canadian tax system though & had never heard of RRSP.

In the US, we also have IRAs that you can contribute to. There's the traditional and the Roth. Which to choose depends on how much money you make, how many other deductions you have, and whether you need the IRA tax deduction now or not.

[sadie147]

Re: A different sort of challege.

So the 401k does sound very similar, but my contributions are after my pay has been taxed, this is what annoys me. even though I have a tax benefit, if i pull any money i just end up paying tax on it again. It's just too much thinking for me maybe LOL. I hate the thought of paying more tax than i need too...though it's very nice to get money back at tax time!

[biogeek]

Re: A different sort of challege.

That plan kinda sucks! Are you sure that there isn't any more to that plan??

With the Roth IRA, the contributions are taxed along with your regular pay, so there is no immediate tax benefit. However, your contributions grow tax-free and the interest generated is also tax-free for the most part. It's usually free from Federal tax, but you usually have to pay state tax on the interest generated. Hope that makes sense.

[fancypantstomatch]

Re: A different sort of challege.

Regarding the people who live on $350 a month...

I used to be a total coupon ****, I used to be able to go into a store, get a basket full of groceries and have them give me money back. I found a pic I have of one of my reciepts:



(I had to buy them M&Ms so my total wouldn't be negative, they wouldn't give me money back )

(I got over $150 worth of groceries for 6c)