According to recent data, income, and consumers have more money. They also take on more debt for the first time in three years. Financial experts say the increase in borrowing may be associated with the acquisition of vehicles and pay for college. We bought a new car this year, so our son can earn money for college pizza offer. This may have to borrow money for higher education.
There are six digits of the minimum wage in nine?
While I admire people who live on fixed incomes or minimum wage, I have no idea how they do it. When I was younger, I was on the payroll only $ 19,000 a year. At that time I had no mortgage or two sons in college. At that time, the high cost of child care has taken a big chunk of my salary sorry. However, I never thought we would have trouble living on $ 100,000.
What happens to my net worth?
I always thought that my net worth increase, as I made more money. In fact, I thought that six-figure compensation that the "barrier" means that we will be financially set. Nonetheless, our net worth has fallen since the burst housing bubble. Our house is located on the "responsibility" next to our table on equity. While stocks recover, our retirement accounts do not reflect the balance, I would have expected when we won six figures.
Why can not I have money to burn?
My lifestyle is not extravagant. We spend less money on clothing, entertainment and everything that is not necessary. We do not have money to burn because of the high cost of gasoline, car insurance, food and education. We also have a higher tax bill every year.
Accommodation: We live in Tampa, Florida area where we had a house built in 1800 square feet at the top of the housing bubble. I feel so much richer if I could take the $ 183,000 we spent seven years ago and bought a house twice now in a better neighborhood. Some of the houses in my subdivision have been destroyed. I never thought I would see broken glass sliding doors, and graffiti on the walls of houses that people had to get in line to buy. The houses were such high demand that we put a deposit $ 3,000 on our land in the center of the model builder's home, before you even see the unit. In an attempt to stay above the water on our mortgage, we pay an extra $ 250 a month in mortgage company. Thus, we at least be able to move if we need in the future without destroying our credit.
Costs: Our fixed costs are $ 350 per month for utilities, $ 300 for car insurance, $ 175 for the Internet, cable and telephone. We need $ 1222.02 per month on our mortgage and $ 300 a car loan. We have no other debts. We save 10 percent of their income for retirement. We spend at least $ 500 a month for gasoline and a whopping $ 1,000 a month on food. I feel if I was rich in prestigious restaurants there or purchase delicacies, but our food budget is the basis for all four.
Education: We spend about $ 15,000 a year for tuition and books, to send his son to the two colleges. When they transfer to a university next year, these costs will more than double. My oldest son is paying $ 5,000, or about half of the training, because it has a part time job, but my younger son was not able to find a job. I feel rich when I struggled to send her son to an Ivy League college, but it's just college.
We bought shares to finance the higher education of our son, but the action was a step. We hope that their share prices will recover to help pay for the last two years of college. We do not want to see student loans, but they may have no choice.
But it is not bad
Although we have many expenses, we were able to stay out of debt. I am sure that if we did six figures, we would fall into a debt trap. Experts say that people tend to take more debt if they have more equity in their homes. Despite the value of our house begins to grow, one day, I now feel comfortable with more debt. Instead, we are going to be free from our mortgage debt over the next 10 years.
I can not have money to burn, but I hope to be able to use something before the tax man takes his share.
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