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To: SeekAndFind

There are lots of things these two can do that don’t involve changing the tax code. I don’t think waiting for someone to “level the playing field” is a good financial strategy.

First, they should be maxing the 401k on both sides. 401k’s are usually matched by the employer making them increase much faster than simply saving up.

Second, student loan interest is somewhat lower than credit card interest in most cases. They could aggressively pay off the card balances as fast as possible while stretching out the student loan payments.

Even at a tax rate of 40% they would still have 150000 per year. They say the rent is 3000 a month so that says 36000 a year. 401k’s are often limited to four percent so if they maxed them that would be 10000. Student loans of 20000 at 8% paid off over ten years would be around 225 a month or 2700 a year.

Add that all up and they still have 100000 a year for all that living. That is very close to my and my wife’s combined gross income. We have debts too and costs and don’t have 1600 for a “fun trip.”

Close examination suggests that this woman has nothing to complain about and I actually wonder why anyone is bothering to read her sob story.


68 posted on 12/06/2012 11:04:53 AM PST by webheart (King of the Passive Voice)
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To: webheart

LOL. Yeh, when Hubby and I were saving up we didn’t buy any new clothes or yard sale ones either. Never took a trip or vacation - found a way to make extra money during the vacation time the company gave us.

Never even spent a dime on an ice cream cone. Never ate out even for special occasions. Ate mostly beans and taters or rice with cornbread and a slice of onion for supper. Other cheap protein and veggies for other meals.

Never steak or expensive seafood not even for special occasions cooked at home. Never bought a loaf of bread, since making it at home was cheaper. Did the laundry by hand to save on visiting the laundry mat.

Finally did get a hand me down washer and dryer when parents bought a new set.

We had a black and white TV hand me down and an old old radio, and a deck of cards for entertainment. Never bought a book or anything else we could check out from the library.

Lots of ways to save money that could be explored by this poor little overtaxed person. We have always made a lot less than $100,000, and paid in at the 40% rate when considering all the taxes. A person needs figure out how to get the goals in spite of the system-not whine about it.


77 posted on 12/06/2012 1:10:36 PM PST by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
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