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Hmmm Can we be rich?

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  • Hmmm Can we be rich?

    Heres the deal.. Im a southern boy of the ripe age of 21. 75% thru the Police acad. I work for a BIG S.O. My start Pay was 34,443. After FTO I can start doing details and cashing in on some easy money.

    I live at home for the time being untill I find a house I like. But.. I have a Knack for TOYS!!! I have a Lifted F250 and GUNS and BLa bla bla.. When I think about buying something My friends and family say "YOu can do that" or "You cant AFFORD that". I have a list of things i want... I am goin to tell you what they are and I want you to tell me how you make Xtra money.(Invest, Details, side job, etc..). and what your wishlist is.....

    1. House in the 200's
    2. Fishing Boat 10k
    3. ATV 3k
    4. RETIREMENT FUND..... $$$$

    How I make extra money
    1. Work on cars (Body work and paint)
    2. Buy and sell cheap cars
    3. DETAILS!!
    4. The Florida state retirement system

    Im just so sick of people telling me that I cant do that.... I HATE THAT... I wanna have fun on and off duty.. Even if i dont make 150k a year from the SO...
    X8

  • #2
    LOL @ "house in the 200's"

    you can't buy it if it doesn't exist (at least here in california) lol

    Pay yourself first before anything. Sock away a designated amount into an investment account (roth ira maybe?) every time you get paid - maybe 10%. If you commit to that at an early age, over time it'll build up to a nice amount...

    Comment


    • #3
      Being rich does not mean being happy. Spending all of your income on toys, so you can work more to afford more toys, is silly. What happens if you are in a wreck and can't work for 90 days, or a year...or ever again?

      Live within your means now, save for the future...then you can enjoy retirement. Get any book by Dave Ramsey from your local library.
      My posts are sometimes educated, sometimes informed, and sometimes blowing smoke...but they are mine and mine alone and do not reflect on anyone else (especially my employer).

      Comment


      • #4
        Originally posted by KeperODSea
        Hmmm Can we be rich?

        Yes, but the process is a crock pot, not a microwave.

        I probably would not have listened to financial advice from an ‘ol sarg when I was your age either, but since you asked I hope you take a few minutes to read my kind of long response to your question. I am doing well financially now but that was not always the case. I wish I would have followed my current advice when I was your age.

        First, read a book titled The Total Money Makeover by Dave Ramsey. The principles in that book have changed my mine and my wife’s financial life forever.

        PLEASE take advantage of your youth and get your priorities straight. You have your list WAY out of order. Retirement savings should be far ahead toys on any list resembling financial responsibility.

        Please do not rely on Florida Retirement System, or any employer pension, as your sole financial plan for retirement. I too am in the FRS but I also max out my contributions to a Roth IRA, as does my wife, and I have a sizable deduction from each paycheck go into deferred comp.

        Unlike most government employees, I have made it a point NOT to depend on a pension when doing retirement planning. Life can change in an instant and to put all of one’s proverbial eggs in one basket would be foolish.

        I certainly expect to finish a 25 to 30 year career in law enforcement and to receive a pension. However, if the unexpected happens and for what ever reason that is not the case, I am confidant that I will still be able to retire with dignity regardless of events that might force me into another line of employment with no or a reduced pension benefit.

        Don’t EVER let the government or your employer, even if it’s the same entity; be responsible for your retirement. We are all responsible for ourselves. Whether you are 18 or 58, start saving for retirement NOW!!!

        When it comes to toys and cars, or anything other than my home for that matter, if I can’t pay for it, I can’t afford it. I refuse to go into debt for any reason other than my house and I plan to pay that off as soon as possible.

        Buy what you can afford to pay cash for, not finance. Don't be suckered in by zero% interest, low interest or employee discounting. Especially don’t buy into the downfall of the middle class financial stability factor that car payments are a way of life. They are not! Did that a few times in my life…never again will I have a car payment. It’s not an income issue, I’m a cop, it’s a financial responsibility issue.

        I know some of this sounds so contradictory to the “normal” way of life but normal is broke in America today and debt, another word for broke, is something I will not be a part of.

        Instead of giving my money to banks, credit card companies and finance companies, I keep it for myself. I would rather make me rich than a bank.

        Good luck.
        Fear not the armed citizen but rather the government that tries to disarm him.

        Comment


        • #5
          Originally posted by firemanjb
          Being rich does not mean being happy. Spending all of your income on toys, so you can work more to afford more toys, is silly. What happens if you are in a wreck and can't work for 90 days, or a year...or ever again?

          Live within your means now, save for the future...then you can enjoy retirement. Get any book by Dave Ramsey from your local library.
          Well, that was gonna be my answer, but i saw that he was young... NOT dissing young people or anything, but it took my getting older to realize that my possessions were not what made me happy.

          When i was finally able to buy my own home, by myself, i bought something that i could afford without working overtime, and still being able to go out to eat now and then, and shop a little too. The realtor had told me i could afford MUCH more (of course) but i didnt want to be "mortgage poor," as my dad used to say...

          I think the only real way to make tons of money, is to work tons!! My BIL believes in investing in the stock market, and he has either been lucky or smart, because hes done well. they also scrimp and save at home, buying only during sales and with coupons...but their 'thing' is not possessions, its travel. So, they own (one) older used car, an older house - kept very nice, and they travel all over the world, even moreso now that they're retired.

          When i was married and had two incomes, we had a nice house, a great boat, an awesome motorcycle, two brand-new cars...but not happiness. I would gladly turn in any of those things, to be happy...and i did.

          (and Detsarg...great post!)

          Comment


          • #6
            I agree with the above to an extent, however, you need to live your life as well. Im only 26 and will (hopefully) be getting a pension. I also have other savings, stocks, roth IRA, etc...

            I am about to buy my first home in a few months ($475,000). There are toys that I want and will buy. Can I afford them, not outright, but I can afford the payments. I will get what I want because its what I want and thats what I work for.

            Im not saying put yourself in dept. You still need to prioritize and save for retirement, however, you can still live your life and have what you want. Just remember never to rely on overtime or details, they wont always be available, and you dont want to spend all your time working with the boat and atv sitting in your driveway collecting dust...

            Comment


            • #7
              Originally posted by jmat1980
              I agree with the above to an extent, however, you need to live your life as well. Im only 26 and will (hopefully) be getting a pension. I also have other savings, stocks, roth IRA, etc...

              I am about to buy my first home in a few months ($475,000). There are toys that I want and will buy. Can I afford them, not outright, but I can afford the payments. I will get what I want because its what I want and thats what I work for.

              Im not saying put yourself in dept. You still need to prioritize and save for retirement, however, you can still live your life and have what you want. Just remember never to rely on overtime or details, they wont always be available, and you dont want to spend all your time working with the boat and atv sitting in your driveway collecting dust...
              You're already falling into the trap. You want things you can't afford, but you'll buy them anyway because you can "afford the payments." Yet, you're "not saying put yourself in (debt)." If you are making payments, YOU ARE IN DEBT. If you send a check to a credit card, even if you pay it in full, YOU ARE IN DEBT.

              Will you be able to pay for all of your toys if you are injured off-duty, and only draw a 65% disability check...assuming you even have ST or LT disability insurance?

              Planning on a pension isn't necessarily wrong...but planning to live on it is hard. You are probably already over-extending on the house. Assuming you pay 20% down to avoid PMI, you are looking at a $380,000 mortgage. At 6.0% interest for 30 years, the monthly payment, exclusive of insurance and taxes, is $2278. A bank will let you pay roughly 33% of your gross income towards housing, so your income would have to be $82,000 per year. Not too many cops make that...maybe you do after 3-5 years on, but for us, you'd have to be a captain.

              Ideally, your house payment should be about 1/4 of your takehome...which would mean your takehome pay would have to be about $9000 per month.

              Planning on your significant other/spouse to help with payments? What happens if one of you gets laid off or injured? One word: foreclosure.

              I know I can't convince you online...heck, you don't even know me. But take this bit of advise from a cop who's older than you and has blown plenty of money in the past. READ DAVE RAMSEY. You're young enough where you could see an amazing difference in your future.
              My posts are sometimes educated, sometimes informed, and sometimes blowing smoke...but they are mine and mine alone and do not reflect on anyone else (especially my employer).

              Comment


              • #8
                Originally posted by Jellybean400
                I think the only real way to make tons of money, is to work tons!! My BIL believes in investing in the stock market, and he has either been lucky or smart, because hes done well. they also scrimp and save at home, buying only during sales and with coupons...but their 'thing' is not possessions, its travel. So, they own (one) older used car, an older house - kept very nice, and they travel all over the world, even moreso now that they're retired.
                You're off just a bit, saying the way to "make tons of money, is to work tons."

                For most people, the issue of comfort and feeling wealthy is an issue of SPENDING, not INCOME. Most of us spend our money poorly and indiscriminately. Now, for the most destitute, income is the issue...but those of us with good jobs, it's a spending problem, not an income problem. Your brother-in-law is an example. They live with modest possessions, LOWERING THEIR SPENDING, which allows them to go on nice trips. They changed their spending, not their income.
                My posts are sometimes educated, sometimes informed, and sometimes blowing smoke...but they are mine and mine alone and do not reflect on anyone else (especially my employer).

                Comment


                • #9
                  Hey jmat1980,

                  It may sound a little like Firemanjb and I are beating you and keperODsea up but we are really wishing, very hard, that we knew at your age what we know now.

                  Originally posted by jmat1980
                  ...you can still live your life and have what you want.
                  I agree that you have to live your life and have fun. Saving all of your money like a miser is boring and no one is suggesting that. A small amount of time sacrificing by getting out of debt, and more importantly staying out of debt, living on a budget proportionate to your income and making reasonable contributions to savings plans are what we are talking about.

                  By all means, have fun and enjoy your life but don’t fall for the financial strain that WILL come with having fun by means of debt.

                  My wife and I started a plan to get out and stay out of debt several years ago. It took us about 20 months of REALLY tightening our budget and me selling my motorcycle for us to become debt free. It WAS SO WORTH IT!

                  A few years later, not having made a payment to a creditor in all that time, we have money! We don’t live paycheck to paycheck. We feel secure about our future. And WE HAVE FUN!!

                  We went on 4 out of state vacations in 2006. We even got to upgrade to first class on our last flight. The best part, we paid for it all with money we saved. Our vacations did not follow us home in the sense of a credit card payment.

                  Although I do not plan to, I could walk into any cycle shop in the state, even an elitist Harley boutique; um I mean dealership and buy, for cash, any bike I wanted.

                  I am not saying this to brag, I am saying that a short sacrifice of less than 2 years and a continued sense of responsibility with money has afforded us financial opportunities that, sadly, most cops will not get to experience. Not because of their income level, heck we’re all cops, but because of their out of line financial priorities.

                  Originally posted by jmat1980
                  There are toys that I want and will buy. Can I afford them, not outright, but I can afford the payments. I will get what I want because its what I want and thats what I work for.
                  I want you to have nice toys…I don’t want your nice toys to have you. Save up and pay for it!

                  Ok, I have preached enough so I’ll say it one more time, read My Total Money Makeover and Financial Peace Revisited by Dave Ramsey.

                  Good luck and stay out of debt!
                  Fear not the armed citizen but rather the government that tries to disarm him.

                  Comment


                  • #10
                    Originally posted by firemanjb
                    You're off just a bit, saying the way to "make tons of money, is to work tons."

                    For most people, the issue of comfort and feeling wealthy is an issue of SPENDING, not INCOME. Most of us spend our money poorly and indiscriminately. Now, for the most destitute, income is the issue...but those of us with good jobs, it's a spending problem, not an income problem. Your brother-in-law is an example. They live with modest possessions, LOWERING THEIR SPENDING, which allows them to go on nice trips. They changed their spending, not their income.
                    I agree with you...but i would then change it to say that's the way to "HAVE tons of money"...i think you still need to work to make a decent amount. then you can make it seem like more by cutting spending.

                    My mom and dad were the king of that...one income, never went in debt for anything but a house (and then a summer home also), but for both they had saved so much that their mortgages were small, and quickly paid off.

                    They knew how to "economize." (mom's favorite word)

                    But i dont think we'll ever change the Credit Generation. (which actually encompasses people from lots of generations!) Paying for credit on anything is like throwing your money away... add up what youre really paying in the long run...if you ever even pay it off...

                    And i also wish i knew when i was young what i know now. I didnt join the Thrift Savings plan at work for the first few years of my job, because i didnt want money i couldnt 'GET TO' now, if i needed it The postal service matches DOLLAR for dollar to a certain percentage, and then 50 cents on the dollar...both amounts of interest unheard of just about anywhere right now. Thankfully i got wiser as i got older, and get the maximum taken out. I just wish i had started at the beginning of my career.

                    Comment


                    • #11
                      Originally posted by Jellybean400
                      But i dont think we'll ever change the Credit Generation. (which actually encompasses people from lots of generations!) Paying for credit on anything is like throwing your money away... add up what youre really paying in the long run...if you ever even pay it off...
                      I don't think it's the credit generation...it's the credit culture. And we can change it...you, sgt and I all learned a new way of living. Heck, if I can learn a new way...ANYONE can do it!
                      My posts are sometimes educated, sometimes informed, and sometimes blowing smoke...but they are mine and mine alone and do not reflect on anyone else (especially my employer).

                      Comment


                      • #12
                        Thank you for shedding new light on my future.. I have made a plan....
                        Roth IRA after christmas
                        401K
                        OVERTIME WILL PAY FOR FUN TIME
                        X8

                        Comment


                        • #13
                          Originally posted by KeperODSea
                          Thank you for shedding new light on my future.. I have made a plan....
                          Roth IRA after christmas
                          401K
                          OVERTIME WILL PAY FOR FUN TIME
                          Close...you can BUDGET for fun time out of your normal paycheck. Just plan in advance how/when/where you will spend your money.

                          Go to the library and rent any book by Dave Ramsey...he'll give you much more insight than we can online. Or, visit his website www.daveramsey.com.

                          PS...Dave is so anti-debt that you can't buy stuff with a credit card from him. You have to use a debit card or send a check! Talk about living what you preach!
                          My posts are sometimes educated, sometimes informed, and sometimes blowing smoke...but they are mine and mine alone and do not reflect on anyone else (especially my employer).

                          Comment


                          • #14
                            Today's secret word is "Bankruptcy". Can you say bankruptcy? If not, you will.
                            God made cops so firemen would have heroes.

                            You do not greet Death; you punch him in the throat repeatedly as he drags you away.

                            Comment

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