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= F.U.C.K. - Fucked Up College Kids - Born Jan. 24th, 1993 - F.U.C.K. =
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Can Any of us Get Ahead in Our Lifetime
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The 1997 year has come to a close and once again it is time for me to
figure out how much the taxman is going to take. I did pretty well
this year clearing just over twenty-eight thousand after taxes
(Federal, State, Social Security, and Medicare). My earned income
came from two jobs and unemployment compensation. Imagine making
forty thousand dollars but only being able to keep two thirds--that
is the power of taxes. I wonder how many people actually try living
off their gross instead of net income? Quite a few I'll bet.
I don't have a budget or bother with trying to budget money. People
who tend to have credit problems or spend beyond their means should
worry about budgets. I tend to be what many would call a "tightwad"
or "penny pincher." Course I don't like the name being tagged on me
even if it is true. I guess it's from growing up the way I did--
always saving. My family always saved yet we never had any new cars.
Even though we had the money my dad often didn't like seeing my mom
buy new things he felt "we" didn't need. Back in 1987 my mom bought
me a $150 walkman which my dad threw across the room in rage when he
discovered the price. He couldn't relate to "buying the best"
especially when one could settle for a $30 walkman instead. Course I
should be thankful since my parents saving helped pay for 85% of my
college education (which was at a public, in state, university).
This brings us to the question of what the hell did I do with the
remaining money the government let me keep? Well, in 1997 I invested
17.5k of the money into stocks and mutual funds. I lived off the
other 10k plus a couple thousand in interest from savings and cashing
bonds.
Living at home for the first couple of years during my career allowed
me to save most of my paycheck, which I then invested into stocks and
mutual funds. No kids, wife, or student loans also helped. I
estimate, given an average market I may be able to reach my one
hundred grand goal by the turn of the century. Then, with the power
of compounding, the money will double every seven to ten years. With
any luck I'll have a million dollars by the time I'm sixty. However,
it is very important not to get too carried away with money and
investing such that you aren't enjoying what you make in the present.
Of course it seem that not many people have to worry about this.
I invest so I can afford that house, car, motorcycle, etc. down the
road. I also invest to have a security blanket. Working long hours
or doing something I despise is a trap I want to avoid. Having some
savings allows me to not have to take anyone else's shit. The bottom
line is to not fall into the "slave" trap where you HAVE to work and
are living paycheck to paycheck.
Some people only save money through their employer's pension plan.
This is a great tax free way to save--especially if the employer
matches contributions. It is also a good way to keep employees
around a long time (nothing wrong with that unless the employee hates
their job). Unfortunately, people rely on these pension and social
security payments too much rather then attempting to build their own
investment program and safety net.
I make a decent wage compared to the US average. When I hear about
people making 20-30k before taxes and have a 100k home I wonder how
they are surviving? Paycheck to paycheck? A thirty-year mortgage
means you will probably be paying 250-300k for a 100k house! Run the
numbers and find out for yourself. Rent, insurance, car maintenance,
food, and the bare necessities cost me 12k a year and I'm a
"tightwad." Throw in a house, wife and kids and I'd probably be
living paycheck to paycheck.
Think about it for a moment. Are you controlling money or is it
controlling you? If you lost your job and were out of work for a
month would you survive?
Life isn't always hard roads or happy times. It's a mixed blessing
of the two. I believe it is important to enjoy the hear and now but
I also believe one can overdo a good thing. Invest a good 10-25% of
your earned income, keep a two or three-month survival fund (savings)
and enjoy the rest while you are able to.
EPILOGUE
I wrote the above in early 1998. Now, ten months later, and looking
at today's depressed stock market I'm staring to wonder if I'm
kidding myself about "getting ahead." I realize, and you should to,
the stock market is a long-term investment. However, I can't help
theorizing about conspiracies of getting people to invest their hard-
earned money into what may turn out into a bottomless pit where only
the rich reap the benefits. Could it be someone's sick idea of
giving the working man a false hope for a better tomorrow? Promising
early retirement and more money then they can spend in their time
left--the good life we all seek. Perhaps the market is a false
prophet or maybe it is another way for the rich to siphon funds from
the middle and working class. Hell, I don't know where I get these
crazy ideas from but I do know that I will continue to invest.
However, from now on I'm going be a little more cautious especially
when it comes to high tech stocks.
Still in the ballgame and playing to win,
Pallbearer
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