My relatives make 20k a year, and live better lifestyles than me making 100k

[heavenlyboy34]

the folks above who have touched on finding a better student loan agency are right. I am in the process of paying back my Sallie Mae and Direct Loans loans. The payments are only a little over $100/month for each (~$200 total), and over time the minimum payment has gotten lower. (with DL, my minimum is now 0, but I keep paying because I want it over with) If I had my druthers I'd consolidate with Direct Loans because their service is better-but it seems more hassle than it's worth.

[Roy L]

take a guess at what happens to societies that have shrinking incentives to accumulate wealth?

They thrive, because "accumulating" wealth usually means engaging in wasteful rent-seeking behavior, not PRODUCING wealth. Look at the trillions the banksters have accumulated -- i.e., shoveled into their own pockets -- in the last four years, with not a jot of real wealth production among the whole lot of them. How is that workin' out for ya?

[onlyrp]

You're account of making $100,000 a year not adding up to much seems pretty accurate. Unless you are rich, the money you make usually only covers the basics. Jobs just give you enough to afford to make it back to work the next day.

he didn't say "just cover the basics" or "not adding up", being able to pay student debt and donate 10% of your income "cheerfully" to charity, is not "just the basics", of course he won't tell us how much he's saving up. So how about you tell us what your situation is now. What do you make now, what are your current expenses, and how much do you save a year? I'm not asking you whether you are motivated to keep working or whether you have more than basics. I'm not letting you get away easy by keep saying "I got just the basics". I expect from the both of you, actual numbers and actual items.

I'm not sure about your account of people making $20,000 year. I don't know anyone making $20,000 a year who can live on their own without assistance. People making $20,000 a year don't afford nice apartments or shop at whole foods. They live with their parents.

He didn't say they have nice apartments, but he did say they get $10k "back" from the government for having kids. I'm not sure if $10K is going to outdo the cost of having kids, so I'd still want to hear how he gets the idea they are better off than him (or even better off than your brother).

You are right that you are being scammed, but the people making $20,000 are being scammed too. People making a good living with a good job should be able to afford more than the basics. People doing hard labor should also be able to at least make a living and afford the basics without government handouts.

This is where the two of you fundamentally disagree, he seems to suggest government handouts make people making $20,000 better off than him who makes $100,000, he has yet to account for the actual details.

[onlyrp]

My account is completely accurate. My parents have been frequently sending money to my brother who makes roughly $20,000 a year. And he is stingy too. He doesn't waste money on anything. One thing you should consider though is that this guy apparently lives in Kentucky. My brother lives in L.A.

I understand living in Los Angeles and Connecticut may be higher than many other States in the country (such as Kentucky). I don't doubt your brother actually gets money from his parents, so I'd love to hear more details.

From you, how much do you make, and how much do you save a year (now)?
What are your brother's expenses, and how much assistance does he get from your parents? (I mentioned earlier in the other thread, your brother's income may qualify him for cheap rent apartments, about $600 a month, I know people who live there, they're small, but that's how you "live within your means")
How exactly does this guy's relatives get "better off" by whatever handouts they qualify for?

[rockerrockstar]

Wasting 10% percent on charity and church seems to be a big problem. Why are you giving away money to them when you need the money. You should help yourself out before others.

You student loans seem excessive I guess that is for two people. If it is a grand each maybe not so bad. But still seems high to me. Why are you paying more than the minimum payments the interest rates should be super low on school loans and the interest is tax deductable. You should wait tell you have a good pay raise before paying extra on these.

[onlyrp]

Wasting 10% percent on charity and church seems to be a big problem. Why are you giving away money to them when you need the money. You should help yourself out before others.

You student loans seem excessive I guess that is for two people. If it is a grand each maybe not so bad. But still seems high to me. Why are you paying more than the minimum payments the interest rates should be super low on school loans and the interest is tax deductable. You should wait tell you have a good pay raise before paying extra on these.

He doesn't need a pay raise, he already is committed to paying it off in 10-15 years, so it sounds like he's paying as much as he can. Many people have already said, he shouldn't donate, not deduct it on taxes, and then complain about it. I don't want to keep speculating, I just want him to show more numbers if he wants any sympathy points.

[AceNZ]

You guys keep leaving out state income tax, which is 6% in my state. We're actually looking into moving to a state with no income tax.

One of the few sane things in this thread.

To the guy who suggested getting a house for a mortgage deduction, we hate debt, and want nothing more than student loans. When those are paid off, we are not getting into debt again. Besides, the 1k a month we pay for rent is far cheaper than the mortgages on the 400k+ houses in this part of town. To find cheaper rent or houses requires us to move so far away from work that we can't walk and bike to work anymore. We'd end up paying more in gas, car expenses and stress from traffic.

You pay more, but you also build asset value while reducing the high effective tax rate you're complaining about.

I am intelligent enough to know about itemized deductions. If we went this route it would have saved us a thousand dollars or so. Big deal. Did not want to itemize for $1k in savings because most IRS audits are geared to those who itemize. In short, I do not want to risk the headaches for $1k in savings. If it were significantly more than that, then of course I'd itemize.

You've got to be kidding me. You're bitching about high tax rates and you're giving the gov't $1K more each year than they legally require?

Oh, FWIW, the risk of audit is not necessarily higher just because you itemize. Even if it was, tax audits aren't the end of the world. You're really so afraid that you're willing to throw away $1K a year to hopefully reduce audit risk?

The student loans are well over six figures. In the line of work one of us is in, most students graduate with over 150k in loans, lots of them over 200k or 300k.

I hope your degree wasn't in finance. If it was, man did you get screwed. Truly, based on the comments in this thread, it's no wonder that some people have a hard time getting by on $100K/yr.

[AceNZ]

I am not going to stop giving to church and charity so that I can buy a laptop.

OK, I understand.

Let me restate what you're saying: it's more important to you to give money to people who didn't earn it and who you probably don't even know than it is to provide for yourself and your family, and in the process also support people who actually work for a living, doing things like building, selling and shipping computers (and everything that goes into them).

Gotcha.

In case anyone is wondering WHY the gov now takes 28%+ in taxes, it's exactly that same kind of logic.

[MadOdorMachine]

I think the OP is right to a certain degree. I have a sister in law who has no job, has 3 kids (and a 4th on the way) by the same man and isn't married. The boyfriend has never had a steady job either - most of the time he's unemployed and running the streets. She and her kids live in the same house which my mother in law owns. Their cupboards are overflowing with food, they have free medicaid and even get perscription drugs prescribed to them on a regular basis. I once asked my sister in law why they don't get married. The answer - because she would lose all the wellfare. We live in a society that encourages this. It's bad for the economy, but even worse, it's creating a generation of father-less children. It's destroying the family.

I don't know what his financial situation is (debt vs. income ratio) of the OP, but he has a much better chance at being successful in the future. Renting right now and paying off your college loans is a great idea imo. I do think you should buy a house/condo eventually though even if it's a cheap one. If you own your house, that's one less bill to pay.

[JuicyG]

OK, I understand.

Let me restate what you're saying: it's more important to you to give money to people who didn't earn it and who you probably don't even know than it is to provide for yourself and your family, and in the process also support people who actually work for a living, doing things like building, selling and shipping computers (and everything that goes into them).

Gotcha.

In case anyone is wondering WHY the gov now takes 28%+ in taxes, it's exactly that same kind of logic.

I believe God is pretty self-sufficient. Don`t think he needs money. I also don `t believe he needs money to spread his message since he`s all powerful and all mighty.

Regarding charity, I believe you can really make a difference once you`re self-sufficient yourself. You`re not self-sufficient if you still have credit and loans to pay.