10 things ?Americans waste money on

Discussion in 'Too Hot for Swamp Gas' started by g8orbill, Oct 9, 2013.

  1. g8orbill
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    g8orbill Gators VIP Member

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  2. MichiGator2002
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    MichiGator2002 VIP Member

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    The federal government doesn't not appear on the list = bad list.
  3. exiledgator
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    exiledgator Gruntled Premium Member

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    Cars should be on the list, too.

    People spend waaay too much on cars.
  4. GT Gator
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    GT Gator Well-Known Member

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    I know what people contribute towards our 401k at my company.

    It's simply amazing to me how many middle-aged employees contribute absolutely nothing to our 401k (which has a very nice match), yet they drive brand-new BMWs, Mercedes, or other $50K+ cars to work every day.
  5. Gatormb
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    Gatormb Well-Known Member

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    Agree. I'm a every 10 years buyer.
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  6. philobeddoe
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    philobeddoe Well-Known Member

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    LOL ... federal income taxes, FICA, and medicare taxes ... should be #1, #2, and #3!
  7. asuragator
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    asuragator Well-Known Member

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    I've had mine for 10 years too...then again, it only has 42k miles on it. And my wife's explorer is 15 years old with only 64k on it.

    We try to live frugally and save, and are selective in some things we "waste" our money on--like good restaurants and good blankets lol.
  8. fastsix
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    fastsix Well-Known Member

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  9. QGator2414
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    I completely agree that not taking advantage of the company match is not a wise move. And I assume you probably know the salaries of these employees as well and are making an educated guess that they are living in the now.

    That said I am one that does not believe in tying a large portion of your money up in 401's unless you are close to retirement (better idea of what the government may do with restrictions) or can do a roth.

    We have no clue what the tax rate will be in the future and seeing we are almost $17 trillion in the hole I expect it to be higher. I like having more control of my money.

    That said a small pool of money in a 401 is a good thing and taking advantage of the company match is a smart thing. Multiple pools to swim in when you get to retirement is path I am taking... :)
  10. malligator
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    malligator Well-Known Member

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    u mad bro?
  11. gatorman_07732
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    gatorman_07732 Well-Known Member

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    And also having multiple cars. I can't think of a bigger waste
  12. malligator
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    malligator Well-Known Member

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    You mean multiple cars per person? My ex and I were a one car family for a long time. It sucked. A lot.
  13. philobeddoe
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    philobeddoe Well-Known Member

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    Okay, let's say both cost approximately $5 per unit, are you going to equate the nutritional value of a cup of coffee or variant thereof ..... to that of a deli-like sandwich? I think a $5 cup of coffee is extremely wasteful ..... relative to the simple black cup that I brew and drink at home ..... or drink "for free" @ work or a client's office. Now, a deli-like sandwich .... I've not found them for much less than $5 .... except at home.
  14. GT Gator
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    GT Gator Well-Known Member

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    Sorry, but I completely disagree, especially for a very low fee 401k like we have at my company.

    The order should be: (1) contribute to your 401k up to the match, (2) max out your Roth if it's available, and (3) max out the remainder of your 401k, and (4) max out a traditional non-deductible IRA if the Roth is not available. There's also the option of a Backdoor Roth IRA, if the investor doesn't have considerable money in a traditional IRA.

    While I do suspect the tax rate will be higher when we're 65+ (regardless of where you are now), assuming you have Roth's or other investments, you can plan your withdrawals from 401k that will keep you in the lower tax brackets.

    The advantages of a 401k isn't just current year tax deferrals, it's also ongoing tax deferrals on the appreciation. The tax on the latter can be huge for someone who is young.
  15. QGator2414
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    QGator2414 VIP Member

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    I don't disagree with having a 401 but tying your money up to government regulations is something I prefer to put a smaller amount of money towards.

    The backdoor IRA is too expensive for me to justify. If we had fewer employees I would consider it.
  16. gatorman_07732
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    gatorman_07732 Well-Known Member

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    Yes, we are a one car family because I work from home and just have no need to have a full-time care available. The demographics around here are such that I can ride my bicycle most places I go.
  17. philobeddoe
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    philobeddoe Well-Known Member

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    I guess it depends upon the types of cars. If some are "collectibles" they may not be a waste ... depending upon the owners financial situation and acumen.

    I own 4 motorcycles. This could be considered wasteful but fortunately initial cost and ongoing ownership/maintenance costs are not that significant relative to other tangible and real property.

    Now boats ..... having owned several ... I may agree that owning even one is wasteful.
  18. gatorman_07732
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    gatorman_07732 Well-Known Member

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    I certainly don't begrudge anybody doing what they want with their money. To me I look at material things that we don't need in day-to-day life that are a bit excessive. For me, I'd rather take the money and invest it in my children and I try to give what I can to charity. I really don't expect most people to live the way I do.
  19. GolphinGator
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    GolphinGator Well-Known Member

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    Really? Well I drive North for 16 miles to my office in Gainesville and my wife drives South 30 miles to her office in Ocala. It would be a real pain to not have two cars.
  20. gatorman_07732
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    gatorman_07732 Well-Known Member

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    That's not what I meant and clarified that to another poster. I was referring to multiple cars per person. Then I went on to say we have once care and expect most people to live like I do. I have not posted anything that can be construed as criticism.

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