How do you distribute your take home pay?

It's interesting if I count the $$ spent on alcohol (weekends) , I could actually buy air fares to various cities with that money over 2-3 weekends. Sometimes less even less....

 

Never, huh?

I feel like that might be a tough principle to sell to some of our CFs in NY, DC, Boston, the SF Bay Area, etc...

 

I have cousins who have lived or currently living in Chicago , SF . It's amazing how much cheaper the rent is in TX for sort of similar location and type of housing.

 

The decision to rent vs buy is not that black and white.

 

I know, right?

People prescribing to each other definitive rules on how to spend/save their money, with zero context or situational awareness, is pretty lulzy.

My housing cost literally doubled moving from my home in Houston to my apartment in DC. But I budgeted for it accordingly and I'm not any worse for wear. In fact, I'd say I'm much happier overall.

 

Most certainly. Mine isn't anywhere near that. Mine is $278 a month and that includes water (and hot water - we have shared boilers), insurance (walls-out), landscaping, maintenance (anything inside walls), 24/7 security and basic television. I've broken down the cost, and it almost identical to what I would pay if I paid all of that stuff on my own... with the added benefit of dudes cruising around in golf carts 24/7.

Owners of those expensive condo buildings and properties sign long-term leases with management companies and split the profits with them. They gouge you for everything they can.

Housing is insane on either coast, and that is why nearly every Texas city is booming - as people abandon the crazy costs of living elsewhere.

I spent 10 months in Chicago last year for work, and was contemplating relocating there. After looking at the cost of living differences, I'd need to be paid nearly double what I make to live at the same level there. I would have been offered 10-20% increase... so NOPE.

Of course it isn't, but many, many people are renting or leasing when it would make far more financial sense to buy. For those people, it doesn't make sense to me. Especially in a owners market like Houston. You can buy a house with a 30 year mortgage that would be $700-800 a month, and rent it out for $1300-1500 a month without issue in most cases... because rental properties fly off the market just about everywhere in Texas, especially Houston.

 

8% into retirement
10% into student loans
6% into car note
20% into credit card bill (gas, food, entertainment)
The rest goes into active trading account

 

This is impossible. You get taxed at marginal tax rate you are only pay 28% of the amount you make over 87k. So if you make a 100k you are only taxed at 28% on the 13k over 87k. The 87k below is taxed at the marginal rates at the lower levels. There a few exceptions you lose like the education deduction etc. if you make too much money.

Its not like you pay 28% of entire 100k . Your real tax rate is much lower.

 

I think there are many economists now that recommend renting over owning. In DC, I rent expensively, and I enjoy my life quite a bit. I do agree that you can build equity and improve your lot in life by owning, I've seen it, but equally seen many trapped by it. No longer is graduation, marriage, home ownership and children the prescribed route for young people. For many, homeownership must wait. And in the future, I believe the trend will continue to move away from the traditional trends. More singles. More movement. Less staying put.

 

100% to family expenses

 

my life was much more stressful when i stayed in a house. something always seemed to be broken, the yard always needed attention, going on vacation required a house sitter. i rent for a bit more and truly enjoy the freedom renting can provide. home ownership was a burden to me.

 

Dude. Rox-Wiz next year. We are there.

 

Yup, owning a home isn't an asset unless you're making money off it. I'd really like to buy honestly but my rent is literally $1,000 under market value (literally man - serious) and the math just doesn't workout. I do keep an eye out for property I can rent out though. But even then the margins are slim inside the loop right now.

 

Yea, it's not as much when you factor out how much I win,, probably more around 1100/ year. It's a long term investment for me.

 

gotta be trolling. lol.

 

The difference is in the return. In the 28% tax bracket my return in less than half it was in the 25% bracket. At the end of the year, I pay far more than the 3% difference from the 25%-28% tax brackets.

 

Yeah, home ownership always being a good thing under any and all circumstances is a myth - especially when you're single.

I wish I had held off on buying a house until I got married and started a family. I wouldn't be stuck with the house I'm currently renting out. I'm breaking even with the tenant paying down my mortgage, but I could sure do without the headache and constant risk.

 

doesn't that mean you just way overpaid when you were in the 25% bracket. the ideal return is 0.

 

Regardless of if my return was zero, and my taxes were taken in and paid perfectly (which is impossible with every day variables) I'd still be paying in far more than the 3% difference between the brackets. That's the point.

 

Agreed. I was paying about $1,900 per month for a house off Richmond/Weslayan.

Then I bought a house. After property taxes, interest on my home loan, homeowner's insurance, repairs to my house, etc..., I waste just about the same amount of money on those things.

Not all it's cracked up to be! Though the house is bigger