Thank you for your comments and interesting discussion points. I think this forum is a fantastic opportunity for people to share what they are doing and see where they are lacking
Interesting that some commented on the tithing allocation. I am Jewish so without a detailed discussion on talmudic financial law there is a special mitzvah (commandment) to calculate a portion to be used for tzedakah (charity). Fortunately, there are no issues in my life which would necessitate transfering charity funds towards personal expenses. Should the need arise I would transfer the funds. For those who are interested in the topic, there is a commentary in the Mishnah called Pirkei Avot( Sayings of the Fathers) which details ethical concepts applicable to life, family and business. Once such concept is “Where there is no man. . . be that man.” In other words, if there is a situation that necessitates fixing and there is no one to fulfill that need than one should become the person that fulfills it. Having the opportunity to change people’s lives firsthand is an investment opportunity that gives a return greater than can be accomplished otherwise.
Not to be off subject, but the Talmud suggest that Jews hold there monetary assests in three categories: Real Estate, Personal Business and Cash.
Why? Real Estate is an investment that may appreciate and be bequeathed to future generations. Business. . . .well that’s obvious to have reserves and funds for growth and expantion as well as funds during credit contractions.
And Cash. . . . a Jew should have the funds to take advantage of a buying opportunity below market prices. . . and hence. . “Jew” down the prices 🙂
Now you know why Jews and Macy Sales are like peas and carrots 🙂
As for food, Yes I do eat well. Our diet consists of Trader Joe’s and Whole Food products. I know most of us would put cheap gas in our cars, however, I made it a priority to have the best foods for the family.
My wife is a full time worker (in the home) and will be that way permanently until the kids are off to school. Our rent is in a Rancho Bernardo with access to shopping. Someone mentioned cheaper rent I have yet to find an area that has a 3 bedroom with a high rated school district for $1,500 that does not share various unsavory elements as well.
The student loans are in a paydown plan of 2 years. After graduation I had $35,000 in debt from a private institution with a 2/3 academic scholarship. I decided to commit to paying the loans down and upon repayment transfer the funds for our children’s education and enrichment fund. Although economics teaches you how to survive, a rennaisance education is one I value for my children.
I have an S-Corporation and I do take advantage of every tax loophole my account can find (Jewish of course!) As a salesman I expense insurance, gasoline, car repair, car washes (did you know they are deductible as well), as well as office equipment while keeping enough reserves to pay quarterly estimates.
What amazes me is that without the coporate shelter. . . . I would be behind
even more.
So how can this economic structure continue without producing a dependent mass of economic slaves? How can asset prices continue to be appreciate at levels inconsistent with historic price fluxuation? Have we sacrificed the middle class on the altar of economic globalization?
Politically we are in a Middle Eastern great game for resource control? What if Iran stops pumping? How will China, India and Pakistan fuel their economic growth via modernization? How can a populace survive a credit contraction when their savings rate is negative? When the credit pump stop. . . . what will they do. . . . as Greenspan said, “History has not dealt kindly with long periods of low risk premiums.” In other words, we are witnessing perhaps the biggest wealth grab from the incompetant many to the corrupt few in history.
My concern is that my family and children will be financially protected against market fluctuations and potential systemic risk to global financial and political systems. For this reason I feel that the debt free model is ideal until it become cheaper to buy than rent.
