471–480 of 527 posts
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Vast majority by land area. Per person it isn't so clear cut. Many people live in the city and don't own a car because using a car in the city is somewhat impractical and the public transport options are sufficient.
That's really only doable in a couple cities in the US, though. Not having a car in Los Angeles, for instance, is extremely impractical.
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5 years? Not really. Pretty much any Japanese car made in the last 20 years, and domestic in the last 8 should last 10 years; 100/150k before anything major is needed. But, to run the numbers, get a the total cost of ownership (car payment, interest, and non-warranty or whatever maintenance) for a new/virtually new car, divide it over a span of the expected months of ownership (say, 60, 120, 180 months). Do the same…
If it were true that nothing major was needed until 100k or 150k then car warranties would be of that length. There are reasons why cars depreciate, amongst which are the fact that they need more money put into them over time.
I drove my last car to almost 300k miles and my current is at 240k miles. Of course there are major maintenance items but well worth it. When my car hit 200k I changed the timing belt, water pump, seals, etc. This is on a Lexus LS430. As expensive as it can get. Cost $1800. If I had a cheap car, it will be a $1000 job. Now you have to understand. Do I go get another car or spend $1800? Easy $1800. I'm at 40k more miles. What else have I changed? oil, brakes, tires. That's it. Nothing else!
Does it have issues? Meh. Navigation sometimes acts up and freezes which I suspect is the DVD but I can't be bothered. I use my cellphone in those rare moments I need it. Everything else works. All power seats, windows, heated seats, traction, etc And here's the kicker, it's a 2001. 17yrs old.
Most cars will hit 200k miles, some reliable ones like toyota, lexus, honda, will hit 300k easy with minimal maintenance. I rather spend $5k-$6k and add another 100k miles. :D
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> Keep in mind MMM started with a sizable inheritance to kickstart his nest egg Please provide proof of this. He's never mentioned it anywhere on his blog. > currently works full time talking about living frugally. This he has talked about: http://www.mrmoneymustache.com/2013/02/13/mr-money-mustache-... The tl;dr for others is basically, what's someone who is hardworking and driven enough to retire at age 31 actually…
I messed up on the inheritance; it was a house leftover from the house building business and used for rent and a sale later. Their own yearly reports put the second part to a lie - they would have to cut back significantly on their spending if they lost this income. It's possible for them to do without going homeless, but it would be non-trivial. His last reported year, his base costs (food, clothing, electricity, et…
He doesn't need a car that expensive and he can move back to Canada if health insurance gets to be too much.
He's inflated his lifestyle with his increased earnings (falling short of practicing what he preaches, though in fairness he says he's bought an electric car to support the industry but that's a way to justify the purchase), and would probably dial it back down if the blog stopped throwing off that much cash.
The highest probability for success for the 'everyday person': - Earn as much as you can from your own work. Take a 2nd job, change to a higher paying job, ask for more responsibility and a raise at your current job, go back to school for a more lucrative degree, ... - Spend much less than you earn. Economize, share an apartment, buy an inexpensive car, shop at Trader Joe's and Costco, .... - Learn how to invest. Thi…
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5 years is when maintenance and repairs start happening more regularly. Because these are labor intensive, if one lives in an area where labor is expensive, or if the opportunity cost of one's own labor/time is expensive, does this still make sense? Also, there are some really modern features like rear-view cameras, sonar, etc., which are pretty cheap in newer cars but almost impossible to find in older ones
5 years? Not really. Pretty much any Japanese car made in the last 20 years, and domestic in the last 8 should last 10 years; 100/150k before anything major is needed. But, to run the numbers, get a the total cost of ownership (car payment, interest, and non-warranty or whatever maintenance) for a new/virtually new car, divide it over a span of the expected months of ownership (say, 60, 120, 180 months). Do the same…
- you're including interest for the new car but not the old
- you're ignoring the residual values of the cars at the end of the 5/10/15 year periods
[edit: and the "cost" of that 3 year/2% loan is $623, not $8073]
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This has a flipside though. If you do manage to find success (and say, own a profitable business or have an exit), you'll be taxed into oblivion. It might not be the popular opinion on HN, but I would hate that. Make sure to structure things properly from the beginning so that you can leave when appropriate.
I guess it might slow you down from getting surpr super rich, but in the end it's surely worth it.
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The math is very simple, you need about $30k/year which is $50k pre-tax. That is 50 hours a week at $20/hour with no weeks of vacation + school. It is extremely difficult to make $50k/year with no degree or experience. That is almost the house hold median income in the US (2 people working). (Currently: $59k/year)
> The math is very simple, you need about $30k/year which is $50k pre-tax. This is wrong. $30k - $12k standard deduction = 18k taxable, 0% tax on 0-$10k, 12% tax on $10k-$18k = -960 taxes owed, then you get 2500 American Opportunity Credit or $2000 Life Long Learning Credit. So if you earn 30k as a "full time student" you would take home ~$31k less 0-10% state income tax on $18k
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It is impossible to 'work your way through college' now unless you are making $50k/year part-time. State schools start around $10k/year just for tuition. All in costs are $30k/year+. I'm so glad I went to school 15 years ago. Students today are totally screwed.
This is so untrue. I just looked it up, and costs aren't that much different than they were when I graduated in 2006: https://trends.collegeboard.org/college-pricing/figures-tabl... Looks like the median for tuition and fees at state 4-year schools is around $10k. My contention: if you can make ~$15k per year, you can put yourself through school. First, you can start at community college, which is very cheap in most…
The highest probability for success for the 'everyday person': - Earn as much as you can from your own work. Take a 2nd job, change to a higher paying job, ask for more responsibility and a raise at your current job, go back to school for a more lucrative degree, ... - Spend much less than you earn. Economize, share an apartment, buy an inexpensive car, shop at Trader Joe's and Costco, .... - Learn how to invest. Thi…
Small nitpick: You can always buy your own insurance. Obamacare made it harder to buy good high-deductible plans for yourself but even so, you can get your own directly. Don't go without health insurance, especially catastrophic coverage, unless rent and food are all you can afford.
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This is a good counterpoint and something my Dad points out often. He was very frugal, worked long hours and saved as much as he could so him and my mom could have a good retirement. She passed away at 42, so that never happened. He has so many regrets and wishes he invested more of his money & time in experiences with her while she was alive. I think there needs to be a balance. The trend of working crazy hours to s…
this happened to my family as well. The amount of money you can save by being frugal is very limited. IMO you're better off living a reasonable lifestyle and focus on income rather than expenditures.
The point is find eliminate spending on stuff that doesn't really make you happier, and focus on the things that do. Also, find cheap hobbies, reading, etc. etc.