I've been thinking about this for some time now. Thought I'd post it....
The way I figure it I have been using less than 1/2 of my actual income, perhaps as low as 1/4 to 1/3 of my actual gross pay. Uncle Sam and state/local gummint get about 40%, and with interest paid on mortgae, cars, CC's, and personal loans that puts my effective take home pay at about 1/3 of my actual gross pay. And when you do finally get it paid off it's not worth what you originally agreed to due to depreciation.This may be exaggerated a bit, maybe not, but you get the point.
If you figure in that $25K we had a 401K loan (now paid), it got even worse. We had to use post tax income to pay back a loan, with interest, and add in inflation and the fact that we bought fewer shares back at a higher price that we will have to pay taxes on again at the maximum tax rate in 20 years!!! That was by far the worst financial decision that we could have ever made, but it sounded good at the time. Never again.
I'm tired of paying 2 to 3 times more than the stated price, and plan on doing something about it.
We have a house, with mortgage of course, SL's, and decent cars that are paid. I vow to never again borrow another penny except for an unforseen financial/medical emergency. If I can't save for it and pay cash, I don't deserve it.
Rant Off.
