The History of Some of My Colleagues
At MegsDesk.com, not every person I worked with made it out like I did. When I think about it, when you live after a car crash or a ship sinking, it is quite crazy to know that the person that died was doing their best to live. Imagine if you were the person who died in the ship sinking or car crashing. It is quite scary to think of them in their situation.
I translate this into some of the realities of my colleagues. They did everything right, and now are stuck in a house that costs $200,000, although they only make $70,000/year before taxes, and still have to live off that income. Of course, they went for the cheapest mortgage, so they got a 30 year loan that inevitably has monthly payments that are manageable, which lead to interest rates that are low, which lead to long payments, which lead to lots of money lost. Even though they only had to pay 10% of the purchase price, $20,000, they still need to $180,000 back to the bank. Even though they have 30 years to pay that off, which should equate to $6,000/year of payments, which equates to $500/mo to pay it off. In addition, it is ironic to know that they have to pay $600, because of interest. Of course, they say $100 more is not much to deal with when you have a nice home and a good paying job. It is funny that if that $100 stays added onto their bills for the whole thirty year mortgage, that is 12 months/yr x 30 yr x $100/mo = $36,500 extra they pay for. Obviously, they calculated the cost and do not think $36,500 is much. After all, that is only half of one of their paychecks (more than half, actually). Now, it is funny that people believe that is not something to worry about. After all, it is one $1,200/year for interest charges for the house. In total, they are paying $7,200/yr for that house.
Now, it is not that bad for the home. What happens when you equate that mentality with every other purchases in their lives. This same colleague also has two cars that have a monthly cost of $600, which equates to $1200 in cost/month, which leads to $7,200/year for those cars. They also have a nice luxury grocery lifestyle, which equates to them spending $1,000/month in groceries, so that is $12,000/year in groceries. Already, they have $26,400/year in expenses. On top of that, they have four children that each take $500/month in expenses, so that is $2,000/month for all four children. This equates to $24,000/year on these children. This adds to a grand total of $50,400/year already. They have taxes of 50% on their paycheck, so that $72,000 paycheck already went down to $36,000, so she is already deep in the red for her yearly payments. Luckily, she has her husband to offset these costs. It is probably unfair to give her these expenses alone, so let us break that $50,400 into $25,200. She has $10,800 left every year if the cost is split between her husband and herself. This may seem good; however, do not forget that the husband makes outrageous purchases of his own. He is a doctor, so those extra golf carts and country club expenses still need to be factored.
The whole point of this lesson is that these individuals are very, very hard workers that inevitably are spending their paychecks on the enjoyment of life instead of rising out of their social classes, as I learned. I wish to rise out of my social class instead of constantly working on the plantation of corporations, military, or government. I choose to own the plantation instead of get on the plantation.