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      08-30-2019, 03:08 PM   #72
biz77
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Location: Spokane, WA

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Quote:
Originally Posted by jillcooper View Post
It's true that it's not as free as most people think but has a look at it this way. & you would understand if you've got kids. Won't it be more convenient for you if you pay a 1.35$ for a product which is 1.25$ currently? then pay thousands of dollars intuition later.
Jill, I believe you are missing your own bigger picture. It isn't just about the 10 cents more on one item, but the 8% increase (per your own example) on EVERYTHING you earn.

For a very simple example let's say you make $100,000 per year from the time you are 30 until the time you retire at age 67. Under current tax law you would see an effective tax rate or around 16% of your income or $16,000 on that $100,000 you make. Now imagine that 16% becomes 24% to help pay for things like "free" college and health care. Now instead of $16,000 of your pay being paid in taxes every year, $24,000 is. A difference of $8,000.00 per year or $667.00 per month. Over the course of 37 working years that is $296,000.00. How many kids can you put through a decent state school for that? Let's not even get into what could happen to that $667 per month if invested over the course of 37 years.

I have two young children, so I do understand. They are four years and 1.5 years old. My entire family has already started saving for their education/future needs (whatever they may be.) It's usually a few hundred dollars here and there. When my wife and I get bonuses a good portion of those go into the pot.
We have great careers that we have both worked hard for and are paid well in return. That said, we live within our means so that we can put money away for things we want/need in the future. We have the means to go out and buy things like brand new premium ($100,000) cars, but choose to spend money on things like personalized in-home care for our children instead of putting them in more affordable daycare and saving for our retirement and the kid's future needs instead of buying a bigger house, fancy boat and new cars. It's called budgeting and priorities. Anyone can do it.
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