Posted on 02/25/2024 10:47:42 PM PST by RomanSoldier19
ave Ramsey has fervently preached financial advice to Americans for decades — but younger generations are now slamming the white-bearded radio host for offering counsel that doesn’t quite account for the current cost-of-living crisis.
One frothy example is Ramsey’s vociferous renunciation of the daily cuppa Joe. In a 2021 blog post, he claims your coffee habit could be costing you $766 a year, and suggests folks should put those funds toward paying their your student debt, their investments or even a plane ticket.
(Excerpt) Read more at msn.com ...
The IRA Roth Is the way to go. But the Feds limited how much you could put aside when I was working.
Yes they do limit contributions. otoh, if youve every considered retiring Health care costs are what eats your budget up the quickest and healthcare.gov will charge you a payback if you take out too much of your 401k. because its “ taxable income” whereas your roth is not
I bought a mattress on Saturday. It was the most expensive mattress I have ever purchased in my life. There was another couple buying the exact same one as me. They chose to buy it with ZERO percent financing.
When it was time to close the deal I asked the salesman IF i would get a better price if I paid CASH or credit?
I did not want financing. He said no. He said he actually made more money IF I financed the purchase. Even though the company was willing to give me zero interest financing. So, I put it on my American Express card. He ended up cutting the price another $150 off the sale price and threw in a mattress cover.
Problem is when you withdraw Ira’s or 401k’s in older age, you end up having to tax a high portion of your Social Security. That’s how they designed it. You might as well have not received much of that SS that year.
If I were to do it again, I would only save in the government 401k type accounts to the extent my employer matched or rewarded it. Otherwise I would invest in long term bonds, CD’s , safe things and just pay the tax as it is due.
Taxes were much less when we were young and working than they are now when we have to pay tax on Required Minimum Distributions.
If you can’t find free coffee, you’re an idiot.
Walk into any hotel lobby, fill your cup, walk out the door. They have no idea who is and isn’t a guest. It’s everywhere.
Many people are afraid of that option due to the higher out-of-pocket they could pay. However, that cost is offset by lower monthly premiums and by contributions to your HSA.
Unlike the flexible spending dollars you get in a lower-deductible plan (like with a HMO), your HSA dollars do not expire each calendar year. Unused HSA dollars will carry over and you can grow them each year that you work.
In addition, HSA dollars can be invested (within the HSA plan) and so they have triple-tax benefits. You contribute the dollars pre tax; you do not get taxed on using them; and any money made on your HSA investments are also not taxed!
The catch is, HSA dollars can only be used for approved medical related expenses. Even after you retire. However, it's a nice way for those who can manage money to build a very substantial nest egg that they can use to offset out of pocket medical expenses during their retirement years.
Yup, but the government limited the amount I could stash away in an IRA Roth. So, in my case I could not benefit from the IRA Roth like I would have liked to.
I have a Keurig. A box of 24 coffees is $21.00. I buy the beans, ground them and use a Keurig cup. A pound of decent coffee is $9.00 and I get close to 75 cups of coffee. $21.00 a week vs $9.00 for almost two months.
That’s cost savings. Instead of buying four rice cups for $3.00, I buy rice in bulk and the same four cups of rice is around $.30.
If you do that instead of buying for convenience, your food bill goes own significantly.
Very good advice.
Somewhere around the age of 40 I reached a point in my life where I felt a need to scale back on my 401(k) contributions simply because I had other business-related needs and the restrictions on the use of retirement funds became an impediment of sorts. Even then, I always made sure I contributed enough to the company 401(k) plan to get the maximum company match for those contributions.
Wow, good to know! I knew that auto dealers always pushed you to financing, but not mattresses.
I just got another Visa card, this time from Southwest Airlines. I get 75,000 points after spending $3,000 (good for four, maybe five tickets!). That spending goal is easy to hit these days.
Af first, they gave me 10,000 points and a $200 credit. After my wife said “That’s not right,” I called to complain and they immediately switched me to the 75,000 point deal! They will credit me the extra 65,000 points and take away the $200 credit (which already shows on my statement), BUT I have to call and tell them “I’ve reached $3,000 spending.” How weird that I have to call.
I switched a few auto-pays to the new card, so the spending is on auto-pilot (but we are using the new card in our wallets, too).
This point has been magnified after the 2017 tax reform, since retirement plan contributions are among the only tax deductions left for the vast majority of people who don't earn enough to justify itemizing their deductions.
American Express Blue Cash has been my main card for about 12 years. I had another cash MC prior to that.
The AMX card gives e back 6% on grocery and pharmacy purchases. 3% back on all fuel purchases. 1% on all remaining. I do pay a yearly fee and pay it off monthly.
I don't even like using a bathroom at a gas station without buying something in the convenience store.
It’s not just the $6 coffee and $4 bagel that makes them broke, it’s the unwillingness to deny themselves of ANYTHING. I guess it’s partly because as children they never had to be frugal because their parents lived well and they want to have all the luxuries of their parents but without the sacrifices.
New $250 sneakers? Sure! Put it on the CC!
Dine out several times a week? Sure! Put it on the CC!
Saving for retirement? I’ll do that “later”. The problem with that is “later” comes way too quickly as us older people know.
Better: buy a 3-cup or 6-cup Moka pot, preferably made by Bialetti. Costs $20-35 new, or much less at an estate sale/ garage sale. Once a year, replace the gasket ($3).
China has ruined 2 generations now.
On purpose. Buying Blood Money today.
And I darn sure don't need that fru-fru whippy-doodle faggity barista artwork on top of my coffee...
Although, I do admit to occasionally, when out of town and in need of a jolt...to buying a cup of the Starbucks house brand with two shots of expresso (bLACK of course). A VERY rare occasion, though.
I buy four bags of Ethiopia Yirgacheffe whole beans (medium roast) for $52.00 every 30 days from "Moon Does Artisan Coffee" out of Texas. I get 3 cups of the best tasting coffee a day. They are very conservative and support veterans. It's a win-win for everyone!
If I drank coffee, I’d rather learn to make a cappuccino or an espresso.
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