Millionaires on nursing salaries

Jo Dirt · Jul 4, 2006

Neil Boortz argues that with a flat 'sales tax', there would be tremendous pressure to save money (you aren't 'taxed' on it till you spend it).
Such a tax system would dramatically influence how people save - and why.
I'd be inclined to agree.
~faith,
Timothy.

If I save real good and live in a cave and collect lint and only come out on double coupon Tuedays (like Dave says) I can be a millionaire by the time I retire. Then, since I will be too old to really enjoy having money I can buy one of those big RV's where I can hardly see over the steering wheel and drive it around the country...

judyblueeyes · Jul 5, 2006

If I save real good and live in a cave and collect lint and only come out on double coupon Tuedays (like Dave says) I can be a millionaire by the time I retire. Then, since I will be too old to really enjoy having money I can buy one of those big RV's where I can hardly see over the steering wheel and drive it around the country...

I know your just being funny, but saving is important- to us, anyway. You can save money and have fun, too, grasshopper ( ).

DH and I started late, so we save close to 20%. We skim the money off first because we found that one spends what one has and that there is never anything left over. After a bit of adjustment, we now do not miss it at all.

We bought less house than 'they' say we can afford and buy only "nearly new" cars. We like to travel, but have found a $200.00 hotel room is not $115.00 more fun than an $85.00 one.

We do some coupons but find it time consuming so don't put so much effort into that as we did before. I hit an all time high of $40.00 off a 100.00 grocery bill once. That's two 20.00 bills in my pocket and not Kroger's.

Wise and thoughtful shopping will still allow a nice house, car, and vacations. We plan to try to retire early and spend that saved money traveling and having fun. I guess we see work as a means to an end, not something we want to do until the end.

Gah- dropping dead at work at 75- who wants that? :lol2:

ZASHAGALKA, RN · Jul 5, 2006

Under the current system, families would pay a higher portion of the overall tax burden because they usually consume more consumer goods (not always, but often). 3 or 4 people consume more than 1 person. A family of 5 or 6 consumes even more. Those people would object.

Most sales tax schemes (not an inherently dirty word) allow exceptions for 'essential' goods.

Here in Texas, for example, food, pharmaceuticals and durable medical equipment (include things like glasses in that) are exempt from sales tax.

It IS possible to devise a sales tax that doesn't punish low income families.

Now such a tax would probably, with State and Local taxes factored in, approach 20%-25% on the dollar! However, with no Federal with-holding on your paycheck, you would see a 15-20% increase in salary! And, the remaining balance represents the sales taxes you are ALREADY paying.

Also, businesses would object because people would lower their spending -- hurting their businesses and causing them to lay off workers. The laid off workers would be a burden for the economy... causing the need for increased taxes, etc. They couldn't just go get a job a "growing" business because most businesses would be experiencing the same thing.

But, haven't the Democrats complained for YEARS that there is 'too much consuming going on out there!" And don't Republicans complain that not enough people are saving (growing the Stock Market)?

This would solve BOTH problems. Would the economy have to adjust for curbing our reckless behaviors that support it now? YES.

But.

The increase in savings would offset the pressures on consuming. It would be a redistribution on economic assets, for sure. But that would benefit as many people as it would hurt. And, those that are hurt would have the incentive to change their lifestyles/education/work relativity to become beneficiaries of the new system.

It would BE an adjustment, to be sure. But that doesn't necessarily mean that it would be a net negative.

~faith,

Timothy.

ZASHAGALKA, RN · Jul 5, 2006

I'm not saying that the problems couldn't be worked out eventually ... but it would require an enormous reorganizing of our economy and society. It would be traumatic for a lot of people who lost their jobs, their homes, etc. in the process. While it might create a better system in the long run (which I am not sure of one way or the other), the process of change would be painful. I doubt our government could pull it off -- and I am sure our society would not be willing to live through the pain of the change.

It would indeed require an enormous reorganizing of our economy and society.

But, as I pointed out above, that would only serve to PROMOTE the interests of both political outlooks.

The problem: the tax code is the greatest leverage of power on Capital Hill. Political philosophy takes a back seat to political power - at least, when YOU are the one exercising that power.

~faith,

Timothy.

imenid37 · Jul 5, 2006

Wish me luck! I am not a great saver. I am in HUGE debt which I hope to pay off in about 4-5 years.(I have a plan) I save a little for retirement, but not enough. If I get rid of my debt, then I hope to move forward. I am praying for a long and productive life to catch up. I know there are many others in the same boat as me. I have spent way too much time looking out for everyone else and I think some other nurses are in the same situation.

Tweety, BSN, RN · Jul 5, 2006

Most sales tax schemes (not an inherently dirty word) allow exceptions for 'essential' goods.
Here in Texas, for example, food, pharmaceuticals and durable medical equipment (include things like glasses in that) are exempt from sales tax.
It IS possible to devise a sales tax that doesn't punish low income families.
Now such a tax would probably, with State and Local taxes factored in, approach 20%-25% on the dollar! However, with no Federal with-holding on your paycheck, you would see a 15-20% increase in salary! And, the remaining balance represents the sales taxes you are ALREADY paying.
But, haven't the Democrats complained for YEARS that there is 'too much consuming going on out there!" And don't Republicans complain that not enough people are saving (growing the Stock Market)?
This would solve BOTH problems. Would the economy have to adjust for curbing our reckless behaviors that support it now? YES.
But.
The increase in savings would offset the pressures on consuming. It would be a redistribution on economic assets, for sure. But that would benefit as many people as it would hurt. And, those that are hurt would have the incentive to change their lifestyles/education/work relativity to become beneficiaries of the new system.
It would BE an adjustment, to be sure. But that doesn't necessarily mean that it would be a net negative.
~faith,
Timothy.

Republicans and Democrats both would favor the family outcry, as they do now. Single/no kids people bear a big tax burden compared to the family. And we all know our government, is pro-family. So I doubt it will ever fly.

Personally, I'd rather see an across the board income tax, where all working people pay the same amount of tax, say 10 or 20%, period, end of discussion. No refunds to the "working poor with kids" who essentially live tax free. No shelters for the ultra rich.

Naturally mine is a single-no-kids-middle class approach.

Tweety, BSN, RN · Jul 5, 2006

Wish me luck! I am not a great saver. I am in HUGE debt which I hope to pay off in about 4-5 years.(I have a plan) I save a little for retirement, but not enough. If I get rid of my debt, then I hope to move forward. I am praying for a long and productive life to catch up. I know there are many others in the same boat as me. I have spent way too much time looking out for everyone else and I think some other nurses are in the same situation.

Good luck!!!

jenn_rn_nj · Jul 5, 2006

I have read the book "The Millionaire Next Door" by Stanley & Danko. This book gives a lot of good ideas regarding how "normal middle class" individuals can accumulate wealth.

I have been saving for retirement since my first job out of college at age 21. I don't always save as much, but I'm always saving something (even now while in school which I'm paying for without loans I still contribute to my 403b).

I grew up in a frugal family so many ideas eschewed by the book were not new to me at all...in fact, reading the book I felt as though I might be reading about my own parents.

How someone chooses to spend/save money is a very personal choice. To me it's important to have a big safety net so that is how I choose to live. I think it's very possible, though, to be a millionaire on a nurse (or teacher, or mechanic or doctor or whatever) salary. Yes, it may be a little easier for some professions than others, but it all boils down to choices.

I live below my income level (which, trust me, while in school this is not easy!). I am frugal. I am big on asking myself the question "do I need this or want this" when making purchases. I am not perfect, but I try very hard to make the right choices for me. I don't want to deprive myself in the present to save for the future but I am able to enjoy the present to my liking while also planning and saving for the future.

http://www.amazon.com/gp/product/0671015206/104-4796088-3599915?v=glance&n=283155

SharonH, RN · Jul 5, 2006

I have read the book "The Millionaire Next Door" by Stanley & Danko. This book gives a lot of good ideas regarding how "normal middle class" individuals can accumulate wealth.
I have been saving for retirement since my first job out of college at age 21. I don't always save as much, but I'm always saving something (even now while in school which I'm paying for without loans I still contribute to my 403b).
I grew up in a frugal family so many ideas eschewed by the book were not new to me at all...in fact, reading the book I felt as though I might be reading about my own parents.
How someone chooses to spend/save money is a very personal choice. To me it's important to have a big safety net so that is how I choose to live. I think it's very possible, though, to be a millionaire on a nurse (or teacher, or mechanic or doctor or whatever) salary. Yes, it may be a little easier for some professions than others, but it all boils down to choices.
I live below my income level (which, trust me, while in school this is not easy!). I am frugal. I am big on asking myself the question "do I need this or want this" when making purchases. I am not perfect, but I try very hard to make the right choices for me. I don't want to deprive myself in the present to save for the future but I am able to enjoy the present to my liking while also planning and saving for the future.
http://www.amazon.com/gp/product/0671015206/104-4796088-3599915?v=glance&n=283155

That book changed the way I viewed spending and money for good. When I look back on it, I am amazed at the way I wasted my income on foolish things. I only wish I had "seen the light" sooner. You did well to start at 21, I should have known better as my dad is very frugal and he is a big believer in saving and wise investing but for some reason I did not pick up the lesson. Oh well better late than never.

SharonH, RN · Jul 5, 2006

I know your just being funny, but saving is important- to us, anyway. You can save money and have fun, too, grasshopper ( ).
DH and I started late, so we save close to 20%. We skim the money off first because we found that one spends what one has and that there is never anything left over. After a bit of adjustment, we now do not miss it at all.
We bought less house than 'they' say we can afford and buy only "nearly new" cars. We like to travel, but have found a $200.00 hotel room is not $115.00 more fun than an $85.00 one.
We do some coupons but find it time consuming so don't put so much effort into that as we did before. I hit an all time high of $40.00 off a 100.00 grocery bill once. That's two 20.00 bills in my pocket and not Kroger's.
Wise and thoughtful shopping will still allow a nice house, car, and vacations. We plan to try to retire early and spend that saved money traveling and having fun. I guess we see work as a means to an end, not something we want to do until the end.
Gah- dropping dead at work at 75- who wants that?

I like the way you think!

Roy Fokker, BSN, RN · Jul 5, 2006

Ahhh,

That's assuming that the dollar of today is atleast worth the same 10 years down the line.

Given the depriciation of value that the dolalr has undergone in the past 20 years, I doubt it.

But that only means plans like the ones the OP posted ought to become more of a priority :)

llg, PhD, RN · Jul 5, 2006

Like some of the other posters here, I learned about saving and "paying yourself first" while I was growing up. So, it has never been a been a big problem for me. My family was frugal and so am I. We had a few luxuries, but they were "special treats" and not taken for granted. We knew my parents worked very hard to provide those treats and that we would need to work hard to have similar treats for ourselves when we grew up.

I started saving for retirment when I was in my 20's. When I returned to grad school in my late 30's, I took a break from saving, but did not touch the retirement account to fund my schooling. Since finishing grad school about 10 years ago, I have been "playing catch-up" with my retirment savings. I started out deducting a generous amount from my paycheck for automatic depostit in the retirement program. With each raise, I increased the amount deducted until I reached the maximal allowable deduction after a couple of years. That system worked well for me as my deductions/savings increased steadily as my income rose. I never missed the money I never had.

I also opend a Roth IRA and contribute the maximum allowed to that. Often, I sell a little of my vacation time for cash to come up with that money, but because I have worked at the same hospital for 9 years now, I earn a lot of vacation time and can afford to cash in 2 weeks per year to get the cash.

I agree. It's all about choices. I'm happy with mine, but I look around and see a lot of people who are not. The new car, the expensive shoes, the expensive vacation, etc. that only made them happy for a brief time. My financial security keeps me feeling safe and secure all the time -- and will provide for me well in the future.