In the forums was an interesting question about working 2 jobs, and a lot of comments about work/life balance, etc.
I could see working 2 jobs to get ahead financially, but the key is the mindset. I could relate from the standpoint of how we approach our own finances.
Ideally, since I am married, we have 2 full-time jobs at our disposal (without working *too much,* either. I mean, obviously this differs from one person working 72 hours every week).
But the mindset is the same. If you rely on those two incomes, whether they are both your own, or one for you and a spouse, you are playing with fire. YOu are living up to an income that may not be sustainable. Obviously moreso if you do it all yourself. BUT, we have always taken the mindset that we will not always be healthy and fully employed. Odds are someone is out of work, some of the time, for endless reasons.
So, it's quite simple. Live on one income. Save the rest for a rainy day. Or save it to get ahead, etc.
I think the mindset was easy for me because I Was so used to living on so little during college. I couldn't even imagine living up to my first $30k per year job, much less the $100k or so we were making, combined, in a couple of years. I was intent on saving the difference and never having to live on so little means, again. We also knew we wanted children and wanted to take time off work to be with them. So it was easy to never consider the second income as "permanent."
I suppose this is somewhat the millionaire next door mindset. Nothing wrong with working a second job. IT's a GREAT way to get ahead, financially. BUT, getting so accustomed to it that you can't pay your bills without it, is kind of scary.
Our first income has ALWAYS been for:
*All Needs (housing, transportation, etc.)
*10% to retirement
*Saving for a rainy day
At the minimum, anyway.
Our second income USED TO be for:
*Saving 20%+ down payment on home
*Paying down a 15-year mortgage
*Extra to retirement
*Investing
Going forward, Our second income WILL BE used for:
*Paying down home rapidly
*More investing
*More retirement savings
*More luxuries
I can see us paying off the house pretty rapidly and having a lot more disposable income. What kind of luxuries would we buy? One-time luxuries, only. We won't be buying a nicer home or locking into any monthly contracts with more income. We may travel a bit more and buy more electronics. We may even buy nicer cars while dh is working (for cash). Thing is, if the second income disappeared, we haven't increased our lifestyle in a permanent way. A one-time vacation doesn't permanently increase your lifestyle. A car paid-for in cash doesn't matter when the income disappears.
That's the mindset.
I could see if I were single, working 2 jobs to reach the same end. I wouldn't do it forever, but a couple of years can make a HUGE difference to your bottom line. I would be VERY careful to not get attached to the second income. IF you get attached, it really just defeats the purpose. Then you just work work work with nothing really to show for it.
Before, dh and I both made the same amount of money. As my income has increased over the years, I think we will focus less on the first income/second income. & maybe more on the "first $50k" and "everything above that." We may have to change our thinking a bit, since my income is probably higher than we need, and his will probably be too low to cover the basics. For a while anyway. I think it's important to set a maximum amount for monthly/regular expenses. Health insurance aside, we could live on 2 minimum-wage incomes. I don't have any plans to increase our basic standard of living beyond that. Though I admit, that may be lofty in this economy (to believe we could both find work if we had to).
Millionaire Mindset
April 5th, 2010 at 03:37 pm
April 5th, 2010 at 04:05 pm 1270479912
Surprisingly, even on the Bogleheads forum, there are a couple of threads on it.
Basically, it's a niche product that I think can and will serve quite well for a niche mobile market. A small market of people where they want something bigger and more capable than a smartphone, but have no need for a full-featured laptop. Like I said, a SMALL market....
For the moment though, and in the eve of the iPad launch, it's causing a bit of a shiny shiny frenzy. I'm already reading reports of that it has already sold somewhere between 300,000 to 500,000 units, and it's project to sell in the millions (if analysts are to be believed). While I'm at it, AAPL has gained roughly 15% since the iPad announcement to the launch last weekend.
Now, when I say all this, I'm trying to be "fair" because I honestly do not see the appeal of this particular device. Ok, maybe I have a little bit of gadget lust too, but I think the hype is way over-blown on this one.
Human beings are kind of funny, aren't they? That, sometimes, our emotions can be so strong that it can cloud our judgment.
April 5th, 2010 at 04:16 pm 1270480581
Dude, I just went to Best Buy and played with the iPad! I am in love! The thing is amazing and the screen just takes your breath away! I played a few of the iPhone apps and it's not perfect but it does work.
To tell you the truth, actually having one in my hand has got me so much more excited!
In my opinion (and this experience just adds to my assumptions), Apple really does have something here.
I suggest to you... Go play with on tonight. See for yourself what I'm talking about.
April 5th, 2010 at 04:52 pm 1270482738
That e-mail sums it up pretty good - iPad mania! I feel like I have been living under a rock!
April 5th, 2010 at 05:07 pm 1270483641
I'm sure it'll still sell quite a few of these though, but how "magical" the device will end up being, I think that remains to be seen.
April 5th, 2010 at 05:13 pm 1270483996
April 5th, 2010 at 06:00 pm 1270486807
April 5th, 2010 at 06:09 pm 1270487387
If you understand this, and want to defend Apple, so be it. I am just coming to the scary realization lately that people don't think there is any other option! I've got to hand it to Apple...
April 5th, 2010 at 06:49 pm 1270489780
April 5th, 2010 at 07:19 pm 1270491548
I have an iRiver MP3 player, which amongst the DJ set is coveted because the equilizer is very, very good, making the sound, very very good. This weekend, though, I broke down and got an MP3 clip-style player from Memorex, of all brands, to use on those extended walking/jogging afternoons. Comes with a radio. Price? 21$, with tax.
April 6th, 2010 at 02:15 am 1270516536
to blackdiamond, i too hope like monkeymama that you realise there are other brands of mp3 players out there too. i don't see how an iPod changes the way people listen to music, as opposed to a different brand. so i hope that's what you're actually saying
April 6th, 2010 at 02:45 am 1270518357
As for the iPod ... My first mp3 player was a Creative Zen 40 gig - $200 (2003 or 4?). It lasted about 18 months before it just completely froze one day no matter what I did to it. My next Mp3 player was a 8 gb Sanso $40. I used it until this past year when I got my iPhone. It is still going strong in my dad's hands (with LOTS of instructions from me).
I think I said it when I ended up getting the iPhone ... I drooled over the technology, but probably never would have actually bought it if it wasn't for the combination of having no internet access at the gym 30 hours a week (=BORED) and having people willing to chip in for one as a "gift".
I loved my Creative Zen for many many reasons, even though it had WAY more capacity than I'd ever use (which is why I got a 8gb to replace it, which was still more than I needed). Of all the three music players, it was the best (even though it died on me so soon.) The iPod doesn't even come close to it. (this was the NON-video version which they don't even make anymore)
All this to say - you can definitely get lots more value for your dollar with a non-apple music player.
April 6th, 2010 at 03:14 am 1270520046
April 6th, 2010 at 07:05 pm 1270577140
Generically, I think they are supposed to be called PMPs, or Portable Media Devices. However, PMPs have traditionally been more associated with typically larger devices that play video, and not just audio.
And yet, current generations of iPod Nanos and iPod Touches are indeed quite capable of playing video as well, so it would easily qualify under this umbrella as well.
The lines have blurred quite a bit, but I still call them MP3 players anyway.
April 8th, 2010 at 01:34 am 1270686899
April 8th, 2010 at 03:03 pm 1270735387
Which their house is very computerized. Her husband programmed the house to have its own Twitter account so they could monitor the house functions & care of the cats while they were at work. The litter box automatically cleans itself, along with the automatic feeder... and all this updates to the "House's" twitter account. I love my BFF and her husband, but they are the epitome of wealthy kids with no kids & tons of money to spend. I joke with her all the time how she is always running to technology & I'm trying to escape it.
They are millionaires, her hubby is a VP at his company & they won a large undisclosed settlement amount BUT again, late 20s, early 30s who have no kids & an affinity for electronics and video games with no one to tell them no.