Some tax season observations - Posted by The Baze

Posted by SusanL.–FL on April 24, 2000 at 14:14:54:

(re: your hypnosis statement)

I’ve got that ‘times’ three at home…


Some tax season observations - Posted by The Baze

Posted by The Baze on April 20, 2000 at 12:39:30:

I started reading “The Millionaire Next Door” last night, and it stimulated some observations I had made during tax season I thought some folks might find interesting.

I did 9 returns for families that had AGIs in excess of $300,000. Seven of those families owed money to the IRS on Apr 17, from a low of $1100 to a high of $54,000, with the mean being slightly under $21,000. The other 2 families got refunds - $650 and $2100. The families that got refunds were both quite disappointed with how small the refund was.

Of the families that owed money, every single one was dismayed. Reactions ranged from “Again?” to “Oh my God, how am I going to do that?” Now the folks who owed $54k that reaction is understandable. No matter how much I make, if I gotta write that big a check to Slick Willie and his administration, I’m gonna be torqued. But for such high income earners to be upset with having to write checks that for them should be manageable was surprising.

And it got me to thinking about that book. Every one of these families live in an exclusive part of the city, and based on the amount of mortgage interest they paid, obviously live in very expensive homes. I know that several of them drive newer model expensive cars, and several belong to country clubs. These are people who are not acquiring wealth. They make a lot of money, but they have such a high lifestyle that they aren’t able to become wealthy.

So, for those of you who are starting to make some money in this real estate business, keep that in mind. Don’t just go buying things because you have the money to do so. Instead, live below your means and set aside. Financial freedom is far better than having expensive stuff just to impress neighbors & friends.

Tom Bazley

Re: Any comments on “The Millionaire Mind” book - Posted by Ken.K(IL)

Posted by Ken.K(IL) on April 21, 2000 at 08:59:50:

…which I guess could be called the sequel to “The Millionaire Next Door”, by Thomas J.Stanley.
Just finished reading a interesting article in todays Chicago Tribune,‘Your Money’ section, page 3, by Humberto Cruz…

Thanks for sharing some real life examples (nt)n - Posted by HR

Posted by HR on April 21, 2000 at 01:34:46:


‘Millionaire Next Door’ is a must read - Posted by Millie I.

Posted by Millie I. on April 20, 2000 at 23:38:17:

I just gave the book ‘The Millionaire Next Door’ as a birthday present to a successful young man who makes a lot of money, and spends it all in luxury.

The ‘Don’t think of tomorrow’ attitude is so typical of many people who know how to make it, but don’t know how to keep it. They never get rich that way.

Invest and Re-invest is the key to wealth. If you made it, let it multiply. You can make a cup of soup with a bag of beans, or you can grow a plantation with it. The choice is all yours.

Millie I.

P.S. It is time to buy a Tax Strategies book for the year 2000. Knowledge and Planning help reduce taxes.

The world of consumerism gone mad !! - Posted by JohnG

Posted by JohnG on April 20, 2000 at 23:35:01:

You have hit the nail on the head.

It is amazing that so many of us are so into impressing the Jones that we don’t really care what it costs to keep the facade up. As long as we look good then thats the most important thing.

Its like that old saying “fake it till you make it”. Lots of us get really good at faking it to the point that we spend all of our income on faking it !!!

And yet, isn’t that what keeps the economy moving. Spotting the latest trend (ie SUVs, DVDs, etc etc) and convincing us that we “must have” the latest.

I personally have followed the opposite path. The more I realize from my real estate business - the more I reinvest and the less I spend on depreciable “liabilities” to the point where my wife kids me about using coupons for 50%off on launrdy soap.

Hey, its like the guy standing at the urinal - he sees a quarter in the bottom. He starts thinking. Then he pulls out a quarter, throws it in the water and then takes them both out "25 cents No way - 50 cents Yessiree Bob ".

Its a real side show when we think of how we have become programmed to spend all that we make and then wonder how come we aren’t getting ahead and we are always looking for that next “toy”. The world of consumerism gone mad !!!

Good luck to you on resisting the trend.Especially if you got a wife who read womens mags and kids who watch saturday morning tv. Its like hypnosis !!