Affordability

[StevenNSteph]

Originally Posted by palehorse89

Question, what kind of a yearly income bracket does one have to be in for the majority of their working years to afford to pay cash for a 300-400k(or higher) do you think?

Your question is wrong and based upon faulty logic (kind of like the videos that were posted). It's NOT income that matters it's expenses. If I make $200,000 a year and spend a $200,000 a year I will never save enough to buy a $300,000 motorhome cash. But if I make $45,000 a year and put $500 a month into a motorhome kitty, invest that kitty and make a reasonable return it will take17 years to have $200,000 and 21 years to have $300,000. If I resist spending it and work from age 25-60 (35 years) I will have almost $700,000 in this kitty.

If you save more you will have that money quicker if you save less it will take longer. The bottom-line is you have to focus on savings NOT income as the factor that will allow you to reach your goals.

[palehorse89]

Originally Posted by StevenNSteph

Your question is wrong and based upon faulty logic (kind of like the videos that were posted). It's NOT income that matters it's expenses. If I make $200,000 a year and spend a $200,000 a year I will never save enough to buy a $300,000 motorhome cash. But if I make $45,000 a year and put $500 a month into a motorhome kitty, invest that kitty and make a reasonable return it will take17 years to have $200,000 and 21 years to have $300,000. If I resist spending it and work from age 25-60 (35 years) I will have almost $700,000 in this kitty.

If you save more you will have that money quicker if you save less it will take longer. The bottom-line is you have to focus on savings NOT income as the factor that will allow you to reach your goals.

First off Steve, how can any question be wrong? Well OK, now with all your figures, great! when you were 25 years old, just married, kids on the way, 18 years of raising them, then 4 years of collage........and all the cost of having a family.........and you still were able to stash $500.00 per month....Hats off to ya! Oh ya, don't forget ,you also bought a house in this time frame.
My above reply is about saving, for most, being able to save comes later in life, not in the start of life.......

[Tha_Rooster]

Originally Posted by Hikerdogs

Too many people worry about what others have, and how they got it. If you buy into the "I think I worked as hard as you did and I can't afford it, therefore you must have done something illegal or unethical to get it" mentality you're destined to be unhappy.

What ever happened to getting a good education, finding a job that pays well, saving some of your money, and being satisfied with what you're doing in your retirement?

Don't worry about what others have or how they got it. There's only 1 person that's responsible for what you earned, how you spent it, and where you are in life. That person stares back at you in the mirror every morning.

Very well spoken.

[Oldrtrcr]

Now that we have seen who has the wealth and the rate at which taxes are paid from income, let's look at the volume of taxes paid by income level.

National Taxpayers Union - Who Pays Income Taxes?

[StevenNSteph]

Originally Posted by palehorse89

My above reply is about saving, for most, being able to save comes later in life, not in the start of life.......

I started saving when I was about 6 years old. I was taught to take at least 20% of my allowance and put it into savings. I have always almost always lived by that rule and have saved even when I had kids. Heck I even owned motorhomes that I paid for cash while I had young kids, yet I saved more because I started college funds for each one as they were born and contributed money to it along with my personal savings.

People don't save because they are not disciplined. They make $40K a year and they spend $40K+ a year. They buy NEW cars rather than the $2,000 used model that I drove. They buy big houses they can barely afford, rather than the cheapest house that worked for them. They fancy new clothes and had the nicest home entertainment systems that their credit limits will allow instead of getting cheaper clothes or even used (gasp).

I've worked with immigrants that make minimum wage, support a family on that and still send $200 a month back to their country of origin, these people know how to handle money and how to save. On the flip side I've seen people who make $250K a year go through bankruptcy with over $1 million in debt because they don't have a clue and think they aren't "making enough."

The bottom line is you can save any time you want to and the MOST important time to start saving is EARLY in life due to power of compounding interest.

[Arizona]

Great thread. It just depends on what your priorities are in life. Im sure if owning an expensive rv had been on your mind for a long time, you would have found a way to make it happen. To me, the only thing you can't get more of is time. Would you trade five years of your life to buy a $400.000 rv? How much time did you trade for yours? I traded about 4 months for mine. $6000.00 per month - taxes.
Instead of having a new 50 foot motorhome, My goal is to be retired 50 years.
School for 17 years
Work for 17 years
Have fun for 50 years
Yea, I know I have a screw loose. Got that way after retiring at 34.

[Okiedoke]

I could afford a $250,000 coach, but am happy with a $40,000 one. Especially as branches scrape the sides when boondocking or driving into an old state or national park.

[GWDawg1]

My hat is off to anyone who can save 20%. That takes a LOT of discipline.

[Rvnerd1971]

I just bought a motorhome thru the bank I'm having fun now never did c a suitcase on a hearse

[UFO Pilot]

Originally Posted by GWDawg1

I guess what set me off was I saw where someone posted on another forum they were watching their 45' DP being built at Tiffin MH (40 miles from me). I looked up the 2014 list prices on Tiffin MH, from the Allegro to the Bus. Wow!!!

If you care too read a lot of their blog, the couple watching their Tiffin being built sold their home in NY and are full timers. They are a nice young couple who have decided to live their dream now.

[EDALLSAILS]

Living Retirement isn't easy. We started camping with a pop up tent trailer behind our Honda gold wing. We lusted for a MH. We have 5 grown children we like to visit in the South. The Mh allows us to visit with them once or twice a year and see the grand children. staying in the Mh we think is cheaper than staying in motels and eating every meal in a restaurant. No way we could afford a 200 or 300 thousand dollar unit. We wouldn't even consider a New MH. Let the 1st buyer take the depreciation. My wife and I shop til we find the floor plan and price that fits our budget. We bought a used Rexhall American Clipper at a great price simply because it had only one 8 foot slide out. We traded that for a Damon Tuscany with 2 slides at a good price because most buyers are wanting 2 or 3 slides or full wall slides. It only had 10,000 miles on it as a 5 yr old unit. Maintenance is expensive but you can cut cost by doing many things yourself. I have a independent RV service do my maintenance that I don't do myself. Example oil and filter changes for 100 bucks, I supply the oil (5 gallons) and filters. That takes care of engine & genny. Every other yr I have the filter in the Allison transmission change and top off w/ transend, again 100 bucks and I supply oil & Filters. when traveling we try not to spend time just driving. we pick destinations carefully, spend 3 to 5 days at each stop and that conserves gas as we don't go thru 200 or 300 gallons in a week. We spread the cost. Inside the MH I've replaced Microwave, fixed problems with Norcold refer, clean air conditioners myself. Wash & Wax by hand by me. We figure our additional cost are mainly fuel, maintenance and campgrounds. No matter where we are one has to eat so we don't consider this as an camping expense. Buying a MH is expensive but it our only hobby. Hope I helped you and your question. safe travels.... ed

[tedgard01]

I never have had what I would like to have, and never will. Regardless, I have always found a way to do what I want to do, and I always will....

[wa8yxm]

I know many people who do it.. Mien is only 100K (well sticker is 103 but I did not pay that much).

Had one day when one Tommy Brant (you can google him) pulled in beside me with his Prevost.. (NICE RIG!!!!) and I helped him set up. Since it was after dark I grabbed a couple of work lights (I come well lit if I need it) out of storage and he hooked up power, and water, and sewer then touched a button and dumped his tanks, Touched another button and filled the fresh water tank... (Auto shut off) I noticed he has dual water pumps (Turn 'em both on and it'll knock your hat off in the shower). NICE rig.. As I recall, at the time (2011) Those puppies started at around half a million,,, BEFORE you start adding options. his rig likely has nearly that much in options too (For professional reasons) and yes.. I did help him pay for it.. Good CD, at least one GREAT song and the rest are a mix of good and fair. Funny guy on occasion. (The good song). Yes, Tommy used to hang with a bunch of guys who were #1 in the #2 business. You'll need the CD to figure that out.. or perhaps you can get lucky with You Tube.

[nforus]

Originally Posted by StevenNSteph

I started saving when I was about 6 years old. I was taught to take at least 20% of my allowance and put it into savings. I have always almost always lived by that rule and have saved even when I had kids. Heck I even owned motorhomes that I paid for cash while I had young kids, yet I saved more because I started college funds for each one as they were born and contributed money to it along with my personal savings.

People don't save because they are not disciplined. They make $40K a year and they spend $40K+ a year. They buy NEW cars rather than the $2,000 used model that I drove. They buy big houses they can barely afford, rather than the cheapest house that worked for them. They fancy new clothes and had the nicest home entertainment systems that their credit limits will allow instead of getting cheaper clothes or even used (gasp).

I've worked with immigrants that make minimum wage, support a family on that and still send $200 a month back to their country of origin, these people know how to handle money and how to save. On the flip side I've seen people who make $250K a year go through bankruptcy with over $1 million in debt because they don't have a clue and think they aren't "making enough."

The bottom line is you can save any time you want to and the MOST important time to start saving is EARLY in life due to power of compounding interest.

Good post!!
My high school business class teacher taught us the "rule of 72"- you divide the interest rate/return that you are receiving on savings/investments into 72 and the result will tell you the number of years until your money doubles. I started watching my money that way at that age, it became a game, a 40 year game!!! when you focus more on growing your savings more than spending all you have, good things happen over time.

We have one of those blinged out >750k coaches that so many seem to be resentful of, it's paid for with cash!! and it cost a lot more than our house!! We think it's funny that folks think we buy these to say "look at me" yet we spent our whole careers living in less house than we could afford, driving less car than we could afford, saving our incomes, not showing them off. But now we've changed and are all about showing off??? It also helps to always have been the first one to work each day and the last one to leave, that gets noticed and rewarded.