In “How To Dramatically Increase Your Job Security For Life“, the article suggests managers are more inclined to fire those workers who have nobody to support but themselves. As a result, one should strategically at least hint at the intention of starting a family to protect oneself from unemploymentville. Clearly I’m being somewhat flippant. My goal is to make people realize that relationships and emotion play enormous roles in shaping work success.
Whether you work for a small family business or a large corporation, hiring and firing is a very personal decision that comes down to one or only a handful of decision makers. By tugging at their souls, and increasing their guilt factor, you’re well on your way to dramatically higher job security for life.
Let’s say you’re not particularly wealthy, nor make a particularly impressive amount of money. You still have loads of student loans and consumer debt to pay off. In essence, you’re the typical American! Shouldn’t you be putting on your air mask before helping others?
Child raising is estimated to cost anywhere between $250,000 to $1 million from birth to after college. If a family can’t even have the discipline to save 20% of their paycheck after contributing to their 401K and IRA, how can one consciously start a family?
$250,000 ISN’T A LOT, YET HOW MANY CAN SAVE THAT MUCH?
A typical person graduates college by 22. If you’re really slow, perhaps 25. $250,000 divided by 25 is only $10,000/year in after tax costs to raise your child. If you’re in the 25% tax bracket ($68,000-$137,000 income), you’ll need to make roughly $13,000 in gross income to net $10,000. Right off the bat, you’ll have to save anywhere from 10-20% a year to pay for your child. Sure, for the first 10 years you probably won’t be spending $10,000 a year, but what about for the last 15 years with tuition costs and inflation?
Any private college worth attending costs over $40,000 a year. Let’s say little Johnny is brilliant and gets a 50% scholarship. That’s $20,000 a year right there plus another $15,000 a year for living and school expenses. Even public schools run about $20-$25,000 a year nowadays in tuition and living expenses.
The $1 MILLION DOLLAR PROPOSAL
In “Do “C” Students Deserve “A” Lifestyles“, the article suggests the government impose restrictions on what certain people can buy based on their average GPA in high school or college. For example, only if you have a 3.7/4.0 or higher in college, are you allowed to buy a BMW. A 3.5 GPA allows you to buy a Honda Accord or cheaper, and those who couldn’t even crack 2.5 are restricted to biking or walking.
The idea is that if you were smart enough to get straight “A’s” in college, you are smart enough to realize that buying a $5,000 Hermes handbag, and spending more than you make is a sure way to financial ruin. Conversely, if you were dumb enough to not try in school and not realize the importance of education, then it’s best to leave the weapons of mass financial destruction out of your hands. Society shouldn’t have to bail you out in the end.
As the government continues to infiltrate all our lives, may I suggest a new proposal. Unless your household net worth is over $1 million, no American household is allowed to have a child! OK, so $1 million is likely too high of a hurdle, but you get the idea. Institute minimal financial standards, such as having at least a positive net worth and a declaration of a 10 year financial game plan before a couple can start a family.
Remember, we the people of America voted in the current administration, which means the majority of us support Big Government. I’m just going with the flow here of introducing Big Brother to more aspect of our daily lives because we love the government so much!
Think about all the positives that will come out of this legislation:
1) Population control. We are the #1 user of Earth’s natural resources. Curb population growth, decrease our fiscal burden, and let the world live longer.
2) Improved financial health. Those who really want kids will stop messing around and really start saving and working on their finances.
3) Increased care for the child. With a net worth of at least $1 million, there’s a lower chance your child will experience neglect due to lack of funds.
4) More well-rounded children. With more resources, a child can take as many art, music, sports lessons as he or she wants. After school tutoring is no problem, neither is a cultural immersion trip overseas.
5) Less divorce and happier parents. Without the strains of money (the #1 item couples argue over), there’s less stress for couples. Happier couples mean happier, less trauma-exposed children.
With over 143 MILLION orphans around the world, maybe we should think thrice about having children. Perhaps the Duggars family, with their 18 kids aren’t really doing “God’s work.” Maybe they’d do better adopting 18 children who need help instead.
We all have the right to do whatever we want, but should we? If we aren’t willing to help feed or adopt a starving child, at the very least, let’s not add another by making sure our financial health is in order first before having our own.
People frequently say there’s no right time to have children. That’s baloney. The right time to have children is when you have an unwavering desire to care for someone for 18+ years. Your finances are the least of your worries because they’re set, and you have a clear plan for child raising. If you have no plan, no money, and no intense desire please don’t have children. Figure out how to take care of yourself first.
Shop around for health insurance: The internet has really helped lower the cost of insuring yourself and your family. eHealthInsurance has some of the lowest rates and best coverage due to its largest network. They are based right here in the Bay Area, and I have met a number of their representatives. The Affordable Care Act debacle has proven to be more expensive and more cumbersome to sign up so far.
Sam @ Financial Samurai – “Slicing Through Money’s Mysteries”