Survival Money

[Rockslinger]

With increasing talk of "double dip", permanent unemployment, housing crash, no pension maybe even depression, what is the de minimis amount of money you need to survive? My 43 year old Italian friend who doesn't work (inheritance) currently manages on $9,000 a year. His house is paid for, he has no car, animals, bad habits or GF (he dropped his former GF who also didn't work about a year ago) to support. He gets his free Toronto Star at the mall and free Internet at the public library.

P.S. In the case of a depression, the price of SP's will probably decline to $259.78 per hour. Hee, hee, hee.

 

[Mikehorn]

His house may be paid for, but what happens when he needs a new roof, furnace, stove, refrigerator, washer, dryer, etc.

P.S. In the case of a depression, the price of SP's will probably decline to $259.78 per hour. Hee, hee, hee.

It'll probably go up. Even in a depression, the money doesn't all just disappear, somebody has it. The politicians, CEO's, etc will still be seeing them regularly, and the high end ones, not the pasty tatooed $80/half CL chicks.

 

[wazup]

Why doesn't he have it where he can collect a dividend and live off the dividend?

 

[Rockslinger]

Why doesn't he have it where he can collect a dividend and live off the dividend?

He inherited a portfolio of blue chip stocks (TD Bank, etc.) and collects about $50,000 a year in dividends. He only spends around $9,000 a year and re-invests the rest.

 

[Rockslinger]

His house may be paid for, but what happens when he needs a new roof, furnace, stove, refrigerator, washer, dryer, etc.

These major expenditures last decades so he could probably set aside $500 a year and that should cover a new roof every 30 years and a new furnace every 20 years. My last furnace was still firing at age 30 and my clothes washer died at age 25. However, he is worry about propery taxes and how much he will have to pay in future years so municipal workers and retirees can enjoy a rich salary and pension.

 

[Aardvark154]

However, he is worry about propery taxes and how much he will have to pay in future years so municipal workers and retirees can enjoy a rich salary and pension.

And that is a legitimate concern to have. During the Great Depression some landowners in just developing parts of metropolitan areas were literally taxed out of their properties by depression area "make work projects" (such as putting in sewer and water lines in the streets around four sides of a field) there is a sort of Newtonian relationship here - yes employment is good, but when it is the state at whatever level doing the employing it has to be paid for (eventually in the case of the Federal Government) through taxes.

 

[zardoz]

His house may be paid for, but what happens when he needs a new roof, furnace, stove, refrigerator, washer, dryer, etc.



It'll probably go up. Even in a depression, the money doesn't all just disappear, somebody has it. The politicians, CEO's, etc will still be seeing them regularly, and the high end ones, not the pasty tatooed $80/half CL chicks.

what's wrong with tattooed girls? love them!

 

[cute-bald]

BUDDY!! What kinda' house is it??? A shack!!! I pay 6k a year in property taxes, 800 & some for house insurance, groceries: 120-140 week. Then there is clothing, toiletries, utilities: heat, hydro. I think he mis-calculated on 9 k a year. he is leaving something out.

 

[Moraff]

BUDDY!! What kinda' house is it??? A shack!!! I pay 6k a year in property taxes, 800 & some for house insurance, groceries: 120-140 week. Then there is clothing, toiletries, utilities: heat, hydro. I think he mis-calculated on 9 k a year. he is leaving something out.

Depends where he lives and what kind of size house he is happy to live in... Op said he got rid of the GF so I assume he lives alone... I live in a 3 BR house and my property taxes were only $1900 last year and about $700/yr for insurance. If one did not run AC and didn't have all these fancy gadgets like home computers, entertainment systems and the like your utility bills would be tiny. Hang your clothes to dry and save the dryer costs.

Yes I could live on 9k/yr if my house was paid for, but I wouldn't enjoy it.

 

[hinz]

He inherited a portfolio of blue chip stocks (TD Bank, etc.) and collects about $50,000 a year in dividends. He only spends around $9,000 a year and re-invests the rest.

That would be my dream....getting say $40K+ a year in Canadian dividends and better yet in TFSA to dodge taxes legally.

Having said that, how could he spend around $9K a year all by himself? Is he living in a small condo/house or something?

 

[Rockslinger]

so I assume he lives alone... I live in a 3 BR house and my property taxes were only $1900 last year and about $700/yr for insurance. If one did not run AC

Even when he had his GF (who also didn't work), he wouldn't let her move in (squatter's rights). Yup, his taxes and insurance totals around $2,500. He wears a sweater in Winter and walks around nude in the Summer. He only spends around $75 a week on food (thin as a rail with no recordable blood pressure). He use to occasionally frequent an MP and SC but he got that out of system 2-3 years ago.

In due course he stands to gain an inheritance from his grandmother and then from his mother. Hence, he sees no reason to work.

 

[hinz]

These major expenditures last decades so he could probably set aside $500 a year and that should cover a new roof every 30 years and a new furnace every 20 years. My last furnace was still firing at age 30 and my clothes washer died at age 25.

Yep, totally hear that since I had my washer and dryer replaced last year when both died at age 30.

These major expenditures are pretty effective deterrent to stop myself of blowing too much money on chasing ladies to bang.

However, he is worry about property taxes and how much he will have to pay in future years so municipal workers and retirees can enjoy a rich salary and pension.

The mere thought of this really makes my blood pressure going up in no time. Nothing against those workers and retirees per se but their take home pay and pension are simply unsustainable and it's thuggish to expect and rob the rest of us money in taxes to make them millionaires.

 

[Rockslinger]

Is he living in a small condo/house or something?

Lives alone in a small 3 bedroom house that he bought from his aunt for a song when she went to the nursing home a few years ago. Doesn't own a car and borrows his mom's car when he needs a car (which is almost never now). Walks everywhere. This guy will outlive all of us.

 

[hinz]

Lives alone in a small 3 bedroom house that he bought from his aunt for a song when she went to the nursing home a few years ago. Doesn't own a car and borrows his mom's car when he needs a car (which is almost never now). Walks everywhere. This guy will outlive all of us.

Hehe...that's what I suspect.

BTW, let me guess, he is the only son in his generation and thus waiting to inherit the bulk of asset...

 

[Moraff]

Even when he had his GF (who also didn't work), he wouldn't let her move in (squatter's rights).

Don't think he'd need to worry about squatter's rights since the homeowner (him) was in residence. Would need to worry about becoming "common-law" though.

 

[Rockslinger]

BTW, let me guess, he is the only son in his generation and thus waiting to inherit the bulk of asset...

Actually, he has a good for nothing brother who blew his inheritance on wine, women, song and casinos. It is amazing how two brothers can be so different. Don't forget my friend is now 43 (not 33 or 23) so he has done his travels and share of MP's and SC's.

 

[Rockslinger]

Don't think he'd need to worry about squatter's rights since the homeowner (him) was in residence. Would need to worry about becoming "common-law" though.

Yes, it is "common law" that was a concern to him. (Did I say squatter's rights? Almost the same.) So, he never gave a key to his former GF who also didn't work. Guys, please think "COMMON LAW" and be afraid, very afraid..

 

[Moraff]

Yes, it is "common law" that was a concern to him. (Did I say squatter's rights? Almost the same.) So, he never gave a key to his former GF who also didn't work. Guys, please think "COMMON LAW" and be afraid, very afraid..

lol.. yup... had an aquaintence who would pick a fight with his girlfriend and kick her out at least once every 5 months just so she couldn't nail him with common-law. She was Asian, he was Italian and didn't want Papa to cut him out of the will.

 

[hinz]

Yes, it is "common law" that was a concern to him. (Did I say squatter's rights? Almost the same.) So, he never gave a key to his former GF who also didn't work. Guys, please think "COMMON LAW" and be afraid, very afraid..

LOL, know too well even though I am single.

Having said that, maybe he's going to get a lucky break if he finds a new GF who loves him for who he is and beats him decisively when it comes to frugality and savvy on handling and growing money.

Nah, not gonna happen. This is going to be as challenging as finding hot civilian woman who could bang like top SP without sticker shock or something.

 

[hinz]

She was Asian, he was Italian and didn't want Papa to cut him out of the will.

LOL, he sounds like "once he goes Asian, he never goes back to Caucasian".

In other words, he has Asian fever...