tag:blogger.com,1999:blog-5465015914589377788.post6654191620754126326..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: The Two-Income TrapMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-5465015914589377788.post-20289973729883737952015-06-09T07:38:41.465-04:002015-06-09T07:38:41.465-04:00RE: Housing Prices. Check out this interesting ar...RE: Housing Prices. Check out this interesting article on The Star's website on the inflation adjust house prices from 100 years ago to the most recent selling price of the exact same house. Most were sold for 10x the inflation adjusted costs.<br />http://www.thestar.com/news/gta/2015/06/04/if-only-you-had-bought-these-toronto-houses-in-1915.htmlPaul Tnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-4952916272579462832015-06-03T20:28:45.732-04:002015-06-03T20:28:45.732-04:00@Paul: Yes, you're right. This was discussed ...@Paul: Yes, you're right. This was discussed in the book. A two-income family stretched to the limit with fixed expenses like a mortgage have big problems if they divorce and have to take on the cost of another rent and maybe another car. Back in the 1970s, a non-working mother could go to work after a divorce to make up the difference.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-50815471014471647002015-06-03T19:49:24.259-04:002015-06-03T19:49:24.259-04:00Don't social issues come in to play here as we...Don't social issues come in to play here as well. Gone are the days of the nice neat family. Isn't the divorce rate getting into some very high percentages now. Plus I heard a recent study that we transitioned to more singles then official couples about a year ago? <br /><br />I think these factors play way more into this than lifestyle inflation etc. paulhttps://www.blogger.com/profile/00050081178673700867noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-79089965687908030942015-06-03T15:16:57.524-04:002015-06-03T15:16:57.524-04:00These people are making the good choice, especialy...These people are making the good choice, especialy if "bring up your kids in a good neighbourhood" means a safe neighbourhood, with decent public schools and public services (playground, library, pool, arena etc). Frugality may be the price to pay but quality of life worth it. Sometime the best solution would be to rent the place you live even if it's counter-intuitive in the low-interest/easy-borrowing era we live in.Le Barbunoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-15806139800086637432015-06-03T15:00:41.571-04:002015-06-03T15:00:41.571-04:00@Le Barbu: It's true that there are people who...@Le Barbu: It's true that there are people who make poor financial choices. But there are also people who live very frugally except for attempts to bring up their kids in a good neighbourhood.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-39721739788439385752015-06-03T14:55:34.648-04:002015-06-03T14:55:34.648-04:00@Michael, I agree that could be a stretch if they ...@Michael, I agree that could be a stretch if they want to keep up with the Joneses and make no plans for themselves to get ahead. Everyday I see peoples with 2 kids, owning a 3br-2ba house lurking for bigger place, buying new cars every 4 years and heading south at least once a year. They complain about being tight all the time and saving nothing...<br /><br />I think the prime to pay for a good place to live offset the longer/complicated commuting for work and school. My rational is that most people I know living away from services are bad at $$ math. If one live at the optimal location for his needs (not wants) he will be more efficient with his time and money. I would be willing to pay about 50k$ more for every 10km closer from the epicentre of my activities (even tough, right now I am 3km from this sweet spot!). I got to listen to people in the ditch explain their rational for the oposite all the time.<br /><br />I think borrowing is to easy and gas is to cheap. The hangover will be tough...Le Barbunoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-9775686226296565712015-06-03T14:21:42.514-04:002015-06-03T14:21:42.514-04:00@Le Barbu: It sounds like you've got a good sy...@Le Barbu: It sounds like you've got a good system for yourself. I can imagine, though, that a Canadian couple each making median income might have to stretch hard to buy a home in a neighbourhood where they'd like to raise their kids.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-19755754479484176512015-06-03T14:11:30.592-04:002015-06-03T14:11:30.592-04:00What y see arround me is that the second income pu...What y see arround me is that the second income purpose is for lifestyle inflation purpose*. We have an average familial income and we are able to stash away half of this every single year. Still run a damn good lifestyle at least compared to the 1970s ! The difficult part is just to do this without anyone noticing whats going on ;-)<br /><br />*Stay away from the dealerships and 50% of the work is done. Restaurants, trips and clothes are the next cash-sewers. Most middle-class could save 10-20k$ per year on these items, fund RRSP TFSA and RESP and become financialy independent in no time.<br />Le Barbunoreply@blogger.com