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Comment: A Little Advice Needed

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A Little Advice Needed

I am hoping the readers here can give my wife and I a little financial advice. Our combined after tax income is around $50,000. In today’s world you know that is very hard to live on. The solar panels alone on our second home in Florida cost that much. Then there is the rent increase on the river lot and the payments on the new pontoon boat. Of course we can’t tow the boat, let alone our 45-foot travel trailer with the Prius; so we have to add in the payments for the Hummer. The Keuka Lake house addition is now way over budget (we are probably only going to be able to build the two car garage).

Our problem is that we can’t seem to keep up. We have had to borrow $200,000 a year for the last ten years just to keep up with all of our payments. And of course everything is going up. Our wine bill for last month was $900! How is one supposed to live anymore? Anyway, we now have a combined debt of $2 Mil. I told my wife, Demi, that we should cut back on our borrowing by at least $10,000. She thinks that is too drastic and would like to see a $5000 cut. We compromised; we are now only going to borrow $192,000 this year for an $8,000. savings!

This has been quite a sacrifice for us; but at the same time all of our friends tell us that we cannot sustain our way of life. They recommend that we cap our spending to $50,000 and to stop the borrowing. This seems silly to my wife and I. After all, our local banks need to do something with the money they got from our Central Bank, don’t they?

We are looking for some Sound Money advice here. Should we sell the trailer and just keep the motor home? Should I wait before I buy a 3D TV? Does Demi really need that Genie bra she just bought off the Home Shopping Network? I hope you can help.

I.M. Keynesian

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