Tricks of The Rich and Infamous

[adaran01]

Hi
I agree with Duncan regarding new cars, they loose a great deal of money, and no-one really needs 255KW or even needs to get from 0 to 100KMH in 6.2 secs. I can't see the fuss that people make over the smell of new leather, heated seats, 4 zone climate control, or satelite navigation.
I also think electronic sunroofs, active steering (BMW 5 series), and 18 inch alloys are highly overrated.

There is an internal fight going on in me between what I know is the right path, that leads to financial freedom, and the path that leads to an Audi S4.
The right path, the one to financial freedom is currently winning, I just hope they do not bring out a car in the near future with a heads up display, as I feal this will push me over the edge.

 

[paul_s]

with regard to the fringe benefits exemption for laptops my accountant told me it basically works as follows, (I hope he is right on it )

-a company can give each employee one laptop per year which the company can charge as a expense, ie whole amount written off in a year

-the employee can then also write off the value of the laptop over a number of years, assuming its primarily used for work related purposes, hence its effectively used as a tax deducation twice. He told me the employee can claim based on the full purchase price.

-so from what I have heard the actual costs could be very low if its your own company and you are buying it for yourself (as an employee of your company)

ie 30% of the cost will effectively be saved on company tax + potentially up to 47% on your own personal tax (over a number of years),

so very roughly the laptop could in effect be only costing a bit over 20% of its purchase price when looked at after tax if you are on a high marginal rate.

 

[astroboy]

My understanding is you are spot on paul-s. BTW I *love* my spec'd up Top range Sony Vaio, retail is $6.5K for my spec. I need it for what I use it for but the *real* cost is nowhere near that. As I said talk to your acct.
ab

 

[duncan_m]

Originally posted by astroboy
Usually environmental stinkers.
Generally resource inefficient.

My old banger blows a bit of smoke.. but the environmental cost of manufacturing a NEW car to replace it would be enormous, the metal, the new plastics, the paint and solvents, the radio-active components for the catalytic convertor etc etc..

I'm doing my kids a favour by continuing to drive a car that blows a bit of smoke.

Duncan.

 

[astroboy]

Well yeah, I'll give you the point but hardly sustainable
not that new car manufacture is either... hmm....
ab

 

[hwd007]

Thanks for your replies to my hypothetical questions to help me better understand this aspect of finance and tax.

 

[brains]

Are you serious? Maybe we should all drive around in 2 stroke Trabants, the smoke haze would be impressive but they wouldnt have to make any more cars so thats great.

You try every way possible to justify (or substantiate) driving a bomb but the reality is youre too tight to trade up to a nice car so stop kidding yourself, its getting silly now.

Originally posted by duncan_m
My old banger blows a bit of smoke.. but the environmental cost of manufacturing a NEW car to replace it would be enormous, the metal, the new plastics, the paint and solvents, the radio-active components for the catalytic convertor etc etc..

I'm doing my kids a favour by continuing to drive a car that blows a bit of smoke.

Duncan.

 

[beech]

Hey ive got an idea.

how about we invest in property make lots of money AND have a nice new car to enjoy getting about town.


if we do well investing i believe we can enjoy some of the benefits.

 

[duncan_m]

Originally posted by brains
Are you serious? Maybe we should all drive around in 2 stroke Trabants, the smoke haze would be impressive but they wouldnt have to make any more cars so thats great.

You try every way possible to justify (or substantiate) driving a bomb but the reality is youre too tight to trade up to a nice car so stop kidding yourself, its getting silly now.

I suffer in order that I may possess

 

[kierank]

Originally posted by paul_s
with regard to the fringe benefits exemption for laptops my accountant told me it basically works as follows, (I hope he is right on it )

-a company can give each employee one laptop per year which the company can charge as a expense, ie whole amount written off in a year

-the employee can then also write off the value of the laptop over a number of years, assuming its primarily used for work related purposes, hence its effectively used as a tax deducation twice. He told me the employee can claim based on the full purchase price.

-so from what I have heard the actual costs could be very low if its your own company and you are buying it for yourself (as an employee of your company)

ie 30% of the cost will effectively be saved on company tax + potentially up to 47% on your own personal tax (over a number of years),

so very roughly the laptop could in effect be only costing a bit over 20% of its purchase price when looked at after tax if you are on a high marginal rate.

This concept is well documented in Dale's Trust Magic book.

 

[Rolf Latham]

Hiya

Having had 100 k + plus cars, we love em, BUT I love my basic cars more.

Nice line by an Aussie poet whose name I cant recall - possessions weary me - best line I can relate to !


Ta

rolf

 

[hwd007]

I have just bought at auction today, so that nice car will have to wait a few more years I'm afraid.

 

[brains]

What a load of %&*$!!

Why do most people think that future success and enjoyment of life now (including material wealth) are mutually exclusive, its a very narrow minded view in my opinion.

But if you really belive it then why make excuses and /or lies for driving a smoke blowing bomb?

Originally posted by duncan_m
I suffer in order that I may possess

 

[brains]

Rolf,

Maybe you and the poet should live in a mountain cave like a Fransiscan monk

Originally posted by Rolf Latham
Hiya

Having had 100 k + plus cars, we love em, BUT I love my basic cars more.

Nice line by an Aussie poet whose name I cant recall - possessions weary me - best line I can relate to !


Ta

rolf

 

[duncan_m]

Originally posted by brains
What a load of %&*$!!

Why do most people think that future success and enjoyment of life now (including material wealth) are mutually exclusive, its a very narrow minded view in my opinion.

But if you really belive it then why make excuses and /or lies for driving a smoke blowing bomb?

Brains..I'm not afraid to spend money I spend $100's every month on tools and other toys.. But not on cars, been there done that, lost the money.. never again. Sure a nice car would be great to drive around in.. I just don't want one because of the economic cost it brings.. I choose to opt out of that other great Aussie Dream.. new cars..

Duncan.

 

[brains]

ewww....hundreds per month!!.....joking.....

ok, thats fair enough, its your life but if you really belive it, why do you make the strange excuses about driving a smoking bomb is better for the environment and other silly things?

Some people belive that suffering now (your term) is worth it to secure a better retirement or future. I dont, i want (and have)both

Originally posted by duncan_m
Brains..I'm not afraid to spend money I spend $100's every month on tools and other toys.. But not on cars, been there done that, lost the money.. never again. Sure a nice car would be great to drive around in.. I just don't want one because of the economic cost it brings.. I choose to opt out of that other great Aussie Dream.. new cars..

Duncan.

 

[duncan_m]

Originally posted by brains
ewww....hundreds per month!!.....joking.....

ok, thats fair enough, its your life but if you really belive it, why do you make the strange excuses about driving a smoking bomb is better for the environment and other silly things?

Some people belive that suffering now (your term) is worth it to secure a better retirement or future. I dont, i want (and have)both

Brains.. I'm sure there's some things you choose to delay gratification on.

Duncan.

 

[MichaelM]

For some people (eg- lower income earners) it does have to be one or the other. By choosing to spend money on expensive cars and 'material wealth' now it may leave nothing left over for investing, so is worth waiting for these things.

 

[brains]

Thats true but there are different levels of delayed gratification.

Ive always had the belif that if people spent as much time and energy trying to make money rather than trying to save money, they will be better off now AND in the future.

Ive debated this plenty of times over a bottle of red with friends at dinners etc and the reason im told most often is that its much easier to save money than it is to make money and so therefore thats the route most people take.

In Robert Kiyosakis words "its a world of abundance" meaning there is unlimited money out there so theres no need to live like a pauper just to be able to "posses" in the future. You just need to think outside the square a bit more.

I absolutely disagree with the concept of the 'millionare next door' meaning we live like a poor person while secretly being rich or whatever it is.
Most people find reasons to justify what they do (just as you did with the car) which are usually far removed from the real reasons.

eg: Delayed gratification is just another way of saying 'i dont want to work my arse off to make more money NOW ' or 'i dont want to think creatively to have a better life NOW '.

Done beleive evrything the thousands of investment/finance/life coaching/motivational books out there tell you.

Originally posted by duncan_m
Brains.. I'm sure there's some things you choose to delay gratification on.

Duncan.

 

[duncan_m]

Originally posted by brains

I absolutely disagree with the concept of the 'millionare next door' meaning we live like a poor person while secretly being rich or whatever it is.
Most people find reasons to justify what they do (just as you did with the car) which are usually far removed from the real reasons.

Brains,

One thing to remember about "The Millionaire Next Door" is this, its a collection of facts, not a work of fiction like other wealth coaching books. It just examines the habits of the wealthy..

Its not possible to actually disagree with it.

But even though, you've still fundamentally missed some of its points.. the people studied in the Millionaire Next Door didnt drive Bangers like I do, they drive things like the US equivalent of newish (2-3yo) Commodores and Falcons.. I've read the book a couple of times.. I dont see anywhere in it either the suggestion or the fact that people live like paupers to achieve wealth..


When I'm filthy rich maybe I'll trade my $1500 ute up to a $7,000 ute.. whooah such decadence!

Duncan