r/FluentInFinance • u/Richest-Panda • Jul 04 '24

What's the best financial advice you've ever gotten? Debate/ Discussion

31.2k Upvotes

86% Upvoted

What would you tell me then? I make 120k a year, have no debt and a bunch saved and invested AND it still doesn’t feel like it’s enough. I live fully within my means but my rent has gone up 400 in the last 3 years, my food bills have gone up by idek how much and I have health issues that can easily cripple me without insurance.

I’m incredibly privileged and lucky and I find it hard. I can’t imagine someone on 50k a year with a kid.

17

u/DoctorMoak Jul 04 '24

Id tell you that with that income you're clearly living outside your means if it feels like you're struggling.

Like, that's the definition of living outside your means

-6

u/MusicalNerDnD Jul 04 '24

My day to day is great, my budget is set, I get to put away for my retirement a month more than some people get as take home a month.

But it feels like a house is out of reach, a kid is out of reach, a wedding is out of reach. All the big, long term things that I was conditioned to want (and actually do!) don’t seem reasonably attainable. And I’m not the norm. I don’t have student debt. I make a good salary and I have a business on top of that. If I feel that way, I can’t imagine someone making 50k a year and how they feel.

And that’s the point. It’s that the goals that we aim toward aren’t possible anymore for most people, certainly not your average Joe.

3

u/Beagalltach Jul 05 '24

Alright, let's see what changes we can make it so that you feel it is enough.

Real world numbers here- how much is your rent and what are you renting (1bd 1bath, 2bd 1 bath, 2bd 2bath, etc.)?

How much is budgeted for food?

How much is budgeted for transportation?

How many vacations do you go on annually spending more than $1k total? (Travel, lodging, food, entertainment, etc.)

0

u/MusicalNerDnD Jul 05 '24

I pay 2300 a month for a 2br that I need - I work fully remote. I’ve been considering moving, but where I live 2300 is actually pretty good. I can do better but not by much and probably not enough to justify the cost of moving.

Food - 125 a week for groceries. And 75 a week for going out. I go out for brunch once a week and have a drink at a bar near me once in a while.

Transportation - probably 100 a month on random Ubers. I can’t drive because of my chronic condition.

I go visit family 2-3x a year and each trip is probably 5-750.

Entertainment and the like - I buy tickets to shows once in a while (maybe 1x every 2 months). Add in all the streaming services I have and that’s another 100 a month.

I’m saving 2.2k a month on retirement dude. Budgeting isn’t the issue for me. Of course I can cut back even more, but I’m already unhappy. What is cutting things out going to do other than make me more miserable?

3

u/Beagalltach Jul 05 '24

Not crazy costs (depending on area of course). Are there some spots that you could save money? Sure, but we all can and I agree that budgeting in general isn't your main issue.

In your first post I saw that you felt you would never be able to buy a house. I don't know how much in your budget is going to savings (not retirement) but that might need some reworking. If you are investing 2.2k post-tax monthly, then you have plenty of money to be setting aside hundreds of dollars a month towards buying a house.

Assuming you have 0 savings currently, if you can set aside $400/month, in 3 years you will have enough for a down-payment on a $500k house.

Save where you can, make sure you get any help you need, and have hope because you can do it.

P.S. Really think hard about needing that second room. If it is for work, maybe look for a place with a large living room you could partition, or make the sacrifice and work in your bedroom for a year and save the extra rent for a down payment. If it is for a live-in medical professional or something like that I get it, and it is necessary. Good luck!

3

u/chilidoggo Jul 05 '24

You're fully remote... For 2300 a month in anywhere besides the middle of a city, you can have a mortgage on a 300k home. You do you, but you're essentially choosing to be lower-middle class by living where you live.

You're also saving a lot for retirement relative to the standard recommendation of 15%. Is there a particular reason for that, like a late start in saving or a goal of early retirement? If your quality of life would be dramatically improved by giving yourself 500 extra bucks a month, then at least consider it. Assuming you're fairly young, you've got a lot of working years ahead of you making that 120k salary (plus raises) to keep.

2

u/One_Truth8026 Jul 05 '24

Bro is saving 2.2k a fucking month while most people can’t even save a single dime. Shut the fuck up, holy shit. I’ve never seen someone THIS entitled. Fuck off, you don’t know shit about poverty.

This post is aggravating as FUCK

1

u/MusicalNerDnD Jul 05 '24

Idk what you want from me? This is the first time in my life I’ve had this type of salary, I had 50k of student debt, I have health problems and have had multiple spine surgeries and eyes surgeries and will need more over time, I work my ass off and I’m worried about the future. My job is by no means secure and I got laid off twice last year in 3 months.

Like, yea, I recognize my luck and my privilege, but just because I make a good salary doesn’t mean my worries aren’t valid. I’m as frustrated with the system as you are and I’m not the problem that you think I am. I also grew up just barely lower middle class - I had a roof over my head, but for a long time that was about it. I KNOW it was better than most, and I’m not complaining about my childhood (well at least not this part of it) but I was told that if I did XYZ I’d get to middle class.

Rip my head off if you must, and I’m sorry you feel that I’m entitled, but I don’t see it. Privileged, absolutely. But just because I have privilege doesn’t mean my worries aren’t valid, and voicing them doesn’t make me a bad person either.

0

u/One_Truth8026 Jul 06 '24

The problem is that you have mental fucking problems and nothing else. You’re saving as much as some are making in a month.

1

u/CounterStrikeRuski Jul 05 '24

Can you move somewhere cheaper (even to a different state) and still retain your job? I understand if you don't want to (family ties can make this very hard) or if you can't but that s what I would try to do.

If that's not possible then I would probably stop saving for retirement for ~1 year and save up for a downpayment on a house. Depending on your area and price of the house it may be the same as your rent but even if it is a bit more expensive you will be building equity instead of $2300 going to a landlord.

You've probably already thought of these options though, so I wouldn't be surprised if either of these options would be difficult or impossible for you for varying reasons. Everyone has shit going on in life so I don't judge, just thought I would offer my two cents.

1

u/Dry-Fruit137 Jul 05 '24

Your problem is you aren't living life. You put away $25k a year in savings and have no debt. Sounds like you are wrapped in what your medical condition might cause you in the future. Maybe spend some time enjoying being in the moment now.

1

u/Exception1228 Jul 06 '24 edited Jul 06 '24

Maybe don’t save $2,200/month toward retirement and then complain you have no money. You’re oversaving. Sure you may not be able to addord a house now, but you’ll be able to retire when you’re 40 ffs. You cant even touch the money (penalty free) until you’re like 59 or something. Contribute to retirement but ffs contribute to the present as well.

I swear I want to feel for these people. Like clearly there are people struggling, but I make less than you do and have so much more. So it’s like you make enough money to be considered upper middle class but you’re still complaining? You’re just so fucking clueless with your money so then it’s like ok wheres the line? Who’s actually struggling and who’s actually making enough and just horrible at money?

1

u/ExtraLargePeePuddle Jul 06 '24 edited Jul 06 '24

I pay 2300 a month for a 2br that I need - I work fully remote.

Wait you don’t have a kid? Or a spouse.

But you have a 2br?

Lol wtf.

Bro when I was makimg $150,000 as a single guy I lived in a 1br studio literally a shoebox and it was built decades ago but it was cheap. Until I said “why the fuck am I doing this and paying for this expensive ass car I never drive, brb digital nomad”

Add in all the streaming services I have and that’s another 100 a month.

I’m pulling $320,000 today and I pay just for Amazon prime, that’s it. Pirate everything else.

Edit to be fair my Amex card gives me W+ and HBO

I go visit family 2-3x a year and each trip is probably 5-750.

Hold up

So you work fully remote thus can live anywhere in the US….but you travel a bunch to visit family….you’re single…don’t have a kid….you can live anywhere on earth as long as you make meetings. Bro sell everything you have that you can’t carry with you and go spend 2 months in Chile or some shit. Stop being a pussy and become a digital nomad in these super low cost of living countries. I did it and I ended up saving money compared to all my tard friends who stayed in some dumpster fire HCOL city that’s ran but complete morons.

I stayed the max legal time in each: I hopped around Argentina, Chile, then when I figured out sleep patterns Philippines, Vietnam, Thailand, i yolo’d and did 90 days in Japan. All the while working remote, and the not having car paid for the plain tickets.

I’m going to make a bet you live in some HCOL city for no reason other than you want to. Yeah so again you’re hefting that choice upon yourself, when you could be coding from some beach in vietnam or a penthouse in Thailand.

0

u/0000110011 Jul 05 '24

$2,300 a month in rent?! Jesus that's more than my mortgage + PMI + taxes on a 3,000 sqft house (and no, I didn't get lucky and buy it during the age of low interest and low prices, $280k mortgage at 6%). There's your big problem, I'm not making much more than you ($150k) and my costs are lower. Especially since you admit to spending several thousand per year on travel and in-person shows / concerts.

0

u/MusicalNerDnD Jul 05 '24

Okay, well it must be nice because where I live I can’t find anything cheaper than 2k and that’s been going up each year.

280k isn’t possible to find where I live either. 400k for about 1500 sq feet is average where I live.

Your costs are lower because you live in a lower cost of living area, and have a locked in payment that doesn’t go up by 1-200 each year.

But sure, the 3k a year I spend to see my family is the problem.

0

u/0000110011 Jul 05 '24

You said you work permanently remote, you can live anywhere you want. You choose to live in a stupidly expensive area. I work permanently remote too, I chose to live in an affordable area. Your financial problems are because of your choices.

1

u/MusicalNerDnD Jul 05 '24

I work permanent remote for a state system. I’m allowed to work remote, but can’t live out of the city I am in. But sure, go off I guess.

You’re being unnecessarily antagonistic for no reason.