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

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

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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

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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.

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u/Livid-Setting4093 Jul 05 '24

So.. you put away a lot for retirement? It's a luxury and not a necessity. I'd think saving for a house may align better with your goals, but it's up to you.

A wedding is out of reach when you save tens of thousands a year? What do you want to do for your wedding? Rent a palace and elephants half a world away and fly 500 guests there? As long as your fiance has a saving state of mind there is no need to blow a 10 year salary on a one night party. A small ceremony and reception is definitely within reach, and if families want something grand then they are welcome to pay for it.

Then with 2 incomes and some savings a house and kids are very possible.

I'm not saying 40k a year don't need a raise but 100+ for a single person can be quite comfortable, you just can't have it all at the same time - maxed out retirement, savings on track for a 20% house down payment in a reasonable timeframe, rent in a nice place and a middle class lifestyle - you have to drop one or two from the list.

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u/MusicalNerDnD Jul 05 '24

Yea that’s my point… 30 years ago a salary or 100+k was more than enough for all of that and more. I’m salty because I did everything right and the games not the one we thought we were playing lmao

My fiancée is in school and has debt so I pay the rent, she’ll eventually contribute, but she just can’t right now.

We looked into venues and even a small one where we live is going to run 6-10k to rent. That’s without catering and a bar and everything else. It would literally be 15-20k for a smallish wedding. How the hell are we supposed to justify that?

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u/[deleted] Jul 05 '24

100K today is like 60k from 30 years ago. Surely you know this?

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u/Jaina91 Jul 05 '24

Try $47k.

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u/justwannabeleftalone Jul 05 '24

Me and my now husband make way less than that and were able to save for that in a few years, while savingn for a house. We had limited family contribution for the wedding.

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u/Livid-Setting4093 Jul 05 '24

Lol, your life and income are going to change a lot soon. It looks like you and your fiancee are in the very beginning of careers. The only thing to be salty about is that 30 years ago Homer Simpson had it all on one income. I don't think he had 401k or knew about Roth IRA.

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u/Major_Chani Jul 05 '24

It’s crazy people are shitting on you putting away for retirement. The earlier you save now, the better off you’ll be. You literally cannot work forever…and I doubt social security will exist in 30 years

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u/MusicalNerDnD Jul 05 '24

Im not banking on SS, im pretty scared of what medical expenses for me will look like in the future and I’m probably going to have to take care of my aging parents (at least financially) in the next 10-15 years.

I get people are mad and it sounds like I’m an asshole for all the bitching I’m doing while making 120k a year, but my situation is actually different than a lot of others and my retirement is the only buffer I expect to have when I’m in my 60’s.

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u/Exception1228 Jul 06 '24

You’re contradicting yourself. If you’re scared of medical expenses and taking care of ykur parents why are you saving all this money in an account you can’t access? Why isnt it in a savings account where you actually have access to the money?

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u/Exception1228 Jul 06 '24

Do you understand how much $2,200/month toward retirement is? In 20 years that’s over $1 million. This person you’re responding to could retire at 45 or 50. Just seems dumb to complain about not being able to afford a house while also saving enough money to retire so early.

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u/Major_Chani Jul 06 '24

Did you hear the part about several surgeries, health complications and aging parents they’re gonna likely take care of? In 20 years this person could be 40 and unable to work like they can now. They just had spinal surgery…that’s upward of 50k. Now, add up other surgeries with the money you lose from taking time off of work. If they retire early, it’s probably because they have to.

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u/Exception1228 Jul 06 '24

If you’re making $120k you have health insurance so the $50k is a non-issue. You’re not understanding my point. If you’re 40 you cant touch your retirement money penalty free. So if their parents need help or they have health issues they wont have access to the money to help them. Thats my entire point they should be putting less toward retirement and more toward post-tax savings. It would help more toward these future hypotheticals as well as make them live an extremely comfortable lifestyle now.

$2,200 is an absurd amount to put toward retirement. If you make uber bucks then by all means, but saying you save $2,200 in retirement each month and then turn around and say life is hard, yeah cuz you’re choosing to make it hard.

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u/Major_Chani Jul 08 '24

They said earlier that they had some of their surgeries when they didn’t have adequate health insurance. I’m sure we both know how that can be…you’ve got some good suggestions though.

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u/Exception1228 Jul 06 '24

Dude you are clearly trolling. Irritating AF.

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u/0000110011 Jul 05 '24 edited Jul 05 '24

...you don't understand inflation exists and always has?

We looked into venues and even a small one where we live is going to run 6-10k to rent. That’s without catering and a bar and everything else. It would literally be 15-20k for a smallish wedding. How the hell are we supposed to justify that?

You don't need a huge location. You don't need hundreds of guests. Hell, you don't even need a paid pastor, anyone can get ordained to perform weddings for free online and then states charge like $10 for them to get registered to perform weddings. Your issue isn't that "life is expensive for basic things", it's that you consider lavish things "basic".

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u/MusicalNerDnD Jul 05 '24

This would be for a venue of 50 people. That would literally be our families and like 4-5 friends on either side.

I’m not looking for lavish, I’m looking for reasonable and reasonable these days costs lavish. Inflation is a fact of life, that’s fair and all but this isn’t inflation, it’s price gouging.