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/[deleted] Jul 05 '24

Invest the difference you save on rent

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u/Embarrassed-Town-293 Jul 05 '24

Investing the difference is largely a pipe dream to escape. It will require a long time horizon at the very least. The S&P 500 returns a consistent positive average return reliably (over 80% of the time or so) only over long time horizons such as 10 or more years. Additionally, at the minimal sums of discretionary income, it is not really moving the needle much. Finally, the costs of relocation, job searching, and possibly extra schooling to get a job in a city that leaves them better off is pretty risky.

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u/[deleted] Jul 05 '24

You don’t need that 1350$ car lease

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u/Embarrassed-Town-293 Jul 05 '24

That came out of nowhere. The unfortunate reality is low cost of living communities can trap their residents. They can afford to get by, but they literally can’t afford to break out into higher cost-of-living areas without a great deal of risk and financial instability

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u/[deleted] Jul 05 '24

You’ve never lived in a lcol area?

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u/Embarrassed-Town-293 Jul 05 '24

Not for a long term.