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Message
re: 60% of American adults don't have enough in savings to cover a $1,000 emergency
Posted on 5/9/19 at 9:56 am to Pecker
Posted on 5/9/19 at 9:56 am to Pecker
quote:
As someone who lives in a place surrounded by wealthy people, I find the cliche that "people who actually have money don't buy expensive/flashy things" to be absurd. You don't really believe this. That's not to say there aren't many wealthy, yet modest, folks out there who have little interest in fancy toys. The type and quantity of luxury items will vary per person, and per region, but how out of touch would someone have to be to think that wealthy people, generally speaking, don't spend money on luxuries and status symbols (large homes, cars, boats, jewelry, clothes, furniture, travel, etc.)? This is basically something that people without money tell themselves so they don't feel that they're missing out. My boss shops the sale rack at Dillards, wears old shoes, and has zero interest in travel or fancy dining. But he has 2 homes, a Carrera GTS, and a collection of $10k+ watches.
Took the words out of my mouth lol.
I know plenty of actually wealthy doctors, lawyers, finance people etc.
They have nice shite.
0
Posted on 5/9/19 at 9:57 am to LSUintheNW
quote:
I'd be willing to bet half those folks don't have as much as you think.
Why though? Why would you be willing to bet that? I know what a lot of these folks do for work. Maybe some of them are in massive debt. Maybe most of them just have money.
Again, I think people without money like to assume the worst because it makes them feel better.
Posted on 5/9/19 at 9:58 am to GreatLakesTiger24
quote:
this is very overstated
This whole thread gets rehashed a few times every year. Mostly for/by folks who wanna jack their peckers off over living like paupers so they can watch a number go up
Posted on 5/9/19 at 9:58 am to Pecker
Already responded to this but yeah, I agree with you. I guess I should be more specific. Just because you have a lot of assets or make a lot of money doesn't mean you're cash-rich. A lot of these people are cash poor and have to leverage assets to create liquid. Or, should there be a disruption in their cash flow, shite falls apart really quickly.
To me, that's not what rich is. Rich is not about a number. To me it's more about flexibility and security.
To me, that's not what rich is. Rich is not about a number. To me it's more about flexibility and security.
This post was edited on 5/9/19 at 10:00 am
Posted on 5/9/19 at 10:00 am to nola000
quote:
I keep seeing people say things like paying off these huge debts is bad financial advice. I'm assuming because they think you can get a better return with that money somewhere else. I'm not arguing with you but I'd like to see the numbers on it. I don't play in money markets. I only invest in hard assets because I'm risk-adverse
This is a post I made last night in a separate thread.
quote:
400k mortgage at today's rates costs 733k over the life of the loan.
400k invested in an S&P tracking index fund would yield 6,979,760.91 assuming a 10% annualized interest rate, which is based on the previous 30 yearsof returns.
So......yea....don't forsake investments for paying off your house early.
Posted on 5/9/19 at 10:06 am to Pecker
quote:
Why though? Why would you be willing to bet that?
Have seen it time and again.
quote:
I know what a lot of these folks do for work.
Mo money mo problems just happens to people. Not everyone, I'm sure plenty are well off and can ACTUALLY afford everything they purchase. However, some of your neighbors just APPEAR wealthy.
quote:
Again, I think people without money like to assume the worst because it makes them feel better.
I agree with that. Then again I've seen people who appeared to have money be just as miserable....because they really....
quote:
are in massive debt
Posted on 5/9/19 at 10:10 am to JohnnyKilroy
quote:
quote:
I keep seeing people say things like paying off these huge debts is bad financial advice. I'm assuming because they think you can get a better return with that money somewhere else. I'm not arguing with you but I'd like to see the numbers on it. I don't play in money markets. I only invest in hard assets because I'm risk-adverse
This is a post I made last night in a separate thread.
quote:
400k mortgage at today's rates costs 733k over the life of the loan.
400k invested in an S&P tracking index fund would yield 6,979,760.91 assuming a 10% annualized interest rate, which is based on the previous 30 yearsof returns.
So......yea....don't forsake investments for paying off your house early.
For those that actually invest, paying off a mortgage is never the best option. For those who spend everything they make (which is well over 50% of the population) paying off a mortgage is never a bad option.
Posted on 5/9/19 at 10:13 am to LSU0358
That post was in response to a person who said they reduced their 401k contributions in order to pay his house down earlier.
Posted on 5/9/19 at 10:13 am to nola000
quote:
A lot of these people are cash poor and have to leverage assets to create liquid. Or, should there be a disruption in their cash flow, shite falls apart really quickly.
To me, that's not what rich is. Rich's last about a number and more about flexibility and security.
If you have money, it shouldn't be sitting in a savings account. It should be in real estate or securities. A disruption in cash flow could lead to liquidation of assets (some depreciating), but the fact that you have that option speaks to your financial flexibility. My boss could sell his vacation home for $600k (or car for $100k+, or watches for $'x'k) tomorrow if he needed cash.
Posted on 5/9/19 at 10:16 am to weedGOKU666
People see an S class Mercedes or a nice boat and have to find a way to cope with their lack of success.
Posted on 5/9/19 at 10:18 am to LSUintheNW
quote:
Mo money mo problems just happens to people. Not everyone, I'm sure plenty are well off and can ACTUALLY afford everything they purchase. However, some of your neighbors just APPEAR wealthy.
Maybe we just have a different mindset. I don't immediately assume that people with nice things are broke. My ego is fine by my assuming that they have the means to afford it.
Posted on 5/9/19 at 10:24 am to Pecker
I do love the threads though where people who seem to believe that they are personal finance geniuses while posting shite about how debt is per se bad.
Debt can be fricking awesome if you know what you're doing.
Debt can be fricking awesome if you know what you're doing.
Posted on 5/9/19 at 10:24 am to Pecker
quote:
Maybe we just have a different mindset. I don't immediately assume that people with nice things are broke.
uh, neither do I. I don't ASSume anything. Posted on 5/9/19 at 10:26 am to LSUintheNW
quote:
I don't ASSume anything.
quote:
I'd be willing to bet half those folks don't have as much as you think.
Posted on 5/9/19 at 10:28 am to JohnnyKilroy
Not exactly the same thing.
Posted on 5/9/19 at 10:29 am to JohnnyKilroy
was just about to post the same quotes 
Posted on 5/9/19 at 10:44 am to yellowfin
We keep enough to cover 3 months worth of bills
Posted on 5/9/19 at 12:30 pm to JohnnyKilroy
quote:
Then imagine that despite all the haggling that goes on during the negotiations of buying that house, that after that 30 years has elapsed, considering interest, you will have actually paid nearly four times what the original owner was actually asking for the house. Yeah. frick that noise. Pay that bitch off as soon as possible.
Generally , this is terrible financial advice.
True.
Posted on 5/9/19 at 12:49 pm to Pecker
Yeah, this is my father-in-law. Gets his clothes from Dillard 's or TJ Maxx
Has a house in Carmel on HWY 1, a ranch on a few hundo acres in W. Yellowstone, a 10,000 sq. ft. Log cabin in Big Sky, a house in charleston, a house on the beach off 30a, and a massive plantation house in Beau Chene.
He gets there using one of his two Citation Jets.
Everyone's got their thing.
Has a house in Carmel on HWY 1, a ranch on a few hundo acres in W. Yellowstone, a 10,000 sq. ft. Log cabin in Big Sky, a house in charleston, a house on the beach off 30a, and a massive plantation house in Beau Chene.
He gets there using one of his two Citation Jets.
Everyone's got their thing.
Posted on 5/9/19 at 1:09 pm to TheCaterpillar
quote:
That's not true at all.
Minimum wage is nothing and if you have children/dependents, it can be very tough to save money on that wage.
Is it harder with lower incomes? Sure. Is that an excuse? No. If you can't do it within 12 months then that person is clearly living beyond their means.
Heck, I could do it living on $600/month in college. $10/hr should be able to take home $1,400/month.
You think those people didn't have a job before kids? Every high school kid can have $1k sitting in a savings account for emergencies.
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