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What if the rent is too high and it consumes half your income?
If someone doesn't have the money to invest in the stock market then they don't have the money to invest, they need to either increase their income or reduce their expenses.
First up on the "reduce expenses" side of the equation would be the obvious like not throwing away money renting a storage unit to feed the big future business payoff fantasy, or putting money into previous metals investments.
You save more than the standard 10% to 15% that is recommended. In short, most people need to shun the standard middle class lifestyle (for a period of time, anyway) if they want to do well financially. Or at the very least, they have to be at least somewhat out of step with their peer group. If most people are broke (and they are--at every income level), then you have to be the one willing to be the oddball if you want to be financially comfortable / rich.
While I agree with your sentiment I think this statement takes it a bit too far.
Someone saving "only" 10%-15% of their income isn't automatically considered not doing well financially because that is their savings rate, they are probably already ahead of most of their peers and should over a 40+ year career build up a reasonable nest egg to go along with social security in retirement. There are a lot more factors than just a savings rate when judging financial health, and I submit many people with this savings rate are doing just fine especially if they manage their debt well.
Quote:
Originally Posted by ShampooBanana
Indeed. Nobody gets rich following the status quo, mainstream advice that gets peddled out there.
Meh, I'm not sure getting rich is necessarily the best goal for most people. It's a great side-effect of reaching some goals depending on your expenses, age, etc. but it is quite possible to have a fruitful life with a solid personal finance perspective while never attaining a wealth level that many would consider rich.
Quote:
Originally Posted by flyingsaucermom
Most of the time, I'm feeling really good about what I'm doing and why.
You sound like you have a good head on your shoulders and this is a great place to be, it sure is a lot easier when it doesn't feel like an endless grind to get/stay ahead.
We are suggesting you rent a 2 bedroom apartment on the bus line and split the cost with a roommate of your choice, a friend, relative, co-worker, someone you find on craigslist, someone who goes to your church, someone you know from your medical appointments, etc. Make sure you get one with internet access and room for everything in your storage facility. Something you should have done many, many years ago.
While I agree with your sentiment I think this statement takes it a bit too far.
Someone saving "only" 10%-15% of their income isn't automatically considered not doing well financially because that is their savings rate, they are probably already ahead of most of their peers and should over a 40+ year career build up a reasonable nest egg to go along with social security in retirement. There are a lot more factors than just a savings rate when judging financial health, and I submit many people with this savings rate are doing just fine especially if they manage their debt well.
These people will do just fine IF they can maintain decent paying employment for 30-40 years with minimal or no breaks. The problem is, a lot of people don't. Granted, if most people actually did save in the 10-15% range, most would be in a much better position to weather getting booted out of good paying employment in their 50s.
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