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Take the post prior to yours -- the single mother sending the kids to college. That's expensive. There is NO DOUBT about that.
But there is absolutely no reason why the kids can't attend their first two years at a less expensive school -- even a community college -- and then transfer as upperclassmen. They could drop the cost of a first-rate education by nearly half. Or they could transfer to an even more prestigious school and have an even better chance of landing the really good jobs. (And still save a few dollars doing it.) OR they'd have money left over for grad school.
But they want the four-year school experience. Football games and sororities and all-nighters in the dorm. So they pay for that. There are ALWAYS options. But most people want what they want and don't mind going into debt to get what they want.
Well, there's some truth in that though some silliness, too. My daughter certainly had no interest in sororities or football and she was so terrified of inheriting her father's alcoholism that she wouldn't drink until she was 20 and went to school in Asia and hung out with the Chinese and European kids. She also worked part-time during all but the first year of school. We discussed community college, but in the end we felt it was best for this only child to get out of the safe little town in which she was raised and expand her world. It was difficult--and necessary--for her to learn to share space with others. And she did expand her world. She's moving to Beijing next month because she's accepted a job there. But you are correct. If not accumulating debt is the highest priority, starting at community college is a great option.
Last edited by Mightyqueen801; 09-07-2014 at 07:27 PM..
My wife and I spend 500-700 a month at the grocery and costco in addition to a similar amount going out to eat lunch/dinner and neither of us drink. You are talking about 250-350 a week which isn't some ridiculous amount
For many folks, the issue is that they'll spend the same percentage of their income on "stuff." The guy making $50k/yr. will buy a BMW or Mercedes to show off, while spending a considerable sum per month on a cozy apartment in the good part of town. His bosses' boss, making $500k/year has the McMansion, a couple of sports cars and a boat.
No, they usually lease those BMWs at the $50,000 income levels.
My wife and I lold this morning reading this article.
FWIW we were very similar to the Northern Trust family, except we have not bought a car in a few years, no kids, spend more eating out and vacations, less in groceries, but save 6 figures per year after maxing our 401ks.
And if you both die tomorrow, what was the point of all that saving? How much have you denied yourselves? You have to strike a balance.
My wife and I spend 500-700 a month at the grocery and costco in addition to a similar amount going out to eat lunch/dinner and neither of us drink. You are talking about 250-350 a week which isn't some ridiculous amount
Well, there's some truth in that though some silliness, too. My daughter certainly had no interest in sororities or football and she was so terrified of inheriting her father's alcoholism that she wouldn't drink until she was 20 and went to school in Asia and hung out with the Chinese and European kids. She also worked part-time during all but the first year of school. We discussed community college, but in the end we felt it was best for this only child to get out of the safe little town in which she was raised and expand her world. It was difficult--and necessary--for her to learn to share space with others. And she did expand her world. She's moving to Beijing next month because she's accepted a job there. But you are correct. If not accumulating debt is the highest priority, starting at community college is a great option.
Yes, this is well thought out. I don't knock Community College per se...but honestly, I think it often serves as a holding pen for kids who are aimless and unmotivated...and that environment has a way of infecting the more motivated students as well. Then you have the issues with 4 year colleges/universities F'ing around with you and not honoring credits, etc. I know this sort of thing happens more in some states/regions than others, but I think it happens everywhere.
It definitely can be a good way to go...but it's definitely not a one-size-fits-all solution to high college costs, which are, indeed, unsustainable.
And if you both die tomorrow, what was the point of all that saving? How much have you denied yourselves? You have to strike a balance.
There are a lot of things that we can do that would be rendered pointless if one dies tomorrow. As to denying themselves, what exactly do you mean by denying? The poster you quoted mentioned that he pays less on groceries, and more on eating out and vacations. He still puts 6 figures in his 401k, probably so he can maintain his current lifestyle of dining and vacations. Is that denying himself something? If anything, sounds more like he is wisely preparing for the future where he won't have to base his income on how much he gets in SSI.
So when you ask how much have they denied themselves are you referring to material wealth, such as new cars and the latest, greatest flat screen TVs? I would surmise that for some people a trip to Barbados is more worthwhile than that 60 inch Sony.
Because you don't want to or because you can't reasonably afford? How is your suffering relevant? Should we all suffer?
Fair question... so let me elaborate.
It's because I don't enjoy it... no suffering involved.
A few years ago, the then CEO of the Hospital where I worked commented on the fact that I've driven the same car for 20 years and when I told her I had it much longer than that and bought it for $800 back in college... it sent her over the edge.
She actually became annoyed and said she knows I can afford to buy any car I want and simply couldn't understand why I was driving a 1972 car in 2010.
Had to explain I had not gotten my money's worth out of it yet and that it drives as well today as the day I bought it...
Went on to explain how much money my frugal ways have saved the hospital over the years and she conceded I was right...
I own 50 vehicles with at least one from every decade going back to 1905.. sports cars, antiques, classics, foreign and domestic... most restored by me and all investment grade... even the 72 Valiant is worth several times what I paid for it...
So why should my company CEO care if I choose to drive my 72 automobile for my daily commuter?
My engineering background lets me appreciate well designed and reliable products and a good measure for this is the cost of ownership...
My hand me down 40 year old Kenmore Washer/Dryer pair simply work and they work well... can't tell you how many thousands of dollars my next door neighbor has spent just on Washers and Dryers and not to long ago she confided in me how dumb it was of her to get rid of perfectly good appliances just to have the latest and greatest and then be disappointed with them... like the $2000 she spent on one of the high end front loaders that was just a nightmare in repairs and even made her clothes smell moldy...
To me... it is very satisfying and that's it... never one to put on the dog or care what others think...
Can't tell you how many times I confused with the gardner or maintenance person at the apartment building I own...
Again... many high earners I know need every penny of what they earn because they spend it all and still come up short...
If the new Range Rover in the driveway is your thing... go for it... if your 20 year old kitchen is dated and you simply can't look at it anymore... go for it... if you needed a large screen, then projection TV and then a Plasma and now a curved TV with 300 channels... go for it...
My 25 inch Zenith Color Console and rabbit ears with 41 channels is just fine for me...
Years ago I remember a plaque at my Grandparents home... it said prosperity is earning a $1 and only needing 99 cents...
I know the Joneses and have no desire to be like them.
Last edited by Ultrarunner; 09-08-2014 at 12:13 AM..
Word to those who are young: If you're looking to get married and/or have a kid with someone (Marriage, then kid. The order matters a great deal), you'd better take a hard look at their financial habits as well as your own. Love alone isn't going to make it work.
No difference from a financial POV. Beyond just getting to know eachother, having kids first as a couple might actually help you save on a ridiculous and expensive wedding.
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