Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Lets say hypothetically, you were a young man that has no kids, will most likely never get married, and you make a salary of 210k a year in a job that has full benefits. I'm sure I can live off about 25k a year my biggest other expense would be about 18k a year so I should easily be able to save about 100k a year. The first thing I would do is buy a place to live in with cash. There are some really nice 2 bed / 2 bath condos I can get in the city for 160k. Other than that I am content just putting 100k a year in a bank savings account until I reach 3 mill, retire ,and die. I have no need for extra nice stuff, I have no desire to keep up with the Joneses, I probably will never have a family, would just putting all my money in the baking system be a stupid Idea? I'd be into investing if it is low effort and low risk. Maybe even medium effort and medium risk.
Let's say, hypothetically, you are making 210K a year. For that kind of salary, you are going to have some work related expenses, wardrobe, trasportation, perhaps entertainment that you haven't figured in.
I did have a tenant making more than that and he rented a cheap rent place from me for several years until he bought a really nice house on a small acreage with all cash. I don't know what he did with the rest of his money, but he drove an old car. He did a lot of work related international travel, so he must have had nice work clothing, but I only saw him on his days off wearing casual clothing.
I buy real estate but that is not low input and it is not low risk. If you want low risk and don't want to do any work, put part of it into certificates of deposit and part of it into a DOW based mutual fund. Then just let it ride.
Myself, I enjoy traveling so some of my income is spent on travel and some goes to hobbies. Quality of life gets balanced with savings.
Well you should at least max 401k (18k) and Roth IRA (5.5k) for the tax breaks.
You could then put 80% of your excess money into a safe mutual fund and would have minimal risk over such a long term like 30 years. Rest in checking/savings.
I do think you should probably enjoy life more then spending 25k a year if you are making 210k though.
Uhh, yeah, that's kind of pointless to make so much money and not at least enjoy your life. Nobody said you have to buy a $100K car to enjoy life (unless that's your thing and you really get a lot of joy out of it, no judgment), but you have hobbies, right? I mean whether it's skiing, hiking, mountain biking, playing video games, taking up a martial art, traveling, there are so many fun things you can do in life, and most of them cost some money at least. Not saying they're all expensive, but there's no harm in spending money to enjoy your life more. You can't take it with you, after all.
You should have your money working for you too, especially if you're young, I would invest aggressively in market funds and maybe ask some people around here who know the stock market what those options could be. I think there are emerging market funds and some more volatile options but that have a higher chance of great returns. You don't have to put your money all in the same thing, it's smart to diversify, but you shouldn't at a young age put all of your money into something that can barely keep pace with inflation or you're basically getting poorer.
I'd be into investing if it is low effort and low risk. Maybe even medium effort and medium risk.
Effort and risk are not necessarily correlated. You can easil get low effort coupled with whatever level of risk you are willing to incur — from risk-free all the way to extremely risky.
Don’t forget that your income tax obligations will be high.
Uhh, yeah, that's kind of pointless to make so much money and not at least enjoy your life. Nobody said you have to buy a $100K car to enjoy life (unless that's your thing and you really get a lot of joy out of it, no judgment), but you have hobbies, right? I mean whether it's skiing, hiking, mountain biking, playing video games, taking up a martial art, traveling, there are so many fun things you can do in life, and most of them cost some money at least. Not saying they're all expensive, but there's no harm in spending money to enjoy your life more. You can't take it with you, after all.
.
Yeah I could probably experiment heavily with high quality hookers and drugs. And travel some, and do other stuff, the limiting factor for these things would be time, however. I'd be working close to 50hrs a week. And doing stuff takes time to plan, if I got bored I'd try make something happen.
Yeah hookers and drugs are certainly two of the main hobbies that come to mind for me LOL. Preferably at the same time but I assume that just goes without saying.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
