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To each it's own, but you only live once. When you die that's it, so I don't obsess over oh my God, I have too much money in checking I need to put more into investments.
They're investments anyway so they're going to go up and down just like the market. If you have kids then sure, stock away more money for them at a minimum and put something into a 529 account, but if you have no kids, who are you going crazy saving money for? You're already maxing out your 401k, plus you put $1000 a month into investments. Now I understand that you need money in retirement, and none of us knows if Social Security will even exist, but let's say that you buy a place and you have it paid off before you retire. Your housing expense is your biggest expense each month, so IF you have a decent amount coming from Social Security, and you delay taking that out until later on, PLUS your investments and your 401k, you should have more than enough money for retirement until you croak (excuse my language ). I mean I'm sorry, if I want to eat at an expensive restaurant, or buy $10 ice cream I'm gonna do it. You only live once and I'm not dying with regrets. I don't know how old you are, but you sound very old. I mean most people are maxing out their retirement accounts when they're older, not when they're say in their 30s.
I've done most of what I wanted to do, so most of what I do now is icing on the cake.
I understand that mentality somewhat, but I don't see where in that post you see what the total take home amount is. It's possible that person just has very robust compensation so all that investment isn't all that much and the disposable income available is actually greater for the poster than for you.
Again, what would you suggest I do with my excess money, besides use it to build wealth (for myself or any future family/kids I have)? I’m curious as to your suggestions.
I fully believe that a “wealthy” mentality chooses to look at money or any investments for its long term potential growth. So yes, that means investing any excess.
I know the question wasn't for me. but I would like to say that if you have excess money and you are investing some, and enjoying your life, why not donating to charity? I would donate to charity if I had excess money because I strongly believe that if you do good to people, it will come back to you.
I understand that mentality somewhat, but I don't see where in that post you see what the total take home amount is. It's possible that person just has very robust compensation so all that investment isn't all that much and the disposable income available is actually greater for the poster than for you.
I'm not looking at what the take home total is. I'm looking at the big picture. The OP is YOUNG in their 30s, owns two properties, uses one for income, is maxing out their 401k and has a $1000 a month to put into investments just for the hell of it. In other words, without knowing what the take home is, they seem to be doing the right things and should have a nice nest egg already. As I said before your biggest expense every month is putting a roof over your head. If you have that taken care of you don't need too much more money. Now maybe this person wants to retire in 10 years or 20 years. There are some people like that.
If that's the case, then I get being so aggressive. If they plan on having a family to pass that money on to then I also get that too, but as I said before, if you're just doing this and you're not passing it on to anybody, what's the point? You only need but so much money to sustain yourself, so you might as well spend some of it. This person isn't the OP who clearly is on a tight budget. I think folks need to find a happy medium. I personally plan on working until I'm in my 60s. I'll delay taking any Social Security to maximize what I can get from it and combine that with my IRA and any other investments. My retirement standards aren't high though. Keep whatever property I have in NYC, buy property in Italy and travel back and forth between here and Italy, splitting my time between the two places. I don't need much to make me happy. Good food, wine, fresh air, etc.
I know the question wasn't for me. but I would like to say that if you have excess money and you are investing some, and enjoying your life, why not donating to charity? I would donate to charity if I had excess money because I strongly believe that if you do good to people, it will come back to you.
Hmm... That's a good idea... Nice tax deduction too... I used be a member at several organizations, but I haven't been going regularly so I stopped. Getting a membership at several places and going once or twice a year isn't worth it.
Hmm... That's a good idea... Nice tax deduction too... I used be a member at several organizations, but I haven't been going regularly so I stopped. Getting a membership at several places and going once or twice a year isn't worth it.
I was talking about donating to a cause that you strongly believe in. Whether or not you attend their meetings is irrelevant. however, it is good to socialize and meet people.
I know the question wasn't for me. but I would like to say that if you have excess money and you are investing some, and enjoying your life, why not donating to charity? I would donate to charity if I had excess money because I strongly believe that if you do good to people, it will come back to you.
This is great! My charitable donations are sporadic. I think setting recurring donations to what I care about most makes sense. Love this idea and thanks for the suggestion.
I was talking about donating to a cause that you strongly believe in. Whether or not you attend their meetings is irrelevant. however, it is good to socialize and meet people.
That's another option too... I haven't gotten into that. Feel like I'd get too carried away.
I'm not looking at what the take home total is. I'm looking at the big picture. The OP is YOUNG in their 30s, owns two properties, uses one for income, is maxing out their 401k and has a $1000 a month to put into investments just for the hell of it. In other words, without knowing what the take home is, they seem to be doing the right things and should have a nice nest egg already. As I said before your biggest expense every month is putting a roof over your head. If you have that taken care of you don't need too much more money. Now maybe this person wants to retire in 10 years or 20 years. There are some people like that.
If that's the case, then I get being so aggressive. If they plan on having a family to pass that money on to then I also get that too, but as I said before, if you're just doing this and you're not passing it on to anybody, what's the point? You only need but so much money to sustain yourself, so you might as well spend some of it. This person isn't the OP who clearly is on a tight budget. I think folks need to find a happy medium. I personally plan on working until I'm in my 60s. I'll delay taking any Social Security to maximize what I can get from it and combine that with my IRA and any other investments. My retirement standards aren't high though. Keep whatever property I have in NYC, buy property in Italy and travel back and forth between here and Italy, splitting my time between the two places. I don't need much to make me happy. Good food, wine, fresh air, etc.
I’m legitimately curious as to why you question why someone, in America of all places, would actively try to invest excess money in order to make even more money. Full disclosure I grew up in one of the wealthiest suburbs in America so perhaps you wouldn’t question “aggressive investing” knowing that my entire upbringing was surrounded by people who just had a lot of excess money. Money doesn’t make one happy, but financial freedom makes ones life a hell of a lot easier. Also, there is something to be said for building and maintaining generational wealth.
I’m legitimately curious as to why you question why someone, in America of all places, would actively try to invest excess money in order to make even more money. Full disclosure I grew up in one of the wealthiest suburbs in America so perhaps you wouldn’t question “aggressive investing” knowing that my entire upbringing was surrounded by people who just had a lot of excess money. Money doesn’t make one happy, but financial freedom makes ones life a hell of a lot easier. Also, there is something to be said for building and maintaining generational wealth.
I dunno... Yes I'm American, and I get it, but I guess having been exposed to the finer things in life at an early age, I don't make such a big deal about money. I'm not wealthy by any means, but I realize that I'm lucky to have done a lot of the things that I have at such an early age. I had a fine education, went to a private school in Europe, traveled extensively in my 20s, etc.
Now that you've explained your situation further I totally get it. I guess with me having lived in Europe for a while I have a different outlook when it comes to money. In America there's this constant need to make more and more and more money and it never ends, and given your situation and your social circle, money and status clearly matters. I don't live to impress others, so I just live life and enjoy it. In Europe, you don't disclose what you make as no one generally cares like they do here. Do I put away some money? Of course. I'd be a fool not to, but I also know I'm not looking to keep up with the Joneses. As I said earlier, I know what I want in my life when I retire. A pied-à-terre here in NYC, and a place in Italy. Split my year living in Europe and here, travel, eat good food and enjoy my life. That's good enough for me. Sometimes I wonder if people think I'm younger than I am because I think that when you enjoy life and don't live to make money, you live a lot longer and feel better.
SPEND it that's what! I thought I was clear in my last post about all of this. Did you read it? You aren't old. You already own an apartment and rent out another one. You're telling me you have absolutely no wants? None? It drives me crazy to see people be so frugal.
Suzie Orman always talks about how she was broke and a waitress. Well now she has money but she's still frugal. For what? I'm not saying go out and be an idiot like that basketball player (Allan Iverson) who is now broke, but surely you're not keeping millions of dollars in your checking account (only a non-savvy individual would do such foolishness), so yeah, go to Saks, treat yourself to a few dress shirts or something.
Hell given your age, that would be a small treat, nothing luxurious. $250 per shirt, four shirts at roughly $1000+ tax. Done. Some guy was complimenting me on my driving shoes a few weeks ago. He insisted on asking me if they were Tod's which I happen to like, but I told him no they weren't Tod's. They were another brand made in Europe. If he only knew what I paid for them (and they weren't Tod's prices either). lol But yeah I do a mix of expensive and non-expensive and it all looks expensive.
Speaking of luxuries, I don't know what you're into in terms of wants, but I knew a guy who was an avid watch collector. Me I like my cufflinks... Konstantino, Montblanc, Buccellati...
Interesting. I can buy expensive clothing but don’t value that at all and shop at stores that I like becase I like them- for example Anthropogie. I have a $2K watch, which isn’t that expensive for those that are into watches, but just one watch. What in enjoy the freedom of doing is booking last minute vacations without having to “save” for it. For example I did two back to back trips in June. One to Europe the other a local “weekend get away” type of thing.
Your relationship with money is very different than mine. No judgment, it’s just interesting to hear your POV.
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). I mean I'm sorry, if I want to eat at an expensive restaurant, or buy $10 ice cream I'm gonna do it. You only live once and I'm not dying with regrets. I don't know how old you are, but you sound very old. I mean most people are maxing out their retirement accounts when they're older, not when they're say in their 30s.
I thought I was clear in my last post about all of this. Did you read it? 
You aren't old. You already own an apartment and rent out another one. You're telling me you have absolutely no wants? None? It drives me crazy to see people be so frugal. 
