How many people do you think have cash saved up?

[bubble_contagion]

I believe you will find spending $1500 for living expenses very dificult. That is $50 a day. Most people spend about $10-$15 on food alone. Add gas, car insurance and payments, cellphone or phone or both, electricity, medical and dental co-payments, cable and internet. Then there are always unexpected expenses like car or appliance repairs. You also need clothes and basic stuff for an apartment. Most people also make at least one trip per year to visit family.

[meadandale]

@eye-pod

Yes you can borrow money from your 401k but if you borrow the money, it’s not in the account getting market gains. Assuming the market is performing well, the interest you pay on the money you loan yourself will fall WELL short of what that money would have gained through the market if it was adequately invested.

[meadandale]

@eye-pod

Yes you can borrow money from your 401k but if you borrow the money, it’s not in the account getting market gains. Assuming the market is performing well, the interest you pay on the money you loan yourself will fall WELL short of what that money would have gained through the market if it was adequately invested.

[sdrealtor]

10 years ago me and my wife made $125K and lived in an $800 apartment.

[sdrealtor]

10 years ago me and my wife made $125K and lived in an $800 apartment.

[meadandale]

@sdrealtor

10 years ago you could rent a two bedroom apartment for $800. Now most studios and almost all one bedrooms (anywhere I’d want to live) are over $1k.

[meadandale]

@sdrealtor

10 years ago you could rent a two bedroom apartment for $800. Now most studios and almost all one bedrooms (anywhere I’d want to live) are over $1k.

[sdrealtor]

It was tongue in check. 10 years ago we rented a 2BR/2BA in RB for about $800 in Morada which is right off Pomerado Road. We chose that place because they let us have a dog. It was an early condo conversion in 1998 after moved out and fled to the coast. It was very nice but too far from the beach for us.

[sdrealtor]

It was tongue in check. 10 years ago we rented a 2BR/2BA in RB for about $800 in Morada which is right off Pomerado Road. We chose that place because they let us have a dog. It was an early condo conversion in 1998 after moved out and fled to the coast. It was very nice but too far from the beach for us.

[Coronita]

Asia, I agree that it is theoritically possible for someone to save that much. However, the frugal living and high income combination you speak of are very unrealistic. You are basically making the point for me, the percentage of people in this boat is extremely small.

 

Asia's viewpoint is probably skewed somewhat just like mine because I guessing a good portion of her friends are asian. My observation is that a good portion of Asians do tend to be more penny pinchers than others. Not saying all are like this, but a good portion of them. Several of them also have pretty decent jobs, so i think that's way they can sort of stretch to buy. To put it in prespective both my wife and I were close to about $200k by mid 20s, but we also saved like mad (no cable, 1 cell phone, no land line phone,etc very rarely do we eat out).  Today our salaries have stagnated to about $300k (and will probably decline gradually as we are gradually replaced by younger talent…) but we still only only get the $12.99 cable, no land line, and shop at bargain basements. In fact I'm considering getting rid of the cable because most of the TV channels stink these days and  I can get HD signal over the air. Also, we rarely buy anything that isn't on sale, even when it comes to food. The main expenses we have are a large mortgage and paying for childcare. The former was because we wanted a place to live and didn't want to buy outright because we felt we could beat a 5.7% mortgage. The later is because neither she or I wants to give up our careers completely.

 

[Coronita]

Asia, I agree that it is theoritically possible for someone to save that much. However, the frugal living and high income combination you speak of are very unrealistic. You are basically making the point for me, the percentage of people in this boat is extremely small.

 

Asia's viewpoint is probably skewed somewhat just like mine because I guessing a good portion of her friends are asian. My observation is that a good portion of Asians do tend to be more penny pinchers than others. Not saying all are like this, but a good portion of them. Several of them also have pretty decent jobs, so i think that's way they can sort of stretch to buy. To put it in prespective both my wife and I were close to about $200k by mid 20s, but we also saved like mad (no cable, 1 cell phone, no land line phone,etc very rarely do we eat out).  Today our salaries have stagnated to about $300k (and will probably decline gradually as we are gradually replaced by younger talent…) but we still only only get the $12.99 cable, no land line, and shop at bargain basements. In fact I'm considering getting rid of the cable because most of the TV channels stink these days and  I can get HD signal over the air. Also, we rarely buy anything that isn't on sale, even when it comes to food. The main expenses we have are a large mortgage and paying for childcare. The former was because we wanted a place to live and didn't want to buy outright because we felt we could beat a 5.7% mortgage. The later is because neither she or I wants to give up our careers completely.

 

[Anonymous]

[Anonymous]

[Ash Housewares]

fat_lazy_union…, mind if I ask what industry you work in that paid 200k in mid twenties? I’m a mid twenties engineer, attended top universities, blah blah blah making about 1/3 of that. I’m looking for a change, and I’m still young enough to pull it off.

[Ash Housewares]

fat_lazy_union…, mind if I ask what industry you work in that paid 200k in mid twenties? I’m a mid twenties engineer, attended top universities, blah blah blah making about 1/3 of that. I’m looking for a change, and I’m still young enough to pull it off.

[Author]

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