Living on $280K a Year- Millennial Money.

[nakedfrog]

he's a barber and makes $50k in tips?!?
how tf??

Happy endings?

 

[Sgt. York]

You are all making one big mistake, you are believing what this guy says without verification. The #1 rule of the internet is you don't believe anything you see on the internet.

 

[kranky]

The #1 rule of the internet is you don't believe anything you see on the internet.

Wise words from Abraham Lincoln right there.

 

[snoopy7548]

He sure got a purdy mouth

 

[Mai72]

Graham Stephen (Millineal Multi Millionaire) meets Alex. Thought this was great. Graham made his money in real estate and is cheap.

 

[Azurik]

I'm not sure why he's receiving so much hate. Yes, people shouldn't put money into Whole Life Insurance, but not everyone is financially savvy and others suck at self-discipline. So if it's hard for him to stash away his money and funnel it into an IRA with index funds, then forcing him to put money in Whole Life so someone takes care of it for him isn't the worst thing in the world.

I mean, there's people with $0 to their name. Look over at Reddit in their r/povertyfinance and you'll see another world.

 

[shortylickens]

my last duty station had a lot of rocket scientists working in labs. they all made 6 figures.
One guy drove a beat up Tercel and never spent money on things if possible. We assume he retired as a millionaire.

I wish I had that kind of discipline. also the brains to make 6 figures but whatever.
I'll probably go insane and kill myself before retirement anyway.

 

[Red Squirrel]

Always boggles my mind how people who are rich can suck at financial planing and just blow all their fortunes on stupid crap. If I had that kind of money I'd be saving a good chunk of it so I can retire early and when it comes to getting toys I would be rational about it and pay cash.

 

[ultimatebob]

Always boggles my mind how people who are rich can suck at financial planing and just blow all their fortunes on stupid crap. If I had that kind of money I'd be saving a good chunk of it so I can retire early and when it comes to getting toys I would be rational about it and pay cash.

Hey now, don't forget all of the cool crap you can waste your money on as well! I went to charity ride this weekend, and they had some shiny new Mclaren Senna's there. If I had a few million of disposable income, I'd want one of those!

 

[dave_the_nerd]

my last duty station had a lot of rocket scientists working in labs. they all made 6 figures.
One guy drove a beat up Tercel and never spent money on things if possible. We assume he retired as a millionaire.

I wish I had that kind of discipline. also the brains to make 6 figures but whatever.
I'll probably go insane and kill myself before retirement anyway.

Maybe. Or maybe he had two ex-wives and a bunch of child support and alimony, lost his shirt to an MLM, and was living in that Tercel.

Meanwhile the janitor worked because he enjoyed it because his parents left him a millionaire when they died early.

It's hard to guess these things.

 

[s0me0nesmind1]

Maybe. Or maybe he had two ex-wives and a bunch of child support and alimony, lost his shirt to an MLM, and was living in that Tercel.

Meanwhile the janitor worked because he enjoyed it because his parents left him a millionaire when they died early.

It's hard to guess these things.

Not really. It's incredibly easy to guess these things because the statistical probability of it being otherwise is little. Possible? Sure. Probable? Not so much.

People that are stupid with money are the type that say "Whelp, I'm done paying off my 5 year car loan, that means it's time to ditch this car and get another one"

It's a good thing I run the finances at home and not the wife or that type of shit would happen. She complains about driving my car because *OH NOEZ* it doesn't have a rear view camera when reversing. The horror!

 

[snoopy7548]

Not really. It's incredibly easy to guess these things because the statistical probability of it being otherwise is little. Possible? Sure. Probable? Not so much.

People that are stupid with money are the type that say "Whelp, I'm done paying off my 5 year car loan, that means it's time to ditch this car and get another one"

It's a good thing I run the finances at home and not the wife or that type of shit would happen. She complains about driving my car because *OH NOEZ* it doesn't have a rear view camera when reversing. The horror!

They're also the type to get married and have kids. I'd bet the majority of people who make dumb financial decisions are married.

 

[s0me0nesmind1]

They're also the type to get married and have kids. I'd bet the majority of people who make dumb financial decisions are married.

Eh, I don't know if I agree with that. I see just as many married people as I've seen single that are stupid with money.

Kids in general are expensive, so part of it is a matter of what you want to do with your own money. Regardless I get a $2,000 tax credit for each kiddo, and I sock away a good amount into an invested 529 for them to go to college. Some people are dumb with money in that if they "want" something it transitions in their head to a "need".

No, you don't need a million gadgets in order to have a kid. But people act as if the shit is essential.

 

[purbeast0]

My buddy is leasing a new Audi A4 and got it like a year ago. He said the other day that he's going to get a new car soon and is either looking at a brand new Jeep or upgrading to a higher end Audi. He said he doesn't want to spend more than $750/month on his car payment. He also rents a condo and doesn't own any real estate.

He thinks I should get a nice new car because I make good money, when my car is paid off (has been for years) and running fine.

He makes decent money and is single, but I'm pretty sure I make more than him although I have a family. I definitely take way more vacations than he does.

I couldn't fathom spending $750 on a car even though I could easily afford it. It just seems like such a waste to me. I'm glad I don't really care about cars now. When I do have to get a new car it will probably be a mid-sized SUV like a Hyundai or something. I've liked one that I have rented twice while in Grand Cayman and it's a good size for us.

But to each their own.

 

[s0me0nesmind1]

My buddy is leasing a new Audi A4 and got it like a year ago. He said the other day that he's going to get a new car soon and is either looking at a brand new Jeep or upgrading to a higher end Audi. He said he doesn't want to spend more than $750/month on his car payment. He also rents a condo and doesn't own any real estate.

He thinks I should get a nice new car because I make good money, when my car is paid off (has been for years) and running fine.

He makes decent money and is single, but I'm pretty sure I make more than him although I have a family. I definitely take way more vacations than he does.

I couldn't fathom spending $750 on a car even though I could easily afford it. It just seems like such a waste to me. I'm glad I don't really care about cars now. When I do have to get a new car it will probably be a mid-sized SUV like a Hyundai or something. I've liked one that I have rented twice while in Grand Cayman and it's a good size for us.

But to each their own.

lol our mortgage payment for our last home was something like $600/month before escrow. You can buy a fucking house with that kind of money.

This is the level of stupid that people are at.

That and everyone treats their cars like shit, regardless of that they want to always tell themselves after buying it "I will take good care of this car!"... Before you know it they are throwing fast food wrappers in the back seat.

 

[purbeast0]

lol our mortgage payment for our last home was something like $600/month before escrow. You can buy a fucking house with that kind of money.

This is the level of stupid that people are at.

That and everyone treats their cars like shit, regardless of that they want to always tell themselves after buying it "I will take good care of this car!"... Before you know it they are throwing fast food wrappers in the back seat.

Can't buy a house where he lives for that kind of money, so not sure why you would bring that up. You can buy houses for like $200/mo depending on down payment and COL.

 

[s0me0nesmind1]

Can't buy a house where he lives for that kind of money, so not sure why you would bring that up. You can buy houses for like $200/mo depending on down payment and COL.

I'm just bringing it up because $750/m for a car payment is bananas. Totally batshit crazy. The fact that you can pay less than that per month and get an equitable home that will appreciate in value is just putting it into perspective to underline how financially stupid your co-workers logic of thinking (or lack thereof) is.

 

[ultimatebob]

lol our mortgage payment for our last home was something like $600/month before escrow. You can buy a fucking house with that kind of money.

This is the level of stupid that people are at.

That and everyone treats their cars like shit, regardless of that they want to always tell themselves after buying it "I will take good care of this car!"... Before you know it they are throwing fast food wrappers in the back seat.

I don't think that I could buy a shack around where I live or work with that kind of payment. I think that people pay more than that to moor and store their boats monthly around here.

I guess that I can relate to the Audi A4 guy... it's easy to think spending $700 a month on a car is OK when your neighbors are paying twice that for their Mercedes and Tesla's.

 

[zinfamous]

lol our mortgage payment for our last home was something like $600/month before escrow. You can buy a fucking house with that kind of money.
.

I mean....maybe where very few people actually want to live and can find jobs.

maybe.

 

[s0me0nesmind1]

I don't think that I could buy a shack around where I live or work with that kind of payment. I think that people pay more than that to moor and store their boats monthly around here.

I guess that I can relate to the Audi A4 guy... it's easy to think spending $700 a month on a car is OK when your neighbors are paying twice that for their Mercedes and Tesla's.

I mean....maybe where very few people actually want to live and can find jobs.

maybe.

Houston, TX - one of the biggest job markets in the US.

It was no shack either - freshly built 3bdr 2.5bath 2 story that was $140k.

Sold it for $215k ~8 years later.


I can honestly never connect with paying high dollar for a heavily depreciating asset.

 

[ponyo]

I'm just bringing it up because $750/m for a car payment is bananas. Totally batshit crazy. The fact that you can pay less than that per month and get an equitable home that will appreciate in value is just putting it into perspective to underline how financially stupid your co-workers logic of thinking (or lack thereof) is.

$750 a month car payment isn't crazy. That's about what $35k car costs on 48 months loan. I had $1,300 a month car payment for 3 years on a car I drove less than 1,000 miles a year.

People are not robots. We have emotions and won't always make the best financial decisions. That's ok. Everyone has different priorities and likes and dislikes. You guys might think expensive car purchase is stupid but might have other vices like expensive hobbies, drugs, sex, food, vacations, etc that other people might think are dumb. I know some people who think travel and going on vacations are waste of money. And they're right. Likewise, they think spending couple hundred dollars on single meal at home or restaurant is stupid. Again, they're not wrong. Just different priorities.

I spent part of my weekend helping my sister shop for car. We looked at some used Lexus GX460. Even used, the prices were closer to $40k for 3 year old cars. That's close to $900 a month car payment on 4 year loan. It's not crazy but kind of the norm now.

 

[Red Squirrel]

Yeah I don't get spending that kind of money per month on a car. Cars don't last long enough, just can't justify that kind of money on something that will need to be replaced in 10-15 years. My base mortgage payment is $800/mo, though I'm actually paying $1,300 to pay it off faster. I could never justify paying 100's per month on a car when I can pay 5k cash and get one used. Try to make it last for 5+ years then get another. I've only had 2 cars so far in my life time and I probably spent around 15k or so total if I count repairs. (rough estimate it might actually be less)

I rather buy real estate than cars, real estate is permanent and something you just overall get more out of. Currently saving up for some off grid bush land. Can get like 40 acres for 40k or so. I want lake front though so probably pay more. The longer I wait the more I can afford. Hoping to secure something in the next few years though. With climate change and economy and just general how stuff is going I think there will be more demand for this sort of land in this area.

 

[s0me0nesmind1]

$750 a month car payment isn't crazy. That's about what $35k car costs on 48 months loan. I had $1,300 a month car payment for 3 years on a car I drove less than 1,000 miles a year.

People are not robots. We have emotions and won't always make the best financial decisions. That's ok. Everyone has different priorities and likes and dislikes. You guys might think expensive car purchase is stupid but might have other vices like expensive hobbies, drugs, sex, food, vacations, etc that other people might think are dumb. I know some people who think travel and going on vacations are waste of money. And they're right. Likewise, they think spending couple hundred dollars on single meal at home or restaurant is stupid. Again, they're not wrong. Just different priorities.

I spent part of my weekend helping my sister shop for car. We looked at some used Lexus GX460. Even used, the prices were closer to $40k for 3 year old cars. That's close to $900 a month car payment on 4 year loan. It's not crazy but kind of the norm now.

I think the new norm for majority of car loans is 6 years now? (72 months)... Correct me if I'm wrong there, but thats what I see everywhere now.

That, and in the case of the story I originally quoted I think purbeast was talking about his coworker that wasn't even BUYING the car - but rather just leasing them at that rate?

 

[Red Squirrel]

Leasing is even more crazy. I get it, you always have a nice new car that's reliable and stuff, but it's just so much freaking money that could buy a lot of other things that will have a longer lasting joy factor.

 

[ponyo]

I think the new norm for majority of car loans is 6 years now? (72 months)... Correct me if I'm wrong there, but thats what I see everywhere now.

That, and in the case of the story I originally quoted I think purbeast was talking about his coworker that wasn't even BUYING the car - but rather just leasing them at that rate?

Yeah I think the new norm now is 72 months. But the affordability test is still 42 months. But how many people follow the affordability rule?

Leasing is good option for car addicts who trade cars often. It's cheaper than buying and they lose less money leasing vs buying.