Those of you who are under 25 and making ~100k+

[DJFuji]

I'm 24, got out of the Marine Corps at 23 and promptly bought a house after watching thousands of dollars go to uncle sam every month in taxes. Despite more than quadrupling my income after i got out, my standard of living didn't change much. I still drive an old '91 blazer, i don't buy extravagant toys, and i invest heavily.

I know long term i'm probably making the right decisions, but sometimes i look at a few friends who make about the same as me and theyre buying luxury cars, putting together dual 7800GTX systems, living in luxury apartments, and going on vacations around the world. Sure they don't have sh!t when it comes to net worth, but let's face it, if we all die tomorrow my portfolio ain't gonna mean diddly. I wonder sometimes if in 15 years i'll wish i had spent more time LIVING when in my 20s and less time planning and saving.

I'm in IT....for those of you in this age/income group, what do you do?

Edit: TGS had a particularly insightful post that i've included below. It's helped me to clarify my goals a bit.

Originally posted by: TGS

Well that's the ultimate rub, do you live it up now or can you stomach making certain the future will be cushy? I'll tend to hedge my bets on the future. Honestly, even if I kick the bucket, my family will reap the fruits of my labors as they get the money that's being put away. As a father of two, I have to take into account the future of my wife and children beyond my "useful" years. I'd much rather burn my energy working as a youth, and in my elder years sip drinks on the beach and just focus on enjoying life.

Certainly one could spend time, not spent at work, enjoy the monetary benefits of working. Though if you think about it, can you walk away from your job now and keep your quality of life standards? I seriously doubt many people our age could. Now fast forward to the "golden years" and you are living off your retirement income. You have a set budget based on that income, so you could take any job you wanted if you felt so compelled. Being able to walk away from any working commitments may be worth all the money in the world. I know that my time spent in the military, you get that hideous senior NCO that makes your life a living hell and there isn't a damn thing you can do besides run issues up the official channels. I would much prefer to deal with people like that while I have my youth than deal with people like that later in life, when I honestly won't want to deal with those personalities.

Now I don't by any means support not treating yourself, but living comfortably without having to work long hours can be worth something later on in life.

 

[MiniDoom]

well my wangs longer than yours.

 

[Slimline]

Um, i made 6200 last year. Can I have a cookie?

 

[Patt]

You have to find a balance for yourself. I don't make that much, nor have I, but I have found a pretty decent balance between saving, and living. It is great that you have a large portfolio, and should you live to old age, I'm sure you'll be well off then. But as you alluded, there is a chance you might not. Treat yourself, go on a trip, buy a few toys for sure, but maintain an aggressive saving strategy. With your income, you should be able to do both.

 

[Specop 007]

Originally posted by: DJFuji
I wonder sometimes if in 15 years i'll wish i had spent more time LIVING when in my 20s and less time planning and saving.

Most likely, yes.

 

[pontifex]

i'm 25, i make $30k a year. i'm always buying stuff for myself, new games or stuff for a new hobby. i don't always have the best stuff, because i can't afford everything.

i have like 1 friend that i actually do stuff with and thats rare because we live about 45 minutes from each other, work, he's married, and he plays in a band.

recently i've come to realize for myself that even having all kinds of stuff doesn't bring you happiness. i'm pretty miserable most of the time because i have no one to share my stuff with or no one to do stuff with.

being lonely sucks, no matter how rich you are.

 

[Pakman]

It's good that you're investing... I'm currently 28 and I have some money in stocks and a 401K. I'm thinking the same lines as you are. I'm not quite making 100K yet... but I figure you only get to be in your 20's once. Live it up a little bit if you can... hahaha... You might regret not doing so later on. I guess it really depends on how you feel. Live life the way you wanna live life. Do you wanna have fun now or do you want to be wealthy when you're middle aged?

 

[DaveJ]

Originally posted by: Specop 007

Originally posted by: DJFuji
I wonder sometimes if in 15 years i'll wish i had spent more time LIVING when in my 20s and less time planning and saving.

Most likely, yes.

Actually, he'll be laughing all the way to the bank, while his friends who went nuts with spending will be way behind. I agree that it's important to have a balance between saving/spending, but it's also *extremely* important to save as much as you can as early as possible, to take advantage of compound interest. Life doesn't end at 29, you can still live it up in your 30's while your friends are struggling to pay the bills they racked up and save for retirement too.

Dave

 

[Train]

Read the "Millionaire Next Door" great book if you are interested in seeing how most american millionaires live and act.

Most millionaires in America got there by being smart. Most live in avg size houses, drive cars under $25k. Only 2% of them recieved any kinf of inheritence.

 

[necine]

100k+, damn homie... nice wage. I don't think there are many people in your position.

 

[Saint Nick]

Originally posted by: pontifex
i'm 25, i make $30k a year. i'm always buying stuff for myself, new games or stuff for a new hobby. i don't always have the best stuff, because i can't afford everything.

i have like 1 friend that i actually do stuff with and thats rare because we live about 45 minutes from each other, work, he's married, and he plays in a band.

recently i've come to realize for myself that even having all kinds of stuff doesn't bring you happiness. i'm pretty miserable most of the time because i have no one to share my stuff with or no one to do stuff with.

being lonely sucks, no matter how rich you are.

amen bud.

 

[spidey07]

Originally posted by: DaveJ

Originally posted by: Specop 007

Originally posted by: DJFuji
I wonder sometimes if in 15 years i'll wish i had spent more time LIVING when in my 20s and less time planning and saving.

Most likely, yes.

Actually, he'll be laughing all the way to the bank, while his friends who went nuts with spending will be way behind. I agree that it's important to have a balance between saving/spending, but it's also *extremely* important to save as much as you can as early as possible, to take advantage of compound interest. Life doesn't end at 29, you can still live it up in your 30's while your friends are struggling to pay the bills they racked up and save for retirement too.

Dave

Exaclty. They'll probably wake up around 30 and go "what happened? Why am I so far behind?"

 

[Rudee]

I turned 39 this year, and this will be my first year where I have earned 6 figures. My gf has been earning a 6-figure salary for the past 5 yrs, thus I'm finally able to close the gap.

 

[rh71]

Know a few people doing financial stuff in NY/NYC and they can make a lot when they're young... but you know what ? The stuff can be boring and they can work extremely long hours. While I can be envious of the car they drive (at such a young age)... I am definitely not envious of the life they lead otherwise. I'll continue to drive my "ordinary" car until I settle with kids graduated... then I'll have my fun I suppose.

 

[zoiks]

I'm 33 and I make about ~80k. I live alone and sometimes I like to occasionally splurge on stuff that I like. Not into flashy cars or cellphones or things of that nature. I do like fishing though and spend 500 bucks on a reel if its what I want.

 

[DJFuji]

Originally posted by: Train
Read the "Millionaire Next Door" great book if you are interested in seeing how most american millionaires live and act.

Most millionaires in America got there by being smart. Most live in avg size houses, drive cars under $25k. Only 2% of them recieved any kinf of inheritence.

Yeah i've read it already. But I also read the thread on here with that kid who's a freshman in college and is buying an AMG. Granted its mostly his parents money, but still. No one gives a sh!t if you drive an AMG at 35. I'd love to drive a car like that at 24.

The thing is, when all my buddies were partying when we were in the Marine Corps, i was in the barracks studying for a degree. I thought the same thing then...i wonder if i'm wasting away my best years. Of course it all paid off in the end, but i cant help but have doubts.

 

[Safeway]

When I graduate from law school, I'll be 24 (for a few months) ... making about $120k a year. I'll let you know then.

 

[spidey07]

Originally posted by: DJFuji

Originally posted by: Train
Read the "Millionaire Next Door" great book if you are interested in seeing how most american millionaires live and act.

Most millionaires in America got there by being smart. Most live in avg size houses, drive cars under $25k. Only 2% of them recieved any kinf of inheritence.

Yeah i've read it already. But I also read the thread on here with that kid who's a freshman in college and is buying an AMG. Granted its mostly his parents money, but still. No one gives a sh!t if you drive an AMG at 35. I'd love to drive a car like that at 24.

The thing is, when all my buddies were partying when we were in the Marine Corps, i was in the barracks studying for a degree. I thought the same thing then...i wonder if i'm wasting away my best years. Of course it all paid off in the end, but i cant help but have doubts.

You don't have to spend a lot of money to have fun. There is a balance. Making up a budget would help.

I do like to travel to the carribean twice a year and to me its well worth it.

 

[LS20]

the problem is that most people's spending is almost slightly above their means, no matter HOW much their means are... thats why people get richer but generally dont get any happier. whats hilarious are people just getting out of high school who stretch themselves through minimum-wage job just to make monthly payment on a sports economy car (ie Best Buy kids driving civic Si and eclipses)... after those 72 months is over and theyre out of college they make switch over to another 72 months of payments for a BMW they can ill-afford... and thats why these people still make mortgage payments at 50 years old.

 

[NoMoMoney]

Originally posted by: DJFuji

I'm in IT....for those of you in this age/income group, what do you do?

1.) Be thankful that you have a job in IT that pays that well. A lot are going away. Read "The World is Flat" and be thankful.

2.) If you are flush with cash, have a kid (or get married if you are not) that solved my liquidity problems

2a.) Don't feel like having a kid go back to school and get a graduate degree.

3.) Put aside 5-10% for "entertainment", you define entertainment. Do what you like to do.

No reason to stock away everything, but don't bother buying a new car unless that is what you define as entertainment. Never forget to have fun, just don't go nuts

FWIW: 26 - Engineer ~100K

 

[ahurtt]

There is a certain line that once you cross, you have enough money that money is not an issue for you any longer. Making 100K per year is a nice healthy wage to live on with plenty left for savings but it doesn't put you over that line. The fact is, the more "stuff" you have, the more money it takes to maintain and take care of that "stuff." You are doing the right thing by living and enjoying your life but not living beyond your means. 100K per year is nice as long as you are making it. But you can't always depend on that 100K per year job to be there tomorrow. Especially in the IT field. Things could change virtually overnight and if you have a lot of expensive things you can no longer pay to keep up, you will lose it all. As long as you still have to work for a living you basically have not crossed that line where you can just afford to throw around money like it was candy.

 

[Mo0o]

With a job in IT it's probably smart that you're investing your money

 

[sygyzy]

I don't really understand your comment regarding buying a house because you had to pay taxes. Now, if you said something like "I bought a house after throwing away all that money towards rent each month" then it'd make more sense to me.

Everyone pays taxes. What does that have to do with buying a house?

 

[spidey07]

Originally posted by: sygyzy
I don't really understand your comment regarding buying a house because you had to pay taxes. Now, if you said something like "I bought a house after throwing away all that money towards rent each month" then it'd make more sense to me.

Everyone pays taxes. What does that have to do with buying a house?

Turning in a tax return as a HCE with no deductions will make a grown man cry.

 

[NeoV]

you are 24 and in IT and making 100k+?

What exactly do you do in IT?