I read that half of Americans couldn’t cover an unexpected $1,000 expense. This sounds crazy to me. I understand that poverty exists, but the idea that an adult with a job doesn’t even have that amount saved up seems really strange.
What’s your relationship or philosophy with money? What do you credit for your financial success, or alternatively, what do you blame for your failures?
For the extra brave ones: how much savings do you have, and what are you planning to do with them?
Live below my means, invest the rest.
I don’t dress or act like people in my pay range. My house is small and in a quiet neighborhood and cost less than my salary. Car is older but paid off and I know all the quirks and have the toolbox in the back to fix it. It is probably one of the top 5 most reliable cars in history. My work dress shoes are 10 years old and my around the house shoes were new in 2019.
I spend my money where I spend my time. So I have a nice phone, a very nice monitor and mechanical keyboard, and a good computer. And all with the right to repair philosophy. Same for my wife and kids. And also good running shoes, good exercise equipment.
The plan is to get to a point where I can just not work at all and maintain my lifestyle. Three percent rule and all that. And also help launch my kids.
Something about a 25 year roof and a Japanese shit box car in my fortress of solitude.
FWIW I grew up really really really poor like you wouldn’t believe so I’m okay with this.
i’m listening. is it an old corolla?
Camry
I grew up upper-middle class and have largely the same philosophy. Always thought my friends’ parents were idiots for buying these gas guzzling Ford/Chevy monstrosities just to haul around 1-2 kids and a dog on occasion. Regular salaried people spending/financing more than half their annual income every few years on cars they don’t need just to keep up with the Joneses who don’t really care in the first place.
I don’t skimp on quality when I buy something, but I only buy what I actually need and if something serves its purpose, I hold onto it for as long as it works. My wife and I do very well now, but aside from living in a fairly nice neighborhood with great public schools and amenities, you wouldn’t think it from the cars we drive and the way we dress.
I just don’t understand it. I see some people with $1000 car payments and nothing toward retirement. What ever happened to looking for good deals? We had a kind of “rugged ingenuity” thing growing up where you respected people who took care of their older stuff, and I guess that still holds true today. $1000 car payments, I would have paid off my car in under a year.
Honestly, I’m scared to spend. Which I guess is okay because I’m comfortable with how we live and sometimes you have to spend on life events out of your control.
I’m with you on most of this but I think having a reliable car is pretty important in the US due to lack of good public transport. In many cases, after a car gets to be a certain age you end up having to repair too many things on it and it becomes an unreliable money pit. I’m very glad that hasn’t happened to you, but I think for a lot of people it makes sense to get rid of their car once it gets too old. And then try to buy a lightly used car outright.
I kind of don’t really drive much. Between biking and living close to a lot of things, I’ve put about 40,000 miles on the car in 7 years. Car is in its third decade and has about 70k miles on it.
Jeez man, I’m happy for you, but most of us are stuck with stock model bullshit that broke in 2016. Go brag about your consumer friendly right-to-repair family in c/BuyItForLife.
(I kid, of course 😊 Solid approach you have there, smart and sustainable)
Yeah, thanks. Between ThinkPads and system76 and Fairphone, it’s pretty easy to maintain. Monitor is a Dell U3014. It was over a thousand dollars new but these days it’s under $200 used and I’ve replaced the mainboard in it twice for about $145 each time. Everything was purchased slightly used so that saves a lot.
All of this is great except the shoes, get some new/better shoes it’s worth it, your body will thank you later.
This is essentially my situation too. I spend quite a bit of money on these small purchases for hobbies. But I’m easily clearing a couple hundred a month to buy stocks, save, do something really stupid, et cetera.