$270k TC. 8 yoe.(2018) Last year made $190k (2017) Started at $60k out of college 8 years ago. (2010) Single income for family. Paid off $100k of student loans and a $30k car. Almost have nothing saved. Maybe like $30k. Personal capital says our total net worth is $170k. Am I way behind? Am I okay? Should I feel bad? I just need to get some honest feedback from people better at finances.
It's called inflation. What I don't understand is how soaring inflation and almost zero rates can coexist.
No no no This is NOT inflation Actual inflation is NOT soaring Rates are NOT almost zero đ€Š
WRONG. Sad!
Living is so expensive itâs outrageous. Itâs not you itâs the system and inflation
Lol where is this "it's inflation" meme coming from?
Well, you did live fine at 190k last year. Can you pretend you still make that much and save the difference at 270k today? You should feel behind. I would.
Have you thought about buying? $4000 a month is going down the drain. For 4k you can get a sizable mortgage.
OP doesn't have enough cash on hand to comfortably put down a decent down payment. With only like 5% down, 4k doesn't go far on a mortgage (PMI, etc), even in the Seattle area (Bay area would be a complete no-go)
$30k saved + $20k of you skip vacation for a year + $50k 401k loan could get you off the ground, you just have to be a good shopper. You can also sublet, downsize, sell car and but a used cheap one. There are plenty of ways to get cash for a down payment. I live in Boston (same COL), it can be done. I have a significantly lower TC and significantly higher net worth with kids.
Paid off your loans is a big accomplishment.
Another perspective. Apart from managing your financial assets, for which you have been educated a lot in other comments, spend some time pursuing something outside of work that interests you. My personal experience has been like, I felt underpaid not because I make less but because a friend of a friend of a friend got 40% raise hoping on a new offer. And I start working on it too with this idea that I'm left behind. It's an endless loop and it's hard to come out of it, specially if you are at place like bay area.
High side of average or low side of rich, there will certainly be no movies produced about your life. We were hoping for a lot more from you, I guess âokayâ was enough. Not bad though, your a high level drone. Sure, there is some Taco Bell worker getting way more âactionâ than you, but you got some cash hey. đđŒđšđżâđ»
The OP is getting a bit of flack for spending a big portion on vacation. Iâll take a different position here. I am also a fairly big vacation spender and travel often with my fiancĂ©. For us, itâs important to enjoy this time off and do so in comfort. I donât want to wait till I am old, tired and sick to travel and make those memories. Of course you got to be reasonable and smart about your planning but personally, I see nothing wrong with spending 20k a year on travels and experiences for a family of 4. We do that easy and itâs just the two of us.
Very true. I gave the OP slack because they want both a high quality of life and a high net worth. Perfectly fine to spend whatever you want in vacation, as long as you understand it will affect bet worth.
Youâre spending way too much and need more financial discipline. 20k has been twice as much as Iâve spent on vacations in 15 years. 30k for a car could be reduced by buying used from a car rental companyâ1-2 year old cars and knock 5-10k off sticker price. 50k for rent sounds absolutely insane. It sounds like you donât have an emergency fund (make that a priority) and donât have expenses under control. At least youâre saving for retirement.
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Probably need a breakdown of your expenses if you spend 240k a year. Perhaps being a bit much on the materialistic side?
After taxes it's really like $190k. Then saving like $30k for 401k Then saving like $20k for 529 & stocks & HSA Then rent is like $50k at $4k a month Then $20k on vacation because traveling with 4 people gets expensive And then the rest goes to - a car payment, utilities, food, restaurants, going out, toiletries, education and other things like Netflix. I'm not buying Prada bags and Gucci watches...
Looks about right to me. Just direct deposit what you want to save each month and see if you can make ends meet on the leftovers. It might be challenging at first, but you may find some cuts in there.