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What do you do for a living?
DR.COKE
Well-Known Member
Jobs here surprise me too. I’m with you, a 9-5 worker. most Wealthy people tell me to have your money make you money but 100% of those people I know owe money. They are playing the spread in interest. Near 100% of the wealthy can’t take a day off work to go off shore fishing with me because they need the extra money for payments. I personally live the Dave Ramsey lifestyle and own everything without interest so no monthly payments. May not have a high worth value but zero stress at work and home. you got time to figure out other ways to make money but in the mean time payoff the car and the home.
PerformanceSound
Well-Known Member
Stocks and currency trading.
Keep your 9-5 for benefits (health insurance, 401k, etc…) and trade stocks on the side. You also get the benefit of having income security for banks to give you money for other ventures.
Keep your 9-5 for benefits (health insurance, 401k, etc…) and trade stocks on the side. You also get the benefit of having income security for banks to give you money for other ventures.
SupraTR
Well-Known Member
This feels like a bit of a over generalization. I'll agree I know plenty of high income individuals that basically live paycheck to paycheck because they let their lifestyle creep go the the extreme and are in debt up to their eyeballs (absolutely crazy to me). There are plenty of others that live at their means or are frugal though. I think this mindset of living beyond your means versus being intelligent with your finances is likely similar across income classes, it just seems more foolish when the individual has high income. Also that high income individual usually can take time off, its not like they are hourly, they just don't because they are more apt to be a workaholic or they've told themselves they shouldn't because that is what got them there (which is a terrible mindset) or who knows whatever reason they've made up.
And the money makes money concept is definitely true. 8% return on 100k versus 8% on $1M is all it takes to see that play out. Hence why its so beneficial to invest early to get ahead on that time value of money. That said I'm with you on the Dave Ramsey mindset for the most part. I definitely value paying off debt more than a few extra percentage points of an investment return. Worth it to me to minimize stress/freedom.
DR.COKE
Well-Known Member
My pool of circle makes around 130k a year and average age around 40. When I ask them to join me Offshore fishing (it’s expensive), most don’t have time but make money. When I offer non coworkers my age they Have time but no money. when I ask my Nabors (retirement community) they have time and money but not the health (8hrs in south florida sun). So I generally go Solo 90% of the time.
Most coworkers like myself has student loans average $250k. Some rent/some mortgage. 10 years ago Myself took Dave Ramsey approach and work 3 jobs to payoff student loans and home. Same coworkers then did IBR on student loans, bought large homes, nice cars, and Starbucks daily. Fast forward today they still have student loans, mortgage/rent and daily Starbucks.
playing the interest games may work for the ultra high income/business owners/ inheritance, but i know No average Joe like self making under 150K that works 40 hour work week to succeed around 40 years old.
with no student loans and mortgage, I can pay myself easily $4k monthly to investing without zero interest. Ramsey approach is turtle slow but rock solid foundation.
FLtrackdays
Well-Known Member
More peeps are buying into the FIRE movement and other methods besides Ramsey. I like Dave but he’s not for everyone. He is great for those who want to sacrifice and be more strict about it, black and white style. The Money Guys, Mr. Money Mustache & even older John Bogle’s advice keeps it really simple. You’re right that you don’t have to have an incredible amount of income. Teachers are somewhere in the top five for most millionaires in America. Because they are forced to save early and often. That being the key.
As long as people are willing to listen, there are some great methods out there to get people saving in index funds (or ETFs) and reap the rewards. If anyone is maxing out what the government will allow in their Roth and traditional 401k‘s they can easily enjoy any leftover money. Unless your job really sucks and you want to save more, do the FIRE movement, many peeps can do both and reach the pinnical of making just as much or more from their investment interest = ultimately retire or work less.
My cars are paid off and my house has a tiny mortgage left. Dave would say it must be paid off. I’d say the 3% interest rate will never make as much as my investments and I’m not in a rush. It’ll happen. Just like there are exceptions for those who get student loans to go to medical school or engineering for example. That’s an education that will pay off in the long run. But you’re right, they have to have the pay yourself 1st mindset.
razorlab
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What trash news network told you that? First of all, only about 15% of households in America have over 1 million dollars. It drops quickly as you pass 2 million (9%) and 3 million (6%) and on and on.
The top five millionaire+ people are the usual list: Elon, Bezos, Mark, Larry, Warren.
DR.COKE
Well-Known Member
Ramsey did a survey/book called “Everyday Millionaires“ interviewing +10,000 people with job title, range of Income from worse years to best years, net worth (what they own minus what they owe).
When referring to everyday millionaires they are normal people with net worth 1 to 5 million. engineeers and teachers rank #1 and #2 by volume in this category with some income never exceeding 100k and has a net worth over 1 million mostly by paid off house and work sponser 401k. Average mortgage paid off in 10 years. Average consumer debt including student loans paid off in 3 years.
listening to Ramsey over 15 years, can only remember 2 people with over 1-million cash in the bank. Both saved for it and it was never invested.
FLtrackdays
Well-Known Member
Shocking right! Per careers, teachers are up there. People can actually choose to do what they want for a living, save money, and live off the other 80%. It’s a crazy mindset for what we are taught. Those highest ones you mentioned are die hard work fanatics. Us regular folk use that stuff called compound interest and it is an amazing thang.
You should check out ”The Millionaire Next Door” book and any one of those podcast. They’re mind opening indeed!!
On queue Dr. Coke… Bingo ?
https://finance.yahoo.com/news/guess-top-5-careers-millionaires-164520607.html
https://247wallst.com/personal-fina...jobs-held-by-the-most-millionaires-in-america
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lucky phil
Well-Known Member
My 26YO son spends a lot of time complaining about his lot in life financially. He's on a 110K package at work and still lives at home with his mother paying no rent! Not long ago I sat there at a family barbecue listening to him complain about not being able to afford a deposit for a house, bla, bla, bla and I'm looking at his 25K's worth of tattoos and on his way to 50K's worth by the time he's done, His 10K watch and listening to him play his 8K guitar and I'm just thinking, "are you for real" are you my son?
A 200K private school education doesn't make you smart that's for sure. Naturally it's all my fault because I'm a boomer. You know the generation that understands the concept of deferred gratification. Sacrifice now for a better tomorrow and of course paid for his privileged education. I didn't actually buy my first new car until I was 45 years old. Prior to that I drove around in heaps of shite so I could afford to educate my children. Kids, go figure.
Phil
A 200K private school education doesn't make you smart that's for sure. Naturally it's all my fault because I'm a boomer. You know the generation that understands the concept of deferred gratification. Sacrifice now for a better tomorrow and of course paid for his privileged education. I didn't actually buy my first new car until I was 45 years old. Prior to that I drove around in heaps of shite so I could afford to educate my children. Kids, go figure.
Phil
FLtrackdays
Well-Known Member
Amen! We paid for private school for our daughter until middle school. I finally convinced my wife to yank her out and try the real world. Experience both the good and bad. She adapted like we all have to. We stayed involved with both kids, so they know what‘s right & wrong, tried to be the best examples we could be, and yet…. they still act like I did at that age, ?. I want it now!!!!!
So, I hear ya man. Best thing my mom ever did for me was kick my arse out at age 18. I needed it. Moreso than my kids or yours. But I do think it helps build realistic expectations. Why delay the inevitable? Real life is the best lesson of all. The world is their oyster (for the taking) if they choose to work hard & never give up. Nothing comes easy or for free as you know. All we can do is guide them my brotha. They’re going to have to experience all of it, good and bad ?. So I bet both of our kids will find out just as we did. Bonus: the journey is ½ the fun as getting there (or more). When you compare now to how most had it back in the day… say during wartime or the Great Depression, it’s not nearly as bad as media leads us to believe. Even back in my day. Remember that song by the Eagles - Dirty Laundry?
Great links ? below to let the kids gnaw on. If you haven’t seen them or similar studies on the subject. The overall conclusion: “Money can keep buying happiness for already happy people, but among the most unhappy, the money helps stave off unhappiness only to a point.”
https://www.usatoday.com/story/mone...st-of-happiness-by-country-cities/70771946007
https://behavioralpolicy.princeton.edu/news/DK_wellbeing0323
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BimmerGuy
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So, right now I'm in I/T management. As a Boomer, I too was taught to save, defer gratificaiton, etc. and that has served me well despite my ridiculous car hobby/obsession. I could have retired 20 years ago if I had not squandered so much money on cars and had instead invested my money. But I had fun. No regrets.
Some of it is how you were raised, some of it is just genetics. I have two stepsons, both raised the same with the same value system. One saves and lives within his means, investing money and thinking of the future. He went to college and has an advanced degree. The other lives day-to-day, has no savings, he has a job that he likes but has no health insurance. School was not for him.
If you compare the two, the first one is stressed from his job and his goals, working hard to pay off his student debt and worried about his career. The other one is laidback, happy and enjoying life. Who is more successful?
Some of it is how you were raised, some of it is just genetics. I have two stepsons, both raised the same with the same value system. One saves and lives within his means, investing money and thinking of the future. He went to college and has an advanced degree. The other lives day-to-day, has no savings, he has a job that he likes but has no health insurance. School was not for him.
If you compare the two, the first one is stressed from his job and his goals, working hard to pay off his student debt and worried about his career. The other one is laidback, happy and enjoying life. Who is more successful?
FLtrackdays
Well-Known Member
Well done! Have the 2nd kid get health insurance asap. It’s surprising cheap for catastrophic on the private market for his age & will help him continue that carefree lifestyle.
BimmerGuy
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Mark, my man, if only it were that easy. This kid is so chill, I often have to check his pulse. The only way that this is going to realistically happen is if the wife (she's in the insurance biz) obtains a quote, signs him up and pays the premiums. And I keep bugging her to stop subsidizing these kids' lifestyles (i.e. we're still paying for phones and until recently, car insurance, and who knows what else she's doing that I'm not aware of). Grrr.
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