4 ms·

True - it's impossible to know every detail of his situation. That's why I put the disclaimer about his health. Regardless of those things though, for most peop

by kdamken 11y ago

True - it's impossible to know every detail of his situation. That's why I put the disclaimer about his health. Regardless of those things though, for most people making a decent salary, they can put themselves in a good position for most scenarios by: - Saving as much as they can of what they're earning. Ideally at least 50% - Avoiding debt - Investing their money in low cost index funds

cookiecaper 11y ago
Much easier said than done, especially when you have children.
- ryandrake 11y ago
  Or student loans, or alimony obligations, or sick parents to house and take care of, or any number of legitimate reasons why normal people don't tend to save 50% of their income. My guess is the "ISO Standard Ideal Saver" whose entire income is disposable, has perfect health, no dependents, no hobbies, no debt or other obligations, etc. is the exception, not the rule.
  - kdamken 11y ago
    Obviously you may not always be in a position to follow this exactly, but regardless of who you are it's a solid plan to aspire to. Even if you can only save $100 a month. Or if you can avoid using a credit card to buy things you don't really need, like a new tv to replace your old one that works fine. The average person who is not currently dealing with a significant life crisis could follow some of this, but often chooses not to, either due to not knowing any better or lack of self control.
notlisted 11y ago
I may sound like an old fart, I am one too, but you sound like a very young one. Peeked at your profile and I see I'm right. May you grow up without troublesome times in your life. May I add to the list of 'excuses': - Getting hit by a bursting tech-bubble (as I was, we're talking a significant hit in terms of employment as well as retirement accounts, stock market and having to drain existing reserves) - Living in a region where rising rents exceed salary increases without changing jobs (I saw the light only 3 years ago when I left NYC for NJ after 20 years). Living in PA, I think you may lack some perspective on the latter. - Having a child didn't just cost $$$ (as others have mentioned) but made me realize that traveling 50% of the time for 30% more money just wasn't worth it to me. It's something else entirely to be responsible just for yourself (I love peanut-butter sandwiches!) and the resulting 'pressure' one may feel to provide a stable, but not salary-maximized, situation for your family. Don't forget health insurance needs. It also makes you more risk-averse. All of this hampers your career/salary. Sure, they're all personal choices, but not easy ones. Glad I made mine though. Soon enough the kid will be gone forever.
- kdamken 11y ago
  I appreciate any perspective from people who are much older. I see having a family someday as one of the larger financial variables for me in the coming decades, so I try to prepare for that as best I can. In defense of my age (and implied lack of life experience), I've unfortunately had significant medical issues in my twenties, which in turn led to some decent sized bills I've had to take care of, so I know a bit about troublesome times.
  - daxfohl 11y ago
    Be prepared for the family thing to cost a whole lot more than you think. I was living on about 10K/year back in the day. I assumed at worst my future (at the time) family of 4 would live on 40K/year, with "economy of scale" reducing it to the mid 30's. Ha! Sure I was fine living in cramped quarters, spaghetti every night, one new $5 shirt / year. Doesn't really work that way with kids. Essentially expect after about three years to wonder where all your previous three years' income has gone. (I'm only 3 years in, so I'm not sure what comes next--I assume it's "make a budget", which I did diligently in my 20's, but it's much more difficult to find time to make a (now, negotiated!) budget with munchkins fighting for attention 24/7). As a corollary, be prepared to worry about money way more than you had anticipated back when you were 30 and diligently following Mr. Moustache to an early retirement. As far as career advice, it's tough to say. I've had a good career but feel I'm in a difficult spot now. The last five years I've been independent but 95% of my work has been as the lone dev for one startup, whose best days suddenly seem to be in the rear-view. It's been great work and the job has been wonderfly flexible, but now I'm left to wonder, if they die who wants to hire a 40 year old developer (a really good one IMO but who's to say) with just kind of a miscellany of experience and hasn't worked with a team in five years (especially in small-town Michigan). Who knows, maybe lots of people. But I think the moral of the story is "don't paint yourself into a corner". Do good work, work with lots of people (my mistake), make them respect you, and you should be alright in the end.
- deleted 11y ago
  [deleted]

by kdamken 11y ago

cookiecaper 11y ago

Much easier said than done, especially when you have children.

ryandrake 11y ago
Or student loans, or alimony obligations, or sick parents to house and take care of, or any number of legitimate reasons why normal people don't tend to save 50% of their income. My guess is the "ISO Standard Ideal Saver" whose entire income is disposable, has perfect health, no dependents, no hobbies, no debt or other obligations, etc. is the exception, not the rule.
- kdamken 11y ago
  Obviously you may not always be in a position to follow this exactly, but regardless of who you are it's a solid plan to aspire to. Even if you can only save $100 a month. Or if you can avoid using a credit card to buy things you don't really need, like a new tv to replace your old one that works fine. The average person who is not currently dealing with a significant life crisis could follow some of this, but often chooses not to, either due to not knowing any better or lack of self control.

notlisted 11y ago

I may sound like an old fart, I am one too, but you sound like a very young one. Peeked at your profile and I see I'm right. May you grow up without troublesome times in your life. May I add to the list of 'excuses': - Getting hit by a bursting tech-bubble (as I was, we're talking a significant hit in terms of employment as well as retirement accounts, stock market and having to drain existing reserves) - Living in a region where rising rents exceed salary increases without changing jobs (I saw the light only 3 years ago when I left NYC for NJ after 20 years). Living in PA, I think you may lack some perspective on the latter. - Having a child didn't just cost $$$ (as others have mentioned) but made me realize that traveling 50% of the time for 30% more money just wasn't worth it to me. It's something else entirely to be responsible just for yourself (I love peanut-butter sandwiches!) and the resulting 'pressure' one may feel to provide a stable, but not salary-maximized, situation for your family. Don't forget health insurance needs. It also makes you more risk-averse. All of this hampers your career/salary. Sure, they're all personal choices, but not easy ones. Glad I made mine though. Soon enough the kid will be gone forever.

kdamken 11y ago
I appreciate any perspective from people who are much older. I see having a family someday as one of the larger financial variables for me in the coming decades, so I try to prepare for that as best I can. In defense of my age (and implied lack of life experience), I've unfortunately had significant medical issues in my twenties, which in turn led to some decent sized bills I've had to take care of, so I know a bit about troublesome times.
- daxfohl 11y ago
  Be prepared for the family thing to cost a whole lot more than you think. I was living on about 10K/year back in the day. I assumed at worst my future (at the time) family of 4 would live on 40K/year, with "economy of scale" reducing it to the mid 30's. Ha! Sure I was fine living in cramped quarters, spaghetti every night, one new $5 shirt / year. Doesn't really work that way with kids. Essentially expect after about three years to wonder where all your previous three years' income has gone. (I'm only 3 years in, so I'm not sure what comes next--I assume it's "make a budget", which I did diligently in my 20's, but it's much more difficult to find time to make a (now, negotiated!) budget with munchkins fighting for attention 24/7). As a corollary, be prepared to worry about money way more than you had anticipated back when you were 30 and diligently following Mr. Moustache to an early retirement. As far as career advice, it's tough to say. I've had a good career but feel I'm in a difficult spot now. The last five years I've been independent but 95% of my work has been as the lone dev for one startup, whose best days suddenly seem to be in the rear-view. It's been great work and the job has been wonderfly flexible, but now I'm left to wonder, if they die who wants to hire a 40 year old developer (a really good one IMO but who's to say) with just kind of a miscellany of experience and hasn't worked with a team in five years (especially in small-town Michigan). Who knows, maybe lots of people. But I think the moral of the story is "don't paint yourself into a corner". Do good work, work with lots of people (my mistake), make them respect you, and you should be alright in the end.
deleted 11y ago
[deleted]