4 ms·

> Where else can you take $40,000 and set it on fire in seven years? And pay a bunch of interest to the bank in the process? What a disaster. Where is this $40

> Where else can you take $40,000 and set it on fire in seven years? And pay a bunch of interest to the bank in the process? What a disaster. Where is this $40k number actually coming from? I read the linked articles but there didn't seem to be any detailed analysis that I saw... > The takeaway here is that your financial well-being is not the product of a million small decisions, but two or three big decisions. Uhh maybe it's both? I've done a detailed analysis of our finances for many years. I find that those little things really do add up. Changing my lifestyle such that I have cheap hobbies, don't eat out, don't drink alcohol (esp. at restaurants), and make coffee at home has actually saved me a lot of money. On the order of many thousands per year compared to my prior bad habits. Lifestyle creep really does happen if you aren't focused on stopping it. Yes, I can "afford" to eat out 7 days per week and go to Starbucks every single day and lease high-end cars. My bank account will actually probably still be growing even if I did this. However, it won't grow nearly as much as if I just cool my jets and live a modest lifestyle

asdfasgasdgasdg 7y ago
> Where is this $40k number actually coming from? Average new car in the U.S. is $36k. Maybe he was just rounding to the nearest $10k? https://www.cnbc.com/2019/10/22/car-prices-are-rapidly-increasing-heres-why-thats-bad-for-americans.html https://www.cnbc.com/2019/10/22/car-prices-are-rapidly-incre... Of course, that's according to Edmunds, so it might not be correct, and, moreover, the median would be less sensational.
arielweisberg 7y ago
When you are high or growing income I think it’s helpful to have a financial plan that gets you towards you end goals at the rate you want and then tune your lifestyle to that. So for instance driving a Corolla when you are making 500k a year and you are passionate about cars doesn’t make much sense. Living in a nice 500k house might make sense because it is adequate and leaves your money available for investment in higher performing things. I know what numbers I want to hit in 10 years. Anything beyond that is available for use living My best life.

asdfasgasdgasdg 7y ago

> Where is this $40k number actually coming from? Average new car in the U.S. is $36k. Maybe he was just rounding to the nearest $10k? https://www.cnbc.com/2019/10/22/car-prices-are-rapidly-increasing-heres-why-thats-bad-for-americans.html https://www.cnbc.com/2019/10/22/car-prices-are-rapidly-incre... Of course, that's according to Edmunds, so it might not be correct, and, moreover, the median would be less sensational.

arielweisberg 7y ago

When you are high or growing income I think it’s helpful to have a financial plan that gets you towards you end goals at the rate you want and then tune your lifestyle to that. So for instance driving a Corolla when you are making 500k a year and you are passionate about cars doesn’t make much sense. Living in a nice 500k house might make sense because it is adequate and leaves your money available for investment in higher performing things. I know what numbers I want to hit in 10 years. Anything beyond that is available for use living My best life.