Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
FU Money? How about FI Expense?
Old 07-09-2019, 12:02 PM   #1
Recycles dryer sheets
 
Join Date: Apr 2015
Posts: 77
FU Money? How about FI Expense?

https://foreignpolicy.com/2019/07/04...**-it-expense/

Young South Koreans and to some extent young Americans are making small splurges instead of saving for long term financial goals (retirement, buying a house, etc.) due to despair about their economic prospects. Basically, won't ever be able to afford to buy a house so just get the steak now.

"Shibal biyong didnít come out of nowhere. It shares a sensibility with phrases like geumsujeo (gold spoon) and hell Joseon (hellish Korea), which became popular several years ago and express the collective despair of a generation of South Koreans who find life in their country intolerable because it seems rigged to benefit people born into wealth (like gold spoon kids) or rich enough to emigrate."

The article argues that given their circumstances, their behavior is actually rational. This is disheartening for future generations.
__________________

AnonEMouse is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-09-2019, 12:32 PM   #2
Full time employment: Posting here.
 
Join Date: Jun 2016
Posts: 714
Or are they just impatient?
I have not seen any data that says today's generation is incapable of living below their means and saving up for the same goals as older generations have.
Live in a HCOL area? Move.
__________________

Spock is offline   Reply With Quote
Old 07-09-2019, 12:35 PM   #3
Recycles dryer sheets
 
Join Date: Jan 2017
Location: Bay Area
Posts: 182
Interesting. Have to say in every generation there's a crisis the prior generation didn't face. I came to the SF Bay Area in 1985 from a lower COL area. Couldn't afford a house (I mean, what I could afford was 1 hr from work via public transit & BART, ~800sf, and an 80 year old fixer, in a low income neighborhood.) And, yes, I was a CPA in corp america, working 60-70 hr weeks, ugh! Needless to say, despite being positioned with the potential for a successful career, with long-hours - and the potentially higher compensation that accompanied such success, I thought I'd never be able to own a house here. Appreciation was just happening too fast.

However, I rented a small place, saved and invested everything I could, and 6 yrs later, the market subsided a little and I had enough for a down payment on a small 1400sf, 20+ year old, cosmetic fixer. That, of course, was the start of something better. I kept it well maintained, and within 20 yrs, it was free and clear. Within a few more years, I was FIRE'd (yep! still living in that same, now 50 year-old, house. ). As I look back, maybe I took the road less traveled....more than a few friends went down the "if I can't ever buy a house, I can't succeed...and so I guess I'll just spend it" road. And yep, they're all still working (although 1 or 2 fall into the rich, but need to keep working to maintain the lifestyle group - having eventually earned big $$ and ramped up a big lifestyle).

I expect there are some in S. Korea taking the road less traveled, but as in my experience, most of those who choose to spend it will self-fulfill their own prophecy ....and opt out of a self-made FI future.
Nature Lover is offline   Reply With Quote
Old 07-09-2019, 01:08 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 7,918
Very confused by the thread title until I realized that FI in this case does not mean "Financially independent" as it always does here, but rather "F*** It".
RunningBum is offline   Reply With Quote
Old 07-09-2019, 01:42 PM   #5
Full time employment: Posting here.
 
Join Date: May 2011
Posts: 760
Quote:
Originally Posted by RunningBum View Post
Very confused by the thread title until I realized that FI in this case does not mean "Financially independent" as it always does here, but rather "F*** It".
+1
kimcdougc is online now   Reply With Quote
Old 07-09-2019, 02:02 PM   #6
Thinks s/he gets paid by the post
Teacher Terry's Avatar
 
Join Date: Jun 2014
Posts: 3,736
My oldest son and his wife would have to move to a lower cost of living to buy a house and it’s not worth it to them. They really value travel. Some young people are taking a different path.
Teacher Terry is offline   Reply With Quote
Old 07-10-2019, 07:01 AM   #7
Recycles dryer sheets
 
Join Date: Apr 2015
Posts: 77
BTW, just noticed the URL was modified by the forum. Just replace the *** with f*ck (replace the * with u of course) and it'll go to the article.

I know there are plenty of threads like this with people saying if "I can do it, they can too." For the longest time I believed that future generations will fare better than previous ones. That is getting harder and harder to square with reality.

Another similar article today, but on Hong Kong.
https://www.cnn.com/2019/07/09/asia/...hnk/index.html

Take a look at the graph near the bottom comparing median income with median housing prices. The present is nothing like the past and young people today certainly cannot "do it too." The U.S. as a whole is not quite as dire, but it's not as affordable as in the past either.

I don't want to belabor the point. I just want to point out the general downward trend in standard of living from generation to generation. The discord between generations will likely increase. Already we see more support for "socialism" by the younger generation in the U.S. as a response to their increasingly dim economic prospects.

I'm not sure where I'm going with this. Just anxious for future generations as a whole I suppose. The shifting winds will lead to upheaval at some point.
AnonEMouse is offline   Reply With Quote
Old 07-10-2019, 08:16 AM   #8
Full time employment: Posting here.
 
Join Date: Jun 2016
Posts: 714
I agree that the younger generation is going to be reluctant to pay the debts that the previous generations have rolled up... and in the US that could roll to impact things like SS and Medicare.
But I disagree with the premise that as a whole the younger generation is economically disadvantaged. The CNN article has important caveats:
Quote:
"Young Hong Kongers belong to one of the most expensive cities in the world, but they can't afford to live in it -- or, at least, not to the same standard they feel their parents' generation could."
They chose to live in one of the most expensive cities in the world and then complain about not being able to afford it. I can't afford to live in Silicon Valley... so I don't live there.
Quote:
Chan Ka-yan, a 28-year-old administrator at a non-profit organization, shared a relatively cheap apartment with two flatmates after she graduated and started working. But then, her flatmates left Hong Kong, and she had to find a new place on her own.
Maybe she should have left too.
Spock is offline   Reply With Quote
Old 07-10-2019, 10:23 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 8,918
The current younger generation can get 30 year home mortgages at low rates I never dreamed of when I was their age. It's not all bad for them.

As far as the national debt, well.... it's the elephant in the room that nobody talks about. Why is that? I have my ideas. Let's just say there is plenty of blame to go around.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 07-10-2019, 11:16 AM   #10
Recycles dryer sheets
 
Join Date: Aug 2010
Location: Cedar Bluff
Posts: 449
Quote:
Originally Posted by AnonEMouse View Post
The shifting winds will lead to upheaval at some point.
Every historian will roll out the old trope: "History doesn't repeat itself, but it rhymes..."

I am not quite sure why the folks at the top in this country can't see that 2020 might rhyme with 1789 or 1917, for instance.....
__________________
"Time wounds all heels...." - Groucho Marx
LRDave is offline   Reply With Quote
Old 07-10-2019, 11:26 AM   #11
Recycles dryer sheets
 
Join Date: Jun 2017
Posts: 291
Quote:
Originally Posted by Chuckanut View Post
The current younger generation can get 30 year home mortgages at low rates I never dreamed of when I was their age. It's not all bad for them.

As far as the national debt, well.... it's the elephant in the room that nobody talks about. Why is that? I have my ideas. Let's just say there is plenty of blame to go around.


Interest rates impact house price. Low interest tends to mean high price (monthly payment being more consistent).

That means more money required for down payment with similar monthly payments.

When half of politicians are unrealistically idealistic and the other half are liars.. wasnít the last balanced budget with Clinton?
pj.mask is offline   Reply With Quote
Old 07-10-2019, 11:53 AM   #12
Recycles dryer sheets
 
Join Date: Apr 2015
Posts: 77
Quote:
Originally Posted by Spock View Post
They chose to live in one of the most expensive cities in the world and then complain about not being able to afford it. I can't afford to live in Silicon Valley... so I don't live there.

Maybe she should have left too.
Another article mentioned there is record high applications from Hong Kongers to emigrate (mostly to Canada and Australia). But it's not as easy as just packing up the van and driving from California to Texas. Those with the means are packing up and leaving. Those without just have to suffer...and maybe protest.

Even in the US, wages have stagnated and home prices have jumped. Good for those whose assets have appreciated. Not so good for those looking to enter the market. There are areas with low house prices (e.g., Detroit), but those generally don't have employment prospects. If they did people would flock to them, increasing the prices of the local real estate in the process.
__________________

AnonEMouse is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
WWYD My Living Expense Money for next 7 Years Fleur58 FIRE and Money 19 09-12-2018 06:15 AM
Why is VG Prime Money Market expense ratio so "high?" Midpack FIRE and Money 13 01-06-2013 05:34 PM
401k (high expense ratio) vs. Non-Tax deferred account (low expense ratio) Mike54 FIRE and Money 15 11-11-2012 10:31 PM

» Quick Links

 
All times are GMT -6. The time now is 01:15 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.