Uplifting Story from a Young Couple.........

[packrat44]

For various reasons the 'hard luck' stories are going to get all the attention for a while. Folks like these will come under the heading 'good news is no news'.

IMO 'hard luck' stories get the attention because it makes some people feel better when they see someone who has it worse than them.

 

[Art G]

On topic, I just finished reading a report stating that the average American saves .3% of their income. So, on average, Americans are saving 30 cents of every $100 they earn. Not very hopeful. And the government wants to send us each $300 and tell us to go spend it somewhere. It seems that spending isn't the problem.

 

[TromboneAl]

You forgot to mention that they have a total annual income of $898,000.

No you know the rest of the story.

 

[SecondCor521]

FD,

They are obviously doing very well.

One of your suggestions might have been to increase their Roth funding. The annual limit this year for an "young" individual is $5,000; they are only putting in $3K per year.

Of course that depends on their other goals...

2Cor521

 

[Milton]

Good suggestion, 2Cor521.

 

[FinanceDude]

FD,

They are obviously doing very well.

One of your suggestions might have been to increase their Roth funding. The annual limit this year for an "young" individual is $5,000; they are only putting in $3K per year.

Of course that depends on their other goals...

2Cor521

I mentioned that, of course...turns out that's all they can afford to do..........

 

[packrat44]

On topic, I just finished reading a report stating that the average American saves .3% of their income. So, on average, Americans are saving 30 cents of every $100 they earn. Not very hopeful. And the government wants to send us each $300 and tell us to go spend it somewhere. It seems that spending isn't the problem.

The 'average' American has learned their saving/spending habits from their relative - Uncle Sam.

 

[GoodSense]

Exactly. When I was studying communication in college we called this "Perceived Mediated Reality Syndrome." If you watch it on TV enough, even in fictional shows, you start to think what you are seeing is the norm.

That's one of the reasons I am on this board so much. Reading about others' financial progress here, it feels only right to save a significant amount. I like this good influence! Also, those "what's the latest cheap thing you've done?" threads make me 1) more frugal, and 2) feeling that I am just normal when it comes to LBYM.

 

[Notmuchlonger]

You forgot to mention that they have a total annual income of $898,000.

No you know the rest of the story.

Come on AL 898,000 is hard to get by on . Cut them guys a bit of slack.

 

[packrat44]

Come on AL 898,000 is hard to get by on . Cut them guys a bit of slack.

For $898,000 I might have stuck around for another year.

 

[MooreBonds]

Well, what if I told you they gave up cable, and are using the monthly savings to build up a
baby fund" so they don't have to use credit to buy all the expensive stuff you need for new babies?

Like I said, they ARE planners..........

Hey FD - does either one have a sister that's single?

 

[Keim]

I got out my shovel and dug up an old thread...

Hey FinanceDude: It would be interesting to see how this couple has weathered the recession. And how having a kid impacted their finances.

 

[catccc]

I got out my shovel and dug up an old thread...

Hey FinanceDude: It would be interesting to see how this couple has weathered the recession. And how having a kid impacted their finances.

Also curious for an update. We could have been that couple in early 2008, our NW was about 179K at the time. Fast forward 4.5 years, and we've got 2 kids and only one job (DH stays home with kids), and NW is now 356K. Not too shabby, but returns have not been 9+%, unfortunately.

 

[EvrClrx311]

DW has a nephew like them. They're smart, about 33-35, both work in stable jobs, no kids early (one on the way now) and and they bought a 2nd home on a lake last year. The nephew's parents, who didn't plan quite so well, will be the caretakers of the house. They figure the 2nd house is a good investment since they have no plans to flip it and it's their vacation spot.

They'd make a lousy news story.

I'd read it

 

[FinanceDude]

I got out my shovel and dug up an old thread...

Hey FinanceDude: It would be interesting to see how this couple has weathered the recession. And how having a kid impacted their finances.

They have 1-year old twin girls. They are maxing out Roth contributions, also he is maxing out his 401K at work. They have a joint account with $70,000 in it, also an emergency account with $30K in the bank. They had to replace 3 old cars with 2 larger newer ones in the past year, but managed to do it without tapping savings. So far, so good. They are taking the dividends from their joint account and using it to make their car payments for now. They have survived and quite honestly thrived. So, doing quite welll...........

 

[SumDay]

They sound like Dave Ramsey devotees to me. Smart kids - very impressive.

I really, really, REALLY wish they taught this stuff in high school. And college too. Can you teach personal finance common sense?

 

[FinanceDude]

They sound like Dave Ramsey devotees to me. Smart kids - very impressive.

I really, really, REALLY wish they taught this stuff in high school. And college too. Can you teach personal finance common sense?

I have tried to get into the schools in my community, but the admin says it is "unnecessary"................

 

[kumquat]

And they did this themselves? Without paying ~1% for advice?

Good work kids.

 

[traineeinvestor]

I have tried to get into the schools in my community, but the admin says it is "unnecessary"................

Have you tried the parent-teacher associations?

 

[FinanceDude]

Have you tried the parent-teacher associations?

Yes..........

 

[Lazarus]

They are off to a good start. All they have to do is keep it up for 20 to 30 years.

 

[Shanky]

Education and decent income are part of an example like this. Both maxing out 401K's while saving 20% for a down payment, while buying cars without savings requires a decent income. A couple making 50K a year could not replicate this example, since after 35K annual contribution to 401Ks, House Payment (or saving for a house), cash for cars in the same year, no money is left for food or taxes. When I was young I went from broke week to week to a saver with a surplus without changing spending habits, my income went borderline poverty to substantial only because of a degree.