I post this because, admittedly, in a recent post, I lamented that why aren’t I, and most others with a decent education, basically bonkers, over the top rich, through incredible extremely high paying corporate jobs (ideally laid back, WFH, too). But I wanted to address something I touched upon and why I’m FIRE, or at least on that track, even if I don’t retire until about age 57. I’m FIRE because I’m of more modest income and learned early on the only way to have anything is to invest aggressively, and save a lot. I saved because nothing in my more modest income realm of affordability interested me, and so I didn’t do any over the top spending. Nice homes on lots of land, impressive places overlooking the water, artwork collected by the ultra rich, antique and rare automobiles are all of interest, but way off the radar screen. High end new mass produced junk for the masses never interested me (think gated communities, luxury automobiles, etc) and so I’ve lived modestly, and very comfortably too, I might add. TV with a modest size screen works fine, the house is climate controlled (heat and A/C), I actually enjoy doing the lawn and landscaping, so don’t hire out for that, low end 4 WD vehicles (mine has crank windows and is stick shift) are paid for.
So, where does it go if you aren’t FIRE? When you are starting out it’s rough, it was for me, it is for others, and I pity those trying to purchase a house for the first time in today’s market. (And why it has to be rough starting out is a sore point with me—start the young out with extremely high paying jobs so they can buy houses and stimulate the economy). But, once you have been working for a few decades and hopefully didn’t get scammed by the overpriced cost of child care in this country and/or crater to Junior’s pleas that he needs that expensive college degree—or a degree at all—and your help paying for it—where does it all go? (And another aside, colleges are so expensive because they sell a product that is more of a lifestyle at the higher end and require Junior to pay for it, as well as the parents, grandparents, and that uncle you haven’t spoken to in over 15 years. If they had less bells and whistles, fewer administrators, and based on what Junior alone could pay for, the cost would be far more modest).
But back to the original topic. If you have a decent college degree and a spouse does as well, you both are going to earn the high 5 figures or crack 6 figures in income. In my case, and probably most others who didn’t trade up houses over the years, a monthly payment might be 2k a month, taxes and insurance 10 -12 k, utilities and other expenses put you at maybe 20k. Then you have groceries, entertainment, travel/vacations, etc, but having said that, even after accounting for income taxes, there’s still quite a bit left over.
So, where does it all go? I’m surprised to see some folks even my age living on the edge and worrying about can I ever retire?
And, I’ll add a little story. The most TOXIC co worker my wife ever had was a woman who was handed money from her parents. Used that, and a lot more, to go on vacation all the time, when back immediately got on the work computer to plan the next big escape. I had to listen to why don’t we do this, why don’t we do that, etc. Fortunately, she left for another job within a year, and that ended.
And my wife’s sister and her husband are of modest means (nurse and computers), live in a townhouse, and are traveling to Europe the second time in a year soon and spent a week in Florida a few weeks ago (I cannot recall a vacation of more than 3 or 4 days in a long time). Perhaps this is where it all goes to.
I put the maximum towards retirement, thereby decreasing my available income and still a lot left over. Maybe I’m boring…
