Great summary! One tough challenge young people face is a fear of debt, based on all the horror stories of people unable to repay student loans or personal finance gurus telling people to avoid debt at all costs.
I wish we had a more reasonable conversation about responsible debt management.
This reminds me that it is a long-run game. Many social platforms push this one way ideology of investing/saving, but the truth is there are so many different paths and many decisions to be made along those paths. It's content like this that helps keep me sane while on my own path.
A much needed reminder that wealth isn't built over night. I think many people forget or confuse that. It is a long game just like retirement is a long game. I blame influencer culture though.
If we use historic inflation rate over the last 50 years of 3%, that $80K spending number is closer to $385K assuming a retirement date of 2075 (I'll be 103!).
While I'm not a fan of the "Buy less Starbucks" argument, the compounding argument of that additional $10/wk invested has merit. HSA, IRA, 401K, home purchase all benefit from incremental shifts in how money is spent. (Price vs Cost argument).
*The Health Insurance outcomes as an investment tool shouldn't be ignored.
Utilize SMART goal techniques (Specific, Measurable, Achievable, Relevant, Time Bound) and pretty much everything else falls into place.
It’s hard for me to pin down a number. Can I assume my house will be paid off? What will healthcare costs look like? Or inflation generally?
My goal is generally what you laid out from the top: save as much as I can earlier on (it’s still not that much). My pipe dream is that I’ll be able to afford a lot of travel in the early stages of retirement.
I enjoyed learning from today’s post even though I am retired.
Great summary! One tough challenge young people face is a fear of debt, based on all the horror stories of people unable to repay student loans or personal finance gurus telling people to avoid debt at all costs.
I wish we had a more reasonable conversation about responsible debt management.
This reminds me that it is a long-run game. Many social platforms push this one way ideology of investing/saving, but the truth is there are so many different paths and many decisions to be made along those paths. It's content like this that helps keep me sane while on my own path.
A much needed reminder that wealth isn't built over night. I think many people forget or confuse that. It is a long game just like retirement is a long game. I blame influencer culture though.
Future Value of Money dissent...
If we use historic inflation rate over the last 50 years of 3%, that $80K spending number is closer to $385K assuming a retirement date of 2075 (I'll be 103!).
While I'm not a fan of the "Buy less Starbucks" argument, the compounding argument of that additional $10/wk invested has merit. HSA, IRA, 401K, home purchase all benefit from incremental shifts in how money is spent. (Price vs Cost argument).
*The Health Insurance outcomes as an investment tool shouldn't be ignored.
Utilize SMART goal techniques (Specific, Measurable, Achievable, Relevant, Time Bound) and pretty much everything else falls into place.
A reply to my reply?
Find someone who you believe has acheived a pathway you might consider for yourself. Ask them how they did it? Who did they trust to handle money?
Tik-Tok is a lousy place since they offer no feedback to your specfic questions!
It’s hard for me to pin down a number. Can I assume my house will be paid off? What will healthcare costs look like? Or inflation generally?
My goal is generally what you laid out from the top: save as much as I can earlier on (it’s still not that much). My pipe dream is that I’ll be able to afford a lot of travel in the early stages of retirement.