Ok Financial guys, what am I doing wrong?

I hear all that. Can’t say I disagree with any of it. I tell Nicole almost monthly that I would love a new truck. Especially since my 2001 1500HD is starting to show rust spots and has 160k on it. However the math just doesn’t work. To keep the truck running is far more financially sound than making payments.

Same thing with her car.

Plus with me going back to school and Nicole probably going back as well we are really going to tighten the purse strings. However we will be living in Northern MN where we usually travel to on weekends. So we will save a lot of travel gas (and wear and tear).

My interests in how these folks are affording all this is simple. If I can increase my net worth with any techniques they are using that I don’t currently posess. I can lower my projected retirement age from 55 to who knows what.

I don’t want to compete with them. I want to live my current lifestyle and improve on my savings and investments. If I could afford a 700k house but live as as I have been. I could be light years ahead of where I am now.

55 is a nice goal, I am on track to retire at 59 1/2… Simply, I learned in the Investment Club in HS…if we fail to plan, we can plan to fail

Inheritance, Inheritance, Inheritance……did I mention Inheritance. Most “rich” people whom are not rich in debt have inherited money at some point in time or have done very well in the stock market. My neighbor is constantly buying stuff cheap and turning it for a profit, he made out very well on some land at one point in time. If you didn’t inherit it’s all a matter of how well you play the money market game and how much you are willing to risk.

I hate seeing people younger than me with brand new rigs and expensive trucks as well. All a matter of discipline. We have a tiny house and two new to us vehicles. We wanted a family and got a bonus child in the deal. If you want stuff and toys, you have to save for them and for me some other priority seems to get in the way all the freaking time. I’d not trade either of my boys for a brand new ranger and a super duty to pull it ever. that said I’m always looking for a good deal to improve my position in life. the crazy thing is my neighbors are freaking loaded. They don’t have great jobs but they got that way because they live a frugal life. They never eat out. They have never been to the excellent chinese food spot less than two blocks from my house. They drive vehicles until they die and then replace them with inexpensive used vehicles. Having rich people’s toys is nice but it isn’t condusive to staying wealthy.

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As a 36 year old college educated professional I watch these home improvement and real estate shows and often wonder what have I done wrong.

I am constantly seeing young couples with 2-3 children and some even have only a single income coming in. Yet their budget for purchase or renovation is in the 500k-999k range.

We make above 100k yearly and I know for a fact even if we trimmed the fat our max budget would be about 400k. And that is if we wanted to be debt poor and have a house to compete with the Jones’s. However we are realistic and intend to keep the next home below 200k renovated.

My question is this. WHAT AM I DOING WRONG? How is it I am perceiving so many young couples out there dropping insane amounts of money for dumpy homes in crowded neighborhoods. Are these people rich with family money? Do they have better jobs than Nicole and I do?

I know what homes cost, boats cost, trucks cost, etc. I am constantly surprised to see so many guys with new trucks with high dollar boats/wheelers/sleds/wheel houses, etc parked in front of high dollar homes. Don’t even get me going on grocery budget and living costs. I micro manage the bills to make sure we are saving every dollar we can. The show I am watching now…the wife is a stay at home mom with 4 kids. The dad is a teacher. Their budget is 700k. I don’t know how they feed those 4 kids let alone buy/renovate a 700k home.

I just can’t help but wonder what choices I have made incorrectly.

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You bought a home with in your means and you are wondering what you did wrong? My guess would be that many of these folks are deep in debt. A few may be lucky enough to have well paying jobs or family money. Others may of just fell for the realtor telling them that they can afford it.

So who is wealthier? The guy driving the nice new escalade to work or the guy driving the 10 year old f150 to the lake? My take on it is the guy going to the lake that has no payment on that truck and doesnt have to worry about about being to work so he can make payments on a truck that he doesnt own.

My mother in law comes to visit every Christmas. Spend a week at our place and a week at my sister in laws. Sister in law has a huge shack on the west side of town. Ours is a little cramped with 5 of us in a small rambler. Helen tells me she doesnt like staying at Kims because she is all alone. Everyone heads to a different part of the house and she sits alone. At our place there is no way to get away from each other. As my kids are getting into their teenage years Im growing to appreciate this more. It forces us to come in contact with each other. That right there adds to my wealth much more than trying to figure out how to make a payment on a big shack.

Living debt free is wealth.

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I hate seeing people younger than me with brand new rigs and expensive trucks as well. All a matter of discipline. We have a tiny house and two new to us vehicles. We wanted a family and got a bonus child in the deal. If you want stuff and toys, you have to save for them and for me some other priority seems to get in the way all the freaking time. I’d not trade either of my boys for a brand new ranger and a super duty to pull it ever. that said I’m always looking for a good deal to improve my position in life. the crazy thing is my neighbors are freaking loaded. They don’t have great jobs but they got that way because they live a frugal life. They never eat out. They have never been to the excellent chinese food spot less than two blocks from my house. They drive vehicles until they die and then replace them with inexpensive used vehicles. Having rich people’s toys is nice but it isn’t condusive to staying wealthy.

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I wouldnt worry to much about those young guys and there toys. many of these guys are the ones in a big hurry to get to work, get home from work, 100 mph to get to to the lake so they can fly around and maybe enjoy a few minutes before needing to get some place else. Thas not for me. Life is to short for all that BS. Much more important things to do or maybe not do than jump back in the rat race.

Good topic… You know,, I struggle with this too.. Seeing the young guys with the bigtime rigs and everything else that’s big & new. I’ve decided to roll through life with as little debt as possible. The only satisfaction that I do get from it is knowing (98% sure) that they’re financed to the max and I could scratch a check for all of their toys if I needed to. It doesn’t make it any easier though. I’ll just never put myself in a position where losing a job is the worst thing in the world. It’s a job, if you prepare yourself it shouldnt be a big deal, get another one. AND,, I fully intend on retiring at 54 1/2. I’m on pace to do it. I suggest that everyone read Dave Ramsey’s book.. Total Money Makeover. It will help you understand some of how average people become millionaires. Hint: It’s not by financing that new Ranger on a 10 year term

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Inheritance, Inheritance, Inheritance……did I mention Inheritance. Most “rich” people whom are not rich in debt have inherited money at some point in time or have done very well in the stock market. My neighbor is constantly buying stuff cheap and turning it for a profit, he made out very well on some land at one point in time. If you didn’t inherit it’s all a matter of how well you play the money market game and how much you are willing to risk.

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well said Jesse

Very good string. I think it all comes down to a decision how you want to live your life and the responsibilities that can come with it.

The phrase living within your means is important to remember every day. It is a pity our government is not required to follow the same philosophy, but I digress.

Let’s see ……

College – paid entirely by me and came out with zero debt

Credit Cards – balance paid each month

2002 Boat
2003 Truck
2008 Car

A lovely wife of over 20 years with 2 great girls we are raising.

On schedule to retire @ 55 as of today, hopefully that dream stays alive…

Lots of good points in this thread.

My wife and I bought our first home this fall and of course she loved watching those HGTV shows like House Hunters…”Let’s meet Jane and Jon; they are first time home buyers with a budget of $750,000 and have $50,000 to put down”

Me: “WTF?”

anyway, here is a good read that can probably describe most of these people.

Money Traps

I laughed out loud at the 5 things on that site… no automobile ? What do you get an inflatable raft and fish the neighborhood sewage pond ? Some of that is unrealistic, sit in your apt, walk to the library and read a book for free… I prefer to live a little while I am here… I get the point but that is over the top… if everybody wanted to live in the center and walk/taxi everywhere, the cost to do that would be through the roof also… (see NYC) it is all relative.