r/SipsTea • u/CurvyChristina • 7h ago
Chugging tea Well, I’m 42, with zero savings. Definitely have less than $900 in my checking.
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u/Hennessey_carter 7h ago
I thought global societal collapse was all of our retirement plan.
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u/palmfrond_ 7h ago
Zombie apocalypse is when I’m finally going to be able to get a house
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u/Feral__Daughter 6h ago
Thank you so much for the honest to god laugh. You have no idea how bad this stranger needed this today
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u/CORVlN 5h ago
"Don't worry, the apocalypse is gonna happen any day now"
-He said, taking a bite out of his $25 Klarna burrito
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u/UndecidedLee 2h ago
It's $21.99 if you can endure the Disney Plus ad before you take the first bite.
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u/Rocklobster92 5h ago
No. The plan is to get really sick and avoid the doctor so it gets really expensive to live and then die with a bunch of medical debt.
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u/phoinixpyre 5h ago
I mean there's only so many once in a lifetime apocalypse scenarios before ONE sticks right??
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u/VineStGuy 5h ago
I lived most of my life in survival mode. Finally got $ saved up to buy a house when I was 44. Started saving for retirement. Then BAM. Diagnosed with throat cancer at 46. Whatever I had saved is now replaced with crushing medical debt ensuring I'll never retire.
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u/nginn 3h ago
That sucks big time. I think I'm your position I'd likely hold it until the doctors/hospitals/medical companies either worked with me or allow the accounts to charge off and be bought by a collection agency that may settle for much less. I don't know the figures for medical debt specifically; but I know the average collection agencies pay for credit card debt, for example, is something like four or five cents for every dollar owed.
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u/GregAbbottsGoodLeg 2h ago
I have a family history of dementia in both sides. When I’m ready to retire I’m gonna mule for the cartel & play up the dementia angle at my inevitable trial. New American retirement plan! 🤷♂️😭
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u/JohnnySpartacus 3h ago
Any reason you can't declare bankruptcy? Medical debt is not like student loan debt. You can wipe the slate clean.
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u/VineStGuy 3h ago
Because I continue to acquire it. Year after year.
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u/ILiveInAVan 2h ago
I pay $10-50/mo for my medical debt with a cancer hospital. If you can, just keep accruing it with one facility. I’m fortunate they also don’t charge interest on the debt.
Some hospitals wipe debts after receiving donations and give relief to those on long timeline payment plans.
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u/CommonReason6709 7h ago
I'm almost 38 and I think I just got my catalytic converter stolen in an oil change 😃 and I can't afford to do jack shit!
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u/peanutbutterdrummer 7h ago
Those cats are worth $600 - $1k a pop and are becoming a real pain in the ass to deal with.
Saw one person jack up a car and saw one out within a few seconds - crazy.
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u/LovingMaine 7h ago
You are the exact reason why social security exists. If people were held responsible for their retirement, we'd have an entire population working until the day they die because they have nothing saved.
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u/No_Salt_6328 7h ago
alternatively she could have squirrelled away what money she had and gave up whatever small luxuries she could afford, and then lost all the money to medical debt anyway
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u/amigos_amigos_amigos 5h ago
This is why I haven’t stressed about saving. My mom did, then got diagnosed with MS, had to move into a full term care facility, and it was all gone. Had to get rid of all assets for medicaid to pay for it. Or you can private pay and the money is gone quickly anyway.
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u/aROSEsurely-41813 3h ago
Exactly! My grandpa scrimped and saved. He became a self made millionaire but only to get dementia, be forced into a nursing home because all the grandchildren couldn’t agree on his care, and the nursing home basically took it all in the end! System sucks!
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u/Ancient_Ad_9373 6h ago
You are assuming that she had/has the opportunity to do that. Many Americans live paycheck to paycheck. Savings, brokerage accounts, 401Ks, etc. are not an option when you are just trying to survive and keep your family fed. To be clear, I’m not saying that this is her particular situation…but in modern day US it could very well be.
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u/nightfall2021 6h ago
When you constantly live in survival mode, it is really easy to lose sight of the future.
Difficult to say, "I need to save money for retirement" when you can already barely make rent.
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u/TwiceUpon1Time 6h ago
Free healthcare and social security go hand in hand and are prerequisites to decent, humane societies.
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u/DSZDBA11 6h ago
The United States is not a decent humane society though. We fucking suck.
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u/DogDizzy4438 5h ago
Going through that now. For the second time. Cancer is expensive even with insurance.
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u/Observational-Mess 7h ago
Which is the exact reason why republicans want to get rid of social security and make us slaves until we die.
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u/ahnowisee 7h ago
We work, to earn the right to work...
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u/ViewAskewRob 6h ago
“The work will set you free”
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u/ahnowisee 6h ago
Should've read the fine print my friend, should've read the fine print
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u/Orchard_Thief 6h ago
Chefs kiss on the reference
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u/ahnowisee 5h ago
Such a good song for such an average game. I like The Outer Worlds on its own but the community kind of elevated it for me.
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u/droda59 6h ago
In Quebec we have a song that says, roughly translated in English, " I do coke to work more, make more cash, do more coke"
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u/OralProbe 5h ago
Kill The Noise. I love that video.
I do coke. So I can work longer. So I can earn more. So I can do more coke.
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u/SirStocksAlott 4h ago
The problem is if nothing is done, Social Security fund will run out in 2032 and payments to beneficiaries will be coming directly from payroll taxes which will reduce benefits to 70% of what they are today.
Neither party has done anything to address social security. We need to stop talking about bathrooms and sports and focus on preserving the benefits those paying into the system have already contributed.
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u/Oshwaflz 1h ago
unfortunately the tyrrany of the boomers means that even mentioning this problem makes the largest voting demographic hate you
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u/Diligent-Chance8044 58m ago
Yep I told my parents. Fuck your social security your sitting on a gold mine already between your property you will not be able to upkeep when your 80 which has already appreciated and there current ira. They are willing to vote for any tax raise to keep social security checks higher. Just robbing the younger generation to pay the ones who had the best stock market and invest growth ever. Just 10k invested by 1980 would leave you with 2.1 million retiring today and some people did not make that choice. I have very little sympathy for those who did not take advantage expecting the taxpayer to take care of them. Even people that started in the 1990 would have near 500k in the bank at retirement with just 1 investment of 10k. 10k is a lot back then but even small additions over that time would have insane returns.
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u/EL_Malo- 57m ago
Removing the maximum cap paid by the top earners will keep SS solvent. Anything else is a paid message, brought to you by those same top earners.
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u/ciswhitedadbod 5h ago
How much does social security in the US pay? How far would that go for the average is town or city?
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u/monyoubluetuber 4h ago
The federal gov in the US has the capability to make changes to SS payouts, but there’s calculators. For example, if I continue working as I am and retire at 62 it’s $2.2k. Age 67 is $3.2k. Age 70 is $4.2k. These are monthly.
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u/Elfywitch 6h ago
We’ll just ignore that they’re taking money from us now for a retirement we won’t have.
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u/Avalios 6h ago
They take money from us now to pay out to those currently collecting SS.
The reason we wont have it isn't some big conspiricy, we just didnt have babies to eventually work and pay for ours.
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u/Born-Peanut875 5h ago
The fact is though that money for social security was not have been touched, but stupid Washington made they could use that as budget to fund other things with the exact idea on mind that the next generation pays for the current retired generation. Of the government really cared that money would be set up in bonds market or index fund so it could grow with the never ending inflation. Nobody in Washington cares about the people of this country only their own and their large bag donors.
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u/docubed 6h ago
Investing is like planting trees. The best time to start is 20 or 30 years ago and the second best time is now.
Sure some people are set for life. Many aren't. Comparison is the thief of joy. But start today.
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u/LongBeachHXC 6h ago
Comparison is the thief of joy
💯
I've experienced a life altering injury and this is how I get by day to day. I can't compare my life to my time prior injury, I have to compare my life when I was in horrendous pain and hospital bound.
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u/KYL4T 6h ago
Investments are like trees. Some rich asshole will destroy it for a golf course or data center.
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u/Maximum-Class5465 7h ago
If this is you all, please do even a little about it
I've met so many people on SSI, and it's very sad.
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u/Resident-_-CockRoach 6h ago edited 6h ago
I work dollar retail and the amount of old people counting pennies to buy the cheapest hot dog (sometimes baloney) and breads is heartbreaking.
It's the main reason I started doing a retirement fund so I don't become the hotdog old guy. Won't be rolling in dough but at least I'll afford ramen noodle, vegetables, soups, rice, beans, and frozen chicken.
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u/thecorvetteguy95 6h ago
You’d be surprised how many of these people aren’t broke. My grandma pays in change for all sort of stuff, she’s got a paid off home, collects SSI and has squirreled away as much as she could and invested it. She’s doing fine, but she comes from parents that lived the Great Depression, they learned what being broke really feels like and they stashed a lot of money away. Obviously that’s not all elderly people, but it’s probably a lot more than you’d think.
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u/Resident-_-CockRoach 6h ago
Trust me bro we dollar retail workers can tell the difference between penny pinchers and the truly broke.
😭 Especially when we can smell them at 30 feet
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u/corvuscorvi 5h ago
To be fair that dollar store body wash is super watered down.
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u/Tentacle_poxsicle 7h ago
Don't worry soon there won't be an SSI
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u/Greenshardware 5h ago
Sure there will! Honestly, there will.
It's insolvent, not on the verge of collapse.
We planned for the boomers to retire and live a long time in the late 80s, beefing it up something fierce well in advance.
Yes, that fund is starting to dwindle. Payments will have to go down to 80% in the next decade... but boomers are going to start kicking the bucket as fast as they were born. Another pandemic and Bob's your uncle... or, was your uncle...
A mild increase in contributions is certainly an option, and has the added benefit of removing the ability to fear monger over this really simple, predictable, and totally expected situation.
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u/TheRedIguana 7h ago
The elderly are the age group that commits the most suicide.
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u/RandomUsername78421 7h ago
Getting old sucks and you are going to die regardless. Some people decide to take themselves out before it gets worse. Even if you have money, it can't save you from old age.
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u/Bannedagainnohomo 6h ago
Yeah, people for some reason think SSI is a big amount of money that everyone gets equally and don't realize that what you get is what you put in
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u/NobodyLikedThat1 6h ago
it sucks that so many people don't plan for retirement. Social Security and the like are supposed to supplement your retirement, not replace it. Granted, I know everyone's lives are different, but I've been socking money away for my retirement since I was in my early 20s. I had to skip out on fancy cars and elaborate vacations, but that was a trade-off that seemed worthwhile to me.
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u/HughJanus90210 6h ago
It wasn't so much to supplement retirement as to be a last line of defense to abject elderly poverty, which skyrocketed during the depression. It's meant only to keep one off of soup lines/out of shelters, not to "retire" on as anyone would define it these days.
Not making a judgment about it, just describing what it's intended/actual purpose is.
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u/OkManagement9022 6h ago
There are news stories of old people running out of money mid retirement. There are people who vlog about having 100k for retirement and thinking it’s a lot… and within a year or two they knew they had to continue working because it was going too quickly.
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u/gergsisdrawkcabeman 7h ago
This was like a decade ago. I wonder how life worked out for her.
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u/Top_Lingonberry8037 6h ago
Him actually proud. Last week my net worth just went over $0. Pushing 40 but for the first time I have a networth. It's like $300 dollars but it's not nothing.
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u/Adventurous_Elk_4039 5h ago
One of the milestones is actually getting to zero. Some people stay in the negative for way, way too long.
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u/YurUsernameChecksOut 7h ago
I'm pretty sure I'm gonna die before I can retire, so meh..
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u/-DoctorSpaceman- 6h ago
Yeah me too. Also literally all 4 of my grandparents had dementia so I’d definitely get it, and fuck that.
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u/_SCHULTZY_ 2h ago
I was 35 before I ever learned what compound interest is. While I take full responsibility for my own ignorance I can't help but feel bitter that my family didn't think it was important to teach me basic finance
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u/RedHeadRedeemed 1h ago
Was your family ABLE to teach you basic finance? Like, mine didn't know what compound interest was themselves so there was no way they could teach me. Dad never had a savings account. Hell, he rarely used a BANK account since most his work was under the table.
When you come from poor roots sometimes you start at a disadvantage 😕
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u/_SCHULTZY_ 1h ago
I have family that is/was upper middle class. Certainly could have done better putting me on a long term path. But I also have always had some relatives that were always successful. They had professional financial advisors and financial advisors. But they were also the "we don't discuss money" type that kept everything secretive. Not that any of it was illegal they just thought it was rude to talk about money.
My grandmother for example started out penniless and died a millionaire. But she didn't do anything to push anyone else in the family towards success. Didn't try to get anyone to talk to her financial advisor or open their own accounts or do anything regarding finances.
So yeah, again, as an adult it's on me and nobody else. The internet is full of information and I can access it. I own that. At the same time, you don't know what you don't know and I wish I hadn't waited until I was 38 to open a Roth IRA. I wish I understood the importance of a 401k in my 20s.
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u/Unlikely_Couple1590 4h ago edited 2h ago
I've read before that something like a third of Americans can't cover a $400 emergency and about half can't cover a $1000 emergency, so she's definitely not alone.
My partner and I, 34 and 29 respectively, each have about $4000 in our separate savings, so about $8000 total to our names in liquid cash. In this economy, that feels like a miracle and a blessing but we know that's not stellar savings.
I have about $8.5k in my 401k and my partner has his own. We're a bit behind in that department but we're upping our contributions every year and we're both very lucky to work for companies that also contribute to those accounts. We're looking into investing and some other options to help prepare for the future.
Neither of us had a good start to finances. We both came from financially illiterate and abusive homes (I was also raised by grandparents and was homeless twice by the age of 19, so not a good start). We've had to learn everything on our own. I have no debt, and my partner is paying his student debt (we've paid off nearly $3k this year alone and will be down to $10k by EOY). We're both relatively new to credit and we're working on building credit. We drive a 12 year old paid off car and our next financial goal is to buy a safer, more reliable vehicle. We're not expecting to own a home for a long time.
Ultimately, we both expect to work well into old age because we have no hope of social security still existing when we reach retirement age. I highly doubt we'll be able to fully retire. We're just hoping that we'll have enough of a safety net that maybe we can just work part time when we're old.
ETA: Thanks so much for the words of encouragement and wisdom, internet strangers 💗 We've had to learn everything on our own through research and kind strangers online like you. It's nice to know we're not too far behind and are on the right track. I shared our story so OP and others know that they're not alone in feeling "behind." I didn't expect so much encouragement.
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u/CowAppropriate7494 3h ago
Hey, internet stranger, I wanted to let you know that you're doing a great job despite incredibly difficult circumstances, and I'm proud for you. $8K in liquid cash, and a 401K is a solid start. Keep going. You sound like good people. I'm pulling for you.
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u/bas5eb 3h ago
I also didnt get a good start with finances growing up super poor. I got lucky tho when I was 18 I got a job I would attend after trade school. My boss took a liking to be and when time arrived to be eligible for a 401k account he sat me down and explained everything to do with finances. He didnt have to do that but I learned a lot and started saving before I got used to having the money. My entire 20's i was maxing out my 401k. There were plenty of times where id be scaring by and wondering why im putting so much away instead of living a more comfortable life. Now at 39 im sure glad I did what I did. But man im known as the cheap guy in my friend group cause I chose to invest rather than vacations and cars. You seem to have good heads on your shoulders im sure you guys will figure it out and come out on top!
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u/MirrorIcy2778 3h ago
Keep up the discipline. I’m 50, and I can tell you that compounding does work. Stay invested in the S&P 500 (or any of the Vanguard ETFs).
I’m rooting for you!
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u/TokiVideogame 7h ago
if you are homeless buy a house
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u/Precarious3145 4h ago
Seriously, seeing so many people that "it's never too late to start saving", like ohhhh, just...save money? Why didn't I think of that?!".
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u/PianoPatient8168 6h ago
Go on a cruise and find a much older man, marry him and get his retirement savings when he passes…repeat as necessary.
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u/Yontamen89 7h ago
I'm 14 and I also have zero retirement savings. What should I do?
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u/QuotableMorceau 7h ago
acquire at least 20 years of experience by next year so you are employable
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u/Mbembez 6h ago
You joke but people who didn't do some kind of work while at school need to play catch-up when they do eventually enter the workforce. I remember when I graduated school and my one friend who didn't work finally realised that the rest of their friend group already had 3-4 years experience. They were shocked at how badly they struggled to get even a casual role because they were competing for casual entry level roles where people either had years of experience or they were younger, which meant cheaper wages for the employer. It's a tough world out there unfortunately.
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u/SpaceMambo369 7h ago
- Get a job.
- Open up a roth ira. Its a tax advantaged savings account. You can do this through apps like robinhood or charles Schaub
- Deposit as much as you can up to the limit (currently $7500/yr)
- In the roth ira, buy exchange traded funds. I recommend VOO or VTI
- When you turn 59.5, profit!
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u/What_the_8 6h ago
This is the stuff they should be teaching in school
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u/Shuttle_Tydirium1319 4h ago
Used to be a teacher. Taught social studies.
Did multiple units of “economics” which was mostly just budgeting and how to invest smartly as possible.Maybe 10 kids out of 150 cared.
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u/_aliased 4h ago
more like the stuff your parents should be teaching you with your first job, instead you have to find out about being a boglehead on your own
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u/SimmentalTheCow 7h ago
Spend all of your money on weed until you’re 49 and then make a twitter post about it
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u/Johnatron2000 7h ago
Took me a moment to realise you weren’t talking to me. I feel seen. Sigh.
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u/Spiritual-Strike481 6h ago edited 6h ago
No joke bro withhold a tiny amount. 10 or 15$ per pay period. The compound interest is bonkers. You can easily have that million. Don’t touch it, increase it and diversify it. If all of us in the workforce did that from 14 we woukd all be singing.
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u/Catch_ME 7h ago edited 7h ago
If you can do $100 a month in S&P500 and other large Indexes from age 18 and up, you are good. You'll be better if you increase your contribution average every year.
Start as soon as you can. Don't fucking touch it until age 59.
I keep this special account separate from my other retirement accounts.
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u/Original-Variety-700 7h ago
Set aside $100k this year and you’ll be good to go when you’re 50!
Edit: nm you’ll need to wait until you’re 60 or 70 bc I didn’t account for inflation.
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u/krazytekn0 6h ago
Put 10% of all money you receive into an index fund and never pull it out until you are ready to retire at like 45
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u/FlyinWet 7h ago
Know that work will never satisfy you and cherish your time outside of it instead of trying to find the perfect job. Find a job you don't mind doing that has consistent growth ( yearly raises or similar) just stay at that job keep your head down. Find a flow enjoy your time off work and find hobbies that you can enjoy into old age. Gaming/cycling/Fishing/Disc Golf/MTG/running/Woodworking. Or if you have a calling try for a college degree.
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u/Yontamen89 7h ago
Ngl that's actually pretty good. So for example, I can be a software *something* and write in my free time? I mean I'm pretty interesed in the computation, but also in writing and stuff in particular. So yeah, thanks.
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u/Complex-Fault1133 6h ago
You’re already on the right path by asking. Good job. I didn’t figure out what to do with my money until I was in debt. You’re young so you have time. Whenever you start working and have a checking account, create a savings account as well. Make sure to put 15-20% of any payment into your savings/investing account. Don’t get caught up with having the newest/best thing each year. Don’t waste money. Stay away from credit cards. Google and watch videos on how to save money as a teenager. Start there.
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u/UnusualAverage8687 7h ago
Have you tried simply being reborn to wealthier parents?
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u/Key-Monk6159 7h ago
As soon as you start working, join a 401k or start a retirement account with an index fund like the S&P and add 10% EVERY paycheck. Once a little older increase to 15%. You honestly won’t miss it
Then forget about it. Maybe in your 20’s or 30’s you can diversify the funds a bit.
It won’t take much effort to not end up like the OP.
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u/deep-fucking-legend 7h ago
Game over. Pack it in.
/s
Start saving now, you'll be surprised how quickly compounding interest grows!
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u/Jamooser 6h ago
7 dollars saved daily and invested into the S&P500 starting at age 18 is about $2.5m at age 60.
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u/uknownix 6h ago
Reason 3568 why I'm happy to live in Oz (we have aged pension AND a forced 401k called Superannuation that all employer must pay at 12%)
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u/BWildeallday 5h ago
I’m 42, maybe 10k in a 401k but my wife has a house that I pay for so I guess that’s good. In 10 years I’ll probably die at work and my life insurance will pay off most of the house for her so she can move on and life happier.
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u/1-luv 4h ago
imagine budgeting your whole future around dying at work. the return on that is zero.
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u/officeja 4h ago
Quick tip, some banks have an insurance option, so if you have a heart attack, they will pay off your mortgage. Just saying. I’m not talking about death, just critical illness cover or whatever it’s called
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u/cherrymayweather 7h ago
Honestly, I think more people are in this situation than they’d ever admit. The cost of living makes it so hard to get ahead.
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u/drezarious 6h ago
Start gambling, that should help.
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u/TypeS2k_ 6h ago
All you have to do is place $500 on black or red 11 times in a row and you have a million bucks 🤷🏻♂️
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u/V1198 2h ago
Only 2.5% of all Americans have the mystic one million in retirement savings.
Only 9.3% have 500k saved.
Gets murky after that but before Covid a study showed about half the population couldn’t afford an unexpected expense of $500 without relying on credit.
So no Virginia, you are not alone.
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u/Puzzleheaded-Good192 3h ago
I used to be the same way until I was able to start a career that pays me 2k a week. I was 41 when I started this career which is trucking. I love driving so I said what the hell. 1 year later, over 15k in 401k, around 20k in checking. I used to live pay check to pay check and most of the time, ends didnt meet. Just need to find that career that will pay you better...or figure out how to start saving and cutting corners.
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u/StandardEnjoyer 3h ago
Earning more money is the best way to save more money, closely followed by spending less money
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u/redditdinosaur_ 2h ago
I would argue investing is #2
You can only save so much there’s some things that can’t be cut
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u/Sealbeater 2h ago
Facts. I was busting my balls making scrap change. Living cheap as fuck to still be able to save some money and invest. Kept in contact with old coworkers from a previous job and he managed to get into a well known company through a referral. He did a few months and referred me there too and I got the job. 7 years later and 3 promotions and I am doing very well.
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u/dpenchev 17m ago
People acting high and mighty here over saving money are just so funny to me. "But if you put just a 100 on the side every month". Right. And if i put 200 I'll be twice better. Why not put 1000 and retire with 40?
Me and my wife are both average earners, no credit, low rent, 2 children. Last time we went on a vacation was last dummer. The time before that was 8 years ago. We're maybe able to put 200-300 on the side per month. Maybe. And once we get to about 2k (so about once every year), either the car breaks, or we need some new furniture or something else happens and it's all gone.
People need to understand that saving money for retirement has become a luxury, a lot of people can't afford. And not becouse they're bad with money or becouse they don't care about the future, but becouse it simply isn't affordable to do so.
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u/Stevesd123 7h ago
Didn't she get the memo that she needs to find a rich man to support her?
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u/PoohBear512 6h ago
I didn’t start a job that offered a retirement program until I was 52. It’s never too late.
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u/mikeymikeymikey1968 5h ago
No worries. If Trump or an equivalent is in power, he'll just nationalize everyone's retirement accounts and pensions. That's what happened in Hungary courtesy Orban. Now everyone is just a little better off than fucked.
LOL what do you think they're gonna do? Tax the rich? LOL
Keep voting GOP folks and find out.
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u/Clear-Tradition-3607 7h ago
There's no savings and then there's 100k in debt so honest flat in this environment is better than a lot of folks.
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u/DisastrousBison6774 6h ago
Sell everything. Buy an RV. Drive to Arizona. Park. Done
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u/joemehl 5h ago
I'm gonna work until I die. I don't really care because I work from home and have spent so much time with my children. More time with my teenage children than I assume most people spend with their kids in a lifetime because they're out there busting their asses saving for retirement. I'm living my best life now while I'm relatively young and I have the skills to work independently for a long time. I don't really care if I'm struggling when I'm old. What good is a bunch of money going to do me when I'm too old to enjoy it. My mother was a workaholic and it didn't matter because she died in a freak accident so all of it was for nothing she never got to enjoy all her hard work because life doesn't care if you're saving for retirement or not. Life will fuck you if it feels like it. So fuck it back while you can!
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u/ExperimentalBranch 4h ago
I think there's a healthy middle ground. I read some statistics that there is a great number of people that are forced to retire much earlier than they ever wanted to. I always thought I would work forever too, but health reasons of your own people around you. There's a lot of circumstances that put you out of work. And I think it could be potentially unfair to your children if you're a burden on them when you're old. And not to mention, I think it's a bit of a relief when you can pass on a little bit of money to them.
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u/Publius015 4h ago
I mean, okay, but things happen in old age that you can't foresee or control. You literally may not be able to work if something like that happens.
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u/CMDR_Kaus 7h ago
There won't be a working class if we can't afford things like housing, kids, or retirement
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u/98746145315 2h ago
Here come the psyop posts from government accounts about how everyone else your age earns $100k on the low end, with half of a million in the bank and a house already paid off, but you are the odd one out, in order to make you feel like you should just "hustle" more for corporate owners to make up for not having had a privileged life. Every time this topic comes up, the botnet of capitalism is sent to it, the same accounts every time, all copy-pasting the same rhetoric about "just invest" with no clear guidance, because the machine wants you to gamble and lose what little that you do have so that you remain a wage slave forever.
If no one else in your life is living the life which the internet tells you that you are a failure for not having achieved yourself, then you are not the problem. The system under which we were all born is the problem.
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u/bionicjoe 7h ago
I'm 49 next month.
I've got $100,000 in 401k, and not too much debt.
I get worried sometimes, but then I have to realize I'm so much better off than many, many people.
Best advice I have:
Eliminate car debt.
Drive a car as long as you can. Do as much work on them yourself as you can.
You don't need a car payment. The joy of a new car lasts maybe 1 month (scientifically proven).
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u/anavriN-oN 6h ago
I paid off my car last year, and I plan on driving this thing until it falls apart.
Not having a car payment is really nice, plus, the car is older now so the insurance is also lower.→ More replies (2)19
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u/N3ptuneflyer 7h ago
Idk I bought a new car 5 years ago and I still get joy from the fact I bought it new.
The real best financial advice is put 10% of your paycheck towards retirement. Especially if your company has a match. By the time you retire you’ll be a millionaire.
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u/Numerous_Disk2556 4h ago
I don't think buying new is a bad as people say as long as you're paying little to no interest... I understand at the end of the line it's more expensive but the benefit of not having to worry about a car falling apart is priceless. As long as you can still afford to save/invest a decent amount after the fact
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u/Optimal-Goat-4017 6h ago
I'm 33 and I have 130k in savings work in a grocery store (not management) own my own property (bought myself not inherited) I make 21 dollars an hour my spouse works there also makes 20 dollars an hour been saving since I was 16 and I have 4 cds maturing this year and 2 next year start saving early and stacking cd early you guys can do it!
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u/knowwwhat 5h ago
Genuinely need to know where you live. In Detroit I’m sure that’s totally possible. Where I live there’s no way in hell you’d even qualify for a mortgage making $20 an hour with no family help
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u/Excellent-Phone8326 5h ago
Why cds? You have a ton of time in the market you're losing out on a lot of gains. ETFs in tax sheltered accounts for the win.
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u/Wregzbutt 5h ago
PEOPLE ARE FUCKING BAD WITH THEIR MONEY. Evidence:
Buy now pay later is very popular.
Very common for people to get a large sum of money and blow it all on useless random garbage instead of ya know, paying off debt(what did you spend your stimulus check on??)
9 year car loans where you end up paying literally 50% extra just so you can afford the monthly payment… and then trade it in while it’s still under water and lose even more money…
Not but a 10 year old car cause you don’t wanna look “poor” (news flash, we fucking are!)
People actually think Kalshi is INVESTING. Fucking retards.
People pay off credit cards… WITH MORE CREDIT CARDS.
Paying for trips on CREDIT. And then paying that off, with more CREDIT.
Convincing themselves and everyone around them that the cash back program on their stupid fucking credit card is not a net negative…. News flash, they wouldn’t offer that service to LOSE MONEY. ( they think $50 a year in cash back makes sense but ignore that they likely paid double that in interest)
I mean seriously. People are just bad with their money but since it’s most people we get to just blame the system and take ZERO responsibility.
I only make like $23 an hour have over 10k in savings account, decent 401k and only started being able to save like 3-4 years ago. I have also never received a single dollar of financial support in my entire adult life, so it ain’t that.
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u/DoofusIdiot 4h ago
I have a friend who makes more than twice what I do. He’s got a way nicer car with every bell and whistle. He tells me I need to dress better, that I dress like I’m broke. He’s in debt, I have six figures saved. I told him the secret to having money is looking like you don’t.
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u/Sufficient-Food-3281 4h ago
I mean, you can look good for cheap too
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u/Vince_Clortho_Jr 4h ago
Yeah but no fun in that. My mom once told me when we out to eat during a workday, “honey, you do a real good job making sure nobody knows you’re a lawyer.l. That was the sweetest thing she ever said.
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u/anonymous22353 4h ago
Okay you had me until the credit card cashback. That shit is free money. Of course it's used to entice stupid people into opening new credits cards. But if you're not an idiot and you optimize spending categories, you can easily make/save an extra ~ $1,000 per year from cashback
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u/garitone 4h ago
I live in a ~50K population city and it has a relatively low cost of living, but doesn't have everything I need all the time, so I use Amazon. The free Prime Visa gets me 5% credit back on stuff I was going to buy anyway and 3% on gas (I think).
My daily CC is a no-fee one from Fidelity which puts 2% CB into my index fund. Finally, I have a Chase rotating 5% category (gas, groceries, and other random shit I may not need) Every bit helps!
Edit: I pay the balance every month, so interest rate doesn't matter.
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u/ZakinKazamma 4h ago
Yeah I'm really confused as someone that generally never pays interest, because shocked, it's really easy to not pay interest if you're fiscally responsible. These same people probably have just as many other issues in life that are as bad or worst than the credit cards.
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u/Technical_Monk_6521 4h ago edited 2h ago
I know this is not the time to preach but if anyone lost, here is the order in which you can approach financial stability:
- Become debt free:
- a. If any payday loans, that is absolute first
- b. If any credit card debt, thats the next
- c. If any loan that is not against an asset (personal loan for example, thats next)
- d. Any loan over 10%, that is next
- e. Except home loan, anything else thats next. You can live with home loan for a while
- Budget: This might be needed to achieve 1 ideally but know how much you are making and how much you are spending.. Obviously you have to make more than you spend. There is no way you can save or invest if not this.
- a. you will probably have to make some
hard choices or
- decisions to let go of things that is costing you money like a car with high payments
- b. you proably have to cut down something although it might sound like basic necessity like eating outside or coffee outside
- c. Housing is usually biggest expense for people. Move to a smaller house or older house but whatever it takes to get you in budget
- Increase income: Figure out a way to increase income.
- a. Can be doing more than one job
- b. But also picking a career vs a job
- c. Choose sidegigs, again math the math
- Save, invest
- a. If you clearly are making more than your spend, start saving atleast 3 months expenses
- b. Once you have 3 months saving invest.. invest in index and dont do anything else
A lot more can be done like: Ask your parents to help, if not married, marry a spouse who is financially responsible etc.,
DM me if you want to chat. I am not a financial advisor of any kind but I would not consider myself poor anymore
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u/Apprehensive-Ship829 7h ago
This is why I’m in school at 50. I have a few years to prepare for retirement. Even a small one is more than what I have now.
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u/MattySiegs 3h ago edited 1h ago
34 with a 92k a year job after most of my 20s earning less than 40k a year and I still have 50k in my RRSP/TFSA and a house with about 300k equity in it. In super HCOL area.
People are fucking stupid and live well beyond their means.
Put 10% of your paycheque into retirement/down payment, no matter what. Your car needs to get you from a to b, that's it. Get a $5k 20 year old Honda.
Don't ever/overuse bullshit like restaurants, uber eats, lyft, Instacart, Netflix etc. Don't pay mega premiums for convenience when you can barely afford to exist, and can get the same experience for a fraction of the price if you spend 10 minutes of work.
Buy unprocessed, raw foods and do the work yourself. Fix your own shit. Learn how to sew. Learn basic repairs.
Don't be useless and throw your expendable income away.
And NEVER NEVER NEVER let your credit card accumulate a cent of interest you fucking doorknobs.
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u/0celot7 3h ago
You're about to catch a lot of shit for this, but you aren't wrong.
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u/mechanicalmovement1 3h ago
They are dead ass right. People who make 50k/year get incredibly defensive and mad when they see someone making near double what they make say this, because it nukes any argument they have for blowing their budget on luxury services they think they deserve.
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u/Ok-Conference-6381 7h ago edited 6h ago
Take your $900.00 go to the casino and put it on red at the roulette table. If you double it each time 8 times you will have $460800. Good luck.
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u/EarthBoundBatwing 7h ago
Every thousandaire is just 9 double ups away from being a millionaire.
Brought to you by Kalshi
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u/CzPhantom1 7h ago
Median retirement savings for someone is that age range is $115k. So you are in the minority and are kind of screwed.
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u/imaginary-dirt2000 6h ago
This is still me.
And I have a PhD and have been straight grad school to professor employment since 2015.
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u/Default_Username6838 6h ago
This is what they want. Any savings you have is money they don’t have. They hope that you’ll have the good grace to just fucking die when you are no longer useful to them.
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u/theyoungwest 6h ago
seeing stuff like this makes me really happy that when I was 18, my dad made me open up an IRA, and during my first real job, a coworker helped me set up a 401k when he found out i didnt have one.
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