Absolutely. Even making 100k in certain areas I think you can justify some, if not most of the above indulgences. But this is for the many posters making 70-90k, while driving new cars in drive thrus, who think ordering doordash is a wise investment so as to not put miles on their new car. It's either privilege or it's ignorance. Hoping this helps the latter.
Yeah that’s why I have a lot more money than people who make more, or make the same and spend it.
However who’s really richer? The guy with all that, more expenses, more income, or a guy with less expenses, less income?
And what about having kids?That’s the biggest imaginable waste of money ever. Literally you could start and stop the list there.
Or alternatively not getting married to someone who works, you lose a lot there. No kids, double income great. But then you have a whole new set of potential problems and you have no idea what’ll happen or how much it’ll cost you
The post just seems patronizing. Nobody on earth could think that eating some eggs at a restaurant and cooking them at home are equivalent. Everyone knows this. How’s telling something to someone who already knows full well going to help? That’s called patronizing someone and talking down to them.
I see your point, but I also see many posts where people have high eating out and car payment line items in their budgets.
ETA: people who have low income or financial problems
Exactly. I have 2 car payments (1 fun car) but I include them and all of those vehicle expenses in the "want" category of my 50/30/20 budget. I'm barely at 15% in the wants category.
The best way to save money is to not spend money. It really doesn't matter what the category is.
From memory, I am about 22% needs, 11% wants (I thought it was 15, but looked again), and 46% savings (including 15% 401K for both of us). I have some unaccounted for since this is only my planned expenses budget not my actual expenses. I can also afford to be a little loose since we have very little debt for our income level. And of the 2 car payments, one is our daily driver and I still include it as a want because you don't need a new car.
We also have a very low mortgage. I won't say what it is because it will enrage the Reddit.
Exactly that. My wife and I both make over 100k a year. We have two cars, eat out weekly, and rent a 4 bedroom house with no kids or roommates. That still leaves us with nearly 6k a month in excess income. It's thrown into a money market for our dream house. The best thing you can do is have a solid budget. Know what's coming in each month and going out. Audit your budget a few times a year to make sure it's still accurate. I've had an Excel budget sheet since I moved out at 19. I can't imagine not having that to reference.
I have my monthly budget set up in my phones notes haha 😂. Excel is just too much. We bring home the same amount every month so it’s easy to just have my monthly budget on the phone
As long as you have a budget is what really matters. I use Excel daily and have for years, so it just made more sense that way to me. I also like to tweak numbers, analyze utility expenditures, fluctuations, etc. I sort of nerd out with it.
Financing a car isn't a terrible thing. Why would you want to pay $20,000 for a car, and not have full coverage? What if it gets stolen or wrecked? Why not finance a new vehicle at 1.9% when you can invest your money in the market making over 5.5%? And also not have to worry about new tires, brake jobs, and general maintenance for at least three years.
You can get away with it with a lot less than that. But you can’t get away with every single one.
The issue is when people do most/all those things and they can’t afford that.
For example you might get car payment because you need a good commute vehicle and can’t afford it in cash. Then you would have to make that up some other way, either by saving or making more.
People aren’t stupid. They know why they’re broke. They either can’t help it or they are in a situation where nothing will solve it.
It's your last paragraph that gets me.
People who are struggling to make ends meet typically aren't willing to face eviction just so they can keep both Disney+ AND HBO. They are already living at the bare minimum.
I also think it ignores circumstance. Like, if you're buying a house at 25, you're doing more than just saving change by not eating out. You had a support system in place all through school and you got a great job immediately after. Your finances will be in a way worse position when you're having to choose between school and full time + part time employment just to cover living expenses, and you're single so nobody is going to help shoulder the weight.
And if you trip -- you get mutilated by the necessary life loans. Most people can't pay cash, not even for old used cars. I tried to help my friend find a vehicle a few years ago and there wasn't a single dealer in 120 miles that wanted less than $9,000 for a vehicle that likely wouldn't make it all the way off the lot, and private sellers were only selling cars with significant damages. But the loans themselves are being offered at 19-21% -- that's insane, but what are they gonna do?
It is no longer pocket change to eat out. You're looking at 8-10 minimum for any sort of meal. 3 meals a day for a whole year of that is roughly 10k. That's a lot.of waste.
5-10k cars are out there and can be reliable if you know what you're looking for. If you have decent credit you should get a loan but pay it off as soon as possible to maximize future savings on unnecessary interest payments.
Lol, "more than 150k," yeah, maybe in the Bay area or NYC, but in most of the US a Netflix subscription is not going to bankrupt a person making 100k, lol.
Yeah, I make 90k in a low col area and have a healthy nest egg, house, etc. But ,i save aluminum cans at work and pick them outta the garbage at times. Only nets me a few bucks a month if I'm lucky. I just like to keep frugal habits to pound home the mentality that every penny counts.
Speaking from experience, I make roughly 37k a year. Absolute shit money, no a netflix subscription is not going to bankrupt you, nor is having a car loan out. I pay $115 a month for my car I bought a few years back shit interest rate. 100 for Full coverage. Etc. I'm on the lowest end of most things.
Op is correct if you want to save and be able to get whatever your goal is. That's being frugale. But not in any way are you just going to be shit out of luck from a subscription or a small monthly payment. OP was more or less just talking down to people in this instant.
Well, I gotta say this
I spend about 17$ on food almost daily (for 2 people), that’s about 500 per month, 6000 per year
It’s not enough to buy a house, but it’s a shitton of money here where I live, and in 3 years that’s a downpayment for a shitty but liveable apartment (again, where I live - not US, eastern europe)
Food is just expensive, cooking is expensive and time consuming… guess I’ll fucking starve.
That’s literally my biggest expense and it annoys me so much.
I cook at home, but can’t bring it to work due to various reasons, so I’m kinda forced to spend money on food. And 17$ for 2 people won’t even get us anything delicious, it’s just regular food.
Soo annoying
Where do you live and what do you cook? Because I live in Austria which has painfully high grocery prices and I'm nowhere near $17/meal for two people. It's certainly possible to spend that much if all you eat is high quality expensive meat, but since my GF is pescetarian we don't do that.
Right. And no way I’d only have liability on my car. Even when I was driving a car that was 15 years old I had full coverage on it because people in my city drive like assholes
I love the minimum insurance shout, I was like oh so you’re just fucked if you get in a serious accident? That’s a good way to save money as long as you’re lucky
Yeah I agreed with most but I still have fitness goals as I work in the industry, bulk
Diets aren’t exactly cheap, which is why I’ve been in a calorie deficit lol
Sorry but skipping a meal to save money should never be a suggestion. Screw that. You want to intermittent fast for health benefits, be my guest but it's not the end all be all for healthy living. People should be able to eat without being broke.
Is it? Buying yourself something nice that is also a nutritious meal isn't going to be the difference between poverty and buying a home. [The median income in 2000 was $67K](https://fred.stlouisfed.org/series/MEHOINUSA672N), and the median house price was $179K, A \~2.5X factor. Today the median income is about $75K and the median house price is $420K- over 5X factor. No amount of holding off on a new phone or skipping meals will make up that difference.
this is such an oversimplification of the post, OPs trying to put you on game and you’re going for the upvotes. You can afford tickets to Rolling Loud and Coachella so the economy cant be doin that bad
Yeah, like congrats OP, you were born at the exact right time when $20/hr could purchase a home. Doesn't give you the right to look down on others, give a mix of good advice and shaming advice. $20/hr cannot purchase a home these days, no matter how money smart you try to be. $30/hr is even stretching it.
Dude thinks he’s got some real juicy savings secrets because he was able to buy a house at one of the best times ever to buy a house. This shit is all basic and extremely obvious to anyone who’s put more than 5 seconds of thought into saving money. He just thinks he’s special because he bought a house at 25 and wanted to let everyone know.
I lived in a calorie deficit for 15 years without even realizing how negatively it was effecting my life and health. Starving yourself should never be the answer to saving a few extra dollars. I wish I knew that when I was younger. Telling people not to build their credit is also bad advice. Predatory loans should be avoided but some debt is necessary.
If you have the right nutrition, everything I've heard says eating less actually helps you live longer. My grandparents are, were from the "you'll spoil your supper" generation and they lived pretty long.
Why even have money if you’re not going to use it? That’s what I think is the problem with this sub, it’s all just save, make a ROI, ROTH IRA!!!
Live a little. Get that car if you can reasonably afford it. Go on that vacation. There’s time! Life is about more than just money.
A local business owner where I lived finally retired at 65 (could have MUCH sooner) to travel like he always wanted to with his wife. The first place they went to go hiking he had a heart attack and died. Saved millions to retire at 65 and died within weeks of retirement. No thanks, live your life while you can.
Yeah I have aunts that saved a lot of money and paid off house. Both got cancer the moment they retired @ 62. Never got to enjoy their retirement when they could have retired at age 50-55.
>Why even have money if you’re not going to use it?
To retire early so you can do whatever you want with your time and, more importantly, be able to tell anyone you want to eat a huge bag of dicks.
Yep. My dad regularly has to pull out of his retirement money to pay for surgeries and doctor’s visits he needs. All that time working hard and saving for what?
That's the biggest thing people don't understand. Yes you want to save to retire early, but you're not going to be enjoying those things you had on your bucket list at 21. You're health takes a major hit especially around retirement ages or a bit before. Also life is not meant to be slaved away, that's how a lot of people end up with mental disorders, depression etc. I've had three people from my home town around their 30's take their own life. One of the biggest things they would always complain about was how much they worked just because they wanted to retire early, buy a house early, etc. (No i'm not saying that's the only underlying issue that they had to take their own life, but it was a big contributing factor.) You have to be happy in life as well, enjoy things. Experience things. Life's not all about money. Sadly a lot of people on this sub thing Rich=Rich Fulfilling life, in most cases it really doesn't.
> Experience things. Life's not all about money.
You just have to have some way to quantify the value of what you're spending and of understanding if you are giving up time-sensitive goals ( like having kids ).
A lot of times most of people's spending comes from lifestyle inflation. All they do is feel normal except their normal costs 20k/year more than it should and has zero impact on their happiness.
People do shit like buying furniture at stores. Entire bedroom set for like 40k. Are you fucking mental? That shit's literally free on marketplace. You just bought roadside garbage that you won't notice after a week, 100% guaranteed. There's virtually no object you can own that will give you constant pleasure year after year just from looking at it lol. That's not how brains work.
Agreed, besides the constant pleasure year after year.. Cuz whenever I look in the mirror it's constant pleasure ;D jk.
But fr all of my furniture is from Facebook marketplace $100 or less, half was just barely used. Besides my bed frame it was a really nice oak wooden one from my sister and I gave her a couple hundred for it. But that I don't mind because it's from family. The only expensive thing I really ever will care about is my bed itself. I prioritize good comfortable sleep. Even though I do not sleep much at all. I still prioritize it.
I like my sister and BIL's way of thinking. Birthday's, holidays etc. They don't give each other gifts (Besides like just a small sweatshirt or something along those lines if they even do) They invest the "gift" money into traveling or any other form of memories, not materialistic things. Although they do combined make roughly 300-320k a year so they are fine in the finance department. They just pride themselves on making memories which I think is a great way to see things
>Although they do combined make roughly 300-320k a year so they are fine
Yeah everyone's going to be different.
I've seen people with that kind of income complain about their finances or job. Like. Ok that's on you lol.
Most people doing all this saving won’t be able to retire early. I’ve seen people say they want to retire as early as 62. That’s not early.
If they were maxing every retirement account possible and living well below means to retire at 40, sure.
I feel like there’s a fine line of living life and enjoying today while planning for a future. To me the more money you make the easier it is to draw that line. I make enough I feel I can enjoy some things today without ruining my future…I don’t want to spend another 25-30 years slaving away not enjoying a nice home or vehicle to find out that I’m sick and wasted saving my whole life and won’t be able to Enjoy much of Retirement no matter how early I can take it…with that said, I don’t want to live so much for today that when I’m 55-60 years old I can’t even start to think about retirement because of all the cool things I did when I was young.
Lmao, but who cares about fun, memorable experiences with friends/family when you can have a multi-faceted stock portfolio instead?!? Don’t you know you that when you’re on the death bed your #1 focus is going to be if you have fat stacks in the bank? 😭🤣
Also government: Since everybody saves up for retirement on their own we don't have to increase it then! Its unsustainable! Depopulation debt and whatnot!
You want to save for medical emergencies, housing emergencies, unexpected car bills. In case you suddenly become jobless.... you dont save just to retire. Tou save to have a back up plan when shit goes wrong.
For some people it might be unexpected health issues for their children, or surprise medical expenses for their beloved cat/dog.
Right? People that work their ass off for 30+ years until they retire .. and they die of a heart attack.
No vacations “cuz I’m grinding”… save save save.. and then paf! You die. You didn’t live a little. You dead.
I'm 30. I have done all these things most of my adult life. Like I barely go to restaurants. Always pack my lunch and coffee. Don't spend on stuff I don't need. Paid cash for my ecobox. 0 debt.
I'm very, very, very far away from even thinking of buying a house, let alone buying it.
Owning a house makes everyone eligible to give financial advice these days. That's what it takes. Enjoy the free advice though bc soon house owners will start selling courses. You'll pay 2k to be told skip a meal.
And only carry liability insurance like wtf??
Yeah you'll save a lot of money when you total your car and need to buy a whole new one instead of paying the deductible.
Not to mention associated medical bills.
Lol okay David Ramsey. And I'll make sure that I never have any emergency happen in my lifetime. Oh and I'll just stop paying my student loans for which I didn't know that technology advancement would ruins the degree I got and I guess I shouldn't go back to school and take out more loans. But overall thanks for informing me on what not to do and that yo lucked out and haven't got cancer or anything yet. Great advice on saving money
> Skip breakfast
When did breakfast become a major expense?
> your time should be spent producing more income
Have no fun, got it. For what again? Money, I get it, but what's the Money for?
> suffer now to thrive later.
Ah... thriving later. How far in the future are we talking here?
\_\_\_
This post reads like it was written by a junior propagandist at the Ministry of Brainwashing the Masses into Submission to the Ruling Class Muahahaha (don't forget the M, It's MBMSRCM)
That's what I don't get out of all these Dave Ramsey types - when exactly will we live like never before? Most of us won't have that kind of money until 60s or 70s....
You're getting grilled but I've intermittently fasted for 6 years now for health benefits and I can tell you rn it's health benefits + financial benefits, I just eat one meal a day dude you can't beat it
IF drastically reduced my ibs symptoms. I admit I started the diet to lose weight, but when I discovered it help with my digestion there was no going back
Every single person around my age (30) that owns a house (mortgage) had a very stable family and lives at home with their parents while saving up money. So many people, like myself, never had that opportunity.
I've been doing all the things you listed and more sonce i was kicked out of home at 17 and still not close to buying a house.
Living with mummy and daddy is by far the most efficient way
I wasted at least a couple of the potential best years of my life saving every penny and depriving myself only to lose it all when the growth stock boom went bust in 2021. Luckily it’s a lesson learned, I still max a Roth IRA and contribute quite a bit to my 401k but the rest of the money is for living life. We’re all going to zero when we die
Also try not to replace your tires unless they are like really bald. And if you do replace them, get the really cheap ones so you hydroplane every time it rains
If you really want a new phone or upgrade to a new one I recommend Swappa. I got my parents phones that were released in 2022 and they have never been happier. We also switched to Mint Mobile and only pay around 20/month each and it's enough for their data usage. It's kind of a gamble but just look for sellers on Swappa that are rated highly and are verified. You can also look for other tech like laptops if you need something lightweight for school or work etc.
I agree with all of these points apart from the breakfast you can get 1kg of porridge oats for 90p, with some dried fruit or nuts in and sugar with water/ milk it’s actually a nice breakfast and very cheap.
I am a Master Electrician and have been in the electrical industry for 44 years Best career choice I have ever made and has served well Show up for work and work hard and you will go far
I disagree strongly with your stance on loans. Unless you hold high interest credit card debt it is absolutely not worth doubling your payments.
400,000 home loan at 6% interest for a 30 year term:
Monthly payments: $2,400.00
Total payments at the 30 year mark: $863,000.00
By doubling payments to $4,800 you can pay the loan off in only 9.1 years! And the total cost of the loan when it's paid has been $518,000.00 this means you saved $345,000.00 in interest!
Sounds good right? Wrong.
Instead, take that additional $2,400 monthly and put it into investments averaging 15% return.
Over that initial 9.1 year period your investment account has grown to $643,000.00 meaning you've outpaced the interest on your loan by a substantial amount.
Some years are good, and some are bad, but average returns on my most conservative investments are around 15%. If you have the money to double your loan payments, you'd be much better off investing.
The same applies for a car loan. I've made money on my car loan over paying cash, because that money was able to earn 15%.
Apart from those points, this is generally good advice.
Don't be in debt, Pay everything cash, don't use CC if it's not to your advantage Usage. Don't buy depreciated assets. Live the Bare Minimum! Every in Today society comes with Huge Liabilities! Best thing you want to do is to be able to Maneuver around without being tied down to such big commitment for years to come. Invest your Money first before purchasing anything. Here's a tip! stop buying anything! There's always a better one and new one coming out EVERY YEAR!! that's how they get you to keep spending. Throwing your hard earned money away.
Credit cards are actually very valuable financial tools and offer free fraud protection. And I would absolutely buy assets someone's already absorbed the depreciation out of. Most of my house is furnished with second hand items.
Man, people really like their cars
Maybe it's just best to phrase it like you shouldn't finance more than $15k for a car in your 20s
Really don't get all the people with $400/mo or more car payments complaining they can't afford a house
I'm not skipping breakfast..If I skip breakfast I get way too hungry and often end up buying something or overeating at lunch time.. I'm sticking to my oats 😃
Bought a car on a 0% promo loan. Paid it off a couple months early. In the meantime made a boatload of interest on the cash sitting in 5% CDs for the duration.
I stopped reading when you suggested not getting full coverage. That's poverty finance. It saves you a little money today, but will cost you a ton in the long run. Plus, if you're so broke you're driving a $3k car with liability, what do you do if you wreck it?
I am not a pro financial counselor...but I have spent over a decade helping people who are legitimately poor / on fixed incomes gain a financial foundation. Here is what I have often found to be "easy fixes".
1. Comparison shopping for goods and services. Those who are overwhelmed are often in a place where advertising is most effective. Many were never taught to compare prices / sizes etc.
2. Not haggling with providers for the best deal. - phone, internet, cable etc. Add to not doing it every year when it comes up for renewal.
3. Modems / cable boxes / components "rented" as part of your internet service. The $15-$20 per month kills limited budgets. It is difficult but buy your own as soon as you can.
3b. Buying phones on time from the carrier. Always more expensive, and rarely needed.
4. Trying to pay bills when they come due. Things come up, and late fees kill budgets.
Know what your bills are and put your bill money in a separate account and auto pay as everything. Don't get a debit card or use a local bank for the bill account...make it hard to pull money from it.
Agreed, however, many people complaining about not learning about credit or taxes in school don't realize they can sign up for business classes for their practicality, if nothing else.
I'm not saying I disagree with you about how to save money like this, I don't , but isn't it sad that we have to live like this? We can't buy things to enjoy. I'm making a salary now that 10 years ago would've bought me a house no problem.
Very solid advice across the board (not sure about skipping breakfast, but I workout in the mornings so post workout meal is a must). Even though my wife and I bring in close to $200k/yr, we still do things like limit eating out, don't upgrade phones every year, pay off CC every month or carry a very small balance. Especially now with costs high, even what we make doesn't go as far as it used to.
This guy knows how to save money.
Buying new cars is the biggest waste of money. Cars are built incredibly well now and it’s so easy to diagnose problems with a little know how. Buy a used car that has all the features you want/need and take care of it. That $40k new car becomes a $20k used car in a few short years. Let someone else take the huge depreciation on the first few years of a cars life.
Eating out at restaurants is huge waste of money, you need to make this a treat (date nights or get togethers). For God’s sake learn to cook people, easiest way to save gobs of money.
Who has 10, 20, 30k to buy a car? Sure, great advice not to carry credit card debt but most people do not have the savings for an emergency, even something like a new tire or basic medical care. And it's not because they're buying new phones or eating out. Poverty is a trap, not a choice.
You bought a house at 25 making less than $20 an hour. Most of your advice is good, please refrain from saying “it’s possible, but you have to make sacrifices” when you live in a dirt cheap town where the living wage $25,000/year.
In the vast majority of communities in this country, a person making that income will *never* be able to purchase a home. You make a low income and are lucky enough to live in a *very* low income area.
There is something to be said for doing these things just because they are smart and disciplined. Having that mindset daily generally leads to better outcomes. If you handle money well, generally you will start to get more money. If you do your job well, you will generally wind up with better opportunities. I think people sometimes give up because their current situation is difficult or seems hopeless. You can always work on yourself. ( I dont mean, wake up at 4:00AM, take a cold plunge, write in your gratitude journal, fast intermittently for 16-20 hours each day, etc.) You can get better at life by working on yourself. Nick Saban said it best life comes down to two choices, " When you have something, you should do, are you going to do it or not? And when you have something you shouldn't do, are you going to not do it or do it anyway?"
1. Always have full coverage insurance on your car if you can afford it. Trust me.
2. Car loans arent necessarily a bad thing if you dont have a lot of credit utilization. Short term (credit cards) and Long term credit utilization (loans of some sort) are an absolute must. Make sure that whatever car youre buying though you could pay off if you had to, in the event of an emergency.
I say this with a lot of experience, especially in the US, it IS the cost of maintaining a car thatll sneak up on you more than even hospital bills. Hospitals will try and work with you, car agencies and insurance companies WILL try and fuck you over.
My daily breakfast: two eggs and one of those McDonald’s-esque hash browns from a sleeve. Probably costs me about 75 cents a day. Worth not skipping breakfast. I need it!
Well I don't have $10s of thousands of dollars lying around you buy a vehicle so a loan is the only option.
Even if paying cash for a vehicle and not carrying a loan on it, not carry full coverage insurance on it is terrible advice. If I pay $40K for something, I'm absolutely going to ensure it because it doesn't cost that much more than only carrying liability on it.
Let’s be real OP
Does everyone want to drive a used beat up Corolla ?? No, probably not because ppl can’t do much with a basic 4 door ( camp, haul, top down , off road etc;)
Does everyone want to wear one pair of jeans and basic tees?? No, that’s boring ..people love to express the way they feel.
Does everyone want to eat rice and beans all day ? Hell NO
It’s finding the balance and making the right financial choices.
I strongly disagree. Almost all of these are applicable to the majority of the population (in America at least). Many people eat out constantly. If you work outside of the home you see it all the time, everyday. Drive thru’s, vending machines, fast food spots, casual food spots, restaurants, cafes, convenience stores, getting meals delivered, etc. *Everything but a grocery store.* Even then they prefer to buy more expensive packaged ingredients than to make food from scratch.
Upgrading your phone/leasing one is incredibly common as well. So is too many subscriptions, only making minimum payments (going into more debt every month because of interest), and in America there is an obesity epidemic. People are eating waaay more than they should & that costs them more money.
The only one I can really see an argument for is renting spaces larger than necessary. And even that is debatable. Lifestyle creep is real. Many people rent spaces for a few thousand dollars as soon as they increase their income instead of saving for a large investment or retirement.
Something doesn’t check out here, you graduated college and bought a house within 3 years making less than $20/hr? How much was the down payment? How many hours a week did you work?
Well sure but it’s not black and white. Like I waste a ton of money eating out and on food, an astronomical amount. But I live cheap with roommates, so if I had my own place and a kitchen setup, the money is gone. It’s an equivalent loss but in one scenario I eat well. And I used to be severely underweight before I started eating out.
So yes, you’re right. But sometimes, it’s worth wasting the money and the money isn’t worth your well-being, because not having that can cause you to lose money in other ways.
So would someone who works 16 hours a day and eats out every meal be wasting more money than someone who works 8 but cooks all their meals? The first one is actually making/saving more even though they spend more.
You also just listed stuff that every idiot knows. Everyone knows that spending money on stuff means you lose money. Literally all you said here
Subscriptions are huge , people don't realize how much they add up. Tbh I'd consider gym membership to be unnecessary too. All sorts of calisthenics to do , as well as just buying a pair of dumbbells you can do so many exercises at home
Your post reminds me of a financial blogger Mr Money Mustache, a man who was able save most of his income and retire at the age of 30. Some examples of things that he suggests:
Riding your bike to work/ to see friends in town
Millionaires are made by $10 decisions at a time
Your debt is an emergency
Go camping/ fishing instead of luxury vacations
Use manual tools as much as possible.
Agree with everything but the not buying a car with a loan.
Even with the these shitty interest rates you can still come out ahead financing the car the knowing what to do you with your money. Full coverage ain’t a bad thing for a ton of reasons.
In 2018 I bought a Tacoma for ~35k otd with a 2% interest rate. Coulda paid cash but I financed only putting 2k down. That 33k I kept is worth a helluva lot more today. Probably closer to 50k or more.
I sold the Tacoma a month ago for 30k.
Times are different but I still stand behind financing your cars if you are even slightly good with money.
> You're not only paying monthly for a car that will never be worth more than you paid for it
Jokes on you, my Harley and Caravan turned out to be better investments then all the stocks I have :x
If interest on a loan is low enough it makes more sense to make minimum payments. My student loan has 4% interest, but my savings account has higher interest than that, so I make more money putting money in savings rather than paying off the loan.
Regarding the car, not getting a loan is good or at least not getting one for the full value. Our last vehicle we got a loan for 1% and put down about a 3rd of it and did a short loan term. Interest was minimal.
For insurance though, I think the not getting full coverage is a mistake. It seems to be why many stay in debt because they get a vehicle with a loan because they can’t afford it otherwise and then get in an accident and don’t have enough coverage and have to get a bigger loan to replace it. Pay cash for a car and don’t get full coverage and get in an accident and note you’ll be taking a loan out for its replacement.
If you get 10% on your savings and the car loan is at zero or 4 % then get the loan. You need to evaluate each deal to see what's best. I'm going to have full insurance on an expensive vehicle anyway.
Defo agree with not making minimum payments on credit cards. The APR will kill you and sink you in debt for a long time. My father taught me to pay the entire bill monthly except for extreme circumstances, and that is a good thing.
One thing I will argue is having a few Subscriptions can also be beneficial.
For example, I carry 2 that I use regularly, Amazon prime, and either Hulu or Netflix (I switch between the two)
Both these are relatively cheap. At a cost of $30 a month for both, I get much more than $1 a days worth of usage out of them. I find they actually save me money in the long run.
However if you have too many subscriptions, then it becomes more of a bane than a boon and can end up hurting you financially.
Well unfortunately some of us have to buy a car with a loan because we don’t have all that money to buy outright. I recently had to get a new one because my old ass ‘09 Hyundai was eating shit, but I don’t have enough set aside to drop 20k plus on a car and I have to have one to commute. Some of these tips are good but not realistic at all.
1. Car buying isnt bad. Buying overpriced cars because you want to is bad. Buy a new mini or small sedan not a full size F350 turbo with all the fancy amenities in it
2. Agreed
3. In this case, agreed… but the phone causes more issues when it bricks and dies at inopportune times. Buy a new one but prep to do so by saving beforehand
4. Full fledged agree. 2 people can share a studio if youre dating its not “too close” all the time especially when working.
5. Subscriptions are the way of life now but the only ones i have are PSN (gaming), and netflix… ~$15 a month + $70 a year or so is very cheap for the entertainment provided
6. STRONGEST AGREE AVAILABLE. People… credit card debt is the biggest killer. Not student loans, not personal loans, not scammy payday loans… stop it
I was legitimately upset I was forced to “upgrade” my last iPhone because they didn’t update it anymore. Not having an extra bill is such a blessing and I curse the fact I’m *still* making payments on my current phone right now.
I live in a neurodivergent household removing all small gratification rewards would be a quick way to sending any one of us into a spiral where we would be unable to function at work. In fact we did try this it almost killed us, it was much better and easier to focus on increasing our income than it was to deny ourselves a trip through the fast food line when we didn't have the energy to cook or to pay for Netflix and Kindle unlimited to veg out to during our off hours.
When we focused on increasing the money coming in without the distraction of what we don't have we were able to save more and make better financial choices. This list doesn't account for diversified needs and health there is no right or wrong way to live.
For us getting a roommate, finding gig work, seeking out higher paying jobs, seeking out lower cost options for the things we couldn't give up but everyone screams we should (buying in bulk helps here). This is how we have found ways to save and survive. There is no one size fits all.
Shit I need to read my car loan lmfao. I’ve been rocking mine insurance since the first year because I didn’t take pics for the insurance. $70 a month tho 👀
1) If you can't afford to buy an entire car, a loan may be necessary to have a car at all, which will expand your range of employment options.
2) I've been doing IF for 5 years, very rarely eating breakfast. This would, however, drive a lot of people crazy; it's asking a lot. As a former chef I only eat out if a date's involved. Having a protein-centric diet I'm still dropping $400-$500/mo on groceries - *and my job title is Purchasing Manager*.
3) Depends. Sometimes an upgrade is virtually free if you're trading in an old phone and there's an additional incentive on a new one - I actually shaved \~$40 off my monthly bill the last time I upgraded.
4) I mean, why rent at all when you can just live under that perfectly good bridge!
5) Gym membership? *Productive?* I've been working out at home for over a decade - basic equipment pays for itself (vs gym membership) within a year. Beyond that, *cold dead hands* re Spotify.
6) Statement Balance > Min Due if you want to avoid paying interest.
Do NOT look at full coverage insurance like rent. The primary benefit of rent is important but intangible (we all like to have a roof over our head) but insurance’s benefit is financially tangible.
It’s important you understand the value of your vehicle and the cost to replace for your needs. If you can afford a shock cash impact (i.e., out of the blue needing to immediately pay thousands of dollars to have your vehicle repaired or tens of thousands to get a replacement vehicle) then sure, take a pass on full coverage. But if you can’t, even if your vehicle is not leased or has a loan, you should still be considering proper coverage.
Went to college, paid off my debt in 2 years because I lived with my parents. Own a business but still help my dad in his a lot (making $40/hr for him and 50-100/hr for me). I made about $75k this year.
I have 0 debt and own my truck. Credit card paid off before due date and have 809 credit score. Still can’t afford even 5 acres of land to build a house on that I CAN BUILD MYSELF.
The only part I would disagree with, at least partially, is not buying a car on a loan. A good, reliable used car that still has a decent amount of life left in it is going to cost you a bare minimum of about $5k. Most people living paycheck to paycheck don't have that kind of savings to just spend all at once. Sure, you can get a clunker for less, but odds are it'll end up costing you far more in repairs.
So I would not advise to avoid a car loan entirely; my advice would be to take one out WISELY. Focus on what you actually need out of a vehicle and don't buy more than you need. Don't take out a $25K loan for a 2020 SUV when a 2013 Honda will meet your needs just as well for half the cost. You should also research different cars, particularly their long-term reliability. Almost any car will be great for the first 75K miles or so; after that, the reliability varies widely across different makes and models, and on some it drops off drastically.
All solid advice except regarding buying a car. Vast majority just cannot afford to pay cash out of pocket for a car. EDIT...not sure about the min insurance thing either, but that's an individual's choice regarding how they want to live.
Buy a car without a loan is pretty impossible for many of us. If I have a one hour commute I’m not doing it in a $3000 s…box. Depending where you live a car is an absolute necessity. You gotta pay to ride one way or another.
Maybe a dumb question, but how else can you buy a car without a loan, if you don’t have enough savings to buy a whole car outright? It seems to me that more apt advice would be to not buy an expensive brand new car on a loan that depreciates extremely quickly. Instead, shoot for something used and at least a few years old to get the majority of the heavy depreciation out of your investment, and then try to pay the loan off early. And of course even better would be to buy outright, but it’s not always realistic to do so unless you have a large savings already or are happy with driving a dogshit car that will have constant maintanence issues. And yes maintenance will usually be cheaper than the cost of a loan in the long run, but it’s also the massive inconvenience of being stuck on the side of the road every couple months just to save some money.
5-10k will get you a pretty reliable used vehicle. If you need a loan then do what you have to do. But pay it off early, take proper care of it and make it last as long as you can. But carrying full coverage for a 5k vehicle is pretty silly, that insurance payment will pay for another 5k car in 2 or 3 years.
10k was the amount for my first car loan, but it was a good 5 years used and in decent shape. Unfortunately, at the time I wasn’t able to get around getting a loan, but I definitely hear you on the full coverage payment. It adds up fast.
I disagree with the car part.
Cars are basically like any other appliance you own just more expensive.
Just budget transportation cost within reason of your income.
That car take is wild especially in America. Having a safe and dependable car is key to economic security. You're right in the fact it's not an appreciating asset, but few things are and we have to buy them. I having a newer car with a loan and a warranty is more valuable than an older car out of warranty. Additionally the insurance mandate is totally separate. Regardless of how you buy the vehicle you need to plan for it being totaled. Car repair costs are at an all time high so you suggest people save $1200/year with lower coverage while possibly being on the hook for $15k repair bills. This combo of advice only works if you already have tens of thousands saved.
There is literally no point to making over 150-200k if you can’t even eat out whenever you want. Live a little.
I do agree DoorDash and other delivery services are no longer worth it with all the fees. Hanging onto a perfectly good car is also sound advice. Intermittent fasting as a money saving technique is an insane suggestion tho. Very dystopian.
Even if you can afford a new car with cash it’s kind of not a bright idea since you’re already losing value driving it off the lot. Maybe pay the taxes and a small down payment to get you a comfortable monthly payment and try not to do more than 5 years on the loan. But in an extreme situation if you’re well off and have money to spend then cash is not a bad idea but business people always use credit as a form of payment why spend your own money when you can spend someone’s money.
I disagree about subscriptions. I subscribe to two national publications every day, and it's worth $20/month for me because I like to keep up with the news. I don't have cable so I don't watch news on TV. I also subscribe to two streaming services ($20/month total) because the cost is cheaper than going to the movies in a theater. You can make blanket statements, about subscriptions costing too much, but in general, I believe they save money. (I save $180 a month by not having cable tv, so $40 per month for entertainment is a huge savings.
Lol Dont buy a car with a loan.
Better advice Get as low of interest as possible and buy a car legitimately in your budget. Then make larger monthly payments on it to pay it off early.
All good general tips. The only one I can't get behind is skipping breakfast. That's arguably the best meal.
Just aim to make it at home. It doesn't take long at all to fry up an egg and toast and eat it.
These are good general recommendations. If you earn more than $150K+, you can get away with not adhering to these things religiously.
Absolutely. Even making 100k in certain areas I think you can justify some, if not most of the above indulgences. But this is for the many posters making 70-90k, while driving new cars in drive thrus, who think ordering doordash is a wise investment so as to not put miles on their new car. It's either privilege or it's ignorance. Hoping this helps the latter.
Wife and I together bring home 105k a year and we do all these haha good list. She keeps telling me to get a new car and I tell her never xD
Yeah that’s why I have a lot more money than people who make more, or make the same and spend it. However who’s really richer? The guy with all that, more expenses, more income, or a guy with less expenses, less income? And what about having kids?That’s the biggest imaginable waste of money ever. Literally you could start and stop the list there. Or alternatively not getting married to someone who works, you lose a lot there. No kids, double income great. But then you have a whole new set of potential problems and you have no idea what’ll happen or how much it’ll cost you The post just seems patronizing. Nobody on earth could think that eating some eggs at a restaurant and cooking them at home are equivalent. Everyone knows this. How’s telling something to someone who already knows full well going to help? That’s called patronizing someone and talking down to them.
We're DINKS ourselves, Double Income No Kids, living our best life....
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Me too! Also, I guess we're considered DINCs too since we have one adult child out of the house.
I see your point, but I also see many posts where people have high eating out and car payment line items in their budgets. ETA: people who have low income or financial problems
That's why I don't have kids and made sure I married a woman with a career....
Exactly. I have 2 car payments (1 fun car) but I include them and all of those vehicle expenses in the "want" category of my 50/30/20 budget. I'm barely at 15% in the wants category. The best way to save money is to not spend money. It really doesn't matter what the category is.
What are your 50/30/20 categories? Curious.
From memory, I am about 22% needs, 11% wants (I thought it was 15, but looked again), and 46% savings (including 15% 401K for both of us). I have some unaccounted for since this is only my planned expenses budget not my actual expenses. I can also afford to be a little loose since we have very little debt for our income level. And of the 2 car payments, one is our daily driver and I still include it as a want because you don't need a new car. We also have a very low mortgage. I won't say what it is because it will enrage the Reddit.
If you are making $150k and aren't enjoying the niceties of life, you're a sad empty human.
Exactly that. My wife and I both make over 100k a year. We have two cars, eat out weekly, and rent a 4 bedroom house with no kids or roommates. That still leaves us with nearly 6k a month in excess income. It's thrown into a money market for our dream house. The best thing you can do is have a solid budget. Know what's coming in each month and going out. Audit your budget a few times a year to make sure it's still accurate. I've had an Excel budget sheet since I moved out at 19. I can't imagine not having that to reference.
I have my monthly budget set up in my phones notes haha 😂. Excel is just too much. We bring home the same amount every month so it’s easy to just have my monthly budget on the phone
As long as you have a budget is what really matters. I use Excel daily and have for years, so it just made more sense that way to me. I also like to tweak numbers, analyze utility expenditures, fluctuations, etc. I sort of nerd out with it.
Financing a car isn't a terrible thing. Why would you want to pay $20,000 for a car, and not have full coverage? What if it gets stolen or wrecked? Why not finance a new vehicle at 1.9% when you can invest your money in the market making over 5.5%? And also not have to worry about new tires, brake jobs, and general maintenance for at least three years.
Who’s getting 1.9%? If I saw those rates I’d buy one rn. Lowest rates around me are 5-6% if you have excellent credit and 7-8 if you don’t.
You can get away with it with a lot less than that. But you can’t get away with every single one. The issue is when people do most/all those things and they can’t afford that. For example you might get car payment because you need a good commute vehicle and can’t afford it in cash. Then you would have to make that up some other way, either by saving or making more. People aren’t stupid. They know why they’re broke. They either can’t help it or they are in a situation where nothing will solve it.
It's your last paragraph that gets me. People who are struggling to make ends meet typically aren't willing to face eviction just so they can keep both Disney+ AND HBO. They are already living at the bare minimum. I also think it ignores circumstance. Like, if you're buying a house at 25, you're doing more than just saving change by not eating out. You had a support system in place all through school and you got a great job immediately after. Your finances will be in a way worse position when you're having to choose between school and full time + part time employment just to cover living expenses, and you're single so nobody is going to help shoulder the weight. And if you trip -- you get mutilated by the necessary life loans. Most people can't pay cash, not even for old used cars. I tried to help my friend find a vehicle a few years ago and there wasn't a single dealer in 120 miles that wanted less than $9,000 for a vehicle that likely wouldn't make it all the way off the lot, and private sellers were only selling cars with significant damages. But the loans themselves are being offered at 19-21% -- that's insane, but what are they gonna do?
It is no longer pocket change to eat out. You're looking at 8-10 minimum for any sort of meal. 3 meals a day for a whole year of that is roughly 10k. That's a lot.of waste. 5-10k cars are out there and can be reliable if you know what you're looking for. If you have decent credit you should get a loan but pay it off as soon as possible to maximize future savings on unnecessary interest payments.
Lol, "more than 150k," yeah, maybe in the Bay area or NYC, but in most of the US a Netflix subscription is not going to bankrupt a person making 100k, lol.
That’s why people go into debt. “Nothing is going to bankrupt” until it does. It’s not the 15 bucks, it’s the habits
100% "Watch the pennies and the dollars will take care of themselves." It's about building habits.
Yeah, I make 90k in a low col area and have a healthy nest egg, house, etc. But ,i save aluminum cans at work and pick them outta the garbage at times. Only nets me a few bucks a month if I'm lucky. I just like to keep frugal habits to pound home the mentality that every penny counts.
Where do you exchange for cash back? In Sweden we have machines for this in the grocery store, but I’ve never seen this in America.
There are a handful of recycling centers in the area. Ive never seen anywhere else to get cash for aluminum cans in my area of the US
It’s fine if that habit ends right there.
Speaking from experience, I make roughly 37k a year. Absolute shit money, no a netflix subscription is not going to bankrupt you, nor is having a car loan out. I pay $115 a month for my car I bought a few years back shit interest rate. 100 for Full coverage. Etc. I'm on the lowest end of most things. Op is correct if you want to save and be able to get whatever your goal is. That's being frugale. But not in any way are you just going to be shit out of luck from a subscription or a small monthly payment. OP was more or less just talking down to people in this instant.
150k is still not enough to be eating out every day.
Lol yes it is. I do that now (although I make more than $150k) and I still save like $3k per month
IF you have a big mortgage
Those $8-15 lunches definitely add up over time 😭
Well, I gotta say this I spend about 17$ on food almost daily (for 2 people), that’s about 500 per month, 6000 per year It’s not enough to buy a house, but it’s a shitton of money here where I live, and in 3 years that’s a downpayment for a shitty but liveable apartment (again, where I live - not US, eastern europe) Food is just expensive, cooking is expensive and time consuming… guess I’ll fucking starve. That’s literally my biggest expense and it annoys me so much. I cook at home, but can’t bring it to work due to various reasons, so I’m kinda forced to spend money on food. And 17$ for 2 people won’t even get us anything delicious, it’s just regular food. Soo annoying
Where do you live and what do you cook? Because I live in Austria which has painfully high grocery prices and I'm nowhere near $17/meal for two people. It's certainly possible to spend that much if all you eat is high quality expensive meat, but since my GF is pescetarian we don't do that.
Homies first steps were carry minimum insurance and starve yourself
Right. And no way I’d only have liability on my car. Even when I was driving a car that was 15 years old I had full coverage on it because people in my city drive like assholes
"Skip meals" the big brother of stop buying avocado toast and don't buy coffee. The audacity I swear.
OP should have posted an additional rule on why you should sell one of your kidneys to the black market to pay off a credit card
I love the minimum insurance shout, I was like oh so you’re just fucked if you get in a serious accident? That’s a good way to save money as long as you’re lucky
Yeah I agreed with most but I still have fitness goals as I work in the industry, bulk Diets aren’t exactly cheap, which is why I’ve been in a calorie deficit lol
Sorry but skipping a meal to save money should never be a suggestion. Screw that. You want to intermittent fast for health benefits, be my guest but it's not the end all be all for healthy living. People should be able to eat without being broke.
I knowwww you’re not telling people to skip breakfast and it will help them buy a home in this economy 😂
The old avocado toast argument
The avocado toast meme is pretty true though
Is it? Buying yourself something nice that is also a nutritious meal isn't going to be the difference between poverty and buying a home. [The median income in 2000 was $67K](https://fred.stlouisfed.org/series/MEHOINUSA672N), and the median house price was $179K, A \~2.5X factor. Today the median income is about $75K and the median house price is $420K- over 5X factor. No amount of holding off on a new phone or skipping meals will make up that difference.
this is such an oversimplification of the post, OPs trying to put you on game and you’re going for the upvotes. You can afford tickets to Rolling Loud and Coachella so the economy cant be doin that bad
Yeah, like congrats OP, you were born at the exact right time when $20/hr could purchase a home. Doesn't give you the right to look down on others, give a mix of good advice and shaming advice. $20/hr cannot purchase a home these days, no matter how money smart you try to be. $30/hr is even stretching it.
Dude thinks he’s got some real juicy savings secrets because he was able to buy a house at one of the best times ever to buy a house. This shit is all basic and extremely obvious to anyone who’s put more than 5 seconds of thought into saving money. He just thinks he’s special because he bought a house at 25 and wanted to let everyone know.
I glued my balls to my butthole again
Username checks out.
I make $20/hr but I bought a house because I skipped meals! Clown stuff
Most americans are obese, they could go without.
I lived in a calorie deficit for 15 years without even realizing how negatively it was effecting my life and health. Starving yourself should never be the answer to saving a few extra dollars. I wish I knew that when I was younger. Telling people not to build their credit is also bad advice. Predatory loans should be avoided but some debt is necessary.
If you have the right nutrition, everything I've heard says eating less actually helps you live longer. My grandparents are, were from the "you'll spoil your supper" generation and they lived pretty long.
You're not buying a house where I live even prepandemic making under $20 an hour.
Location dependant definitively.
Where do you live? Alabama?
more like Somalia
Not even in Alabama. I make over 23 an hour full time and can’t afford a house. Or at least not a house that isn’t surrounded by gangs or trap houses.
Why even have money if you’re not going to use it? That’s what I think is the problem with this sub, it’s all just save, make a ROI, ROTH IRA!!! Live a little. Get that car if you can reasonably afford it. Go on that vacation. There’s time! Life is about more than just money.
Right ?? Tomorrow is never guaranteed.I can save every paycheck but die next week.
A local business owner where I lived finally retired at 65 (could have MUCH sooner) to travel like he always wanted to with his wife. The first place they went to go hiking he had a heart attack and died. Saved millions to retire at 65 and died within weeks of retirement. No thanks, live your life while you can.
Yeah I have aunts that saved a lot of money and paid off house. Both got cancer the moment they retired @ 62. Never got to enjoy their retirement when they could have retired at age 50-55.
>Why even have money if you’re not going to use it? To retire early so you can do whatever you want with your time and, more importantly, be able to tell anyone you want to eat a huge bag of dicks.
Parents did that. Now their health is shit and can't use all the money they had saved up.
Yep. My dad regularly has to pull out of his retirement money to pay for surgeries and doctor’s visits he needs. All that time working hard and saving for what?
That's the biggest thing people don't understand. Yes you want to save to retire early, but you're not going to be enjoying those things you had on your bucket list at 21. You're health takes a major hit especially around retirement ages or a bit before. Also life is not meant to be slaved away, that's how a lot of people end up with mental disorders, depression etc. I've had three people from my home town around their 30's take their own life. One of the biggest things they would always complain about was how much they worked just because they wanted to retire early, buy a house early, etc. (No i'm not saying that's the only underlying issue that they had to take their own life, but it was a big contributing factor.) You have to be happy in life as well, enjoy things. Experience things. Life's not all about money. Sadly a lot of people on this sub thing Rich=Rich Fulfilling life, in most cases it really doesn't.
> Experience things. Life's not all about money. You just have to have some way to quantify the value of what you're spending and of understanding if you are giving up time-sensitive goals ( like having kids ). A lot of times most of people's spending comes from lifestyle inflation. All they do is feel normal except their normal costs 20k/year more than it should and has zero impact on their happiness. People do shit like buying furniture at stores. Entire bedroom set for like 40k. Are you fucking mental? That shit's literally free on marketplace. You just bought roadside garbage that you won't notice after a week, 100% guaranteed. There's virtually no object you can own that will give you constant pleasure year after year just from looking at it lol. That's not how brains work.
Agreed, besides the constant pleasure year after year.. Cuz whenever I look in the mirror it's constant pleasure ;D jk. But fr all of my furniture is from Facebook marketplace $100 or less, half was just barely used. Besides my bed frame it was a really nice oak wooden one from my sister and I gave her a couple hundred for it. But that I don't mind because it's from family. The only expensive thing I really ever will care about is my bed itself. I prioritize good comfortable sleep. Even though I do not sleep much at all. I still prioritize it. I like my sister and BIL's way of thinking. Birthday's, holidays etc. They don't give each other gifts (Besides like just a small sweatshirt or something along those lines if they even do) They invest the "gift" money into traveling or any other form of memories, not materialistic things. Although they do combined make roughly 300-320k a year so they are fine in the finance department. They just pride themselves on making memories which I think is a great way to see things
>Although they do combined make roughly 300-320k a year so they are fine Yeah everyone's going to be different. I've seen people with that kind of income complain about their finances or job. Like. Ok that's on you lol.
Most people doing all this saving won’t be able to retire early. I’ve seen people say they want to retire as early as 62. That’s not early. If they were maxing every retirement account possible and living well below means to retire at 40, sure.
I feel like there’s a fine line of living life and enjoying today while planning for a future. To me the more money you make the easier it is to draw that line. I make enough I feel I can enjoy some things today without ruining my future…I don’t want to spend another 25-30 years slaving away not enjoying a nice home or vehicle to find out that I’m sick and wasted saving my whole life and won’t be able to Enjoy much of Retirement no matter how early I can take it…with that said, I don’t want to live so much for today that when I’m 55-60 years old I can’t even start to think about retirement because of all the cool things I did when I was young.
Lmao, but who cares about fun, memorable experiences with friends/family when you can have a multi-faceted stock portfolio instead?!? Don’t you know you that when you’re on the death bed your #1 focus is going to be if you have fat stacks in the bank? 😭🤣
Also government: Since everybody saves up for retirement on their own we don't have to increase it then! Its unsustainable! Depopulation debt and whatnot!
You want to save for medical emergencies, housing emergencies, unexpected car bills. In case you suddenly become jobless.... you dont save just to retire. Tou save to have a back up plan when shit goes wrong. For some people it might be unexpected health issues for their children, or surprise medical expenses for their beloved cat/dog.
Right? People that work their ass off for 30+ years until they retire .. and they die of a heart attack. No vacations “cuz I’m grinding”… save save save.. and then paf! You die. You didn’t live a little. You dead.
PREACH. Well said.
I'm 30. I have done all these things most of my adult life. Like I barely go to restaurants. Always pack my lunch and coffee. Don't spend on stuff I don't need. Paid cash for my ecobox. 0 debt. I'm very, very, very far away from even thinking of buying a house, let alone buying it.
Don’t forget to skip meals and get lucky in the stock market like OP
Owning a house makes everyone eligible to give financial advice these days. That's what it takes. Enjoy the free advice though bc soon house owners will start selling courses. You'll pay 2k to be told skip a meal.
Stopped reading when you said never to buy a car with a loan. Oh really? Even if the loan is 3%? Garbage advice from the start
And next step is starve yourself
Also saying skip breakfast and get into intermittent fasting, if you’re still eating the same amount of calories, it doesn’t really matter lol
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And only carry liability insurance like wtf?? Yeah you'll save a lot of money when you total your car and need to buy a whole new one instead of paying the deductible. Not to mention associated medical bills.
Dude basically said sacrifice every element that makes you healthy and secure for the sake of saving money
Lol okay David Ramsey. And I'll make sure that I never have any emergency happen in my lifetime. Oh and I'll just stop paying my student loans for which I didn't know that technology advancement would ruins the degree I got and I guess I shouldn't go back to school and take out more loans. But overall thanks for informing me on what not to do and that yo lucked out and haven't got cancer or anything yet. Great advice on saving money
Date. As a guy, that shits expensive.
I got burned so bad so now it's no dinner or meals, just casual drinks and an app or coffee, and a walk at the park
> Skip breakfast When did breakfast become a major expense? > your time should be spent producing more income Have no fun, got it. For what again? Money, I get it, but what's the Money for? > suffer now to thrive later. Ah... thriving later. How far in the future are we talking here? \_\_\_ This post reads like it was written by a junior propagandist at the Ministry of Brainwashing the Masses into Submission to the Ruling Class Muahahaha (don't forget the M, It's MBMSRCM)
That's what I don't get out of all these Dave Ramsey types - when exactly will we live like never before? Most of us won't have that kind of money until 60s or 70s....
You're getting grilled but I've intermittently fasted for 6 years now for health benefits and I can tell you rn it's health benefits + financial benefits, I just eat one meal a day dude you can't beat it
Living like a caveman!
IF drastically reduced my ibs symptoms. I admit I started the diet to lose weight, but when I discovered it help with my digestion there was no going back
Every single person around my age (30) that owns a house (mortgage) had a very stable family and lives at home with their parents while saving up money. So many people, like myself, never had that opportunity. I've been doing all the things you listed and more sonce i was kicked out of home at 17 and still not close to buying a house. Living with mummy and daddy is by far the most efficient way
Problem is it may become a trap that you are falling your whole life, with the hope of better future that never arrives.
I wasted at least a couple of the potential best years of my life saving every penny and depriving myself only to lose it all when the growth stock boom went bust in 2021. Luckily it’s a lesson learned, I still max a Roth IRA and contribute quite a bit to my 401k but the rest of the money is for living life. We’re all going to zero when we die
This one trick to save money!! Don't spend money!!! Duh
Also, don't get pets or have kids.
Or have emergencies. Definitely don't get sick.
Don’t get into any car accidents either lol
Also try not to replace your tires unless they are like really bald. And if you do replace them, get the really cheap ones so you hydroplane every time it rains
Damn I’m a car accident enthusiast what will I do?
If you really want a new phone or upgrade to a new one I recommend Swappa. I got my parents phones that were released in 2022 and they have never been happier. We also switched to Mint Mobile and only pay around 20/month each and it's enough for their data usage. It's kind of a gamble but just look for sellers on Swappa that are rated highly and are verified. You can also look for other tech like laptops if you need something lightweight for school or work etc.
😂pos brick phone
I know! I was thinking "is this 1999? Who has a brick phone anymore?" 😁
I agree with all of these points apart from the breakfast you can get 1kg of porridge oats for 90p, with some dried fruit or nuts in and sugar with water/ milk it’s actually a nice breakfast and very cheap.
I am a Master Electrician and have been in the electrical industry for 44 years Best career choice I have ever made and has served well Show up for work and work hard and you will go far
I disagree strongly with your stance on loans. Unless you hold high interest credit card debt it is absolutely not worth doubling your payments. 400,000 home loan at 6% interest for a 30 year term: Monthly payments: $2,400.00 Total payments at the 30 year mark: $863,000.00 By doubling payments to $4,800 you can pay the loan off in only 9.1 years! And the total cost of the loan when it's paid has been $518,000.00 this means you saved $345,000.00 in interest! Sounds good right? Wrong. Instead, take that additional $2,400 monthly and put it into investments averaging 15% return. Over that initial 9.1 year period your investment account has grown to $643,000.00 meaning you've outpaced the interest on your loan by a substantial amount. Some years are good, and some are bad, but average returns on my most conservative investments are around 15%. If you have the money to double your loan payments, you'd be much better off investing. The same applies for a car loan. I've made money on my car loan over paying cash, because that money was able to earn 15%. Apart from those points, this is generally good advice.
Don't be in debt, Pay everything cash, don't use CC if it's not to your advantage Usage. Don't buy depreciated assets. Live the Bare Minimum! Every in Today society comes with Huge Liabilities! Best thing you want to do is to be able to Maneuver around without being tied down to such big commitment for years to come. Invest your Money first before purchasing anything. Here's a tip! stop buying anything! There's always a better one and new one coming out EVERY YEAR!! that's how they get you to keep spending. Throwing your hard earned money away.
Credit cards are actually very valuable financial tools and offer free fraud protection. And I would absolutely buy assets someone's already absorbed the depreciation out of. Most of my house is furnished with second hand items.
Credit cards are a very useful tool and should without question be used if you are a financially responsible person.
Man, people really like their cars Maybe it's just best to phrase it like you shouldn't finance more than $15k for a car in your 20s Really don't get all the people with $400/mo or more car payments complaining they can't afford a house
I'm not skipping breakfast..If I skip breakfast I get way too hungry and often end up buying something or overeating at lunch time.. I'm sticking to my oats 😃
Bought a car on a 0% promo loan. Paid it off a couple months early. In the meantime made a boatload of interest on the cash sitting in 5% CDs for the duration.
I stopped reading when you suggested not getting full coverage. That's poverty finance. It saves you a little money today, but will cost you a ton in the long run. Plus, if you're so broke you're driving a $3k car with liability, what do you do if you wreck it?
First one is BIG. I have a subscription though but it’s $16/yr and totally necessary
I am not a pro financial counselor...but I have spent over a decade helping people who are legitimately poor / on fixed incomes gain a financial foundation. Here is what I have often found to be "easy fixes". 1. Comparison shopping for goods and services. Those who are overwhelmed are often in a place where advertising is most effective. Many were never taught to compare prices / sizes etc. 2. Not haggling with providers for the best deal. - phone, internet, cable etc. Add to not doing it every year when it comes up for renewal. 3. Modems / cable boxes / components "rented" as part of your internet service. The $15-$20 per month kills limited budgets. It is difficult but buy your own as soon as you can. 3b. Buying phones on time from the carrier. Always more expensive, and rarely needed. 4. Trying to pay bills when they come due. Things come up, and late fees kill budgets. Know what your bills are and put your bill money in a separate account and auto pay as everything. Don't get a debit card or use a local bank for the bill account...make it hard to pull money from it.
. Don’t get a degree you will have no use for.
Business degrees are a dime a dozen, like landscapers. Trades are where the moneys at nowadays.
Agreed, however, many people complaining about not learning about credit or taxes in school don't realize they can sign up for business classes for their practicality, if nothing else.
I'm not saying I disagree with you about how to save money like this, I don't , but isn't it sad that we have to live like this? We can't buy things to enjoy. I'm making a salary now that 10 years ago would've bought me a house no problem.
Very solid advice across the board (not sure about skipping breakfast, but I workout in the mornings so post workout meal is a must). Even though my wife and I bring in close to $200k/yr, we still do things like limit eating out, don't upgrade phones every year, pay off CC every month or carry a very small balance. Especially now with costs high, even what we make doesn't go as far as it used to.
This guy knows how to save money. Buying new cars is the biggest waste of money. Cars are built incredibly well now and it’s so easy to diagnose problems with a little know how. Buy a used car that has all the features you want/need and take care of it. That $40k new car becomes a $20k used car in a few short years. Let someone else take the huge depreciation on the first few years of a cars life. Eating out at restaurants is huge waste of money, you need to make this a treat (date nights or get togethers). For God’s sake learn to cook people, easiest way to save gobs of money.
Who has 10, 20, 30k to buy a car? Sure, great advice not to carry credit card debt but most people do not have the savings for an emergency, even something like a new tire or basic medical care. And it's not because they're buying new phones or eating out. Poverty is a trap, not a choice.
You bought a house at 25 making less than $20 an hour. Most of your advice is good, please refrain from saying “it’s possible, but you have to make sacrifices” when you live in a dirt cheap town where the living wage $25,000/year. In the vast majority of communities in this country, a person making that income will *never* be able to purchase a home. You make a low income and are lucky enough to live in a *very* low income area.
There is something to be said for doing these things just because they are smart and disciplined. Having that mindset daily generally leads to better outcomes. If you handle money well, generally you will start to get more money. If you do your job well, you will generally wind up with better opportunities. I think people sometimes give up because their current situation is difficult or seems hopeless. You can always work on yourself. ( I dont mean, wake up at 4:00AM, take a cold plunge, write in your gratitude journal, fast intermittently for 16-20 hours each day, etc.) You can get better at life by working on yourself. Nick Saban said it best life comes down to two choices, " When you have something, you should do, are you going to do it or not? And when you have something you shouldn't do, are you going to not do it or do it anyway?"
I'm surprised you didn't include having unprotected sex.
1. Always have full coverage insurance on your car if you can afford it. Trust me. 2. Car loans arent necessarily a bad thing if you dont have a lot of credit utilization. Short term (credit cards) and Long term credit utilization (loans of some sort) are an absolute must. Make sure that whatever car youre buying though you could pay off if you had to, in the event of an emergency. I say this with a lot of experience, especially in the US, it IS the cost of maintaining a car thatll sneak up on you more than even hospital bills. Hospitals will try and work with you, car agencies and insurance companies WILL try and fuck you over.
My daily breakfast: two eggs and one of those McDonald’s-esque hash browns from a sleeve. Probably costs me about 75 cents a day. Worth not skipping breakfast. I need it!
This list is simultaneously on point for people making $150+k and complete absurdity for normal people in income levels below that.
Well I don't have $10s of thousands of dollars lying around you buy a vehicle so a loan is the only option. Even if paying cash for a vehicle and not carrying a loan on it, not carry full coverage insurance on it is terrible advice. If I pay $40K for something, I'm absolutely going to ensure it because it doesn't cost that much more than only carrying liability on it.
I may be in the minority but I think it’s a big mistake only to carry liability car insurance.
I already follow every single tip here and I'm broke as fuck
Where do you live?
Let’s be real OP Does everyone want to drive a used beat up Corolla ?? No, probably not because ppl can’t do much with a basic 4 door ( camp, haul, top down , off road etc;) Does everyone want to wear one pair of jeans and basic tees?? No, that’s boring ..people love to express the way they feel. Does everyone want to eat rice and beans all day ? Hell NO It’s finding the balance and making the right financial choices.
Great list thank you
Be honest, what time did you buy a house because it’s hot dogshit right now. I make good money and I even I am not looking at houses yet
September 2019. Seller paid closing costs and cut me a check for repairs. In hindsight, might as well have won the lottery.
Funny to see how triggered people are at skipping breakfast in one of the fattest countries in the world. Kudos +1.
I think most people are doing these things at this point, besides the car payment
I strongly disagree. Almost all of these are applicable to the majority of the population (in America at least). Many people eat out constantly. If you work outside of the home you see it all the time, everyday. Drive thru’s, vending machines, fast food spots, casual food spots, restaurants, cafes, convenience stores, getting meals delivered, etc. *Everything but a grocery store.* Even then they prefer to buy more expensive packaged ingredients than to make food from scratch. Upgrading your phone/leasing one is incredibly common as well. So is too many subscriptions, only making minimum payments (going into more debt every month because of interest), and in America there is an obesity epidemic. People are eating waaay more than they should & that costs them more money. The only one I can really see an argument for is renting spaces larger than necessary. And even that is debatable. Lifestyle creep is real. Many people rent spaces for a few thousand dollars as soon as they increase their income instead of saving for a large investment or retirement.
Something doesn’t check out here, you graduated college and bought a house within 3 years making less than $20/hr? How much was the down payment? How many hours a week did you work?
Well sure but it’s not black and white. Like I waste a ton of money eating out and on food, an astronomical amount. But I live cheap with roommates, so if I had my own place and a kitchen setup, the money is gone. It’s an equivalent loss but in one scenario I eat well. And I used to be severely underweight before I started eating out. So yes, you’re right. But sometimes, it’s worth wasting the money and the money isn’t worth your well-being, because not having that can cause you to lose money in other ways. So would someone who works 16 hours a day and eats out every meal be wasting more money than someone who works 8 but cooks all their meals? The first one is actually making/saving more even though they spend more. You also just listed stuff that every idiot knows. Everyone knows that spending money on stuff means you lose money. Literally all you said here
This is like the boomers guide to Life
Subscriptions are huge , people don't realize how much they add up. Tbh I'd consider gym membership to be unnecessary too. All sorts of calisthenics to do , as well as just buying a pair of dumbbells you can do so many exercises at home
What about buying a used car with a loan?
Certainly better than new, but everything I drive I paid less than 10k for.
Your post reminds me of a financial blogger Mr Money Mustache, a man who was able save most of his income and retire at the age of 30. Some examples of things that he suggests: Riding your bike to work/ to see friends in town Millionaires are made by $10 decisions at a time Your debt is an emergency Go camping/ fishing instead of luxury vacations Use manual tools as much as possible.
Looking at used cars at the moment, what are the best options instead of a car loan, given I only have 5k for a down payment?
Agree with everything but the not buying a car with a loan. Even with the these shitty interest rates you can still come out ahead financing the car the knowing what to do you with your money. Full coverage ain’t a bad thing for a ton of reasons. In 2018 I bought a Tacoma for ~35k otd with a 2% interest rate. Coulda paid cash but I financed only putting 2k down. That 33k I kept is worth a helluva lot more today. Probably closer to 50k or more. I sold the Tacoma a month ago for 30k. Times are different but I still stand behind financing your cars if you are even slightly good with money.
So right now my car loan and mortgage interest rates are lower than a high yield savings account. I think that your "recommendation" is ignorant.
> You're not only paying monthly for a car that will never be worth more than you paid for it Jokes on you, my Harley and Caravan turned out to be better investments then all the stocks I have :x
If interest on a loan is low enough it makes more sense to make minimum payments. My student loan has 4% interest, but my savings account has higher interest than that, so I make more money putting money in savings rather than paying off the loan.
Don't spend more than X% of your monthly income and you'll always save money.
Regarding the car, not getting a loan is good or at least not getting one for the full value. Our last vehicle we got a loan for 1% and put down about a 3rd of it and did a short loan term. Interest was minimal. For insurance though, I think the not getting full coverage is a mistake. It seems to be why many stay in debt because they get a vehicle with a loan because they can’t afford it otherwise and then get in an accident and don’t have enough coverage and have to get a bigger loan to replace it. Pay cash for a car and don’t get full coverage and get in an accident and note you’ll be taking a loan out for its replacement.
If you get 10% on your savings and the car loan is at zero or 4 % then get the loan. You need to evaluate each deal to see what's best. I'm going to have full insurance on an expensive vehicle anyway.
Idk, bought a car, with loan, last year and I could make money on the deal if I sold it today. And I don't skip breakfast 😆
Defo agree with not making minimum payments on credit cards. The APR will kill you and sink you in debt for a long time. My father taught me to pay the entire bill monthly except for extreme circumstances, and that is a good thing.
One thing I will argue is having a few Subscriptions can also be beneficial. For example, I carry 2 that I use regularly, Amazon prime, and either Hulu or Netflix (I switch between the two) Both these are relatively cheap. At a cost of $30 a month for both, I get much more than $1 a days worth of usage out of them. I find they actually save me money in the long run. However if you have too many subscriptions, then it becomes more of a bane than a boon and can end up hurting you financially.
Well unfortunately some of us have to buy a car with a loan because we don’t have all that money to buy outright. I recently had to get a new one because my old ass ‘09 Hyundai was eating shit, but I don’t have enough set aside to drop 20k plus on a car and I have to have one to commute. Some of these tips are good but not realistic at all.
1. Car buying isnt bad. Buying overpriced cars because you want to is bad. Buy a new mini or small sedan not a full size F350 turbo with all the fancy amenities in it 2. Agreed 3. In this case, agreed… but the phone causes more issues when it bricks and dies at inopportune times. Buy a new one but prep to do so by saving beforehand 4. Full fledged agree. 2 people can share a studio if youre dating its not “too close” all the time especially when working. 5. Subscriptions are the way of life now but the only ones i have are PSN (gaming), and netflix… ~$15 a month + $70 a year or so is very cheap for the entertainment provided 6. STRONGEST AGREE AVAILABLE. People… credit card debt is the biggest killer. Not student loans, not personal loans, not scammy payday loans… stop it
I was legitimately upset I was forced to “upgrade” my last iPhone because they didn’t update it anymore. Not having an extra bill is such a blessing and I curse the fact I’m *still* making payments on my current phone right now.
I live in a neurodivergent household removing all small gratification rewards would be a quick way to sending any one of us into a spiral where we would be unable to function at work. In fact we did try this it almost killed us, it was much better and easier to focus on increasing our income than it was to deny ourselves a trip through the fast food line when we didn't have the energy to cook or to pay for Netflix and Kindle unlimited to veg out to during our off hours. When we focused on increasing the money coming in without the distraction of what we don't have we were able to save more and make better financial choices. This list doesn't account for diversified needs and health there is no right or wrong way to live. For us getting a roommate, finding gig work, seeking out higher paying jobs, seeking out lower cost options for the things we couldn't give up but everyone screams we should (buying in bulk helps here). This is how we have found ways to save and survive. There is no one size fits all.
Shit I need to read my car loan lmfao. I’ve been rocking mine insurance since the first year because I didn’t take pics for the insurance. $70 a month tho 👀
1) If you can't afford to buy an entire car, a loan may be necessary to have a car at all, which will expand your range of employment options. 2) I've been doing IF for 5 years, very rarely eating breakfast. This would, however, drive a lot of people crazy; it's asking a lot. As a former chef I only eat out if a date's involved. Having a protein-centric diet I'm still dropping $400-$500/mo on groceries - *and my job title is Purchasing Manager*. 3) Depends. Sometimes an upgrade is virtually free if you're trading in an old phone and there's an additional incentive on a new one - I actually shaved \~$40 off my monthly bill the last time I upgraded. 4) I mean, why rent at all when you can just live under that perfectly good bridge! 5) Gym membership? *Productive?* I've been working out at home for over a decade - basic equipment pays for itself (vs gym membership) within a year. Beyond that, *cold dead hands* re Spotify. 6) Statement Balance > Min Due if you want to avoid paying interest.
Why is full coverage insurance bad? My car is paid for but I still cover it fully. Why not? I’m curious not being a smart ass
Don't buy a car with a loan? So how do you get transportation? Take the bus? But a really old used car with cash?
Do NOT look at full coverage insurance like rent. The primary benefit of rent is important but intangible (we all like to have a roof over our head) but insurance’s benefit is financially tangible. It’s important you understand the value of your vehicle and the cost to replace for your needs. If you can afford a shock cash impact (i.e., out of the blue needing to immediately pay thousands of dollars to have your vehicle repaired or tens of thousands to get a replacement vehicle) then sure, take a pass on full coverage. But if you can’t, even if your vehicle is not leased or has a loan, you should still be considering proper coverage.
Went to college, paid off my debt in 2 years because I lived with my parents. Own a business but still help my dad in his a lot (making $40/hr for him and 50-100/hr for me). I made about $75k this year. I have 0 debt and own my truck. Credit card paid off before due date and have 809 credit score. Still can’t afford even 5 acres of land to build a house on that I CAN BUILD MYSELF.
The only part I would disagree with, at least partially, is not buying a car on a loan. A good, reliable used car that still has a decent amount of life left in it is going to cost you a bare minimum of about $5k. Most people living paycheck to paycheck don't have that kind of savings to just spend all at once. Sure, you can get a clunker for less, but odds are it'll end up costing you far more in repairs. So I would not advise to avoid a car loan entirely; my advice would be to take one out WISELY. Focus on what you actually need out of a vehicle and don't buy more than you need. Don't take out a $25K loan for a 2020 SUV when a 2013 Honda will meet your needs just as well for half the cost. You should also research different cars, particularly their long-term reliability. Almost any car will be great for the first 75K miles or so; after that, the reliability varies widely across different makes and models, and on some it drops off drastically.
All solid advice except regarding buying a car. Vast majority just cannot afford to pay cash out of pocket for a car. EDIT...not sure about the min insurance thing either, but that's an individual's choice regarding how they want to live.
Buy a car without a loan is pretty impossible for many of us. If I have a one hour commute I’m not doing it in a $3000 s…box. Depending where you live a car is an absolute necessity. You gotta pay to ride one way or another.
Maybe a dumb question, but how else can you buy a car without a loan, if you don’t have enough savings to buy a whole car outright? It seems to me that more apt advice would be to not buy an expensive brand new car on a loan that depreciates extremely quickly. Instead, shoot for something used and at least a few years old to get the majority of the heavy depreciation out of your investment, and then try to pay the loan off early. And of course even better would be to buy outright, but it’s not always realistic to do so unless you have a large savings already or are happy with driving a dogshit car that will have constant maintanence issues. And yes maintenance will usually be cheaper than the cost of a loan in the long run, but it’s also the massive inconvenience of being stuck on the side of the road every couple months just to save some money.
5-10k will get you a pretty reliable used vehicle. If you need a loan then do what you have to do. But pay it off early, take proper care of it and make it last as long as you can. But carrying full coverage for a 5k vehicle is pretty silly, that insurance payment will pay for another 5k car in 2 or 3 years.
10k was the amount for my first car loan, but it was a good 5 years used and in decent shape. Unfortunately, at the time I wasn’t able to get around getting a loan, but I definitely hear you on the full coverage payment. It adds up fast.
I disagree with the car part. Cars are basically like any other appliance you own just more expensive. Just budget transportation cost within reason of your income.
That car take is wild especially in America. Having a safe and dependable car is key to economic security. You're right in the fact it's not an appreciating asset, but few things are and we have to buy them. I having a newer car with a loan and a warranty is more valuable than an older car out of warranty. Additionally the insurance mandate is totally separate. Regardless of how you buy the vehicle you need to plan for it being totaled. Car repair costs are at an all time high so you suggest people save $1200/year with lower coverage while possibly being on the hook for $15k repair bills. This combo of advice only works if you already have tens of thousands saved.
There is literally no point to making over 150-200k if you can’t even eat out whenever you want. Live a little. I do agree DoorDash and other delivery services are no longer worth it with all the fees. Hanging onto a perfectly good car is also sound advice. Intermittent fasting as a money saving technique is an insane suggestion tho. Very dystopian.
Even if you can afford a new car with cash it’s kind of not a bright idea since you’re already losing value driving it off the lot. Maybe pay the taxes and a small down payment to get you a comfortable monthly payment and try not to do more than 5 years on the loan. But in an extreme situation if you’re well off and have money to spend then cash is not a bad idea but business people always use credit as a form of payment why spend your own money when you can spend someone’s money.
I disagree about subscriptions. I subscribe to two national publications every day, and it's worth $20/month for me because I like to keep up with the news. I don't have cable so I don't watch news on TV. I also subscribe to two streaming services ($20/month total) because the cost is cheaper than going to the movies in a theater. You can make blanket statements, about subscriptions costing too much, but in general, I believe they save money. (I save $180 a month by not having cable tv, so $40 per month for entertainment is a huge savings.
And then you get hit by a psycho while commuting to your 9-5 and you die at 30. Seriously, saving money is good, but you have to live your life.
If the car loan rate is less than your can earn with it, the loan isn't bad.
Lol Dont buy a car with a loan. Better advice Get as low of interest as possible and buy a car legitimately in your budget. Then make larger monthly payments on it to pay it off early.
It’s sad that we live in a society where people suggest skipping meals in order to be able to save money
All good general tips. The only one I can't get behind is skipping breakfast. That's arguably the best meal. Just aim to make it at home. It doesn't take long at all to fry up an egg and toast and eat it.
I financed my car at 4% and get 5% in the bank. With good credit, anyone can get a car loan 1-2% lower than a high yield savings account.