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hypothetical financial question


polksalet
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Let's say a person made around 200k from their business, owed 300k on their home, spent around 30k for private school for their kid, made four wheeler payments, and a typical yukon payment. Let's say that the person only invested in their 401k and small roth contribution while spending 6-8 grand on a beach vacation annually and spent Christmas in various parts of the country for a few more grand, what would you think of thid person's financial fitness?

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Let's say a person made around 200k from their business, owed 300k on their home, spent around 30k for private school for their kid, made four wheeler payments, and a typical yukon payment. Let's say that the person only invested in their 401k and small roth contribution while spending 6-8 grand on a beach vacation annually and spent Christmas in various parts of the country for a few more grand, what would you think of thid person's financial fitness?

 

I wouldn't question their financial fitness....if they are ok with payng juice on their Yukon and four wheelers...and are not going in the hole....then you only live once...keep doing what you are doing....I am sure there will be plenty left over to invest when the kiddies grow up...and as long as they are aware of their limited retirment savings so far....again...you only live once and are not guaranteed a retirement...you might not live that long.

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Let's say a person made around 200k from their business, owed 300k on their home, spent around 30k for private school for their kid, made four wheeler payments, and a typical yukon payment. Let's say that the person only invested in their 401k and small roth contribution while spending 6-8 grand on a beach vacation annually and spent Christmas in various parts of the country for a few more grand, what would you think of thid person's financial fitness?

If they want to risk living in a cardboard box and eating Alpo when it comes time to retire, that's their prerogative.

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The two biggest things that jumped out at me are:

 

$30k / yr is stout for a private school for their kid (presumably you're talking about K-12, not a 'private college/university')

$10k / yr is stout for vacations

 

So, make $200,000 ... pay $80,000 in taxes ... pay $40,000 on private school and vacations ... left with $80,000 for mortgage, living expenses, car payments, saving/investing, etc.

 

Is that about right, Polk?

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The two biggest things that jumped out at me are:

 

$30k / yr is stout for a private school for their kid (presumably you're talking about K-12, not a 'private college/university')

$10k / yr is stout for vacations

 

So, make $200,000 ... pay $80,000 in taxes ... pay $40,000 on private school and vacations ... left with $80,000 for mortgage, living expenses, car payments, saving/investing, etc.

 

Is that about right, Polk?

 

oops, meant 20k for school k-12 but everything else is right. With being the resident skin flint you can imagine what I tell him. Personally I would buy a travel trailer and be a millionaire in 10 years.

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oops, meant 20k for school k-12 but everything else is right. With being the resident skin flint you can imagine what I tell him. Personally I would buy a travel trailer and be a millionaire in 10 years.

 

He's spending 25% of his net earnings on vacations and private school for his kid. I know some that spend more...but, that's more because they feel VERY strongly about a particular private school ... and ... they really don't make much money at all.

 

Many people spend money on things I find rather silly. I'm sure some of my spending looks unbalanced to others, too.

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