Your income

[sv2007]

You are completely out of touch with reality if you think 2k/m should be possible on a low income for a family. Have you ever even had to live on poverty income before, or at least in the last 20-30 years?

The context of my post wasn't about poor people; it was more about folks reading this forum. Bsed on the poll, it seems very doable for the vast majority.

[GoodSteward]

The context of my post wasn't about poor people; it was more about folks reading this forum. Bsed on the poll, it seems very doable for the vast majority.

Ideally yes, but from what people admit to it often isn't possible. Most people live their income. When it goes up, so do their standards of living. It's a rare bread that maintains a lifestyle on par with a low income regardless of how much they increase. It just isn't "normal" although I wish it was. One of the biggest money suckers for people is their house. They buy more house when they make more money, even though it isn't necessary. Or, they buy too much house and over time their income increases to match the payment better, so it's not until much later in life they are able to save larger chunks.

[sv2007]

Just because someone starts out from college making a lot of money doesn't mean they know what it takes to do well. And if you have never been at the bottom financially, regardless of your income, you really don't know what it takes to pull back up. You might

I've lived with very little income (in fact, I've posted here the exact amounts and savings). When you are poor, it is about budgeting because you have very little, but budgeting and ssaving means very little comapred to proper money management skills.

Based on results from another of my polls, many here thinks money management is saving money. It isn't. It is actually much, much harder than saving money. Check any investment strategy or advice, the majority of $ growth is really from the management of the savings, whether you open a business, go to Las Vegas, whatever, it rests on what you do with that bunch of $. One must make the saved $ work hard.

Think success; then follow through. The "think" part is like saving money; follow thru part is like good money management.

I speak from experience.

[GoodSteward]

I've lived with very little income (in fact, I've posted here the exact amounts and savings). When you are poor, it is about budgeting because you have very little, but budgeting and ssaving means very little comapred to proper money management skills.

Based on results from another of my polls, many here thinks money management is saving money. It isn't. It is actually much, much harder than saving money. Check any investment strategy or advice, the majority of $ growth is really from the management of the savings, whether you open a business, go to Las Vegas, whatever, it rests on what you do with that bunch of $. One must make the saved $ work hard.

Think success; then follow through. The "think" part is like saving money; follow thru part is like good money management.

I speak from experience.

I agree completely about managing money. Just like people think paying their bills on time means they manage money well.

Were you able to save 50% of your income when you were at poverty, and did you have a family at that time?

[sv2007]

Ideally yes, but from what people admit to it often isn't possible. Most people live their income. When it goes up, so do their standards of living. It's a rare bread that maintains a lifestyle on par with a low income regardless of how much they increase. It just isn't "normal" although I wish it was. One of the biggest money suckers for people is their house. They buy more house when they make more money, even though it isn't necessary. Or, they buy too much house and over time their income increases to match the payment better, so it's not until much later in life they are able to save larger chunks.

The context wasn't about how people spend every $; it was how $1m net worth is possible (and easy to get actually). The post in question was in James Henderson's thread on getting rich, and he mentioned that rich is $1m net worth.

[GoodSteward]

The context wasn't about how people spend every $; it was how $1m net worth is possible (and easy to get actually). The post in question was in James Henderson's thread on getting rich, and he mentioned that rich is $1m net worth.

I understand, but the comments have mostly been about money spending in relation to saving. I addressed that.

On paper you are right, but in reality, you rarely find that which makes the comment more controversial. You can thank our lack of financial education in schools and homes for that. Most of America makes under 100k, and in fact, most make under 75k in the US.

[sv2007]

I agree completely about managing money. Just like people think paying their bills on time means they manage money well.

Were you able to save 50% of your income when you were at poverty, and did you have a family at that time?

I didn't want to save 50% of my income. The income and savings don't exist in a vacuum where some magical percentage is the aim.

Why do we exist? besides eating tasty food. We exist to do things in the world. The current political/social structure makes money as requirement to do most things. Whether it is good or not, it is for the philosophers (oh heck, even they need $ to do their thinking).

This is what is call lifestyle. One much never yield on one's life style too much or one is wasting his./her life. A gift from God (or nature , whatever your religion/non-religion). So, life style is fixed; now make the adjustments to achieve it as best as one can (some may choose short-term sacrifice for long term gain, others may choose a quick fix; no right or wrong, really).

When somebody asking how to save to $1m net worth without providing his/her life style choices or income. I'd assume a normal income (and seems I assumed correct, in fact, it looks like I assume a bit too conservatively) and a normal life style with a modest desire for long-term planning.

[sv2007]

I understand, but the comments have mostly been about money spending in relation to saving. I addressed that.

On paper you are right, but in reality, you rarely find that which makes the comment more controversial. You can thank our lack of financial education in schools and homes for that. Most of America makes under 100k, and in fact, most make under 75k in the US.

Here's an advice: if you want something seize it yourself, don't blame others. Actually, the little bit of leadership/management school I attended was very useful for me (it was required training for managers at one of the companies I worked for). I highly recommend everybody to take it (it was expensive, but may company may pay for it even for non-managers).

Everything is divided into (broadly) what affects you and you can change; and (2) what you can't. The example of you not learning financial stuff in school is the latter. So you have to turn it around and move into the former. I.e. just learn it now.

[LivingAlmostLarge]

I think sv2007 that you didn't ask the correlating poll with income. Why don't you do a net worth poll and you might be surprised.

I don't think many people make $100k out of college, I know PLENTY. In fact none of my friends did. Many were engineers and many in 2000 made $50-60k. In fact most of my collegues went on to professional or graduate school so they were making $0 or at most $20k.

So not $100k. NOT standard or typical. At 30? Maybe some. Many were not and are not even now. Combined family income? Maybe yes. But at 22? No. Ever read Mr Money Mustache? Even he didn't at 22 make $100k. And he retired at 31 with $720k.

I think there are many factors involved with NW $1m. And sometimes having a high income = high NW. Depends how long have you been making $100k? Or $200k? Were you making $200k but had $400k in combines student loans (I also know couples like this). Are you 35 and $0 NW?

I don't think people are complainers on here. Rather they are realistic. It's hard to save $2k/month. I found it impossible making $50k with my DH to save $2k/month. I did walk a mile in the shoes of making little then more.

My take is start somewhere.

[sv2007]

I think sv2007 that you didn't ask the correlating poll with income. Why don't you do a net worth poll and you might be surprised.

I don't think many people make $100k out of college, I know PLENTY. In fact none of my friends did. Many were engineers and many in 2000 made $50-60k. In fact most of my collegues went on to professional or graduate school so they were making $0 or at most $20k.

I did do a net worth poll. And I remember its results pretty well. The majority is < $1m; and as I stated above, income and net worth (savings/etc) don't exist in a vacuum. It all depends on one's life style; there's no right or wrong.

As for NCG pay, it is actually very public info because nearly all companies (in same geographical location) pay about the same. In 2000 (which is 16 years ago BTW), a NCG do make about $50-60k. With advanced degree, they make about $65-75k. And this is in the bay area (one of the higher paid geos)

However, there was a huge jump in pay in last 5 years. I mean really huge; so ask your recent NCG engineer friends; you'll find that the pay I've quoted are pretty accurate.

[sv2007]

I don't think people are complainers on here. Rather they are realistic. It's hard to save $2k/month. I found it impossible making $50k with my DH to save $2k/month.

Well, you make very little compared to the rest (I'm not saying that in any bad way, just the facts). The complainers are likely making in the > $100k range; therefore, they complain just to complain.

As for savings, $2k is a hard number. The prior Jame's $1m is a hard number. When you must project into a hard number, you have to start with a hard number. Of course, here "hard" means "actual", not that it is hard to the specific complainers to save $2k, they just like to complain.

[disneysteve]

I think the whole problem with this thread is that you (sv2007) are merging different conversations into one.

"Can the average American save $2,000/month?" is a very different question than "Can the average SA participant save $2,000/month?"

Your poll shows that we do have a lot of high earners here. That's great. $2,000/month shouldn't be much of a challenge for any of them. That isn't the group that we were talking about, though. We were talking about the median household earning 50K or so.

[DaveInPgh]

When somebody asking how to save to $1m net worth without providing his/her life style choices or income. I'd assume a normal income (and seems I assumed correct, in fact, it looks like I assume a bit too conservatively) and a normal life style with a modest desire for long-term planning.

As one of the people you are calling a complainer, I will once again point out that your views are far from reality.

You are touting your ridiculous poll as if it is a scientific study. Did it ever occur to you that the demographics of SA members are heavily weighted above the $50k/year threshold?

You and your fan club member argue some ridiculous things on here.

[DaveInPgh]

"Can the average American save $2,000/month?" is a very different question than "Can the average SA participant save $2,000/month?"

A "Ding Ding Ding, We Have A Winner" GIF would be a great response to this one.

[DaveInPgh]

As a chubby person, I always hated this analogy. It simply isn't true. If you have never been fat, you don't know what it takes to get skinny.

True statement.

Plenty of memes out there making fun of the fat person ordering a burger and a DIET soda. Skinny people see that situation and think what's the point? Um, 380 calories (32 oz regular Coke) is the point!