Author Topic: Are we doing this wrong?  (Read 51862 times)

Seppia

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Re: Are we doing this wrong?
« Reply #50 on: May 16, 2016, 02:47:18 PM »
The idea that savings rate doesn't really count is explained very well here
http://forum.mrmoneymustache.com/welcome-to-the-forum/the-math-doesn't-give-a-shit-about-your-savings-rate/

onlykelsey

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Re: Are we doing this wrong?
« Reply #51 on: May 16, 2016, 02:56:57 PM »
The idea that savings rate doesn't really count is explained very well here
http://forum.mrmoneymustache.com/welcome-to-the-forum/the-math-doesn't-give-a-shit-about-your-savings-rate/

Thanks, it's an interesting read.  I'm a high earner in NYC (and don't expect to be one for more than another 5 years), so that makes sense to me.  One thing that's hard about living in NYC working 70 hour weeks with a business-leaning business casual job is that I don't really feel like i have a read on what my spending would be in different circumstances.  Obviously I'd have more time to cook and exercise and not need suits/drycleaning/professional woman stuff... but would my health costs change?  I imagine my transportation costs would jump if I left NYC (currently, what, ~900/year for subway + maybe $100 in cabs for the year).  There are a lot of variables I don't feel like I have a read on anymore.  I eat probably 5 meals a week at home because when I work til midnight I get free dinner here, I'm not sure how to account for that.

I know that I have lived (in non-professional jobs) on less than 20K, but that that hurt, and I was healthy single young 20s person.  Now that I'm nearing 30 and pregnant, I don't think I'd be happy at that level, although it'd be doable.

Seppia

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Re: Are we doing this wrong?
« Reply #52 on: May 16, 2016, 03:47:55 PM »


Thanks, it's an interesting read.  I'm a high earner in NYC (and don't expect to be one for more than another 5 years), so that makes sense to me.  One thing that's hard about living in NYC working 70 hour weeks with a business-leaning business casual job is that I don't really feel like i have a read on what my spending would be in different circumstances.  Obviously I'd have more time to cook and exercise and not need suits/drycleaning/professional woman stuff... but would my health costs change?  I imagine my transportation costs would jump if I left NYC (currently, what, ~900/year for subway + maybe $100 in cabs for the year).  There are a lot of variables I don't feel like I have a read on anymore.  I eat probably 5 meals a week at home because when I work til midnight I get free dinner here, I'm not sure how to account for that.

I know that I have lived (in non-professional jobs) on less than 20K, but that that hurt, and I was healthy single young 20s person.  Now that I'm nearing 30 and pregnant, I don't think I'd be happy at that level, although it'd be doable.

It's not that hard actually.
Your biggest costs will often be
1- housing
2- transportation
This is for most people
The first step I recommend is keeping track
I know exactly what % I spent in each of a number of costs, in the last three years (since when I started budgeting and keeping track).
You don't need to be as paranoid as I am, as Buffett said "it's better to be approximately right than precisely wrong"

Because of the 80/20 rule, once you have a good estimate of your heaviest costs, mistakes become irrelevant, you only need minimal research.

FINate

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Re: Are we doing this wrong?
« Reply #53 on: May 16, 2016, 05:21:50 PM »
I believe that status-seeking is what can explain the black hole you mention. Living the NYC lifestyle 24/7 means so much to them. If you can't participate in the daily conversations of your well-heeled friends, colleagues and clients because you haven't eaten at the pricey restaurants, visited the exotic places, and drank the vintage wines that they have, then you don't have status among them. Period. Plus, you need to have done a few expensive things that nobody else has done, right? Otherwise you're just a pathetic try-hard desperate to fit in. Status means mindless conformity and carefully-crafted individuality in just the right balance! Considering all that, that black hole of spending is probably pretty mundane. Just filled with a million expensive, stupid luxuries that no sane person could need, and most of us don't even want.

Hah! I'm going to steal that from you :)

Cassie

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Re: Are we doing this wrong?
« Reply #54 on: May 16, 2016, 06:37:05 PM »
Health insurance can be scary high. I paid 128.00/month when employed. Now I pay 868.00/month and it goes up every July but usually 50.00.

Bumperpuff

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Re: Are we doing this wrong?
« Reply #55 on: May 19, 2016, 04:05:14 PM »
It seemed that the author's complaints were:

We earn 10X the median income in NYC.
After we spent all our money, we have none left
We've filled their apartment with stuff and now there's no room.
Our immense wealth isn't bringing the happiness we thought it would, further consumption is the only answer.