Morning everyone, I just need a place to rant for a few minutes.
I spent the weekend helping my friend move some dirt and rocks around his house as he was doing some landscaping before he leaves the country for 6-months while leaving his wife and 4 kids back here. So the shovelling gave us some time to talk about things. Mostly though, it was about his finances, or lack thereof. Here are the highlights:
-Bragged about signing up for accelerated payments for his mortgage (effectively 2 extra payments per year)
-He was concerned that said mortgage payment was coming out of his bank account on the 14th, but doesn't get paid until the 15th ??!!
-He doesn't want to bring his expensive Breitling watch overseas with him so he bought a cheap $100 watch ??!! (so many WTF's in this statement!)
-His main motivation for this deployment is to pay off debts (including a line of credit with his parents). Keep in mind this a man in his 30s.
-He saw my 40" LCD tv and said I need a new one because mine was "old". Sure, its from 2009 but works fine! (not broke, not upgrading)
-Upgraded his and his wife's Iphone 5 to Iphone 6 cause he thought the bigger screen was more convenient
-Has satellite TV with every channel imaginable but can't watch the morning sports centre cause his commute is so long (45 mins) so he also has satellite radio to listen to it in the car SUV instead.
AHHHH! My head was hurting from all the money I could see just being flushed down the toilet. He's also completing his MBA but has no idea how to save and invest his own money. I didn't even ask if he had any investments. I'd be afraid to hear about mutual funds and financial advisors?! He's a good friend, but uber stubborn so I doubt anything I say about frugality/mustachiansm would do anything. And I really feel bad for his wife and 4 kids as he's trading away family time to earn more money to buy into the cosumer lifestyle. He's already making over $110k/year for pete's sake!!
Thanks for listening. Rant over.
I can share similar story. Good friend of mine. Wife and 3 kids.
Working for major Wall Street Financial Co. earning very high income of approx 500K per year.
Purchased 1mil + house in very upscale area with good schools and sky high taxes(30k per year)
When I questioned him about it, he said he needs to be close to work.
Took second mortgage out and had to sell stock options to put as down payment as they have very little savings if at all.
First thing he did to that house is to build sauna. Price tag 30K.
We both share passion for saunas, but I built mine with my own hands for fraction of his cost.
Not too long ago he showed me his new watch. He said it was his dream to own this particular one and
all higher ups at his office own similar watches and it would look good at meetings. Price tag 5K.
I care about this fucking guy and cant stop thinking how he could be totally FI by now, instead he is setting himself up for lifetime of suffering. When i try to talk to him, he changes subject and just tells me that we have different ideas about money and what to do with it.