Author Topic: Over 200k per year, and... no surplus cash  (Read 7461 times)

rocketman48097

  • Stubble
  • **
  • Posts: 200
Over 200k per year, and... no surplus cash
« on: March 16, 2015, 10:04:33 AM »
So I was talking to a colleague at work last week, and knowing full well that he contributes only 6% to his 401k and makes over 200k per year, what he did with all his surplus cash each month?  His response, after a pause, "we really don't have any surplus cash."

I almost passed out and fell to the floor.  His wife also works, he makes double what I make, and without my urging, would still be contributing only 4% to the 401k plan (below the company match, he upped it to 6%).  He drives a one year old extended cab pick up truck, and has a fairly pricey house with a 15 year mortgage, but sold it and is moving to a more expensive house with a new 30 year mortgage.  I asked him why he didn't have any extra cash, and his response was, "well my son will be attending private school."  I called him out on this, as this isn't until NEXT YEAR. As of now, he's in public schools.  He really didn't know how to respond.  He has also told me that he and his wife "argue about money." 

WOW, he's 40.  I'm 38.  My head is still spinning from this conversation. 

RFAAOATB

  • Pencil Stache
  • ****
  • Posts: 596
Re: Over 200k per year, and... no surplus cash
« Reply #1 on: March 16, 2015, 10:48:33 AM »
You could have over 100k more a year of extra cash if you engineered his exit from the company and took his spot.

MgoSam

  • Magnum Stache
  • ******
  • Posts: 3643
  • Location: Minnesota
Re: Over 200k per year, and... no surplus cash
« Reply #2 on: March 16, 2015, 12:27:42 PM »
Good for you! From the tone of your writing, it seems like he is a fairly good guy, just might not be good with his money. If they can get their financial house in order, they can save up a big chunk, which could help reduce their arguments over money that he has with his wife.

Bob W

  • Magnum Stache
  • ******
  • Posts: 2947
  • Age: 60
  • Location: Missouri
  • Live on minimum wage, earn on maximum
Re: Over 200k per year, and... no surplus cash
« Reply #3 on: March 16, 2015, 12:30:42 PM »
The sad part is the "argue about money" part.    In general someone with a 200K income should not have any worries about money.  Sounds like they are chasing the dragon. 

East River Guide

  • 5 O'Clock Shadow
  • *
  • Posts: 42
  • Location: Margaritaville
Re: Over 200k per year, and... no surplus cash
« Reply #4 on: March 16, 2015, 12:50:25 PM »
If your priorities aren't aligned it really doesn't matter how much you make.

Indexer

  • Handlebar Stache
  • *****
  • Posts: 1407
Re: Over 200k per year, and... no surplus cash
« Reply #5 on: March 16, 2015, 04:11:47 PM »
The sad part is the "argue about money" part.    In general someone with a 200K income should not have any worries about money.  Sounds like they are chasing the dragon.


People don't argue about the money they have, they argue about the money they "don't" have.

A couple with 10k in the bank, and 600k in savings, and a paid off house doesn't have a huge issue or argument when one person spends $50 on themselves.  Plus they likely have the money and paid off house because they already both agree to be frugal.

If someone has $200.00 in the bank, $50k in credit card debt, and a mortgage they can't afford someone spending $150 on themselves is argument worthy.  The problem was likely also caused by both people being bad with money, and now they are both super stressed about money all the time.

Its not about income.  Its about cash flow.  Negative cash flow = stress, regardless of the income.

*Yes the frugal person only spent $50 unplanned on themselves, and the non-frugal spent $150 on themselves.... well obviously!

rocketman48097

  • Stubble
  • **
  • Posts: 200
Re: Over 200k per year, and... no surplus cash
« Reply #6 on: March 17, 2015, 03:53:17 PM »
I don't even know where to start with him.  For beginners, I make good money, over 100k per year and I'm getting promoted and a raise, which I don't know the amount yet.  He is in operations and I am in finance, so we really don't have identical skills, and he's really good at his job, not a candidate for getting fired.

I asked him why he commutes 17 miles South with an extended cab pickup truck.  His answer, "my wife wanted me to get one???"  Umm, your wife isn't the one commuting in your truck.  I also like to ask people here with trucks if they are running a small construction business.  They never seem to get the joke. 

His new house is also 17-20 miles from work.  If he moved closer to work, he would be in a MUCH better school district.  THe reason he wants to send his son to private middle school is because where he lives, the public schools suck rocks.  His wife has a new job, which also isn't far from where he works.  I asked him why he doesn't just move closer to work, and his answer was, "my wife doesn't want to move into the suburbs." 

I can't even fathom these answers.  I don't really care what mistakes he makes, I just wanted to share this on the wall of shame and comedy, because I truly find all this very funny. 

Kris

  • Magnum Stache
  • ******
  • Posts: 4414
Re: Over 200k per year, and... no surplus cash
« Reply #7 on: March 17, 2015, 04:36:13 PM »
I find this unspeakably sad.

Davids

  • Pencil Stache
  • ****
  • Posts: 973
  • Location: Somewhere in the USA.
Re: Over 200k per year, and... no surplus cash
« Reply #8 on: March 17, 2015, 05:17:48 PM »
What is their spending, with the wife working as well I assume their HHI is over $300K/yr. Hell the guy really just needs to up his 401K contribution by 2-3% to hit the MAX.

rocketman48097

  • Stubble
  • **
  • Posts: 200
Re: Over 200k per year, and... no surplus cash
« Reply #9 on: March 20, 2015, 08:47:43 AM »
I could tell you what their spending is, but I don't even think they have a good handle on it.  He once asked me how to make a budget, which I calmly explained to him to start at the top with income, and then list all of your expenses.

I am willing to help if someone asks me, but I have two kids of my own and don't wish to babysit a third. 

zephyr911

  • Magnum Stache
  • ******
  • Posts: 3628
  • Age: 41
  • Location: Northern Alabama
  • I'm just happy to be here. \m/ ^_^ \m/
    • Pinhook Development LLC
Re: Over 200k per year, and... no surplus cash
« Reply #10 on: March 20, 2015, 03:02:13 PM »
I asked him why he commutes 17 miles South with an extended cab pickup truck.  His answer, "my wife wanted me to get one???"  Umm, your wife isn't the one commuting in your truck.  I also like to ask people here with trucks if they are running a small construction business.  They never seem to get the joke. 
Can I use that one?
I'm pretty sure I do more construction work out of my compact EV than all my truck- and SUV-driving co-workers put together. Multi-position folding ladder + precut wood = nearly unlimited capability.

jmusic

  • Bristles
  • ***
  • Posts: 465
  • Location: Somewhere...
Re: Over 200k per year, and... no surplus cash
« Reply #11 on: March 20, 2015, 09:42:18 PM »
I don't even know where to start with him.  For beginners, I make good money, over 100k per year and I'm getting promoted and a raise, which I don't know the amount yet.  He is in operations and I am in finance, so we really don't have identical skills, and he's really good at his job, not a candidate for getting fired.

I asked him why he commutes 17 miles South with an extended cab pickup truck.  His answer, "my wife wanted me to get one???"  Umm, your wife isn't the one commuting in your truck.  I also like to ask people here with trucks if they are running a small construction business.  They never seem to get the joke. 

His new house is also 17-20 miles from work.  If he moved closer to work, he would be in a MUCH better school district.  THe reason he wants to send his son to private middle school is because where he lives, the public schools suck rocks.  His wife has a new job, which also isn't far from where he works.  I asked him why he doesn't just move closer to work, and his answer was, "my wife doesn't want to move into the suburbs." 

I can't even fathom these answers.  I don't really care what mistakes he makes, I just wanted to share this on the wall of shame and comedy, because I truly find all this very funny.

Holy broken record Batman!  "My wife..." "My wife..."  "My wife..." 

Tell him to FRIGGIN GROW A PAIR! 


If your priorities aren't aligned it really doesn't matter how much you make.

True that.  Exhibit A:  90% of NBA/NFL/MLB players.

garion

  • Stubble
  • **
  • Posts: 134
  • Age: 32
Re: Over 200k per year, and... no surplus cash
« Reply #12 on: March 23, 2015, 03:26:58 PM »
I'm concerned about how they are planning to pay for private school if they already have no surplus cash...

Wexler

  • Bristles
  • ***
  • Posts: 393
Re: Over 200k per year, and... no surplus cash
« Reply #13 on: March 26, 2015, 09:55:28 AM »
I don't even know where to start with him.  For beginners, I make good money, over 100k per year and I'm getting promoted and a raise, which I don't know the amount yet.  He is in operations and I am in finance, so we really don't have identical skills, and he's really good at his job, not a candidate for getting fired.

I asked him why he commutes 17 miles South with an extended cab pickup truck.  His answer, "my wife wanted me to get one???"  Umm, your wife isn't the one commuting in your truck.  I also like to ask people here with trucks if they are running a small construction business.  They never seem to get the joke. 

His new house is also 17-20 miles from work.  If he moved closer to work, he would be in a MUCH better school district.  THe reason he wants to send his son to private middle school is because where he lives, the public schools suck rocks.  His wife has a new job, which also isn't far from where he works.  I asked him why he doesn't just move closer to work, and his answer was, "my wife doesn't want to move into the suburbs." 

I can't even fathom these answers.  I don't really care what mistakes he makes, I just wanted to share this on the wall of shame and comedy, because I truly find all this very funny.

Holy broken record Batman!  "My wife..." "My wife..."  "My wife..." 

Tell him to FRIGGIN GROW A PAIR! 


If your priorities aren't aligned it really doesn't matter how much you make.

True that.  Exhibit A:  90% of NBA/NFL/MLB players.

Hard to say.  Some conflict-averse people like to pawn off their own nonsense on their spouse, especially during conversations when that spouse isn't present to mount a defense.  Like "wow-why do you do [stupid thing]?"  "Oh, little old me?  [Stupid thing] was my wife's idea!"  But, yeah, they're obviously BOTH bad with money.

I think I'm a little sympathetic to the wife only because she refuses to move to the suburbs.  I hear this stuff ALL the time from my suburban co-workers.  They take it as an immutable law of physics that city schools must be bad and suburban schools must be good, but it's a lot more complicated than that. Plus, suburban real estate investments are often lower return than city investments (disclaimer, all real estate is local, this may not apply to where you live, etc.), so moving closer to work to be in the suburbs may be a poor decision from an investment standpoint.

However, other than my own personal bugaboo about living in the suburbs, the clown car needs to go and they need to at the very least be maxed out in tax-deferred retirement accounts.  Just to be getting a C-.