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.