My partner and I are early in our careers with two solid incomes, and right now we can save comfortably. But we can see our expenses climbing in about five years. We're planning for kids, buying a house, and possibly dropping to one income for a stretch. Since we know these costs are coming, what’s the smartest way to prepare now? Should we save as aggressively as we can, focus on growing our income, or something else?
I would like to hear your perspectives on those with high current income (think $1mm+ annually in cash) with remaining upward trajectory. Not quite an UHNW but further along than a HENRY. What is the right way to compare consumption versus saving versus investing? High value consumption is very well within "reason" relative to earnings but what are the biggest issues you have seen, particularly for those that are younger and have quite a bit of remaining runway in terms of career and hopefully earnings growth? Is this a critical juncture where lifestyle creep must be avoided at all costs to set the right habits for the future or is the Porsche or the vacation at du Cap-Ferat or Amangiri justifiable? It is easy for people to put extremely high net worth individuals that forego lavish consumption (Buffett still eats at McDonald's!) on a pedestal but through personal experience, I have not found these perspectives coming from the highest earners.
Lots are saying that now is the best time ever to start a business but what types of businesses are not over-saturated with competition/opportunists and likely to be more lucrative than a corporate job (~$200k-$300k/year) for at least the next few years?
Scott we are BIG fans and watch all your podcasts and most of your interviews with Morning Joe etc. as retirees on a fixed income, any chance you’ll crest a lower paid subscription?
What % allocation of a yearly salary do you recommend someone never exceed for a hobby/social outlet?
This answer will definitely depend on income level so for the purposes of your answer, make that recommendation for your podcast’s target gender, age and income demographic.
Hello Prof. G and Mr. Raines, I Im 25, and I just graduated from Cambridge with my master's in English. I am about to get married to the woman of my dreams. How can we try to make forced savings fun for one another, especially as (very gratefully) wedding gifts start to come our way? Is there even a ratio of spending to savings we should be aiming for for cash gifts like these, large or small as they might be? Ive been re-reading “The Algebra of Wealth” in preperation for entering the job market, and want to say thank you for all the good work you do.
My 25 year old son has a good job in a low cost area of the country. No student loan or credit debts. Car paid for. In addition to his day job (engineering) he is also doing some gig work (Door Dash, etc.)Should he be maxing out his 401K now, or should he be building up a nest egg for future home purchase? He has a girlfriend, but I'm not sure marriage/children is on the immediate horizon.
Scott: You have plenty of money right now to not only affect politics but disrupt the entire antiquated, captured industry, rug special interest influence, save democracy, and create a billion-dollar company in the process. We're building the platform right now; think 2-sided marketplace connecting candidates and voters directly, think eBay, Craigslist, Yelp, Airbnb.... and we can launch in time for the Midterms. Let's talk.
It’s axiomatic that saving early leads to wealth. Still, when a catastrophic health event or business failure occurs and the middle-aged person in question has nothing left what is left? Social safety nets have been cut wide open so too many fall through. Communities are often not financially able to help and some are too embarrassed to ask for help. More often than not the cash poor are left to fend for themselves and their families, including the young who save up.
My partner and I are early in our careers with two solid incomes, and right now we can save comfortably. But we can see our expenses climbing in about five years. We're planning for kids, buying a house, and possibly dropping to one income for a stretch. Since we know these costs are coming, what’s the smartest way to prepare now? Should we save as aggressively as we can, focus on growing our income, or something else?
I would like to hear your perspectives on those with high current income (think $1mm+ annually in cash) with remaining upward trajectory. Not quite an UHNW but further along than a HENRY. What is the right way to compare consumption versus saving versus investing? High value consumption is very well within "reason" relative to earnings but what are the biggest issues you have seen, particularly for those that are younger and have quite a bit of remaining runway in terms of career and hopefully earnings growth? Is this a critical juncture where lifestyle creep must be avoided at all costs to set the right habits for the future or is the Porsche or the vacation at du Cap-Ferat or Amangiri justifiable? It is easy for people to put extremely high net worth individuals that forego lavish consumption (Buffett still eats at McDonald's!) on a pedestal but through personal experience, I have not found these perspectives coming from the highest earners.
Lots are saying that now is the best time ever to start a business but what types of businesses are not over-saturated with competition/opportunists and likely to be more lucrative than a corporate job (~$200k-$300k/year) for at least the next few years?
Scott we are BIG fans and watch all your podcasts and most of your interviews with Morning Joe etc. as retirees on a fixed income, any chance you’ll crest a lower paid subscription?
Thanks for considering,
Arielle
The link for discount is not working. It says it’s a private link for me.
What % allocation of a yearly salary do you recommend someone never exceed for a hobby/social outlet?
This answer will definitely depend on income level so for the purposes of your answer, make that recommendation for your podcast’s target gender, age and income demographic.
Hello Prof. G and Mr. Raines, I Im 25, and I just graduated from Cambridge with my master's in English. I am about to get married to the woman of my dreams. How can we try to make forced savings fun for one another, especially as (very gratefully) wedding gifts start to come our way? Is there even a ratio of spending to savings we should be aiming for for cash gifts like these, large or small as they might be? Ive been re-reading “The Algebra of Wealth” in preperation for entering the job market, and want to say thank you for all the good work you do.
My 25 year old son has a good job in a low cost area of the country. No student loan or credit debts. Car paid for. In addition to his day job (engineering) he is also doing some gig work (Door Dash, etc.)Should he be maxing out his 401K now, or should he be building up a nest egg for future home purchase? He has a girlfriend, but I'm not sure marriage/children is on the immediate horizon.
Scott: You have plenty of money right now to not only affect politics but disrupt the entire antiquated, captured industry, rug special interest influence, save democracy, and create a billion-dollar company in the process. We're building the platform right now; think 2-sided marketplace connecting candidates and voters directly, think eBay, Craigslist, Yelp, Airbnb.... and we can launch in time for the Midterms. Let's talk.
It’s axiomatic that saving early leads to wealth. Still, when a catastrophic health event or business failure occurs and the middle-aged person in question has nothing left what is left? Social safety nets have been cut wide open so too many fall through. Communities are often not financially able to help and some are too embarrassed to ask for help. More often than not the cash poor are left to fend for themselves and their families, including the young who save up.
Are you guys still hiring a research analyst for the Prof G Markets team? :)