It would, if that is really possible. You'll have to get actual offers to be sure, not just KBBOne follow-up to this: yes it's true if I were to sell I'd end up 'losing' about $15-20k. But that's sunk cost is it not? That $15-20k is gone regardless. So would it not be prudent to eat the loss in order to ditch the monthly payment?
To be honest, I cannot view that car as anything but an obscenity, but it did cause me to wonder how it acts on you. An anchor to a stupid lifestyle, or a photo of a childhood friend at your bachelor's party ?
I do remember child care costs. It was a cash flow relief when public school replaced Montessori, and I was able to divert the money to saving/mortgage. Some of our peers continued to pay for private schooling for the next 20+ years but we had made a conscious decision to 'invest' in a neighborhood with good public schooling instead.
I also remember the battle against lifestyle creep as household salary increased. I think stopping/reversing the creep is challenge #1. Challenge #2 is learning to be frugal. I think we are all amazed at one time or another how much money we spend with little to show for it. The food habits your mentioned are a very good example. It happened to my family, and we are pretty much opposite of you. So you have a lot of opportunity.
Perhaps it would help you to model out a desired retirement future so that you know what savings path is needed. Depending on your skill set, you can use simple math, a spreadsheet, or inexpensive modeling software like Projection Labs. Avoid so-called "financial advisors", and avoid annuities like the plague they are. Seriously consider 20 year term life insurance of about $2M
As a last remark, the unheralded path to financial security is paved with long term health. Don't smoke or engage in substance abuse, and if you consume alcohol, do so in moderation. Avoid obesity, and be active. If you eat animal products, do so in moderation (not every day!). Avoid hypertension, if needed by reducing salt intake and meds. Do not rely only on meds.
Statistics: Posted by EricGold — Tue Jul 09, 2024 4:06 am — Replies 25 — Views 1424
