I know people want to see you buy a forever home, but we are a military family. We are considering buying at our next duty station, but we would have to sell 5 years down the road. (Obviously could rent if we really needed to.) Would be great to get our foot in the door with some equity, but obviously who’s to say that will be the case. Is that a bad idea in this current housing market? I know it’s a gamble and impossible to know, but would love anyone’s opinion.

My wife and I have 2 kids, 7 and 4 years old. We have been struggling with how to instill appreciation and gratitude in our kids for all the things that we have and to not take things for granted.

We live in a VHCOL area and are solidly middle income (~200k) as crazy as it sounds. We are incredibly fortunate to own a home after quite a bit of luck and a series of good decisions when rates were low where we were able to buy a small fixer upper home in a decently nice neighborhood for a relatively lower price. We were able to do a lot of fixes ourselves and make do despite the size (< 1200 sqft). At current prices there's no way we'd be able to afford our home.

All this to say we have worked hard to get where we are at and are incredibly grateful to even own a roof over our heads and to be able to afford day to day necessities. We save a little for retirement but money is fairly tight. We cook most of the time and try to reasonable when buying clothes and other things. We try to take local vacations and save where possible when buying groceries.

However, we've prioritized our kids experiences over all because we want them to have a better life than we did. Think swimming lessons, soccer, experiences at the zoo/aquarium when possible. These things add up costwise quite a bit so we have had to be selective in what we can afford but our kids are everything to us.

But even with all this our kids have grown up with a spoiled attitude. I don't know if it's something we did wrong or the immense wealth in our area but they are constantly comparing why we don't have newer cars, eat out at restaraunts, have old furniture at home, older phones/tech, etc. My wife and I have tried to explain mindfulness and appreciation for what we have. That some others have more and others are less fortunate and have less. We have tried taking them volunteering and done had many discussions but it doesn't seem to change.

This is so different than how my wife and I grew up. I was raised on couponing, hand me down clothes, motel vacations, older cars and home cooked meals every day. My wife's mom did nails and her dad did construction and didn't have much. We don't know what else to do.

This is particularly relevant for people in HCOL or VHCOL areas. In the effort of trying to save for home ownership, my 'on paper' worth is significantly higher than I anticipated at this point. All the small things like being able to buy whatever at any grocery store, afford nice restaurant dates, or take an annual vacation are extremely affordable, but being able to afford a house in the metro area I like is still so far away.

I don't see any point in buying terrible starter home, or moving far away from my network just to own, so I realistically anticipate renting for at least another decade.

I feel like I've hit an exponential difficulty increase after clearing the first few levels of financial stability.

I know it is obviously dependent on the dealer/car/whether they want to get it off the lot etc but from folks who bought a car in cash from a dealership, what were you able to negotiate down to?

thanks!

I’m about to inherit approximately $100K. Is it better to pay off existing debt (two cars, credit card, pay down mortgage) and then invest those monthly payments I won’t be paying out anymore or should I invest the $100K directly?

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Need help with investment

Hi! I'm 22 curently, I have a freelancer currently and I'm a able to generate 1 lakh Plus as my earnings and as of now I don't have any expenses and I save allmost one lakh per month, please guide me how should I invest this money as it is going to get higher in upcoming months

My siblings and parents and I are really close and have always really prioritized seeing each other. It’s paid off in the strong bonds we have to each other—our parents didn’t see their own siblings very often, and I think we all grew up seeing how isolated they were and don’t want to repeat that, especially in a world where support networks can be hard to find. The issue is that, like many people, we’re now all over the American map (East Coast, Washington, TX, CO), and we’ve started having kids. The expenses are getting bad.

Obviously we’re not going to be able to see each other as often in general, but we want to keep it up at least once a year—ideally 2. Right now we typically pick someone to visit and get an Airbnb to supplement someone’s house. We need to up our cheap airfare game, but any tips on splitting costs, cheap accommodations, or any other aspect of getting together?

I see location brought up constantly on this sub, but I never really see discussion of age.

Income pretty dramatically increases from 35-55 (about 15-30%). This is a pretty dramatic difference. I constantly see low 6 figure households be questioned if they are truly middle-class, but for 2 teachers in their 40s that's the expectation, which truly is middleclass.

On the flip side, I see a trend of young people thinking they are middleclass or even poor making 70k+ at the start of their career, without realizing that if they partnered with someone making literal minimum wage they would have the HHI at or above the median for someone mid career.

I know we aren't supposed to bring up "what classifies as middleclass" on this sub, and I truly dont think im doing that. More so observing that what middleclass is at one age group is totally different than more the next age group.

• Background is that I was messing around on US zipcodes looking at median HHI of neighborhoods around me, and realized that the youngest neighborhoods have by far the lowest HHI, but arent necessarily the "poorest" areas.

Wanting to buy a used car under 15k and put 5k down. So finance 10k. Where's the most likely place to get approved with 650 fico? And what rate can I expect?

In the 1980s, the median home price in the US was $47,000. So, if you had a networth of $1 million in 1980, your wealth relative to median home price was significant. Basic math, you can afford approx. 20 median priced homes.

In 2024, the median home price 10x the price in 1980s, approx $470,000. Someone with a networth of 1 million can afford 2 median price homes.

So, while achieving networth $1 million is great milestone, to be considered a true millionnaire, you'd probably need a networth of $10 million?

Wife and I have one 7 year old. We are debating if a 529 is the best way to help invest in his future because it might not help him the way he might need help as a young adult. It seems more useful to help him with a down payment on a house when the time comes.

1. He’ll likely be eligible for the Hope Scholarship in Georgia (I’m a teacher and he’s showing aptitude to achieve that… and I’ll obviously be on top of him to not slack).

2. 529 is locked up for education only or converted to IRA if unused.

3. There’s a $10,000 limit on how much of that account can be used for a down payment on a house.

Seeking advice on steps to take with the big cash sum I’m sitting on. 25 YO, 165k salary (recent change from ~100k), 150k in cash savings (140k in HYSA, 10K in checking), 20k in 401k

I’m leaning towards trying to buy a 2-3 bedroom in ~3 years while I can still get in as prices are shooting up in my city. Purchase price probably would be somewhere in the 400-600k range realistically. Would likely live with roommates initially to try and put more funds toward the mortgage from rent. I plan to stay here long term and don’t want to have to sell when kids come into the picture if prices shoot up.

My monthly expenses avg ~2k and then I also max out my 401k and HSA + some flexibility for emergencies so savings is likely ~90k a year.

I’m debating what to do with the cash I’m sitting on. On one hand, I don’t need the real estate, it’s a want and I could be missing out with it in a HYSA. On the other hand, losing out on the returns seems silly. With my savings assumptions I probably would be sitting on ~425k in 3 years. Any advice?

(31,m) My household income after taxes is 112,000 a year. We have no debt besides our house, which has a mortgage of 844 dollars a month. We currently owe 130,000 on our house, and according to the mortgage calculator on my banking app, we can have it paid off in around 3 years if I start really putting money towards it. Our mortgage rate is 3.6 percent. I understand that I can instead invest my money and more than likely get more money from higher interest rates, but the idea of being in my 30s with our house fully paid off seems like an absolute dream. So would you A: pay off the house in the next 3 years and have literally zero debt whatsoever, or B: invest the money

Just finished a CD account with 5k and transferred back into saving account. I currently already have an emergency fund for my family and I. I also have a 401k with my employer and have a Roth IRA. I also invest reoccurring to the stock market (Mostly SP500, VOO, Nvidia, Tesla). Also I follow the market and invest whenever I find good buying opportunities. With this extra money I want to invest it instead of using a CD or a HYSA. I need about 4k to max my Roth this year. Is it smart to max that out first and then invest the other 1k+ into the market ? Thanks for the help, Cheers!

Having a couple of folks over and everything that could go wrong has. One relative broke our stovetop by dropping a heavy pan on it (it is an induction strove top and now cracked all the way through). This alone will be $1,000+ to repair.

Then there is the food (Thanksgiving dinner costs a lot more than $58!); drinks; desserts.

I asked everyone for $200 cash this year. Still running at a loss, but these family get togethers really stretch the wallet.

How do you handle the burden and extra costs of the holidays in your house?

Just wanted to wish everyone a great day! Let's share the things we are thankful for this year. I'll start. I'm thankful for my friends, my cats, and my job. I'm thankful that I will be having a nice dinner with friends this weekend. How about you?

How much (roughly) do you spend per month or per year on dog/cat food, vet fees, pet charges at apartments, miscellaneous expenses etc?

I’ve been trying to save more aggressively for a down payment on a house, but it’s been hard to find the right balance between cutting costs and still enjoying life. I know skipping small luxuries, like dining out or buying the occasional treat, can add up over time, but it also feels a little depressing to eliminate everything fun just to hit a financial goal faster.

Recently, I had a bit of unexpected financial luck, a fire slot win on Stake of $3,500that gave me a boost toward my savings, but I don’t want to rely on something like that happening again. For those who’ve saved for a big goal, how did you stay motivated while still allowing room for small splurges?

I’d love to hear how others have managed to balance short-term enjoyment with long-term savings goals. Any tips for making the process feel less restrictive would be a huge help.

Hi, I am starting a podcast on personal finance, specifically the aspect of overspending due to access to debt, or other emotional or lifestyle reasons. Would you listen to a podcast like this?

I feel that in the world of personal finance, there are the podcasts by the experts (financial planners, managers, CPAs, accountants, celebrity experts, authors, etc) and then there are podcasts by journalists who have researched the topic and are columnists and experts in their own rights. What kind of market do you think there is for a podcast by a non-expert, regular person who has struggled with overspending and has reformed their finances and financial situation?

My wife and I (both 32 DINK) just hit $500k total invested. Target retirement is 55 for me, sooner for wife. Our AGI is roughly $160k. Approaching a net worth of $1M but not quite there yet.

Both my wife and I have had good upbringings (middle class families, two parents, born in US, MCOL). We have not received any large financial gifts or inheritance or anything, but we also didn't have anything holding us back. Planned to have kids, but that isn't in the picture due to medical reasons, so making the most out of life now. I am an engineer, wife decided to take a lower stress job taking care of plants.

401k 1: 296k

401k 2: 6k

Roth IRA 1: 108k

Roth IRA 2: $17k

HSA: 26k

Brokerage: $49k

All investments are in FSKAX (63.6%) and FTIHX (36.4%) or equivalent 401k funds to mirror the index funds.

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Quick Stats: 47M, concert business, $160k ($230k HHI)

$534k in investments (spread between 401k, Roth IRA, 529s & taxable brokerage)
$81k or so in cash/cash equiv
$the rest is personal property, mostly car and musical instruments, (1907 Steinway etc)
no house or home equity

*Note: the credit card debt is because I pay almost all bills on CC each month and pay statement balance in full, so rarely to ever pay interest. Car was paid off years ago.

Grew up middle class, always had jobs and a good work ethic but financial literacy (aside from 'balancing my checkbook', yes I'm old, and 'budgeting') wasn't taught in my household. Spent my 20s and early 30s as a pro touring musician and was good at spending what I made. I/we travelled a lot, ate at nice restaurants, etc. and didn't start saving or investing until mid 30s when I moved out of touring and into producing concerts. I started tracking my net worth in 2016 at 39 years old and it was $67,000. Yep, that's it. But by then I'd started learning about investing and began upping my 401k contribution gradually, opened a Roth, taxable brokerage, and incrementally getting raises and making more money. 2018 I got divorced. The divorce took 3 years to complete and cost $30k in legal fees alone. And that's not counting spousal support or property division, so well north of $100k. Luckily joint custody of our 2 kids we agreed on. 2020 Covid hit and my industry came to a complete standstill and I went on unemployment for 14 mos.

But now, 47, engaged, household income is $230k, somewhat comfortable financially, I don't trip at the grocery store or the gas pump, we take a few vacations a year and I can max out my 401k, the Roth, fund the kids' 529 accounts, and put extra in the taxable brokerage and savings accounts. Point of this post is not a 'humble brag' because I'm sure this amount is peanuts to the financial overachievers lurking on Reddit (aka "hey guys I'm 29 w/$800k howm'I doing?") but considering everything I've shared (and things I haven't), I am feeling fortunate. So if you're feeling like you are getting or got a late start, just keep plugging away. You'll get there.

Larger point of the post is if you get started in your 20s and aren't a financial jerk off like I was, you'll have 2-3x what I have at this age. Don't be a financial jerk off. Start early. Compound interest is your friend. Time in the market, blah blah..

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Would it be smart to sell off some of my investments to lower my mortgage?

I have about 330k in combined retirement and brokerage accounts and make 120k a year.

I'm looking at a 2600/month mortgage.

Would it be smart to put maybe 50k from my savings into my mortgage to lower the monthly payment?

I contribute to my 401k, but I can't afford to up my contribution due to expenses. I just thought of something, though! I get paid biweekly, and I make two paychecks cover the whole month of expenses, because most months, I only get two. Next year, I will contribute the third paycheck of every month that has three paychecks! It's only 2-3 times a year, but it will make a big difference because it can be contributed pretax.

Currently, 41% of households earn over $100k per year, a level of income sufficient to afford a mortgage on a $400k home, even at today’s interest rates.

Despite this, many continue to claim we’re in a housing bubble or that homes are fundamentally unaffordable. Yet, the typical middle-class household has the income needed to purchase a median-priced home in the U.S. Does this suggest that people’s perceptions of unaffordability aren’t entirely supported by the statistics?

If we count wealthy retirees who don’t have an income, it’s very possible that over 50% of the US population can afford the median home.

Daughter wanting to buy a used Volvo 12k-16k. (It's our very firm family car tradition). I've only paid cash for the last three we bought used. Now that same money won't buy crap. So being new to financing, I want us to make a sound decision. Her credit is mid 600's, good job/.work history. -Dealer 1 offered car for 14,000 at $225/mo for 78 mos. with 5k down. Wouldn't tell us the rate or financer.
-Dealer 2 offered car for 13,000 at 320/mo for 48 mos. with 5k down and unknown rate. She has a relative with excellent credit but no income who could co-sign but not sure it would help. We're trying to decide what these offers mean, if we should co-sign or keep looking. And looking where, and for what kind of terms? Thanks for your help.

I have been documenting my journey at every $50k milestone. I just want to document how quickly the accumulation occurs and see if I can reach my goal of $500k by 40.

My contributions are as follows: $60 a week into 3x leveraged ETFs $250 a week into low-cost index funds $850 every two weeks into my 401k (S&P 500) $583 a month into my Roth (VTSAX) Random amounts if my Checking account gets too high. (About once a quarter)

I make under $150k a year and have had no assistance or inheritance. I am somewhat delayed in my goal because I purchased two cheap rental properties (total $65k).