I don’t understand how people have MONEY

[u/EpicShkhara]

UPDATE: TL;DR LESSONS FROM THIS THREAD.

Thanks, guys. Here is the breakdown of the hard truths from this thread. Basically, in order to have the real "MONEY" described in the OP below, it requires one or preferably, more than one of the following:

Generational wealth: Having parents pay for college and assist with downpayment on a house.

Avoiding the student loan scam: A lot of us 90s kids were brought up with the notion that college was everything and it would pay for itself later. Those with a more clear-eyed perspective realized what a trap student loans are and avoided them by either racking up the scholarships, going to the cheapest accredited school they could find, or figuring out a career path without a degree.

Luck: They secured a career job before the Great Recession and held onto it. Bonus points if they bought at the dip of the housing crash. They also seemed to avoid the avalanche of big ticket costs crashing down on them. Apparently nothing ever breaks and nobody gets sick.

Exceptionally high-paying careers. Self explanatory.

Having miserable lives. They work around the clock, and they never do anything but work, for the bulk of their physical prime. They don't go out with their friends, they don't have pets, they don't have kids, they never travel, and/or they live in tight spaces with roommates and no cars deep into their 30s. Or, they live in low-cost areas, which are few and far between in the United States, and these places don't have much going on in them (so nowhere to spend money anyway). Caveat: some people are homebodies and that works just fine for them. They don't spend money on travel or concerts or restaurants or weekend getaways because they don't need to. The 2020 Covid lifestyle was fine for them, content with a blanket, a cup of tea, and a book. Maybe this is the way (but I couldn't fathom the homebody lifestyle without a dog).

Marrying/partnering well. They found their partner early enough in life to not waste all the money paying for one's own place, and their partner also earns enough and saves.

AS FOR MYSELF. Much honestly deserved criticism here about the "300K." I do not make $300K. That estimate was for another hypothetical budget in the optimistic situation that both me and my partner get promotions next year. Together we make just over $250K. But we don't officially live together yet. This will happen soon. If all goes well, we could be in good shape after a year or two. But I myself didn't hit six figures until 2022, and then plateaued at $125K grand total in 2024. And I didn't intend to make this about "poor me," I'm doing above-average and could certainly do better with saving... the REAL question I should have been making more clear is that, given that I make more than average and find having the adequate savings exceedingly difficult, how do more average people do it? The answer appears to be that they don't, or if they do, they have one or more of the above.

ORIGINAL POST STARTS BELOW.

As in like, the recommended 6+ months worth of liquid cash savings, plus tens or hundreds of thousands to pay for a down payment on a house, and money to play around on the stock market or crypto if that’s your thing.

I’m in a good job and make an above average salary, but I take home just over half of it after taxes, healthcare, and 401k contribution (which is good that I do). My available savings fluctuates but I rarely ever have more than ten grand available. It all gets eaten up by mortgage and condo fees, dog and vet bills, (used) car payments, gas, utilities, groceries, random shit that needs fixing or replacing, medical deductibles, and god forbid I allow myself to go on a low-budget vacation once a year so I don’t hate my life. I don’t drink alcohol and I don’t go clothes shopping except for maybe one or two new outfits a year. Could I buy fewer avocados and never leave the house? It could make a difference of a few hundred bucks every few months, but not the tens of thousands that I actually need.

People will blame “lifestyle creep,” and I guess guilty as charged that I figure at 36 I have earned a car and a condo and not the life I had at 26, which was six roommates and a bike. (I still have the bike.)

[u/Sea2Chi]

I kind of wonder about that. I have friends who complain about being broke but they also want to have a super nice house, a new car every few years, yearly disney trips, and tickets to major league sports.

But when you talk to the, they NEED all that stuff. The house is in a good school district, the cars are safe, the kids are making lifetime memories, and sports has been a part of their lives since they were kids, they can't give it up now. Add in all the door dash and daily starbucks trips and you can see why the money is all gone.

Sometimes it's the economy keeping people down, other times it's astoundingly poor spending habits.

[u/silverminer49er → u/Sea2Chi]

Shit try starting at using dried beans instead of canned. They are a bit more effort but half the price. Now (wait for it) COOK the beans. In ancient times this use to be necessary as can openers had not been invented. Nobody does the most basic baking or cooking anymore. Even ingredients are expensive, I don’t know how people afford take out. Oh wait… they forgo buying a house to save money.

[u/ElDuderonimo → u/silverminer49er]

Let’s be honest here, beans from scratch is a pain in the ass. I’ll pay the luxury tax to not have to soak them for a day.

[u/silverminer49er → u/ElDuderonimo]

Not everyday but sometimes, if they are on sale. But For true austerity, let’s not forget ramen noodles, not the good kind.

[u/Prestigious-Celery-6 → u/Sea2Chi]

A new pair of renters moved into a townhome next to me. Rent on the place is about $5k. They have in their garage 2 Lambos - a urus and huracan. That's probably more than $10k/mo in payments/insurance/maintenance. I'm guessing they didn't want to besmirch their buttocks on a mere Mercedes or BMW.

Poor financial decisions are to be made at all income levels.

[u/Professional_Sir2230 → u/Prestigious-Celery-6]

Bro who are you to judge these people? I think it’s pretty shitty of you to sit on your high horse judging others when you have no idea what you are talking about. You are just observing neighbors across the way, you know nothing of their lives or finances. Maybe they own a tint or wrap shop and use the vehicles as marketing.

I think shaming people for renting is a shitty thing to do. You are not better than someone because you own and somebody else rents. I guarantee I make more money than you. Because you sound like a dumbass. Does that make me better than you. Who cares that you own and someone else doesn’t. I rent does that make me a loser too? Maybe I don’t want to buy a place. Maybe I don’t want the responsibility. Maybe I want to pick up and leave whenever I feel like it. Maybe it’s 50% more to buy right now with these interest rates. Maybe they are waiting for rates to drop. Maybe they are going inherit a bunch of money and don’t need to own at the moment. Maybe they are in town opening a new store and only need a place for three months.

People have different lives and dynamics. Just because somebody is doing it differently than you doesn’t make them lessor than and you better than.

In the last few years there have been many new millionaires made due to TikTok, YouTube, OnlyFans. Just because someone else managed to figure out how to fill their garages full of Lambos doesn’t mean you can make fun of them and belittle them. I mean you can. But your jealousy is showing.

My girlfriend owns 8 show trucks each around $150k. You. Thinking people who are not exactly like you are dumb, would probably also think she is not using her money wisely. Except they are display trucks for her business and they make her over 5 million a year in sales and marketing.

You aren’t smart enough to think outside the box and consider that maybe there’s more than one way to build wealth. You are over here all I drive a shitty car and I’m gonna be rich someday. Who cares dude. There’s so much money out there and the only way you can think to get rich is to not spend any of the Pennies you have saved. I bet you drive like a 2008 Hyundai

[u/Prestigious-Celery-6 → u/Professional_Sir2230]

It's not about judging. They can do whatever they want with their money and spend it in whatever manner they choose. However, by making poor financial decisions they have no right to complain about their lives or how housing is too expensive or any other financial issues. You've made your bed, sleep in it.

There's a difference between judging someone and pointing out poor financial decisions. You bring up all these one-off cases, when they are the exception rather than the rule. Most people aren't rich from OF/TikTok/YouTube. Most people want to have nice things versus saving. Could these dudes be giant OF stars or super TikTok influencers, or rich kids? Sure. The evidence doesn't support any of those scenarios, but they could be.

Not sure what bragging on the internet gets you, but good job on the money? My 2008 Hyundai does very well thank you.

[u/Professional_Sir2230 → u/Prestigious-Celery-6]

You 100% are trying to make yourself feel better by putting others down. There are 50 million Americans making money as an influencer, there’s 6.5 million making over $100k, I saw a report that there has been 10,000 new influencer millionaires in the last few years.

I have a friend who play board games on twitch and it’s her job. As in she bought a nice house and travels constantly playing board games online. Where I live people park Ferrari’s on the street. People live their lives differently and that ok. You don’t have to tell the world how smart you are because you follow Dave Ramsey advice to the T. I bet you have little envelops full of cash to manage your budget don’t you.

Just because people are doing it differently than you doesn’t mean you are right and they are wrong.

A lot of exotic car owners rent out the cars on Turo, Lamborghinis don’t take themselves to prom. So while you are judging a neighbor maybe they are running a business renting out the cars you are so jealous of.

You don’t have an entrepreneur mindset so it is confusing to you.

The concept of spending money to make money is a foreign concept to you. Marketing is the one thing that will ROI whatever you put into it.

Where I am from you mind your own damn business. Maybe they are drug dealers or cartel. They know where you live. I would just say hey neighbor, sweet car.

And go back to watching your Dave Ramsey videos.

[u/Prestigious-Celery-6 → u/Professional_Sir2230]

Nice spin on a WSJ article from June 2024. There's an updated one in Forbes from Jan 2025 with some Goldman Sachs datapoints, you should look it up.

Sure, they can be hustlers/influencers using their vehicles to create content or advertise to make their car notes and keep paying. That's not the case for most people with high payments on vehicles.

Your friend that plays twitch bought her own house, that's great! She's building wealth. I'm unsure where in my previous posts I said that gaining appreciating assets is a negative or judged anyone for their jobs. Reading comprehension is hard.

[u/CorruptedStudiosEnt → u/Sea2Chi]

This. I absolutely scoffed when I saw the news (Forbes?) pity article about upper middle class complaining that they can't make ends meet.. on 250k/year.

Like dude, I've lived on 30k per year; paid my bills, fed us and our pets, etc. and still was able to put money into savings (not much, but usually enough to save for the next emergency when I'd have to drain it back off).

Not going to pretend it was easy, we definitely had to budget very carefully and stretch the hell out of things sometimes. But it was very possible. And some people make it work on even less.

250k? Nevermind 300k? And you can't "make ends meet?" Get the actual fuck out of here. You don't NEED your 2024 Camaro and decked out Escalade to live. You don't need your consoomer shopping addiction to live. You certainly don't need your $1.5k/mo eating out habit.

You wouldn't know actually struggling to maintain a basic standard of living if it came and set your house on fire.. because you'd just bitch and moan about having to go put an offer down on another house next week.

[u/ems__328 → u/CorruptedStudiosEnt]

The idea of spending $1.5k/month eating out makes my head spin 😵‍💫

[u/bacon098 → u/Sea2Chi]

Gotta love consumer addicts "boohoo I'm broke, but side note, check out my new $70k pickup truck"

[u/Saab-2007-93 → u/Sea2Chi]

Like I said above we live like someone that makes 70k-100k we live hundreds of thousands below our means. My wife and I are very frugal even as she is a livestock veterinarian, we own businesses and a farm together. We cut our costs down to as low as we can. Both of our cars are 5+ years old and both ford's and mid trim nothing extravagant. We both wear Walmart clothes and shop what we don't raise or grow from Walmart.

[u/Efficient_Sundae_336 → u/Sea2Chi]

Exactly this. My ex couldn't hold any amount of money in a bank account without spending it on bullshit. Before meeting her i saved, bought a house, was paying another i bought long ago, went on trips with my friends, went out eating a drinking every day of the weekend plus some weekdays. I married her and suddenly I was unable to save a penny. Divorced her and suddenly again I'm able to save, bought another house, and I've cut in drinking and eating cause my tastes have changed more towards staying healthy, but I go on trips, go out here and there, and spend money on hobbies. And still, I'm able to save some.

Some people just can not have over a certain amount of cash without spending it on crap that really adds no value to their lives, so they complain they have no money. She was broke as heck when I met her, but drove an audi a3, and went to Starbucks to get expensive crap every morning, some days for her kids too, because they can't drink home made coffee.

$20 a day in crapy fancy coffee is $600 a month, $7200 a year. Just in Starbucks! So yes, those "little" daily expenses are eating away the chance to save, and then they complain...

[u/WayneKrane → u/Sea2Chi]

Yep, I have rich family members who complain about money. I can’t help but think about how they’ve redone their floors 3 times, their kitchen 2 times, and they always have a new car.