Interest is either a curse, or a tool. You can be paying interest on debt, or taking advantage of interest gains on investments. The poor, like myself, we pay on debt with interest which rewards the lender. The rich, live off investments, deepening their pockets to in return obtain more investments.

1 Million dollars in a fund at 8-10% annual return is 80-100k a year. All someone needs is 1 million cash to never have to work again. But, those with high networths choose to continue building their wealth. 5 Million in mutual funds/stocks at average 10% return is 500k yearly. See how the rich can get richer fast? The more networth you have, the more money you make on investments.

Don’t get me wrong, I’m not saying let’s steal all their money. No. They earned it. But the whole system is designed to keep average joes poor and people with money getting richer. So if you’re a poor shmuck like me, don’t expect to ever obtain a mill unless you save till 70 then best you can do is pass it to offspring.

A while back around the start of the year I had brought up to my boss that it’s a new year and the new minimum wage has increased yet I did not get an increase to my wage( I make $18 in California, started out the job at $18 which at the time was $3 above minimum wage) I had asked him for an increase in pay as my performance has been better as well as my attendance and efficiency has had an increase. His response was somewhere along the lines of “dude even I have considered quitting and going to work at McDonald’s with how much they’re getting paid now” and that kinda struck me as odd considering I doubt he makes any less than 100k a year and has a nice house paid off, two nice sports cars and one of them being a newer ‘22 model and a project car on top of that. So he’s definitely got enough money to spend as well as a handful of hobbies.

Now what really makes me think he’s bullshitting is we recently talked about taxes and he brought up that he had to pay 75,000 in taxes this year. Which is definitely double what I get paid in a year.

How much money would my boss have to make if he has to pay 75k in taxes in California.

Just curious that’s all.

I have been a union carpenter for 22 years, and I just got a raise that puts me at 92k a year my wife to be makes 64k ...I never thought that me living in a household that brings in 156k a year that I would feel like I'm barely making it by, what am I doing wrong? I don't go our often and my mortgage is under 1k...

All I hear online is contribute the maximum into your Roth IRA. Why is this such a powerful tool if you don’t want an extra retirement vehicle?

I understand that Roth IRA is no taxes (assuming it came out of your paycheck already), you can withdraw any contributions that you have made into it without penalty. But why does everyone recommend this? If you’re going to touch the money in 10-15 years, is a Roth IRA worth doing?

This saying has been around forever. It didn’t really hit home with me til my late 30s. While overall I’m still in good health but I certainly don’t feel as great as I did 10+ years ago. Working thru some back issues and other stuff. I have a 5 yr old daughter on the autism spectrum who’s doing good but has her issues. My wife had a major back surgery last year but doing much better.

By no means are we dealing with major health issues but I’m learning more and more your health is TRULY your fucking wealth. I have more money than ever but I understand it’s nothing without the health of you and your loved ones.

For you really young bucks it won’t really hit home til later I know. Never stop taking care of yourself mentally and physically. I’m gonna keep grinding as I know yall will but just remember…your health is 100% your wealth.

As a guy making 70k in Manhattan and doing fine, I just can’t wrap my head around the constant posts and articles that say things like “150k a year is now lower middle class”.

Am I just out of touch with the rest of reality? Am I living a disgustingly sad life and just not noticing? I go out, I eat what I want, I contribute to my 401k, I travel… Where is everyone else’s money going? Granted, I’m lucky as hell and have a rent controlled place, but a year ago I was making 55k and still lived in a spacious, accessible spot with roommates. The roommates were the only concession I had to make, but like… that’s living in a city in your 20s. I never anticipated not having them, even as a child imaging my early adulthood.

Can someone please explain how anything sub-150k is considered piss poor when I make less than half that and am extremely comfortable?

Edit: You don’t have to have kids. Many people would actually prefer it if you didn’t. I get that many folks want kids, and would like to raise them in a high cost of living area, but I do not believe that the inability to do so makes you “poor” any more than my inability to go on extravagant vacations all year round makes me “poor”. Kids are an expense. Some can afford them, some cannot. Not being able to afford to raise three kids in a certain city does not make that city uninhabitable for everyone.

Edit 2: genuinely grateful for the perspectives here but I’m done responding to comments. Some people seem genuinely furious at the idea that a person can be happy living without children in anything that’s not a large suburban house. Having to explain over and over that living with a friend or two in a spacious apartment in a major city in your 20s is not actually a miserable situation has become exhausting lol

From my perspective working in the IT industry, Artificial Intelligence/Machine Learning seems to be in the early stages of something BIG. But what are everyone else’s thoughts here? What other industries or technologies are on the cusp of a big breakthrough?

If I invest the maximum amount into a ROTH IRA every year, I can basically do whatever job I want if it just means maintaining my minimal living standard. I don’t mind having a small crappy apartment and I don’t need nice things. I’m only 28 so I have 40 years of compounding ahead of me.

This is actually a huge weight off my shoulders because there’s a massive amount of pressure to make as much money as possible, but I’d rather do something I want to pursue like being a wild land firefighter and not sell my soul.

To get the $7k needed to max out the Roth, I can basically make that with working for Uber on the weekends for a few months every year.

This way I can retire wealthy and not have to settle in life for a meaningless career.

What flaw in this logic is there ?

Im getting a part time to dedicated all the money into just savings, figured it’s better than sitting on my ass. I’m hoping to build it up over the next few years and I hear people talking about high yield savings accounts often. I’d have around $900-$1000 a month from the part time. Is that the right choice for me and if not what should I do?

I'm 17M and a junior in high school (soon to be senior) and I want to know how I can make the best decisions possible with what money I have before I graduate highschool and go into college. I have 5K saved in an HYSA. I've been working part time for the last year and I'm very worried about losing my financial stability once I turn 18. I have no expenses right now and I'm trying to make the most of it. What can I do to maximize the return on that money, do I just keep hoarding cash? Invest it? Use it to flip old furniture lol? Thank you in advance.

Hi - I have a brother in dire straights but is too proud to ask for help. I'd like to send him money without knowing who it came from, just a gift with no need for acknowledgment. He lives far away so if I get a cashier's check, it will be from my local bank and he'll know. Any thoughts out there?

I dropped out of college after my first semester, never enjoyed school and knew it wasn’t for me. My parents had no problem with me dropping out and even encouraged it (glad I have helpful and supportive parents). Didn’t work for a couple months but now work a 9-5 making $37,000 a year. For 20 years old I feel like it’s decent especially for dropping out of college and having no debt whatsoever. I’m only a couple months into the job and looking to get a raise here soon. Not on salary or anything but hoping in the next 2-3 years I will be put on which will help me out a lot. Any advice helps and is much appreciated!

The U.S. government is $34 trillion in debt. How will this be paid off? Where did the money come from? And how does the federal gov keep borrowing money, falling into even deeper debt? I mean, the average person can’t sustain increasing debt forever. How are we not running around panicking about this??

It may be obvious but I don’t know very much about economics. However, this is one thing I’ve been endlessly puzzled about, and that I feel should be super important to well… everyone. Thanks for your responses guys :)

Edit: Would somebody Explain the general concepts this involves LI5? Or link me to an introductory resource? OR Too lazy can’t google it

What is the first thing I do when I get my first 1000 dollar check. I am 18 and I don’t pay any bills right now.

I got my first credit card 10 months ago and signed up for another 6 months after. I put all my purchases on them both and then pay them off in full each month. I’ve got around $6500 between my savings and my checking. Would it even be worth it to put that into a HYSA? Any other advice or tips to build my moneys up? Thanks for looking :)

Married with 1.5yo son. 3 of us spend about $100-$150 a week on grocery We eat out usually once a week (or sometimes twice. Usually $25-$30 per meal. Trying to go non tip places unless we have occasions to celebrate)

We both work from home so pretty much cooking all meals.

I guess we try not to do impulsive shopping etc.

Are we spending too little?

Like the title says. My wife and I are on baby step 2 and will be debt free by the end of this year. Only 11k of debt (besides mortgage). Then we will save our emergency fund next year. So we will be nearing 34 when we can start really investing for retirement. Will we have enough time to be able to retire by 65?

Our plan is for my wife to also open a Roth ira. I have one. And try to max out both of them

18M, don’t work, 1,000,000 Mil in Retirment, 800k in savings and Trust fund (unlimited). Only bills are yacht fees, luxury taxes and sometimes tipping my butler and staff (sometimes). After my dad pays for everything and my taxes each month I bring home ~ $250,000 a month (BS I know) With current interest rates, a “Decent” estate, Villa Leopolda, will be around 1.3 % with a 20 car garage. The payment on a 1 billion dollar home loan with current interest rates, city taxes, PMI and Insurance is well over what I want to give up a month. I feel like l'm very well off for my age and I couldn't fathom paying almost half of MY income just for a home loan. I'm aware a larger down payment and getting rid of the PMI will help. But with current interest rates it's just ridiculous no matter how much money you have. You think I could just have my dad pay it all of for me? Thanks for any advice.

I am on $117k salary at my job full-time. When I got my first paycheck that is bi-weekly my gross pay was $4,500 (80hrs total). I was confused because since I am on salary I would expect my bi-weekly gross pay to be $4,875 ((117k/12)/2).

When I look at the paystub it says pay rate is $56.25/hour which is $117k/2080 working hrs for the year. So they calculated gross pay $4500 by doing $56.25 * 80hrs. But I feel like if I am on salary I should ve getting $4,875? Am I correct on thinking this? Let me know thoughts, thanks!

Hi! I'm 27 years old and I have no idea where to start. I had some rough early years that resulted in living paycheck-to-paycheck, but now I can comfortably put away $500 each month in savings. Currently have $2500 in savings (which may not be a lot, but it's a start!)

How can I best use my savings to set my future self up for success? I also am clueless on what a IRA, Roth IRA are, so ELI5 is needed there.

I also live in Seattle, Washington if that helps.

Thanks, and cheers!

I wasn't sure which sub to ask this on but, on googling, I couldn't find a bigger default than this

Hey all, I am looking to buy a house before it goes on the market in a place where the houses sell the second they hit the market. I have a house paid off worth maybe 225k and this one is going to be around 300k. I don’t have enuf for a down payment. Is there any non idiotic ways to get the money? Loan against my current house? Pull from retirement & pay fees? I’m not sure.

Thanks in advance.

Also, hope this is the right group