Quote:
Originally Posted by greasypeanut
There are also a lot of people who wake up in their 40s and wonder why the hell didn't I do more in my 20s.
I don't want to assume that this guy and his wife's earning power is going to get smaller. That rainy day that people save for might never come, and there are other risk management techniques that one can utilize. I.e. Insurance.
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I have always looked at it like this even though it's a simple concept. When you get your first "real" job, max out your 401K investment or at least what the company will match.
Save up an emergency fund that will hold you over for at least 6 months.
Make sure you have enough life insurance.
Then see where you end up at and if you want and have the money to splurge a little...go for it.
Now granted there is a lot more to it than what I stated...Mortgage debt, credit cards, etc. But I hate to owe anyone. I have one credit card that is mainly used for work purposes and bigger purchases as I get cash back, but I know I will be paying it off with the next payment.
But I grew up poor and knew from an early age I didn't want to live like that.