I live and feel middle class yet am technically a millionaire

ok, alright wrote:

Ole Timer wrote:

Rarely spend more than $20 in a restaurant. Don't drink.

I was cheering you on until I read this.

Geez, man! There's no need to deprive yourself of all luxuries.

I'm a vegetarian. Eat a lot of Indian food, middle eastern food, stuff like that. It's just not very expensive.

If you look at food as only fuel you have no need to go out and dine. Some people enjoy exploring the world of food and surrounding themselves with friends at the table. I do not enjoy going to movies so I do not go. I enjoy exploring the world of food so some of my fuel budget migrates to expand the entertainment budget.Each one of us gets our boat floated in different ways but be sure that a smile on the face is an important part of having a full and enjoyable life.

ok, alright wrote:

Ole Timer wrote:

Rarely spend more than $20 in a restaurant. Don't drink.

I was cheering you on until I read this.

Geez, man! There's no need to deprive yourself of all luxuries.

The purpose of my post wasn't to say I'm better or smarter than young people or to make them feel bad or to brag. Things are different now. But I do think many young people do not have good money management skills. For instance, you mention the price, of a smart phone. The price of buying a smart phone is really not a factor, its the monthly cost of the phone plan that goes with it. And you are locked into that plan. Now you might need one for your job but if you don't does its purchase really enhance for life. Do you have credit to pay off that this purchase is delaying you getting out of debt.I never said that people have to stay in "crappy hotels" but many drop a ton of money on hotels hotel rooms and they hardly stay in them. There are many reasons I'm doing OK, smart spending is ONE of them.

One more issue to address, if things were so much financially better due to lack of global competition when I was younger, than why do young people today spend so much more then people my age did at the same age?

Really you spend more for weddings, proms, electronics, phones, dining out, travel, cars and probably clothes too.

I think its tougher for young adults to be careful due to pressure from social media. The average debt of young adults is at an all time high.

wine and flowers make me smile wrote:

If you look at food as only fuel you have no need to go out and dine. Some people enjoy exploring the world of food and surrounding themselves with friends at the table.

I do not enjoy going to movies so I do not go. I enjoy exploring the world of food so some of my fuel budget migrates to expand the entertainment budget.

Each one of us gets our boat floated in different ways but be sure that a smile on the face is an important part of having a full and enjoyable life.

ok, alright wrote:

I was cheering you on until I read this.

Geez, man! There's no need to deprive yourself of all luxuries.

Purchasing wising and being dollar aware doesn't mean you can't do and purchase the things, like fine eating out, that you really enjoy.

Its question of proportion and your life status. If you are in debt AND you regularly buy $80 meals, I would have to question that choice. (Of course maybe you find some other way to balance that out)

technically a millionaire wrote:

I think its tougher for young adults to be careful due to pressure from social media. The average debt of young adults is at an all time high.

I ran into this when I sold one of my houses last year. Perfectly nice place, in a neighborhood that tended to attract younger, first time buyers. Expectations of that buyer were utterly ridiculous -- expecting a 3 bed 2 bath in 1100 square feet, with "open floor plan" and HAD TO HAVE granite countertops, stainless steel appliances, lots of room to "entertain", etc, etc, all for under $120k. I decided it was due to HGTV -- the programs aimed at first time buyers who assume a house lacking granite countertops wasn't worth looking at. Nevermind the fact that they seemingly couldn't figure out the concept that if they hated a white refrigerator, they could in fact drive 5 blocks to Lowes, buy a new one, and they'd install it and remove the perfectly good one....but I digress. The plethora of social media and reality tv shows have convinced this generation they have to live like movie stars, or as my aunt would say, they want champagne on a beer budget.

I ended up selling that house to a couple in their early 60s, who GAVE it to their 23ish year old son who had knocked up his girlfriend and needed a place to raise their baby. Good grief.

It's almost like you can find anecdotal evidence to support your pre-conceived notions anywhere. The minority of people who actually criticized OP for saving a million bucks have actually turned you into one of them, now that you're criticizing others.

Oh, I've always been full of criticism. Nothing new there.

technically a millionaire wrote:

If I wanted something I would buy it.

And I reiterate, that's what separates you from middle class.

Middle class people can't buy everything they want.

You have that freedom.

And well earned, don't misunderstand me.

technically a millionaire wrote:

But I do think many young people do not have good money management skills. For instance, you mention the price, of a smart phone. The price of buying a smart phone is really not a factor, its the monthly cost of the phone plan that goes with it. And you are locked into that plan.

Many OLD people do not have good money management skills. Your generation was the most gluttonous in the history of world (no, not necessarily you personally). Your generation will be the one that breaks social security, medicare, et al. No need to wag your finger at millennials.

Your generation had cheap college (with near guarantee of a job after), cheap healthcare, cheap houses (that appreciated a lot), cheap stocks (that appreciated a lot). You could play your cards conservatively and become a millionaire. Your anecdote proves that.

I could make the same plays today and easily go nowhere financially. That's all I'm saying. So we millineals play a little riskier with our coin. $40/mo for my no-contract smartphone plan is like peanuts compared to the $250/mo worthless 10k annum deductible healthcare plan sucking my bank account dry. All so that your cohort can get worthless procedures on my dime. Yes, it's easy to be a "middle class millionaire" when someone else is subsidizing you. Wha wha.

Some of the things you are right about and some you are very wrong about. Good jobs after college were not a given when I graduated. They were hard to come by. You are right that house purchases were cheap and their value appreciated quickly.Private colleges have become extremely expensive and I really don't understand why today's youth would choose to go to a college that has a charge of 50K. Then they have student loans that can't be paid back.Medical/insurance costs have been skyrocketing (starting well before Obamacare by the way) for everyone. Your employer doesn't have a medical plan for you or are you self employed.We also had much less help from our parents.But don't you think millenials spend more even though, as you say, financially they don't have the same opportunities. Am I wrong about that?

Of course spending with-in your means is the key. I was referring to your $20 dollar comment about the cost of a meal. If you are in debt it's not what [/B[ you buy to drive you deeper into debit it is that you do drive yourself deeper. Limiting what you spend on food out is not the way to save, not eating out at all unless you can afford it is. Not drinking because you do not enjoy the taste is not a financial decision it's being realistic. I enjoy a finely crafted cocktail, a well brewed beer or a glass of wine but drinking to get drunk for drunk sake (or as a social crutch) is not enjoyment it is an addiction promoted by misplaced ideas about the use of alcohol in the social setting. You do not have to get drunk to enjoy life but if it is to your taste alcohol can be one part of enjoying life. People who do not drink often tend to lump responsible drinkers in with those who abuse alcohol because booze does not float their boat. Should I avoid Brussels Sprouts solely because you find them unpalatable? I think not.

I have no interest in image automobiles and do not think my masculinity is defined by horse power yet many fools of all ages do. Too much car is excess while having the right car for my needs and budget is. I live in an urban area with wonderful public transportation so I chose not to own but to rent an auto when it's needed and rent affordable transportation not image when I do.

Again it is all about spending with-in your means. I've never been in debit because I find an affordable way to float my boat. But be sure that putting a smile on my face is as much a part of my life as shelter from the elements is. A balanced lifestyle is the key.

The average household owes over $7000 on credits cards, this doesn't include student or car loans or house mortgages.....CREDIT CARDS! The interest rates on credit cards is extremely poor.

People are living richer than they can afford. Some difficulties are due to medical issues but most is just plain poor money management. 30 years ago people didn't carry much credit card debt. Its different today.

technically a millionaire wrote:

People are living richer than they can afford. Some difficulties are due to medical issues but most is just plain poor money management. 30 years ago people didn't carry much credit card debt. Its different today.

No, but they have to. 'cuz babyboomers and stuff.

technically a millionaire wrote:

One more issue to address, if things were so much financially better due to lack of global competition when I was younger, than why do young people today spend so much more then people my age did at the same age?

Really you spend more for weddings, proms, electronics, phones, dining out, travel, cars and probably clothes too.

I think its tougher for young adults to be careful due to pressure from social media. The average debt of young adults is at an all time high.

One reason might be due to the higher number of 2 income families. Families now days have more disposable income. I grew up in a traditional household where my father made the money and my mother stayed home and raised the kids. We did just fine but definitely didn't have the excess money to buy things like cell phones, electronics, expensive clothes etc....

There is definitely pressure to have these things but just a natural progression, especially with electronics. My kids had cell phones and I spend way more on cell plans than I would like. I am willing to pay for it though because I appreciate the convenience of having a cell phone.

The important lesson is to LIVE WITHIN YOUR MEANS. If you cannot do that you are in the wrong. If you can do that and still buy all of your electronics, fast cars and expensive clothes, then good for ya.

[quote]technically a millionaire wrote:

Some of the things you are right about and some you are very wrong about.

Good jobs after college were not a given when I graduated. They were hard to come by. You are right that house purchases were cheap and their value appreciated quickly.

Private colleges have become extremely expensive and I really don't understand why today's youth would choose to go to a college that has a charge of 50K. Then they have student loans that can't be paid back.

Medical/insurance costs have been skyrocketing (starting well before Obamacare by the way) for everyone. Your employer doesn't have a medical plan for you or are you self employed.

We also had much less help from our parents.

But don't you think millenials spend more even though, as you say, financially they don't have the same opportunities. Am I wrong about that?

[quote]

OP, let me preface this by say that you personally seem like a pretty reasonable dude, but as a general matter I do think it is pretty funny when Boomers criticize Millennials on values issues, including values related to personal finance. You guys raised us! In the aggregate, we are a reflection of the values to which your generation subscribes, and we have to live in the economic milieu your generation is responsible for creating. It's not all your fault, per se, but you Boomers bear a lot of responsibility for what you perceive to be the Millennials' misplaced priorities. Think it's crazy that kids today are willing to go into debt to pay for a fancy private college? Ask yourself if a college education is a prerequisite for a middle class lifestyle to a much greater extent that it was when you were graduating HS, and who has been drumming that fact into Millennials' heads since they were in elementary school. Wondering why home prices spiked such that it is impossible for a big chunk of young adults to become homeowners today? Ask yourself if the Boomer generation was the first to treat home equity like the credit cards you think Millennials abuse, and the first to engage in the large scale securitization of mortgages. Thanks for the housing crisis, btw. Wonder why healthcare costs are exploding (though at a slightly lower rate since Obamacare, interestingly)? Ask yourself which generation is responsible for the vast majority of health care utilization, which generation raised their kids in front of a TV instead of outdoors, and which generation of medical practitioners and administrators came to view the provision of health care as essentially a for-profit business rather than a public service. Think Millenials get too much help from their parents? Ask yourself who those parents are, and why they've been enabling that kind of dependence since these kids were born. So, yeah, Millenials may have some warped values and suboptimal priorities, but I think your generation needs to take a hard look in the mirror on that one.

OP congrats on the high net worth. Most of this thread is stupid. Poor money management is not a generational problem. It's a people problem.

How can you drop $150K on a fancy private school education and not know how to use a paragraph? And why can't a public school education work just as well? I graduated number one in my CIS program and have done just fine.

And for all of you claiming that you can no longer make money in the stock market, you're dead wrong. This is just an excuse to avoid using a little discipline and saving for your future. It's just all about instant gratification nowadays.

Boy, that felt good.

TAA wrote:

OP congrats on the high net worth. Most of this thread is stupid. Poor money management is not a generational problem. It's a people problem.

Exactly, yet the OP decided to single out millennials.

5/10