‘Our kids say our small house is embarrassing’: My husband and I earn $160K, have $1 million in retirement savings, cook at home and drive an old Honda. Are we missing out? 

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Dear Quentin,

I’m a very fortunate person who lives a very fortunate life, and our annual household income is $160,000 which is higher than the rest of the world. However, we’re still very frugal – we cook at home, drive a used Honda and do home repairs ourselves where possible.

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We put about 20% of our income into retirement and college savings. We have over $1 million in retirement funds. It was mostly on a cop’s salary, as I was a stay-at-home mom. My husband is now retired, and I went back to work.

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,‘How are these other people affording this luxury life? And if we remain so frugal, will we become rich but too old to spend money?’,

I see people with less money and bigger expenses (student loans, huge mortgages, credit-card debt, etc.) living far more lavish lives than we do. Our kids say ours is small – but cute! — The house is embarrassing, and people here in the suburbs look at us as poor.

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Are we missing the boat? We wanted to save aggressively for retirement and our kids’ college costs. But should we be redefining going to Cancun and Disney World and getting takeout every night instead?

How are these other people living this luxurious life? And if we remain this frugal, will we get rich but be too old to spend money? I do not envy someone else’s enjoyment and high class things. I wonder if I am doing this wrong.

Thank you very much for reading my letter. It helped to ask out loud.

stingy wife

Dear Thrifty,

Money doesn’t mean you drive a Tesla Model X plaid TSLA,
live in desired zip code, wear flashy watches and/or have Instagrammable META,
Holidays. In fact, it can mean quite the opposite. it can also mean that you are Less Richer than someone living in a modest home that isn’t decorated with electric gates and McMansion-style detailing. In fact, credit-card debt is set to reach a record $866 billion in the third quarter of 2022, up 19% from the same period a year earlier, according to TransUnion’s TRU.
Latest Quarterly Report.

Have you missed out? I think you probably already know the answer to that question. You won’t have fond memories of dinner at home with your family or going on vacation in your old, well-worn car, or being able to lay your head on a pillow at night, safe in the knowledge that you’re part of the 1%. As a result, you managed to accumulate $1 million in retirement savings and keep your cost of living low. Surely your home is full of memories. Good for you for not feeling the pressure of constantly upgrading to a bigger pile.

How are people affecting their lifestyle? Some people, especially those in the tech sector—which, unfortunately, have faced widespread layoffs in recent months—have the option of maxing out their 401(k)s and setting aside 12 months of expenses for a rainy day. enough to play with. But they do not represent the majority of Americans. In fact, the personal savings rate – meaning personal savings as a percentage of disposable income – fell from 2.4% in November 2019 to 8.9% in November 2019, the year before the coronavirus pandemic.

,‘You won’t have fond memories of dinner at home with your family, or laying your head on your pillow at night, safe in the knowledge that you managed to save $1 million.’,

Sure, rich people are paying more taxes: Some economists say the personal savings rate could fall as more investors pay capital gains taxes on stocks they sold last year. Still, “excess savings” – the amount saved by households versus what they would have saved if it were not for COVID-19 and resulting job losses – reaches $1.7 trillion by mid-2022. And of that $1.35 trillion was with the top and third income groups. To put the figure for mid-2022 into context, the additional savings in the second quarter of 2021 were $2.26 trillion.

But some say the recent job losses in the tech sector don’t bode well for those who are only living for today. Tom Seibel, a billionaire serial entrepreneur whose latest title is CEO of C3.ai AI,
As my colleague Levi Sumagese said last November: “Everyone will feel the sting, big companies and small companies, before this is over.” “All this weird, entitled behavior is coming to an end. No more people in pajamas working at home getting paid in bitcoin. This era will unfortunately be a zinger,” he said. He warned of a significant recession ahead. .

Ignore your friends and neighbors who are living it up at Disney World. Disney vacation site Mousehacking said its baseline Disney World dis,
A vacation in 2023 for a family of four — two adults, one child age 10 or older, and one child ages 3 to 9 — costs $6,320, or $316 per person per night. A five-night stay at Pop Century, a five-day ticket without Park Hopper, Genie+ at two parks, and quick-service meals, snacks, and two table service meals,” the site says.

Call me old fashioned, but I’d like to book an Airbnb ABNB
In an old market town. Plus, fun-park rides leave me with a headache—second only to the final bill.

Follow Quentin Fottrell Twitter,

You can email Dhanvadi at [email protected] with any financial and ethical questions related to the coronavirus.

check out moneylender private facebook Group, where we find answers to life’s toughest money issues. Readers write to me with all kinds of dilemmas. Post your questions, tell me what you’d like to learn more about, or consider the latest Moneyist column.

Dhanwadi regrets that he cannot answer questions personally.

More Quentin Fottrell movies or TV shows,

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‘I want to meet someone rich. Is it so wrong?’ I am 46 years old, make $210,000, and own a $700,000 home. I’m tired of dating ‘losers’.

‘I Want to Succeed’: I’m 29, work part-time and just left an abusive relationship of 15 years. How do I get back on my feet financially?

Credit: www.marketwatch.com /

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