[SunnyD]

Originally Posted by Wah

To be completely honest, if I see a 21 year old driving at M3/4, I assume that it was paid for by the parents. Is it fair? Probably not, but I'll bet that 99/100 kids that drive one of these didn't pay for it themselves.

...

Either paid for by their parents, or they have a job but choose to live at home so that they can save on rent/mortgage and live lavishly. Either way, it's sad.

[GrussGott]

Originally Posted by SunnyD

Either paid for by their parents, or they have a job but choose to live at home so that they can save on rent/mortgage and live lavishly. Either way, it's sad.

Or they don't have kids or they aren't worried about retirement or whatever.

The truth is only a very very few people will get wealthy ($2M+ liquid) working a job as a non-owner (and if you don't know right now that's you, it's not you).

There is a guaranteed way to get rich though: save. Most corporate types could be multi-millionaires by 40 via savings alone. But very very few take this guaranteed path. Most people advocate for YOLO or moderation in savings.

Lesson: An M4 doesn't make you rich ... $4M does ... and usually that's the trade-off.

[JTO24]

Originally Posted by GrussGott

Or they don't have kids or they aren't worried about retirement or whatever.

The truth is only a very very few people will get wealthy ($2M+ liquid) working a job as a non-owner (and if you don't know right now that's you, it's not you).

There is a guaranteed way to get rich though: save. Most corporate types could be multi-millionaires by 40 via savings alone. But very very few take this guaranteed path. Most people advocate for YOLO or moderation in savings.

Lesson: An M4 doesn't make you rich ... $4M does ... and usually that's the trade-off.

god I'm no where close to that lol.. granted I'm no where near 40 yet but still 2M+ liquid would be very nice. Time to sell the M and save more I guess. *Goes to Google Jeff Skilling*

[48Laws]

I think aligning oneself with the right people and understanding how money works is better advice than simply saying one should save. Plenty of folks save and become obsessed with the idea and simply sit on stagnant money. I agree that one of the best paths to wealth is working for yourself, but there's plenty of liabilities there, too.

[GrussGott]

Originally Posted by 48Laws

I think aligning oneself with the right people and understanding how money works is better advice than simply saying one should save.

Once you understand how money works you'll wish you started saving earlier.

[GrussGott]

Originally Posted by JTO24

god I'm no where close to that lol.. granted I'm no where near 40 yet but still 2M+ liquid would be very nice. Time to sell the M and save more I guess. *Goes to Google Jeff Skilling*

I'm probably getting the details wrong, but at some point i saw someone speaking once who was a harvard MBA grad I think. Anyway I remember his little opener on success ... he said the key to success was to focus on 3 things:

(1.) How are you going to earn money?

(2.) How are you going to maintain and grow your network?

(3.) How are you going to stay out of prison?

That last line got lots of laughs. And then he said his college roommate was Jeff Skilling.

[48Laws]

Originally Posted by GrussGott

Once you understand how money works you'll wish you started saving earlier.

I don't believe that. Investing and understanding that money isn't a brick of gold you bury is the key. Money should be moved not stored. That said, one can still save, too.

[fortressmaximus]

Originally Posted by 48Laws

I don't believe that. Investing and understanding that money isn't a brick of gold you bury is the key. Money should be moved not stored. That said, one can still save, too.

I doubt he meant that one should just save money and hoard it without investing it.

[48Laws]

Originally Posted by fortressmaximus

I doubt he meant that one should just save money and hoard it without investing it.

Read his quote. He said one way he guarantees one can get rich is save. That's not entirely true. These folks have good financial footing. They are advised well and look for opportunities to maximize their dollar. Money in a bank wont yield crap. The number one reason for bankruptcy is medical bills, not low savings.

[fortressmaximus]

Originally Posted by 48Laws

Read his quote. He said one way he guarantees one can get rich is save. That's not entirely true. These folks have good financial footing. They are advised well and look for opportunities to maximize their dollar. Money in a bank wot yield crap. The number one reason for bankruptcy is medical bills, not low savings.

Yeah, I'm just saying that without saving some of your income you really can't invest and grow your assets. I think he's just trying to say that many people don't save any of their income so they cant grow their assets and ultimately those people end up living the "yolo" life.

I really don't know anyone that regularly saves that just hoards all their money in a savings account without investing any of it--well except a few anti-investing people that I know that are over the age of 70.

[GrussGott]

Originally Posted by fortressmaximus

I think he's just trying to say that many people don't save any of their income so they cant grow their assets and ultimately those people end up living the "yolo" life.

yup, that's exactly what I'm saying 48Laws - take money from your pay check and invest it; the sum of your investments is your savings - i.e., it is money you aren't spending, and you're re-investing the investment income.

And, my opinion, you don't need any advisement whatsoever since it's 99.9999% crap. Just copy Jack:

In simple terms, Jack Bogle's investing philosophy advocates capturing market returns by investing in broad-based index mutual funds that are characterized as no-load, low-cost, low-turnover and passively managed. He has consistently recommended that individual investors focus on the following themes:
* The primacy of investing simplicity
* Minimizing investment-related costs and expenses
* The productive economics of a long-term investment horizon
* A reliance on rational analysis and an avoidance of emotions in the investment decision-making process
* The universality of index investing as an appropriate strategy for individual investors

And that's how money works.

[YMB_F80]

Originally Posted by SunnyD

Either paid for by their parents, or they have a job but choose to live at home so that they can save on rent/mortgage and live lavishly. Either way, it's sad.

How is it sad?? If they can afford it, by all means go ahead.

Originally Posted by captainaudio

Believe it or not there are some 21 year olds with a lot of money that they earned themselves.

CA

+1 Thank god I don't look 21 to some people or I would get so much hate based on the comments on here.

[GrussGott]

Originally Posted by Victorwu120

How is it sad?? If they can afford it, by all means go ahead.

[Pauly Walnuts]

Originally Posted by Victorwu120

How is it sad?? If they can afford it, by all means go ahead.

Living with your parents in your early 20s isn't sad? Try that pickup line in a bar/club sometime. Let me know how much tail you pull.

As for parents purchasing a car for you; it breeds entitlement which breeds stuck up, lazy, kids which breeds greedy, selfish, adults. See: Congress.

Granted, this isn't true in all cases.

[Bonzer103]

Originally Posted by Victorwu120

How is it sad?? If they can afford it, by all means go ahead.

Same reason I wouldn't hand a loaded gun to a kid that never has handled one and tell him/her to go have fun. Same reason insurance for people under the age of 25 is 3 fold on someone north of 25, they tend to lack a mature approach to driving. It only takes one accident, and as a parent I'm not willing to take that risk. And my own kids respect and appreciate that from me as well.

[SunnyD]

Originally Posted by Victorwu120

How is it sad?? If they can afford it, by all means go ahead.

But in the scenario I was describing, they can only afford it because they choose to live at home so that they can avoid other financial responsibilities like paying rent, etc. They end up just mooching off their parents like leaches. Again, if the parents are ok with that, then that's fine. I just find it hard to have respect for those types of people.