It's just true. You live like a galley slave at that rate. It takes about 300k to approximate the lifestyle that 40k can get you in Omaha.
What? No dude. $300k is still $16,000/mo net, worst case scenario. $40k is like $3k net, best case. So, unless it's impossible to live in SF for less than $13,000/mo, SF wins.
You can live like a king on 40k in Omaha. You can have a yard, a garage, drive a car, eat at restaraunts, shop at Walmart. In Manhattan some of that is inaccessible even to the very rich. There are no walmarts. Parking your car may cost 40k.
What? No dude. $300k is still $16,000/mo net, worst case scenario. $40k is like $3k net, best case. So, unless it's impossible to live in SF for less than $13,000/mo, SF wins.
You can live like a king on 40k in Omaha. You can have a yard, a garage, drive a car, eat at restaraunts, shop at Walmart. In Manhattan some of that is inaccessible even to the very rich. There are no walmarts. Parking your car may cost 40k.
That's assuming all people want to live like that. I wouldn't know what do do with that much space, and I hate having to drive anywhere. Give me decent public transportation and access to world-class restaurants over a house and a yard and a car any day.
I agree. My advice is focus on growth. Willpower is a finite resource, you can use it to save 2 bucks on a bottle of water or spend a few minutes learning a new skill. One saves money once, one pays dividends forever. If you have unlimited willpower go ahead and do both, I know I don't.
I like this one: negotiate hard on every big purchase you make in life, whether it's a new car / house / new couch worth $2k / bank fees / financing / etc. Make it a habit of negotiating on everything that is negotiable (which is doable on a lot more things than you thought). It's a valuable skill. The gains you make from that will save you a ton of money during a lifetime. Don't ignore large potential savings by pen…
wow, you are totally right. That's quite mind-changing for me since i never bargain.
If you sum up all the bargains of a lifetime, it will be huge.
Typically the best / simplest way for sustainable mostly passive income is rental property. Lots of how to guides out there. Mortgage rates are really low at the mo if you want to leverage.
I did some calculations about owning your own apartment vs renting. At least in Finland with the current housing prices and interest rates, the difference in a 25 year period between owning and renting was surprisingly small. Personally, I'm happy to pay rent and have the money in more liquid assets as well as enjoy more freedom and being debt free. I assume renting out would only be worse with the additional risk of…
But isn't it always good to own the property you live in ? If instead of paying $1000 a month for rent, you pay that $1000 a month for a loan for your own apartment you still have the same money to invest that you have now but you will eventually own the place you live in and free that money up. Of a big amount of that monthly payment will be interest, but at least not all of it is gone. This only works if you can actually finance a place for similar money as it would be to rent, which i am not sure of.