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In Their 20s, Struggling to Save and Tired of Being Lectured About It

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Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It

#51

Post by Shared404 »

monero-xmr wrote: post #48
rcme wrote: post #33

Earlier quoted context omitted.

> The first example is a junior level social worker -- that's fine, but come now: we all know that social work is not a high-paying industry. This is an unfair dismissal. Most industries are not high paying, therefore most workers are not earning enough to save. You're basically saying "they're not saving because they're not earning more!" Also, what is your proposed solution here? To stop having social workers? > so…

> Also, what is your proposed solution here? To stop having social workers? Reduce expenses to live within your means, or figure out how to earn more money. The plight of... every person on earth

> Reduce expenses to live within your means, or figure out how to earn more money.

This means "stop having social workers".

You can only reduce expenses so far, and the easiest way to earn more money is to get a new job.

Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It

#52

Post by mhb »

specialp wrote: post #41
mhb wrote: post #27

Earlier quoted context omitted.

I had a government college loan at 3.5% that I absolutely should not have paid off early. Why? You knew of a better opportunity to make a risk-free 3.5% (less any tax deduction)?

Yes it is called inflation. That 3.5% loan principle and payment has become 2% less valuable most years, and recently it has become 9% less valuable. So if that money was put into buying assets that the OP needed, that would be risk free gain. Also the tax deduction you point out is nullified by paying off the loan. The deduction is on student loan interest. So now that is lost every year. If someone qualifies for th…

Right. If only it were as easy to predict when the government was going to start printing money and trigger inflation before they actually did it.

Yes. Nullified. You don't get the deduction if you pay off the loan. That probably doesn't amount to much in the income bracket under consideration.

Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It

#53

Post by notch656c »

jewayne wrote: post #50
notch656c wrote: post #44

Earlier quoted context omitted.

Someone with the skills to be a social worker, on average, can use those skills for higher paid work. They are knowingly trading the good feeling they get when helping people for the cash they could get by being a cold capitalist. You can make the argument social workers should be paid more but probably not the argument the person is employed in the highest saving ability profession they could reasonably hope to work…

Again, you seem to believe that eliminating the job of social worker from society is a viable option.

[flagged]

Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It

#54

Post by burkaman »

timr wrote: post #18

The first example is a junior level social worker -- that's fine, but come now: we all know that social work is not a high-paying industry. The second example is a lady with 76k in debt, who has managed to pay down nearly 70% of it . Somehow this doesn't qualify as savings to the author. The third woman actually makes a lot (they won't say how much) and has "achieved financial stability" (thus undermining the thesis…

This feels a lot like the lectures these people are tired of. "Why didn't you pick a higher-paying career, why did you go to college if you couldn't afford it, why not cut out all unnecessary expenses and stop seeing your friends".

Yes, all these people could probably make different choices to save a bit more money, but a) min-maxing life like that sucks, and b) most people constantly giving this advice didn't do that themselves. Is there a single person in America who:

1. At 17 years old ignored every single adult in their life and wisely chose to go to trade school instead of college because their 30-year projections of their own life showed loans might be too much of a burden

2. Stifled all personal ambition and passion and chose a career with the most objective earning potential

3. Cut off all friendships and moved to the lowest cost-of-living area where they could still find a job

4. Lived like an ascetic hermit until they had a large enough emergency fund in the bank

The answer is no, this person does not exist, if they did they would be miserable, and nobody wants to live in a world where this lifestyle is necessary for an average person to feel financially comfortable.

Edit: Also, when you describe $40,000 as a "low income", are you aware that the median income for a 20-24 year old is less than that?

Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It

#55

Post by dr-detroit »

rcme wrote: post #33
timr wrote: post #18

The first example is a junior level social worker -- that's fine, but come now: we all know that social work is not a high-paying industry. The second example is a lady with 76k in debt, who has managed to pay down nearly 70% of it . Somehow this doesn't qualify as savings to the author. The third woman actually makes a lot (they won't say how much) and has "achieved financial stability" (thus undermining the thesis…

> The first example is a junior level social worker -- that's fine, but come now: we all know that social work is not a high-paying industry. This is an unfair dismissal. Most industries are not high paying, therefore most workers are not earning enough to save. You're basically saying "they're not saving because they're not earning more!" Also, what is your proposed solution here? To stop having social workers? > so…

[dead]

Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It

#56

Post by meebob »

timr wrote: post #18

The first example is a junior level social worker -- that's fine, but come now: we all know that social work is not a high-paying industry. The second example is a lady with 76k in debt, who has managed to pay down nearly 70% of it . Somehow this doesn't qualify as savings to the author. The third woman actually makes a lot (they won't say how much) and has "achieved financial stability" (thus undermining the thesis…

The title has two parts, both of which you've provided ample commentary on, but only one explicitly. In Their 20s, Struggling to Save... and Tired of Being Lectured About It. "Ridiculous" and "and so can you" come down on one side of the question of, how should we morally judge people about their savings?

Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It

#57

Post by jewayne »

monero-xmr wrote: post #48
rcme wrote: post #33

Earlier quoted context omitted.

> The first example is a junior level social worker -- that's fine, but come now: we all know that social work is not a high-paying industry. This is an unfair dismissal. Most industries are not high paying, therefore most workers are not earning enough to save. You're basically saying "they're not saving because they're not earning more!" Also, what is your proposed solution here? To stop having social workers? > so…

> Also, what is your proposed solution here? To stop having social workers? Reduce expenses to live within your means, or figure out how to earn more money. The plight of... every person on earth

"I don't want to see you, I don't want to hear from you."

Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It

#58

Post by mrguyorama »

yamtaddle wrote: post #42
rcme wrote: post #33

Earlier quoted context omitted.

> The first example is a junior level social worker -- that's fine, but come now: we all know that social work is not a high-paying industry. This is an unfair dismissal. Most industries are not high paying, therefore most workers are not earning enough to save. You're basically saying "they're not saving because they're not earning more!" Also, what is your proposed solution here? To stop having social workers? > so…

Saving $200 a month just means you won't have to go into debt when you need to hire a plumber or auto mechanic or have a very-minor, insured ER visit. [EDIT] Assuming you don't have more than ~2 such urgent expenses per year, that is. And none worse than that.

I have I think good insurance. It still asks for $350 for an ER visit.

Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It

#59

Post by travisjungroth »

kelnos wrote: post #16

> But saving is especially difficult right now because on top of student debt, housing and food costs remain high even as inflation has started to cool. Statements like this are weird to me, because "cooling inflation" doesn't mean "prices are dropping", and suggests that the author doesn't really understand basic economic concepts. When inflation raises the price of something, that's it: that's the new price. Absent…

On the "cooling inflation" part, there's a different interpretation of what she's saying that I think is actually true and meaningful. Even though the rate of broad increase of the price of services and goods has declined recently (inflation has started to cool), the ratio between housing + food costs and income is still elevated (housing and food costs remain high).

The alternative is possible, that housing and food costs would remain steady or even decline while other prices increased, bringing the ratios back to more historic levels. But, this doesn't seem to be happening.

Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It

#60

Post by fnfjfk »

mhb wrote: post #43
fnfjfk wrote: post #29

Earlier quoted context omitted.

Any decent index fund? “Risk free” is too high a bar for any investment, compare the expected outcome instead.

Paying off the loan is risk-free. Expected value of an index fund is not obviously better. But you knew that.

https://www.investopedia.com/ask/answers/042415/what-average...

Sure, if you have exactly zero risk tolerance, pay off a low interest rate loan. But based on history, you will almost certainly lose over the long term of a decade or more.

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