Yes, enough of the "stop spending so much on {coffee, toast, Netflix} " advice. Or the lectures about saving. Even though I don't usually agree with the NYTs politically, I have to admit this is not helpful. The issue is costs keep rising faster than inflation, wages. Insurance, healthcare, childcare, tuition, etc.
In Their 20s, Struggling to Save and Tired of Being Lectured About It
21–30 of 131 posts
Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It
#22> 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…
> The hope, of course, is that once inflation is under control, wages will rise to counteract its effects.
I see where you're going with your statement but I believe the wage-price spiral being a major cause of _this_ inflation is not a fact. :)
Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It
#23> 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…
because "cooling inflation"
It's an intentionally vague description that lets the NYTs writer off the hook for not having to be more specific about something which is more complicated and doesn't understand that well.
Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It
#24The woman who is not thinking about retirement savings but is doing Barry’s, yoga, and ClassPass feels like she has the opportunity to make better financial choices, unlike some of the others that are just clearly in poverty. Those class-based gyms are stupendously expensive, $30 or more per workout. Compares unfavorably with a regular gym membership or buying running shoes or a bike, depending on what you’re into. Lots of outdoors opportunities in Colorado too.
I work at FAANG and just generally see so much lifestyle inflation from coworkers, even at high incomes. Taking Ubers everywhere instead of the subway or bikes, $20 cocktails, fancy restaurants that aren’t really that much better, those high price fitness classes… I interact with a lot of people at high levels who have been there for a while, and often wonder why they aren’t retired yet.
Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It
#25The woman who is not thinking about retirement savings but is doing Barry’s, yoga, and ClassPass feels like she has the opportunity to make better financial choices, unlike some of the others that are just clearly in poverty. Those class-based gyms are stupendously expensive, $30 or more per workout. Compares unfavorably with a regular gym membership or buying running shoes or a bike, depending on what you’re into. L…
I work at FAANG and just generally see so much lifestyle inflation from coworkers, even at high incomes. Taking Ubers everywhere instead of the subway or bikes, $20 cocktails, fancy restaurants that aren’t really that much better, those high price fitness classes… I interact with a lot of people at high levels who have been there for a while, and often wonder why they aren’t retired yet.
The salaries are so much, especially with stock, perks, bonusses, raises, etc. that they still probably are doing well. The biggest cost is having kids, cause then you have wife, healthcare, college, etc. (assuming single income household).
Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It
#26The 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…
Not sure about average in NYC, we have a lot of millionaires that will drag that up, but he’s well above median household income, which is something like $70k.
Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It
#27> 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…
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)?
Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It
#28A super shitty one: in Berkeley there's a mandatory savings contribution, with no income floor. So what you get is people who are on minimum wage who can barely cover bills because of laughably low minimum wages, who are effectively having those negligible wages garnished - the "savings" aren't meaningful for retirement in any way shape or form, so all that is happening is they're having money taken from them so that…
Yeah, the people of Berkeley just shit on the constitution regularly
Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It
#29> 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…
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)?
Any decent index fund?
“Risk free” is too high a bar for any investment, compare the expected outcome instead.
Re: In Their 20s, Struggling to Save and Tired of Being Lectured About It
#30I'm surprised the article doesn't mention social security. A young person making $2,000 a month is paying $240 a month towards social security (half directly and half through their employer), and will likely never see any of it once they reach retirement age.