Best decision(s) in your financial life
Best decision(s) in your financial life
What do you think is the best decision(s) you have made in your financial life? and why, if you wish to share (Did the decision make your financial life more abundant, easier, more productive, less time consuming etc?)
I"ll start.
1. Investing in 457 plan at work (in addition to 403b which is mandatory) even though I didn't understand what it was at first, started with very small percentage of my salary and conservative balanced allocation . why: better late than never; 457 turned out to have the lowest cost index funds available anywhere and I can pull out money prior to retirement age without penalty if needed
2. Figuring out what a 1031 is and using it to buy a new rental condo when the entire building of my prior smaller/lower price rental condo was sold. why: Instead of being afraid of something new, I decided to embrace the opportunity to upgrade and keep investing, and defer taxes.
3. Investing time into my education even though it meant sacrificing years of earnings. why: Can't put a price of the time and freedom to learn. Life is about more than just material wealth. Feel like I used my time well.
I"ll start.
1. Investing in 457 plan at work (in addition to 403b which is mandatory) even though I didn't understand what it was at first, started with very small percentage of my salary and conservative balanced allocation . why: better late than never; 457 turned out to have the lowest cost index funds available anywhere and I can pull out money prior to retirement age without penalty if needed
2. Figuring out what a 1031 is and using it to buy a new rental condo when the entire building of my prior smaller/lower price rental condo was sold. why: Instead of being afraid of something new, I decided to embrace the opportunity to upgrade and keep investing, and defer taxes.
3. Investing time into my education even though it meant sacrificing years of earnings. why: Can't put a price of the time and freedom to learn. Life is about more than just material wealth. Feel like I used my time well.
Last edited by ArtsyProf on Tue Feb 23, 2021 2:37 pm, edited 2 times in total.
Re: Best decision(s) in your financial life
Get ready for a bunch of answers "marrying/divorcing my wife/husband."
For me, getting started on retirement savings with my first paycheck.
For me, getting started on retirement savings with my first paycheck.
Re: Best decision(s) in your financial life
ArtsyProf - You had a duplicate post, which I've removed. I also moved this post to the Personal Finance (Not Investing) forum (financial decisions).
(Thanks to the member who reported the post.)
(Thanks to the member who reported the post.)
- FelixTheCat
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Re: Best decision(s) in your financial life
Investing in low cost equity index funds such as Total Stock Market and S&P 500 index fund.
Felix is a wonderful, wonderful cat.
Re: Best decision(s) in your financial life
Thanks LadyGeek for your awesome moderation as always. (I think I pressed submit twice… I wasn't sure where this thread goes, much appreciate it.)LadyGeek wrote: ↑Tue Feb 23, 2021 2:25 pm ArtsyProf - You had a duplicate post, which I've removed. I also moved this post to the Personal Finance (Not Investing) forum (financial decisions).
(Thanks to the member who reported the post.)
Re: Best decision(s) in your financial life
Hopefully, we won't have any answers about "marrying AND divorcing my wife/husband".
For me, changing jobs at age 24 to a company that became very successful during my time there. That allowed me to retire comfortably from the company after 40+ years of service, after doing all the saving/index funds, etc. that Bogleheads should do.
It was purely dumb luck that I chose to go with that company.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
- climber2020
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Re: Best decision(s) in your financial life
1) High savings rate
2) No kids. This wasn't primarily a financial decision, but it had a huge secondary effect on net worth progression.
2) No kids. This wasn't primarily a financial decision, but it had a huge secondary effect on net worth progression.
Re: Best decision(s) in your financial life
Set it and forget it it.
Especially in regards to automatic allocations to both retirement and taxable accounts.
Especially in regards to automatic allocations to both retirement and taxable accounts.
Last edited by adestefan on Tue Feb 23, 2021 2:35 pm, edited 1 time in total.
Re: Best decision(s) in your financial life
For me it was deciding to buy 21 bitcoin back when it was ~$640 each.
It's just that my worst decision undid it all.... I decided to sell off all my bitcoin when it fell to ~$480 each.
It's just that my worst decision undid it all.... I decided to sell off all my bitcoin when it fell to ~$480 each.
Re: Best decision(s) in your financial life
Marrying a woman who has a similar outlook on finances as I do (saver not a spender).
Not having children - as with climber2020 above, not primarily a financial decision but a huge impact on finances.
Not having children - as with climber2020 above, not primarily a financial decision but a huge impact on finances.
Re: Best decision(s) in your financial life
When bitcoins for came out, like a few months after the first paper was released, I was messing around with the tech side of it. I'm pretty sure that I had a very early software to mine that ended up producing a dozen or so bitcoins in it. Anything to do with that is long gone.
Re: Best decision(s) in your financial life
Absolutely. Much easier to be financially irresponsible (occasionally).
Re: Best decision(s) in your financial life
There were 3 main reasons for me:
- Pursuing graduate school to switch into a high value field and thus increased my lifetime earning potential.
- Getting through both undergrad and grad school with minimal student loans (through a combination of in-state tuition, side job, scholarship, and some parent support).
- Started saving early and investing in cost effecient investments (thanks Bogleheads!!!)
Last edited by Say2 on Tue Feb 23, 2021 2:50 pm, edited 1 time in total.
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Re: Best decision(s) in your financial life
Obviously many Bogleheads principles are perfect: Low Fees, 3 or 4 Index Funds, Live below your means, start early, time in market, etc.
I have two that have helped me a lot:
I have two that have helped me a lot:
- Diversify out of company stock grants. I did this in the late 90s (just before the tech bubble burst) and diversified. Yes, I paid some huge capital gains, but it set me up well (and before the company's stock went flat for over a decade)
- Swallow my pride. Resolve a bad decision quickly. Yes, I bought some bad stocks, bought the wrong house. The key was to recognize it quickly and don't hold onto a mistake. Learn from it, sell the lousy investment and don't make the mistake again.
Re: Best decision(s) in your financial life
I know there isn’t much love for Suzie Ormond here... But years ago I was watching her show and someone called in. Her advice was open an IRA at Vanguard and buy total stock market. I did that and it has been the best decision Ive ever made. Also, learning at an early age not to waste my money on cars, I invested that money that everyone else was making car payments with.
Re: Best decision(s) in your financial life
Agree w you about SuzeOrmon. Got her book for a dollar at a thrift store to learn the basics and terminology of investing. and agree re not buying a new car w financing (walk, bike, used cars and public transport here).
Re: Best decision(s) in your financial life
Just one decision made my financial life "more abundant, easier, more productive, less time consuming" - to go with Jack Bogle's low-cost index funds and general financial wisdom.
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
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Re: Best decision(s) in your financial life
Along with the marriage/divorce/wife thing:
-Finishing the entirety of my education without any debt and also cash-flowing wife's education. Ages 16-30 for me were insane, working full-time non-stop while completing undergrad, MS, and PhD, and putting others through school, but finishing with no debt has made accumulation pretty crazy the last 8yrs.
-Transitioning from public to private industry 5.5yrs ago; income has increased ~2.5x and job satisfaction and QOL have also increased dramatically.
-Not giving into lifestyle creep. We've kept our household expenses pretty flat even though there is now 4 of us and our HHI has more than tripled in the last 8yrs.
-Finishing the entirety of my education without any debt and also cash-flowing wife's education. Ages 16-30 for me were insane, working full-time non-stop while completing undergrad, MS, and PhD, and putting others through school, but finishing with no debt has made accumulation pretty crazy the last 8yrs.
-Transitioning from public to private industry 5.5yrs ago; income has increased ~2.5x and job satisfaction and QOL have also increased dramatically.
-Not giving into lifestyle creep. We've kept our household expenses pretty flat even though there is now 4 of us and our HHI has more than tripled in the last 8yrs.
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Re: Best decision(s) in your financial life
Buying my house.
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Re: Best decision(s) in your financial life
To get rid of bonds from my Boglehead AA.
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Re: Best decision(s) in your financial life
When I turned 16 years old, I got a job as a bag boy at the grocery store making $5.10 per hour. My mom advised me to take my weekly paychecks and invest them in mutual funds. I had no idea what a mutual fund was.
The best financial decision I ever made:
I LISTENED TO HER
The best financial decision I ever made:
I LISTENED TO HER
Re: Best decision(s) in your financial life
I don't follow her advice anymore, BUT watching her show many years back taught me all the basics. She had a huge positive effect on me and set me on the path to FI (not there yet).Vtsax100 wrote: ↑Tue Feb 23, 2021 2:50 pm I know there isn’t much love for Suzie Ormond here... But years ago I was watching her show and someone called in. Her advice was open an IRA at Vanguard and buy total stock market. I did that and it has been the best decision Ive ever made. Also, learning at an early age not to waste my money on cars, I invested that money that everyone else was making car payments with.
Re: Best decision(s) in your financial life
Surely even 20 years with such a company will be more than sufficient if you are a saver; 40 would do the job even if you were a spender!Stinky wrote: ↑Tue Feb 23, 2021 2:32 pmHopefully, we won't have any answers about "marrying AND divorcing my wife/husband".
For me, changing jobs at age 24 to a company that became very successful during my time there. That allowed me to retire comfortably from the company after 40+ years of service, after doing all the saving/index funds, etc. that Bogleheads should do.
It was purely dumb luck that I chose to go with that company.
Re: Best decision(s) in your financial life
It was actually a little tense.an_asker wrote: ↑Tue Feb 23, 2021 3:13 pmSurely even 20 years with such a company will be more than sufficient if you are a saver; 40 would do the job even if you were a spender!Stinky wrote: ↑Tue Feb 23, 2021 2:32 pmHopefully, we won't have any answers about "marrying AND divorcing my wife/husband".
For me, changing jobs at age 24 to a company that became very successful during my time there. That allowed me to retire comfortably from the company after 40+ years of service, after doing all the saving/index funds, etc. that Bogleheads should do.
It was purely dumb luck that I chose to go with that company.
The company didn't hit its stride until about 25 years in (2003). Then, the stock price declined by 90+% in 2008-9, and I was a LOT heavier in company stock than I should have been. So leaving the company at that time, after 30 years, would have been financially difficult.
However, the last 10 years more than made up for prior underperformance.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
Re: Best decision(s) in your financial life
For me, not buying my house until later in life was one of my best financial decisions. Frankly I think simply paying attention to saving during my peak earning years, being disciplined, having a long term approach, and realizing I could do without a good portion of my income did wonders for me. I know I would have saved less had I bought a house earlier in life but at the same time would have built equity but I'm pretty sure having very low overhead helped me tremendously. On a separate note; I've never made any really bad financial decisions or had any major game changing financial hardships along the way either thankfully. I've not done everything perfect but have avoided the stupidity.
Re: Best decision(s) in your financial life
Starting our own Business(s).
Re: Best decision(s) in your financial life
Oh I get it. Your luck - when you referred to it - was more about your company's stock performance than how it impacted your career (monetarily).Stinky wrote: ↑Tue Feb 23, 2021 3:17 pmIt was actually a little tense.an_asker wrote: ↑Tue Feb 23, 2021 3:13 pmSurely even 20 years with such a company will be more than sufficient if you are a saver; 40 would do the job even if you were a spender!Stinky wrote: ↑Tue Feb 23, 2021 2:32 pm [...]
For me, changing jobs at age 24 to a company that became very successful during my time there. That allowed me to retire comfortably from the company after 40+ years of service, after doing all the saving/index funds, etc. that Bogleheads should do.
It was purely dumb luck that I chose to go with that company.
The company didn't hit its stride until about 25 years in (2003). Then, the stock price declined by 90+% in 2008-9, and I was a LOT heavier in company stock than I should have been. So leaving the company at that time, after 30 years, would have been financially difficult.
However, the last 10 years more than made up for prior underperformance.
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Re: Best decision(s) in your financial life
Reading Bogle’s The John Bogle Reader and acting on his advice to go with an asset allocation I like using low fee index funds.
John Bogle: "It's amazing how difficult it is for a man to understand something if he's paid a small fortune not to understand it."
Re: Best decision(s) in your financial life
I hope you're VTSAX-and-chilling now!
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
Re: Best decision(s) in your financial life
Before just an hour ago or so, I might've put something other than the cliche spouse thing, but my wife just found out today she's getting a surprisingly huge bonus from work and her boss more or less implied that she would be getting a promotion soon. That means she's making more money and accelerating her career at a far faster pace than I am. I started out earlier with a better degree in a position with seemingly more upside potential, but I just don't have the same drive to climb the corporate ladder, compete for top positions, negotiate for higher pay, etc. She started out in a low-paying position for a pretty mediocre company, switched to a better company which more than doubled her income overnight, got a substantial raise after her first year, and is now getting big bonuses and promotions. Meanwhile, my income has only risen very gradually, but I have also been the Boglehead of the family and convinced her to max out retirement accounts and whatnot.
The funny thing is, when we got married, her income potential was the last thing on my mind. I know this has fallen a bit out of favor, but I always just assumed I'd be the traditional male breadwinner. I work in tech and my work is doable remotely, plus I have many side projects I'd like to pursue. With her career going the way it is, there's a good chance I end up becoming a stay-at-home dad when we eventually start having kids. I love it. I know it's kind of cheesy when people describe marriage as a sort of team relationship, but having a spouse who just goes off and excels on their own outside of whatever I'm doing really feels like inheriting a great passive investment that goes and makes money on the side (I know it's not passive for either of us, but it's not like a 2nd job either). It really reduces a lot of the stress I felt back when I was making more money and having to plan how to save and invest it for our future. Even though my work isn't being reduced in any way, it feels like a massive weight has been lifted off my shoulders, because I'm no longer carrying it alone. Heck, I'm in the process of applying to higher paying jobs just so I can get back to carrying at least half, haha.
Marriage involves balancing a lot of variables. Money is just one of them. I would never suggest young people looking to get married base their choice of partner solely on income potential. But knowing what I know now, man, I don't think it's possible to overstate the value of 2 incomes that could each support the family on their own. I realize that's not possible for everyone, but I recommend people at least consider that in their decisions, both before and during marriage. It provides so much overhead for savings, vacation, buying a home, vehicles, etc. It really is amazing. My mother passed away when I was growing up and the medical bills and raising kids alone crushed my father financially. He has yet to fully recover and quite frankly probably will never have the financial success he once had before that whole ordeal. I wouldn't wish that struggle on anybody. I don't want us to be DINKs forever, but I'm in no rush to change that, either
The funny thing is, when we got married, her income potential was the last thing on my mind. I know this has fallen a bit out of favor, but I always just assumed I'd be the traditional male breadwinner. I work in tech and my work is doable remotely, plus I have many side projects I'd like to pursue. With her career going the way it is, there's a good chance I end up becoming a stay-at-home dad when we eventually start having kids. I love it. I know it's kind of cheesy when people describe marriage as a sort of team relationship, but having a spouse who just goes off and excels on their own outside of whatever I'm doing really feels like inheriting a great passive investment that goes and makes money on the side (I know it's not passive for either of us, but it's not like a 2nd job either). It really reduces a lot of the stress I felt back when I was making more money and having to plan how to save and invest it for our future. Even though my work isn't being reduced in any way, it feels like a massive weight has been lifted off my shoulders, because I'm no longer carrying it alone. Heck, I'm in the process of applying to higher paying jobs just so I can get back to carrying at least half, haha.
Marriage involves balancing a lot of variables. Money is just one of them. I would never suggest young people looking to get married base their choice of partner solely on income potential. But knowing what I know now, man, I don't think it's possible to overstate the value of 2 incomes that could each support the family on their own. I realize that's not possible for everyone, but I recommend people at least consider that in their decisions, both before and during marriage. It provides so much overhead for savings, vacation, buying a home, vehicles, etc. It really is amazing. My mother passed away when I was growing up and the medical bills and raising kids alone crushed my father financially. He has yet to fully recover and quite frankly probably will never have the financial success he once had before that whole ordeal. I wouldn't wish that struggle on anybody. I don't want us to be DINKs forever, but I'm in no rush to change that, either
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Re: Best decision(s) in your financial life
[1] Working for a successful company that provided RSUs
[2] Paying off debt including mortgage (not the mathematically optimal choice in a rising market, but I feel great about it]
[2] Paying off debt including mortgage (not the mathematically optimal choice in a rising market, but I feel great about it]
Re: Best decision(s) in your financial life
Along those same lines. I remember my grandmother telling me, Its not what you make its what you do with it... I can still hear her saying that.brian91480 wrote: ↑Tue Feb 23, 2021 3:11 pm When I turned 16 years old, I got a job as a bag boy at the grocery store making $5.10 per hour. My mom advised me to take my weekly paychecks and invest them in mutual funds. I had no idea what a mutual fund was.
The best financial decision I ever made:
I LISTENED TO HER
- BrooklynInvest
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Re: Best decision(s) in your financial life
Market timing my divorce for when I was already broke...
Investing in a mutual fund before I knew what a mutual fund was and making $70 without having to unload a truck. Everything else from that point was a less important lesson.
Investing in a mutual fund before I knew what a mutual fund was and making $70 without having to unload a truck. Everything else from that point was a less important lesson.
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Re: Best decision(s) in your financial life
Starting a Roth IRA at age 20. I've never been a high wage earner, so starting the Roth early is perhaps the main reason we're track for retirement.
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Re: Best decision(s) in your financial life
Paid off my double digit interest rate student loans ($42K in today's dollars) in the few years after graduate school while living the cheap Bohemian apartment lifestyle in NYC back in the 1980's. Best decision I ever made was to throw everything I could from my salary at the debt week in and week out to be done with it as fast as possible. I didn't know or think I had any other choice, so not even sure it was an actual decision.
Started buying mutual funds in the late 1980's after the debt was paid off and haven't stopped since.
CyclingDuo
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Re: Best decision(s) in your financial life
That sounds like a variation of tax or estate planning.BrooklynInvest wrote: ↑Tue Feb 23, 2021 3:47 pm Market timing my divorce for when I was already broke...
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Re: Best decision(s) in your financial life
This. Apart from persuading a driven doctor-to-be to permanently hookup, my best "financial" decision was probably taking the LSAT because the other political science majors were. (Used big law to payoff med school debt, then mainly did "dad" and "spouse" role for a 15 year stint.)dboeger1 wrote: ↑Tue Feb 23, 2021 3:42 pm Before just an hour ago or so, I might've put something other than the cliche spouse thing, but my wife just found out today she's getting a surprisingly huge bonus from work and her boss more or less implied that she would be getting a promotion soon. That means she's making more money and accelerating her career at a far faster pace than I am. ...
Our personal blog (no ads) of why we saved/invested: https://www.lisajtravels.com/
Re: Best decision(s) in your financial life
Sounds nutsdboeger1 wrote: ↑Tue Feb 23, 2021 4:01 pmThat sounds like a variation of tax or estate planning.BrooklynInvest wrote: ↑Tue Feb 23, 2021 3:47 pm Market timing my divorce for when I was already broke...
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Re: Best decision(s) in your financial life
Mine is a little boring but I started using YNAB the budget app in 2017 and my life couldn't be more different. Truly changed my life.
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Re: Best decision(s) in your financial life
Not going to share (too much of) my anecdote, because it is pretty much this. When we met 8yrs ago, we were on completely different levels (education and career-wise) and the plan was for her to be a SAHM. That's changed (to say the least), and if anybody is staying home in the near future it is likely me.dboeger1 wrote: ↑Tue Feb 23, 2021 3:42 pm Before just an hour ago or so, I might've put something other than the cliche spouse thing, but my wife just found out today she's getting a surprisingly huge bonus from work and her boss more or less implied that she would be getting a promotion soon. That means she's making more money and accelerating her career at a far faster pace than I am. I started out earlier with a better degree in a position with seemingly more upside potential, but I just don't have the same drive to climb the corporate ladder, compete for top positions, negotiate for higher pay, etc. She started out in a low-paying position for a pretty mediocre company, switched to a better company which more than doubled her income overnight, got a substantial raise after her first year, and is now getting big bonuses and promotions. Meanwhile, my income has only risen very gradually, but I have also been the Boglehead of the family and convinced her to max out retirement accounts and whatnot.
The funny thing is, when we got married, her income potential was the last thing on my mind. I know this has fallen a bit out of favor, but I always just assumed I'd be the traditional male breadwinner. I work in tech and my work is doable remotely, plus I have many side projects I'd like to pursue. With her career going the way it is, there's a good chance I end up becoming a stay-at-home dad when we eventually start having kids. I love it. I know it's kind of cheesy when people describe marriage as a sort of team relationship, but having a spouse who just goes off and excels on their own outside of whatever I'm doing really feels like inheriting a great passive investment that goes and makes money on the side (I know it's not passive for either of us, but it's not like a 2nd job either). It really reduces a lot of the stress I felt back when I was making more money and having to plan how to save and invest it for our future. Even though my work isn't being reduced in any way, it feels like a massive weight has been lifted off my shoulders, because I'm no longer carrying it alone. Heck, I'm in the process of applying to higher paying jobs just so I can get back to carrying at least half, haha.
Marriage involves balancing a lot of variables. Money is just one of them. I would never suggest young people looking to get married base their choice of partner solely on income potential. But knowing what I know now, man, I don't think it's possible to overstate the value of 2 incomes that could each support the family on their own. I realize that's not possible for everyone, but I recommend people at least consider that in their decisions, both before and during marriage. It provides so much overhead for savings, vacation, buying a home, vehicles, etc. It really is amazing. My mother passed away when I was growing up and the medical bills and raising kids alone crushed my father financially. He has yet to fully recover and quite frankly probably will never have the financial success he once had before that whole ordeal. I wouldn't wish that struggle on anybody. I don't want us to be DINKs forever, but I'm in no rush to change that, either
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Re: Best decision(s) in your financial life
How else to pay for grad school, plastic surgery and that awesome house?Stinky wrote: ↑Tue Feb 23, 2021 2:32 pmHopefully, we won't have any answers about "marrying AND divorcing my wife/husband".
For me, changing jobs at age 24 to a company that became very successful during my time there. That allowed me to retire comfortably from the company after 40+ years of service, after doing all the saving/index funds, etc. that Bogleheads should do.
It was purely dumb luck that I chose to go with that company.
Que Kanye song here
G.E. Box "All models are wrong, but some are useful."
Re: Best decision(s) in your financial life
What are your feelings about that? I'm in a similar position, uneasy about it, and trying to adapt. Relationships are indeed a balancing act--and in ways that you least expect.stoptothink wrote: ↑Tue Feb 23, 2021 4:07 pmNot going to share (too much of) my anecdote, because it is pretty much this. When we met 8yrs ago, we were on completely different levels (education and career-wise) and the plan was for her to be a SAHM. That's changed (to say the least), and if anybody is staying home in the near future it is likely me.dboeger1 wrote: ↑Tue Feb 23, 2021 3:42 pm Before just an hour ago or so, I might've put something other than the cliche spouse thing, but my wife just found out today she's getting a surprisingly huge bonus from work and her boss more or less implied that she would be getting a promotion soon. That means she's making more money and accelerating her career at a far faster pace than I am. I started out earlier with a better degree in a position with seemingly more upside potential, but I just don't have the same drive to climb the corporate ladder, compete for top positions, negotiate for higher pay, etc. She started out in a low-paying position for a pretty mediocre company, switched to a better company which more than doubled her income overnight, got a substantial raise after her first year, and is now getting big bonuses and promotions. Meanwhile, my income has only risen very gradually, but I have also been the Boglehead of the family and convinced her to max out retirement accounts and whatnot.
The funny thing is, when we got married, her income potential was the last thing on my mind. I know this has fallen a bit out of favor, but I always just assumed I'd be the traditional male breadwinner. I work in tech and my work is doable remotely, plus I have many side projects I'd like to pursue. With her career going the way it is, there's a good chance I end up becoming a stay-at-home dad when we eventually start having kids. I love it. I know it's kind of cheesy when people describe marriage as a sort of team relationship, but having a spouse who just goes off and excels on their own outside of whatever I'm doing really feels like inheriting a great passive investment that goes and makes money on the side (I know it's not passive for either of us, but it's not like a 2nd job either). It really reduces a lot of the stress I felt back when I was making more money and having to plan how to save and invest it for our future. Even though my work isn't being reduced in any way, it feels like a massive weight has been lifted off my shoulders, because I'm no longer carrying it alone. Heck, I'm in the process of applying to higher paying jobs just so I can get back to carrying at least half, haha.
Marriage involves balancing a lot of variables. Money is just one of them. I would never suggest young people looking to get married base their choice of partner solely on income potential. But knowing what I know now, man, I don't think it's possible to overstate the value of 2 incomes that could each support the family on their own. I realize that's not possible for everyone, but I recommend people at least consider that in their decisions, both before and during marriage. It provides so much overhead for savings, vacation, buying a home, vehicles, etc. It really is amazing. My mother passed away when I was growing up and the medical bills and raising kids alone crushed my father financially. He has yet to fully recover and quite frankly probably will never have the financial success he once had before that whole ordeal. I wouldn't wish that struggle on anybody. I don't want us to be DINKs forever, but I'm in no rush to change that, either
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
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Re: Best decision(s) in your financial life
-Marrying a likeminded (or smarter if you ask her) woman who had her financial ducks in a row
-Working overtime before the kids came to pay off student loans, truck loan, etc
-Not being afraid to work some extra hours and save the earnings
-Investing early and often into the State 457(b) - pension may be there when I retire, if not I will still be fine
-Living within our means regarding clothing, furnishings, home, etc - not trying to keep up with the Jones'
-Shopping for over a year for our first house. We were able to find the best deal from someone desperate to sell. Also allowed us to save 20% down
-Refinanced from 30 years 3.85 to 15 year 2.25.
-Teaching my family members many of these decisions. My family hasn't done well with money, but isn't afraid to work. With some knowledge, I think they will be able to turn things around. Less stress on me for being successful and no family looking for handouts.
-Not being afraid to take promotions that came with a huge pay jump. At the cost of sacrificing my dream position. Turned out I was happier in the new position and it removed a lot of financial stress from my life.
-Surrounding myself with like minded and motivated friends.
-Working overtime before the kids came to pay off student loans, truck loan, etc
-Not being afraid to work some extra hours and save the earnings
-Investing early and often into the State 457(b) - pension may be there when I retire, if not I will still be fine
-Living within our means regarding clothing, furnishings, home, etc - not trying to keep up with the Jones'
-Shopping for over a year for our first house. We were able to find the best deal from someone desperate to sell. Also allowed us to save 20% down
-Refinanced from 30 years 3.85 to 15 year 2.25.
-Teaching my family members many of these decisions. My family hasn't done well with money, but isn't afraid to work. With some knowledge, I think they will be able to turn things around. Less stress on me for being successful and no family looking for handouts.
-Not being afraid to take promotions that came with a huge pay jump. At the cost of sacrificing my dream position. Turned out I was happier in the new position and it removed a lot of financial stress from my life.
-Surrounding myself with like minded and motivated friends.
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- Joined: Fri Dec 31, 2010 8:53 am
Re: Best decision(s) in your financial life
I've handled the large brunt of household/childcare duties over the last 5yrs because she was focusing on her career and also a full-time student, and I was already part-time WFH, so it wouldn't really be anything new.mikejuss wrote: ↑Tue Feb 23, 2021 4:10 pmWhat are your feelings about that? I'm in a similar position, uneasy about it, and trying to adapt. Relationships are indeed a balancing act--and in ways that you least expect.stoptothink wrote: ↑Tue Feb 23, 2021 4:07 pmNot going to share (too much of) my anecdote, because it is pretty much this. When we met 8yrs ago, we were on completely different levels (education and career-wise) and the plan was for her to be a SAHM. That's changed (to say the least), and if anybody is staying home in the near future it is likely me.dboeger1 wrote: ↑Tue Feb 23, 2021 3:42 pm Before just an hour ago or so, I might've put something other than the cliche spouse thing, but my wife just found out today she's getting a surprisingly huge bonus from work and her boss more or less implied that she would be getting a promotion soon. That means she's making more money and accelerating her career at a far faster pace than I am. I started out earlier with a better degree in a position with seemingly more upside potential, but I just don't have the same drive to climb the corporate ladder, compete for top positions, negotiate for higher pay, etc. She started out in a low-paying position for a pretty mediocre company, switched to a better company which more than doubled her income overnight, got a substantial raise after her first year, and is now getting big bonuses and promotions. Meanwhile, my income has only risen very gradually, but I have also been the Boglehead of the family and convinced her to max out retirement accounts and whatnot.
The funny thing is, when we got married, her income potential was the last thing on my mind. I know this has fallen a bit out of favor, but I always just assumed I'd be the traditional male breadwinner. I work in tech and my work is doable remotely, plus I have many side projects I'd like to pursue. With her career going the way it is, there's a good chance I end up becoming a stay-at-home dad when we eventually start having kids. I love it. I know it's kind of cheesy when people describe marriage as a sort of team relationship, but having a spouse who just goes off and excels on their own outside of whatever I'm doing really feels like inheriting a great passive investment that goes and makes money on the side (I know it's not passive for either of us, but it's not like a 2nd job either). It really reduces a lot of the stress I felt back when I was making more money and having to plan how to save and invest it for our future. Even though my work isn't being reduced in any way, it feels like a massive weight has been lifted off my shoulders, because I'm no longer carrying it alone. Heck, I'm in the process of applying to higher paying jobs just so I can get back to carrying at least half, haha.
Marriage involves balancing a lot of variables. Money is just one of them. I would never suggest young people looking to get married base their choice of partner solely on income potential. But knowing what I know now, man, I don't think it's possible to overstate the value of 2 incomes that could each support the family on their own. I realize that's not possible for everyone, but I recommend people at least consider that in their decisions, both before and during marriage. It provides so much overhead for savings, vacation, buying a home, vehicles, etc. It really is amazing. My mother passed away when I was growing up and the medical bills and raising kids alone crushed my father financially. He has yet to fully recover and quite frankly probably will never have the financial success he once had before that whole ordeal. I wouldn't wish that struggle on anybody. I don't want us to be DINKs forever, but I'm in no rush to change that, either
I also have a rewarding and pretty highly compensating career (I still make slightly more than her), but if she got an offer that significantly increased her income (which is far more likely for her than I), I'd be happy staying at home and driving a minivan. At this point either one of could call it quits and we would be more than fine...we'll have some lifestyle decisions to make in the next 5yrs.
Re: Best decision(s) in your financial life
In 1985, when I was 24, I got a bookkeeping job at a small company (actually a local franchise of a bigger company). My boss, who owned the local branch and was a super nice guy, described a benefit called a "401k plan." I'm not sure I even listened to his description, I just waited politely until the end and said, "no thanks." He was doing a bit of a hard sell, and we went back and forth with me explaining all the reasons I needed my entire paycheck after taxes, and him saying you've got to take advantage of this. The last thing he said was, "don't you understand I'M GIVING YOU FREE MONEY??? It would be totally stupid to say no!!" At that point I felt stupid so I said yes.
And that's how I came to have a 401K at an early age. It was the start of a pretty good career of saving. So, after all these years I'd like to say thanks, Alan, for insisting I not be an idiot!
And that's how I came to have a 401K at an early age. It was the start of a pretty good career of saving. So, after all these years I'd like to say thanks, Alan, for insisting I not be an idiot!
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Re: Best decision(s) in your financial life
I didn't see this mentioned, but one of the better decisions that we made was to move from a high cost of living area to a lower cost of living area (probably in the low-medium range I would say).
Because we are paying less for housing in particular, that has allowed us to supercharge our savings quite a bit since our expenses dropped. I know some BH's are known for saving every penny. However, consider that your biggest expenses are housing related (mortgage/rent, utilities, property taxes, repairs, etc), so you can make a sizable dent in your expenses by cutting back in this area - more so than by buying single ply TP instead of the double-ply.
I read a stat that most people (70% I think?) end up living within an hour of where they grew up - presumably because that's what they know. However, if you are willing to take the plunge and expand your horizons, there are many great places where you can live at a fraction of the cost while still being in an active job market. Plus, with remote working really taking off, that means that the possibilities are expanded even more.
Because we are paying less for housing in particular, that has allowed us to supercharge our savings quite a bit since our expenses dropped. I know some BH's are known for saving every penny. However, consider that your biggest expenses are housing related (mortgage/rent, utilities, property taxes, repairs, etc), so you can make a sizable dent in your expenses by cutting back in this area - more so than by buying single ply TP instead of the double-ply.
I read a stat that most people (70% I think?) end up living within an hour of where they grew up - presumably because that's what they know. However, if you are willing to take the plunge and expand your horizons, there are many great places where you can live at a fraction of the cost while still being in an active job market. Plus, with remote working really taking off, that means that the possibilities are expanded even more.
Re: Best decision(s) in your financial life
That's an excellent idea--but it's problematic if you can't retain your high-income job and work remotely from your lower-cost locale.humblecoder wrote: ↑Tue Feb 23, 2021 4:28 pm I didn't see this mentioned, but one of the better decisions that we made was to move from a high cost of living area to a lower cost of living area (probably in the low-medium range I would say).
Because we are paying less for housing in particular, that has allowed us to supercharge our savings quite a bit since our expenses dropped. I know some BH's are known for saving every penny. However, consider that your biggest expenses are housing related (mortgage/rent, utilities, property taxes, repairs, etc), so you can make a sizable dent in your expenses by cutting back in this area - more so than by buying single ply TP instead of the double-ply.
I read a stat that most people (70% I think?) end up living within an hour of where they grew up - presumably because that's what they know. However, if you are willing to take the plunge and expand your horizons, there are many great places where you can live at a fraction of the cost while still being in an active job market. Plus, with remote working really taking off, that means that the possibilities are expanded even more.
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
Re: Best decision(s) in your financial life
Starting a business. Increased income by 4x. Income trumps everything.
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Re: Best decision(s) in your financial life
Agreed. But there are places outside of the usual HCOL suspects where you can still get a good job. It might not be at the tippy top end of the scale, but the lower COL would more than make up for the lower salary.mikejuss wrote: ↑Tue Feb 23, 2021 4:38 pmThat's an excellent idea--but it's problematic if you can't retain your high-income job and work remotely from your lower-cost locale.humblecoder wrote: ↑Tue Feb 23, 2021 4:28 pm I didn't see this mentioned, but one of the better decisions that we made was to move from a high cost of living area to a lower cost of living area (probably in the low-medium range I would say).
Because we are paying less for housing in particular, that has allowed us to supercharge our savings quite a bit since our expenses dropped. I know some BH's are known for saving every penny. However, consider that your biggest expenses are housing related (mortgage/rent, utilities, property taxes, repairs, etc), so you can make a sizable dent in your expenses by cutting back in this area - more so than by buying single ply TP instead of the double-ply.
I read a stat that most people (70% I think?) end up living within an hour of where they grew up - presumably because that's what they know. However, if you are willing to take the plunge and expand your horizons, there are many great places where you can live at a fraction of the cost while still being in an active job market. Plus, with remote working really taking off, that means that the possibilities are expanded even more.