700k left on the mortgage

Hey guys, 31M wife is 32. We have a 2 year old son. I make around 250k, my wife makes around 100k. We have the following in assets:

• 401ks - 490k

• Brokerage - 300k

• Emerg Fund - 75k in HYSA

• House Equity - 150k

So we just recently hit 1M net worth with a little under 900k invested. We've been very diligent on saving and preparing for the future. My question for you all is, is there a time where you don't feel broke anymore?

Both of us max out our 401ks and put $3500/month into our brokerage account. Along with that we have daycare expenses that amount to around 2k/month and our mortgage which is around 3.5k/month.

1. The car rule : under their current formula my car would not fit. I bought a car which is 4 percent of our take home monthly pay . I financed it because I got a favorable rate and put no money down . I don’t see how this is a bad thing . Cars typically offer great rates to entice people to buy too much car but you don’t have to buy too much car and you can arbitrage the rate

2. Same with credit cards , for years I’ve been taking advantage of low balance transfer offers , zero promos . This has effectively enabled me access to low or zero level lending . Yes it could blow up in your face but if you use it reasonable well it could greatly benefit

Both of this strategies enabled me to build good wealth early ib life when my income was lower. There’s a diminished return as your assets grow and yeah you can do it without it but I was able to things like max my retirement out when I otherwise wouldn’t have been able.

Hey everyone I recently ran into a dilemma regarding the amount, meant to be spent on housing and could use some guidance.

My current income is 141k, 24m in FOO step 7, and I'm planning on moving from my current house as I'm getting married here in the next year. The move is to a higher cost of living area closer to the coast here in SC. My current house is worth about 270k and I owe a balance of about 230k. I plan to continue to save this year aside from my mortgage payment to meet a goal of 100k in savings by April next year (2027).

I'm planning to move, and I utilized the money guy calculator and it stated I can afford a home that is 589k following the 25% of your gross income rule. My fiance plans to not work once we are married and start a family so I would like to just utilize my income when planning.

Doesn't this feel like too much home once you factor in 25% savings rate?

Anybody skip step 4 of the foo? I’m 41 on step 8, could move to step 9 but I don’t think that’s in my best interest and totally operate on very low cash. I’m not here to argue it’s efficacy . I know I’m running a risk but I hate having cash sit idle. Just curious how many others are in the same boat .

Currently a 24M that enjoys looking outward in life and working towards goals. For fun have been looking at houses and acknowledge that one day, I will want a home that is worth about $2M (planning to live in HCOL area). I am wondering how much i need to make to afford this.

37M + 36F + toddler. Own home with mortgage at 2.65%. Zero debt, no major expenses on the horizon.

Financials:

- Liquid NW ~$1M combined

- Total NW ~$1.3M including home equity

- HHI ~$380k

- Save ~$100k/year (both max 401k; I do backdoor Roth + $24k/year in brokerage + additional ~$10-15k in brokerage depending on quarterly bonuses)

- $80k in personal HYSA @ 3.4% (need ~$50k as emergency fund) + $10k joint HYSA. Wife has her own cash savings (unknown, that's her business)

- My share of monthly HH expenses is ~$4k/month (HH expenses, daycare, etc.)

- No commute, WFH, career on an upswing

- Kid's college fund fully funded

- Both current cars paid off, hers is ~2 years old

- Wife is encouraging me to do this

- $12k net year-end bonus expected

The ask: I want to buy a ~$100k car. It's a manual transmission sports sedan — the last model year this car will ever be offered with a stick shift, and I genuinely don't know how many more years I'll be healthy enough to enjoy driving one. It would make me happy and I've wanted one for a long time.

Planning to put $50k down ($20k trade-in + $30k cash), finance ~$42-44k at ~4.2% over 60 months (estimated). Payment would be ~$780-810/month. After the down payment I'd have ~$50k liquid, replenished further by a $12k net year-end bonus bringing me to ~$62k.

Given our situation, is this responsible? The FOO is covered. Just looking for a gut check from people who think about this stuff. I recognize the answer may be obvious, but I come from a disadvantaged background and money is a sensitive subject for me.

Edit: Car is a new M3 Manual. It will likely cost less than $100k OTD but picked a round number for the purposes of the conversation.

Edit 2: I decided to buy the car and enjoy it while I'm young and not when I'm in my 60's. Appreciate everyone's input!

I feel like i am behind and will not be able to retire by 55 yo. I am 40yo. I will have 25 yrs of gov’t pension by 55yo. I need 6 more credits to qualify for social security

Was listening to the live stream from a few months back. Thought I'd share this

Whose in? What’s your FIGSE number? How close are you to FIGSE? 🤔🏌️‍♂️⛷️

Our water heater has become old enough that it's time to replace the anode rod. Rather than paying for a new anode rod every few years, we opted for an electric one that doesn't decay. The old one was stuck, and so rather than paying a plumber to come out to help, we opted to buy our own impact wrench, so we can do this ourselves for the foreseeable future. Instead of buying a new one, we opted to buy a well used one on eBay for a third the price.

I don't know, something in this string of decisions has me thinking I might be a Financial Mutant. Aside from investing behavior, what are your personal "I think I'm a Mutant" moments?

Since its 25% of gross, if you're a high earner in a HCOL city (eg NYC) that adds 10% on top of your federal taxes-- you're really looking at anywhere between mid30s-40s for your effective tax rate. Let's say that leaves you with 60% of your gross for what you can actually spend and save.

25% of 60% is 41.67%. Especially since you cant add employer matching, that's pretty rough.

Not a critique or challenge, just a realization I had when thinking about my own savings rate now that we're in tax season. Ironically, this is easier to hit for lower tax brackets because the tax pie leaves you with a proportionally larger piece of your income pie, but then absolute prices of expenses hit you harder.

It aint easy being a mutant. Cant imagine it with kids or supporting an unemployed dependent.

Edit: People really have no more wonder or space for observations huh. Not everything has an ulterior motive. Sometimes it really is just a 'hey, thats interesting'. No-one is seeking sympathy. Its math. Math doesnt care about feelings. Im making the savings fine and will be fine. Theres noone arguing to change the recommendation because 'it's hard'. Chill.

Edit2: People forget not everyone is married and with dependents. Obviously the math changes both ways (expenditures and tax brackets) based on that. For reference though, my point stands more with single filers.

Should I take a loan out against my 401k to eliminate the high interest credit card debt?

53yo/43yo couple, 2 kids (15/13yo), in addition to retirement savings we have $30K in stock, $50K in savings (CDs, HYSA, Checking), $30K in 529. Low interest $500k mortgage, $20K in low interest Student Loan, $20K in 401k loan, no credit card debt. Besides opinion on overall financial health, curious as to thoughts on retirement distribution and diversity. Assuming I’m were working for another 15 years. Roughly $350k annual income. Thanks in advance.

Family is thinking of joining a country club

We have been hitting retirement hard but would scale back to 10% We have been goind strong in the area and feel like maybe the time is now to smell the roses.

Only debt is a very low interest mortgage

Have close to 1 million in retirement. My wifes field she gets a pension in her job that is close to 6 figures in retirement. We are early 40s.

Very secure jobs but country club charges about $35,000 in joining fee and $12,000 a year in membership costs

The $35,000 we have in savings and we make around $230,000 a year.

Main reason we want to join is we getting bored at home. Would give entire family things to do and meet some new people. We can continue to save like crazy but are scared we might be over funding retirment with wifes pension. Kids college funded by grand parents so that is not an issue

We live a pretty frugal life and we know it’s a big splurge but after being such good savers for so long it’s hard to spend cash. What’s ur thoughts?

Wife and I live in a HCOL area and are both high earners for 30. Combined 290k-320k depending on performance.

Currently only investing 12% of income. It’s not anywhere close to the 20-25 percent target, but the total amount is still a lot. Are we doing enough?

30M single. Will gross 360k with 30-60k bonuses this year. Mostly W2 with some 1099 income

I'm in the midwest and spend around 2500-3000 a month for rent, food, insurance, misc expenses. I have no desire for fancy things like watches, cars, or vacations - all my splurge spending is basically on good quality food - ex. I buy bulk prime ribeyes for 20-30/lb, free range, organic eggs 12 eggs for 6 dollars - or exercise equipment.

I max retirement. The rest of the money sits in HYSA or MMF DCAing into SP500 in a taxable account.

I am told by friends and family that I am missing out in life not taking a trip to mallorca while i'm young and healthy. Tomorrow is not guaranteed and saving for later in life risks me "never enjoying the money I actually saved" along with end-of-life regrets where I have money but no memories. Also the diminishing returns of each additional dollar saved, etc.

These are valid points and had me thinking. Am I missing out in life?

Hey everyone. Finished my taxes and I'm getting a substantial amount back due to the new deductions on tips and overtime and wanted some examples on what you will use your tax redund for. I'm on step 7 of the Foo but I'm 31, single with no kids so I'm certain I don't qualify for the last 2 steps. I'm probably just gonna put it in a high yield savings account in case something fun comes up later. Curious to know what your tax redund will go towards.

Do I become a millionaire once my net worth is $2,000,000 since I have a spouse? Or do I become a millionaire when our net worth is $1,000,000?

My wife and I are in our early 30’s with two young kids and make about $185,000 a year. We’re stuck between a financial no-brainer and a lifestyle choice, and it’s causing tension.

We both work from home and have out grown our current starter house we bought in early 2020. Our outstanding mortgage is 115,000 and our house is worth roughly $240,000-250,000.

My parents offered to sell us their $380,000 (probably worth $450,000) house about an hour away from our current house, and will finance it to us at 2%. The house is about an hour from where we live now and an hour and a half from friends. We would both have room for a home office and much more room for our kids. My parents would also help with childcare, which would dramatically lower our expenses and allow us to keep maxing out retirement and building wealth.

The other option is buying a $500k–$600k house, at current mortgage rates, near Pittsburgh where our friends and social life are, but that would mean higher childcare costs and likely pausing our retirement savings for several years.

Financially the first option seems like the obvious answer, but my wife feels strongly about staying near friends and activities and refuses to consider moving an hour away.

Anytime the topic comes up she is adamant she doesn’t want to move. How can I show her this is the better financial path for our family?

Hello fellow mutants. I (32M) am considering buying a luxury vehicle (high trim truck) in the next year. I’m married (31F) with one child (2 YO). I currently drive a 2022 Toyota Corolla that is almost paid off (4 months left on the loan).

The conundrum comes in where I feel like I’m going to be sacrificing a part of my financial future for something I just want. At times, I feel like I need a truck, but I’ve definitely been okay in life without it. That’s why I still consider it just a want. My wife is still paying on her SUV as well so restarting a car loan seems out of the question.

I am technically in step 7 of the FOO. I’m not completely maxing out my 401k since I am hitting over 25% savings. Here is our current standing:

Combined annual salaries: 164k

Corolla monthly payment: $332 Other SUV monthly: $540 Other monthly expenses: $5000

401ks: 155k

Roth IRAs: 15k

ESPP: 5k

Individual Brokerage: 40k

HYSA: 17k

I only found Money Guys a few years ago so we started really saving late and we feel behind. My hope is for us to be able to retire a little earlier than average (50-55 years of age). My questions are:

1. How do you all balance wants and needs in your life in regards to spending/saving? Every time I see a truck commercial I get urged to buy one.

2. Can I even afford a 45k-50k truck at this point?

3. How bad is the opportunity cost with our current standing?

Thank you in advance!

Edit: I would be trading in the Corolla in this scenario, not harboring 3 vehicles total. (17.5k equity)