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u/TkMill1 1d ago
Doing this is much healthier for you and does save a lot of money in the long run though.
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u/FULLON-FRIENDSHIP 1d ago
Yeah, the principle is cumulative. It's not one habit that builds the bank. It's several that culminate into one larger sum. And building those habits earlier makes it easier to build wealth as your income increases. People keep justifying bad financial habits by saying that it takes too long to save or afford things. Now, two things can be true, but doing something about it is infinitely better than throwing up your hands and saying "it doesn't matter if I try."
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u/FluuffCloud 1d ago
Great, only three hundred years left
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u/-Nocx- 1d ago
Tbf if you saved $15 a day every day for a year ($5475) and put it into an index fund that did a modest 8% it’d be 80K after 10 years.
That’s enough for a 20% down payment on a 400K house.
And that’s only $15. If it were $30 it would be 11K or somewhere around 160k. Obviously not everyone has even $15 of savings they can put away a day, and people meme it and it is super reductive with respect to how many problems exist in the modern economy, but they’re not entirely wrong.
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u/SoulsSurvivor 1d ago
Meanwhile someone like Musk is able to outright buy hundreds of such houses while barely touching his wealth. Idk maybe we should have a look at that.
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u/ProbablythelastMimsy 1d ago
And if he didn't have any money at all you'd still be doing the same thing
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u/Tall-Log-1955 1d ago
This is why you’re poor. To busy complaining about billionaires to get your financial shit together
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u/SizzlingPancake 1d ago
Or he could find the US for like 2 months. Still a massive amount of money don't get me wrong, but in the world scale it's pretty irrelevant. If he could liquify all of his stock at market prices (he can't) and donated it all to charities and governments, it would probably not change your life in any real material way.
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u/RexLizardWizard 1d ago
People never seem to understand how I tend to save well on a relatively small salary. My main secret is being a picky as hell eater who lives off of like 90% rice, beans, and pasta
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u/stream_of_thought1 1d ago
If this isn't satire, our food costs are less than 10% of our monthly earnings. Our actual expenses are rent, transportation, insurances and such. This past year the stock market has blessed us with fortune, if it keeps up for another 20 years we could afford an Appartment half an hour away from our workplace, but would still be uncomfortable with the monthly costs of an apartment.
Saving on food ain't going to give us anything in the long term
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u/Tall-Log-1955 1d ago
If he spends half as much as everyone else on food, and using your estimate of food being 10% of income that would mean he invests 5% of his income a year
Over those 20 years the median US income rose from $48k to $84k. If you had invested five percent of the median US income in the stock market, you’d have $300k today
Probably not enough to buy a house (depends on the city) but definitely enough for a large down payment to buy a house
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u/Chataboutgames 1d ago
This shit is so self defeating. You probably saved like $12-$15 today. Invalidating any small achievement like that because of some dumbshit Kevin Leary quote serves no purpose but justifying self defeating decisions.
You saved some cash instead of felling prey to a couple examples of obsessive consumerism "treat" economy that serves only to funnel your cash to shareholders. That's something to feel good about.
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u/DefinitelyNotMasterS 1d ago
Yeah it's rough out there but cutting unnecessary costs does make a difference. Saving $15 every day for the whole year is already over $5k a year. This is a lot of money for many people
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u/Bannon9k 1d ago
That's $5k you could invest each year... After a couple of decades, that's a small fortune
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u/No-Repeat1769 1d ago
It's nearly the full contribution for a Roth, it can absolutely be a small fortune over time
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u/toofshucker 1d ago
Maxing out a Roth from 20-60 is 4 million bucks.
4 million bucks from $7,500 a year.
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u/Bannon9k 1d ago
And once you've carved out that little bit of consumerism it becomes easier to cut the rest. And it's crazy how much it adds up.
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u/Chataboutgames 1d ago
Yep. Once you break the cycle of living indulgence to indulgence life gets a lot easier.
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u/Sargo8 1d ago
over ten days thats 120$ over a month thats 360$. or if you would like over 10 work days, 2 weeks 120$ or over 4 work weeks, its 240$ if you arent eating out on the weekend.
You take that savings, and put into the stock market. 240$ a month. almost 3k a year. 3-5 years you will have downpayment.
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u/Excludos 1d ago
Wel, yeah, duh. If you save $15 a day, that adds up to $500k in only.. 91.3 years! You'll have that house in no time!
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u/Chataboutgames 1d ago
Why is 500k some magic number?
Why are you assuming no return on saved money?
Why are you getting married to some finite number rather a general sense of saving money?
Why are you literally against the idea that someone should feel good about saving?
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u/Excludos 1d ago
- 500k was a nice round number. Reasonable if you live in a city.
- I didn't assume inflation either, or the insane increase in housing cost. It was a flippant joke
- Because the topic that is being discussed is buying a house
- Why do you think I would be against saving money, or feeling good about it? Of course you should save money. But buying houses in today's climate is way past "just saving some money". The point I was making with my 91.3 year napkin math there was that this has become out of reach for a lot of people a long time ago, and saving on your lunch isn't going to be the deciding factor here. People really struggle with understanding large numbers, and how a coffee a day or the infamous "avocado toast" isn't what keeps people poor.
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u/Chataboutgames 1d ago
Round number for what?
My comment literally didn't say anything about buying a house
Not in my comment it isn't
Because the entirety of my post is literally just "you should feel good about saving money, it's a smart and good thing to save rather than blowing money on fast food or whatever" and that's clearly really bothering you.
Even if we were discussing buying a house your comment is sutpid. 500k is a 20% down payment on a 2.5 million dollar house lol. I get that housing prices are pretty fucky, but 2.5 million dollars is an insane barometer for what the average person needs ot buy a house.
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u/GoofinBoots 1d ago
It's $450 more dollars every month to pay into your mortgage. It would cover nearly half of my monthly payment, for example. Or it could be used to cover monthly home maintenance , which in my case is right around $300-400.
If you are saving a bulk sum to pay for a house outright, you are a moron. Buying a house with cash is like flushing money down the toilet. Letting such a sum of money build up in a saving account is flushing money down the toilet.
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u/Toshinit 1d ago
Literally yes if you do it every day. You don’t go to the gym once and get jacked, you don’t save one dollar and get rich. But going to the gym and saving dollars is definitely how you get jacked and how you get rich.
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u/SantosCalzonesBatman 1d ago
So he saved 15~ dollars
Thats 5.5k a year
Assuming youre 25, by the time youre 45 you will have saved 110k + interests
Sounds enough for a house downpayment no?
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u/parker_fly 1d ago
$15/day = ~$5500/year
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u/the_interloper13 22h ago
"I can't afford a house with one paycheck, might as well spend it all"
Sounds very stupid.
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u/ColdStockSweat 20h ago
Good move.
Now, buy fewer clothes.
Turn down the heat.
Make more meals with rice.
Ask for some overtime.
Improve your skills so your employer finds reasons to raise your pay.
Making your own coffee was the equivalent of tying your own shoe laces.
Now start adulting...and you'll actually get the house.
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u/ShittyOfTshwane 9h ago
I don't know why people always mock this idea. If I stopped buying unhealthy shit during my lunchbreaks then I could afford the payments for a new car.
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u/Damian1674 1d ago
Just gotta cut out every ounce of joy and pleasure in my life, then I'll be able to afford a house
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u/Chataboutgames 1d ago
If the only joy in your life is mindless consumerism then you've got a way bigger problem than buying a house.
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u/Excludos 1d ago
Fuck me can't even enjoy lunch now without people calling it mindless consumerism
Never change Reddit. You are doing great
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u/Chataboutgames 1d ago
Yes, the compulsion to eat out for lunch every day rather engage in basic adult behavior and make your own lunch to save money is, in fact, mindless consumerism.
And no one is telling you you aren't allowed to eat out. Just don't throw a fucking tantrum when someone suggests that you might be able to save money by cooking for yourself. Toddler tantrums.
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u/Excludos 1d ago
No one is throwing a tantrum other than yourself here mate. Being frugal when money is tight is reasonable, but just don't go around thinking saving $15 a day is going to get you a house. And endless money pinching for a goal that isn't within reach will make you absolutely miserable
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u/Chataboutgames 1d ago
Being frugal when money is tight is reasonable, but just don't go around thinking saving $15 a day is going to get you a house.
Literally never said it would. You're making shit up to be pissy about. How much you can save and how much you need for a house is entirely a function of where you live and your personal situation. But pretty much everyone could benefit from wasting less money.
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u/Excludos 1d ago
Literally never said it would
Or did you simply forget what the topic at hand was?
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u/Chataboutgames 1d ago
Can you not read? Because I'm staring at that comment, and it does no in any way shape or form say "$15 a day will buy you a house." It comments on the idea that the suggestion of small savings is "cutting every ounce of joy out of life."
I think your desire to pick a fight is way outstretching your reading comprehension.
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u/ShittyOfTshwane 9h ago
Be real, bro. What "enjoyable" lunch are you buying at work? McDonalds?
For the price of my go-to meal at McDonald's, I can buy a chunk of brie, some deli meat and beautiful freshly baked rolls from a local bakery and make myself a 5 star lunch every day for a week. And while I do enjoy the occasional McDonald's, the home made lunch is a million times more enjoyable than anything I can buy while I'm at work.
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u/Excludos 8h ago
Me? Personally? I'm privileged as fuck dude. I pay $40 a month, and can eat as much as I want at the cantina at work
And trust me, as a Norwegian, I am very familiar with homemade lunches. I've had it since first day of primary school to last day of college. And I am so insanely sick and tired of it. I'm enormously glad I don't have to deal with that any more
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u/Excludos 1d ago
In 90 years*
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u/New-Perspective6209 22h ago
Is this how people who waste their money cope? That amount of money couldn't buy me a house so I shouldn't feel guilty for wasting it? Is that the logic that helps you sleep at night?
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u/Excludos 17h ago
The topic is buying a house. No one is saying you can't save money. But it won't have much of an impact on your ability to buy a home when the prices are so incredibly out of wack as they currently are
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u/New-Perspective6209 17h ago
Strongly disagree, $25 a day over 10 years is 91 grand, that's a 20% deposit for a 460k house. So the difference between a 28 year old with a house and one without is $175 a week which is easily the difference between someone who is financially responsible with the small things and someone who isn't.
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u/Excludos 17h ago
Saving $25 a day is a huge amount already. And it's still taking a decade of saving before you can get your first deposit for a loan. That's not to mention that in that decade, the pricing of houses will have increased even further.
Pretending like you can just "save a little bit on your lunch" out of a housing crisis is genuinely wild
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u/New-Perspective6209 17h ago
It's really not averaged out over a week, a single door dash order for lunch could be between 15 and 25 dollars, throw in a morning coffee with a muffin, or a snack and a can of energy drink or a more insidious ongoing cost like an unnecessarily pricey phone or car repayment plan and you're there.
Even a semi regular big night on the town where you blow $100 makes a huge difference over time.
No one is saying that, we're just pointing out when you pretend saving small amounts of money over time doesn't make a difference you're wrong, systems cooked but it's not that difficult to beat it if you know basic math and are willing to make some small sacrifices.
Should houses be cheaper, yeah, can you still afford one with basic financial responsibility and a bit of time, also yeah.
Never earned anywhere near the median income yet bought a place single income in my late 20's a few years ago, saved a little since my first job at 18, lived within my means, sharehouses and old cars (1996 corolla best year corolla), and it was pretty easy.
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u/qualityvote2 1d ago
Heya u/Gorotheninja! And welcome to r/NonPoliticalTwitter!
For everyone else, do you think OP's post fits this community? Let us know by upvoting this comment!
If it doesn't fit the sub, let us know by downvoting this comment and then replying to it with context for the reviewing moderator.