How much money do you need?

[LADoc00]

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As a FT pathologist, given 8-10 weeks of vacation/year and a separate retirement fund.

 

[Pingu]

A LOT!

Although my husband does investing, so probably not as much as I think

 

[LADoc00]

A LOT!

Although my husband does investing, so probably not as much as I think

Honestly, I always dreamed of having about $2 million banked by the time Im 40, but dont really care anymore. Making 230K/year, I can save almost $70,000 if I dont go hog wild and buy a Carrera or something equally as lame.

 

[bente]

How much money do you need?
My opinions:
Someone famous once said there are 2 groups of people. Those with NO money, and those without enough. It rings true, since you rarely see someone content and satisfied.
There was a study once that asked people how much they would need to be happy. It was 10-20% more! 🙂
That was across the socioeconomic board, on average. If you make only 10k a year, a surprise $1-2,000 makes you ecstatic. If you are making 150K as a doc, it sure would be nice to have 15-30K more. If you are Tyson, your agent is trying to squeeze another cool mil out of the promoters.

Other studies have shown that most people have a happiness set point. After 2-4 months, they are back to their baseline. That occurs with most life events, even lottery winners and heiresses.
Of course there is a HUGE initial upsurge in happiness from ZERO bucks(can't buy food or shelter) until basic needs are met.
Most of this info is from references in books like: Your Money or Your Life, The Millionaire Next Door. And lots of new writings now with the upsurge in 'behavioral finance' research.


To retire, you need:
0.03-0.05 = x
nest egg=y
needed yearly income=z

xy=z

This is independent of when you retire, whether it be age 40 or 80. This is with preservation of principal. It is too difficult to figure out how to turn over your last dollar with your last breath.
Many retirement calculators on web, but they often require incredible assumptions (like guess the inflationary rate).
Your needed income should be a representative of your last 5-7 yrs of spending (calculated by the checks written).

Foundations use the 5% figure, paranoids use 3%. Foolish people use 7-10%, spouting off that historically the market has this yield or higher.
This is all based on the 'Monte Carlo' scenarios for many years of market upturns and long downturns. For example, worst case scenario is you retire very early at 40 and the market crashes, and languishes for 3+ yrs. This happened to a few of my oil engineer friends in 2000. They are hanging on, and may make it, but may be forced out of retirement. boo hoo.
When you do the calculations, you realize you need a big nest egg or need to rein in spending for your whole life. With frugality, you save money, but also get used to living on lower income.
If you crunch the numbers, it makes some govt job (paramedic, police/fire/teacher) seem pretty good since you are taken care of...but those jobs aren't for most.

 

[yaah]

Well, I am making 40k per year without educational loans to pay off. Basically, if I live comfortably I don't save very much, but I also don't really come close to overextending myself (I am single though). So, if I double this, I would conceivably bank many thousands per year. An average starting salary though is nearly quadruple, which means I may bank over 50k per year at my current rate.

However, I figure I am also the kind of person who as they make more money, spends more money. But I will never go into debt for something frivolous.

I figure I would be pretty happy making $150k per year. Future marriage/kids may change this (if it happens), but still, would be enough to live comfortably.

 

[b&ierstiefel]

Well, I am making 40k per year without educational loans to pay off. Basically, if I live comfortably I don't save very much, but I also don't really come close to overextending myself (I am single though). So, if I double this, I would conceivably bank many thousands per year. An average starting salary though is nearly quadruple, which means I may bank over 50k per year at my current rate.

However, I figure I am also the kind of person who as they make more money, spends more money. But I will never go into debt for something frivolous.

I figure I would be pretty happy making $150k per year. Future marriage/kids may change this (if it happens), but still, would be enough to live comfortably.

I feel the same way. No debt from college. Actually will come out of med school with about $4000. No debt is key. I'm enjoying life.

 

[yaah]

How much was it before Vegas?


edit: I kid, but what is money for if you can't enjoy it? If I die with a lot of money in the bank I am going to die swearing at the world.

 

[b&ierstiefel]

How much was it before Vegas?


edit: I kid, but what is money for if you can't enjoy it? If I die with a lot of money in the bank I am going to die swearing at the world.

well my net losses for gambling was about $300. hotel for all 3 nights was $160. plane ticket was about $350. booze was mostly free. it's the meals that raped my wallet that $70 buffet was [cue Rick James] mmm...mmm....bitch!

 

[yaah]

$70 buffet!?!? I want some of that!

 

[b&ierstiefel]

$70 buffet!?!? I want some of that!

i made sure i got my money's worth. they had everything i liked...smoked salmon, lobster, sushi, etc....and champagne 👍

just thinking about it makes me salivate.

 

[bente]

$70 buffet!?!? I want some of that!

Headed for a Mexico cruise soon...never been, not my favorite idea...but I do hear you can gain about 2# a day and enjoy it more than the guy in SUPERSIZE ME!
That movie had a good vomitus shot; if Andy can find it, I'll use it for my avatar.

 

[b&ierstiefel]

Headed for a Mexico cruise soon...never been, not my favorite idea...but I do hear you can gain about 2# a day and enjoy it more than the guy in SUPERSIZE ME!
That movie had a good vomitus shot; if Andy can find it, I'll use it for my avatar.

I still have yet to see that movie. I really should rent it someday or find someone who owns the DVD and steal it from that person.

With that in mind, I think you have a better chance of finding that picture. Now if during your quest to find this avatar you happen to come across a picture of the guy taking a dump, let me know and I will make that my avatar.

 

[LADoc00]

Well, I am making 40k per year without educational loans to pay off. Basically, if I live comfortably I don't save very much, but I also don't really come close to overextending myself (I am single though). So, if I double this, I would conceivably bank many thousands per year. An average starting salary though is nearly quadruple, which means I may bank over 50k per year at my current rate.

However, I figure I am also the kind of person who as they make more money, spends more money. But I will never go into debt for something frivolous.

I figure I would be pretty happy making $150k per year. Future marriage/kids may change this (if it happens), but still, would be enough to live comfortably.

Not to disagree that you feel comfortable at 40K but that aint crap. Figure after taxes you are making what...28K? Divide by 12, you getting maybe 2300 bucks a month. Your rent is probably like a grand, car payment, insurance, gas and basic food another grand, leaving you with 300 bucks a month if dont own a cell phone, have home cable or dsl and cheap on the utilities....dude, thats friggin meager. Do you take dates to McDonalds with caveat they have to pay for the supersizing? Clothes, shoes, can you make those?

I always wondered like what the hell do other guys do. I went on out on dates in residency, $120 easy a pop. And that was just dinner, drinks and club admission. I had a good buddy blow, and Im not exaggerating, 12+ grand on dates in 1 calendar year as a resident no less. Yeah he got a ton of the finest T&A but sheesh dating is expensive. I averaged between 2-3K per year on dates as a resident and thought I did fairly well.

 

[b&ierstiefel]

Easy now LADoc00...you're gonna make him cry.

 

[bente]

I still have yet to see that movie. I really should rent it someday or find someone who owns the DVD and steal it from that person.

With that in mind, I think you have a better chance of finding that picture. Now if during your quest to find this avatar you happen to come across a picture of the guy taking a dump, let me know and I will make that my avatar.

there are lots at:
www.iambetterthanyou.com

how about this one?

 

[b&ierstiefel]

omfg

PROJECTILE MUDBUTT!

 

[bente]

There's a good story about Mark Allen, the 'lance' of triathlons in his day. He was racing Canada Ironman and running thru the crowds of Penticton...and had a bout of lower GI distress that day. Sporting the classic speedo attire, he didn't lose a stride, but flipped down the back and let her rip. He was banned from coming back. I say he was just a good competitor who overcame obstacles. Did Deschutes see this? I'm a 'binge' SDN person so don't know everyone here, but seems she is a Canuck, no?

 

[b&ierstiefel]

There's a good story about Mark Allen, the 'lance' of triathlons in his day. He was racing Canada Ironman and running thru the crowds of Penticton...and had a bout of lower GI distress that day. Sporting the classic speedo attire, he didn't lose a stride, but flipped down the back and let her rip. He was banned from coming back. I say he was just a good competitor who overcame obstacles. Did Deschutes see this? I'm a 'binge' SDN person so don't know everyone here, but seems she is a Canuck, no?

I actually heard about that story. I don't remember that person's name but I do remember it was some running event. I bet he ran faster after jettisoning the dungus. And yes, she is a canuck.

 

[LADoc00]

I love this one, reminds me of myself as a youth.

 

[LADoc00]

That website rocks!

 

[b&ierstiefel]

Did you get the pics from strangeland.com? I saw that video of the pissing weightlifter yesterday on that site. I like how she tried to cover it up and play cool after it happened.

 

[QuietSylph]

Honestly, I always dreamed of having about $2 million banked by the time Im 40, but dont really care anymore. Making 230K/year, I can save almost $70,000 if I dont go hog wild and buy a Carrera or something equally as lame.

I feel the same way -- I think 200K a year should be plenty, even taking into account the needs of a family living in (expensive) California. Anything above that would be gravy for me, and would likely just end up invested. Most people get by on FAR less, so I think your standard of living at 230K will be excellent. Having a beautiful house with 4BR and all the amenities in a wealthy suburb really isnt much less satisfying than having a beautiful house with 7BR and all the amenities in a wealthy suburb, you know?

Even if you did go hog wild and paid cash for a new Carrera once every five years, you would be driving around in style and could still save $70K/year the other four years. 👍

 

[LADoc00]

Did you get the pics from strangeland.com? I saw that video of the pissing weightlifter yesterday on that site. I like how she tried to cover it up and play cool after it happened.

YOU SOB!! I just spent like 2-3 hours on strangeland.com.....f*ckin addicted now.

Stop spreading your poison.

 

[bananaface]

You need more the more kids you have. One pharmacist I work with has 5 and the poor guy works his butt off and hardly gets to see them.

 

[yaah]

Not to disagree that you feel comfortable at 40K but that aint crap. Figure after taxes you are making what...28K? Divide by 12, you getting maybe 2300 bucks a month. Your rent is probably like a grand, car payment, insurance, gas and basic food another grand, leaving you with 300 bucks a month if dont own a cell phone, have home cable or dsl and cheap on the utilities....dude, thats friggin meager. Do you take dates to McDonalds with caveat they have to pay for the supersizing? Clothes, shoes, can you make those?

Oh i totally agree - I am not going to be very happy if I keep making 40k for years here, but I am just saying that I am kind of surprised that I can live decently comfortable on it, and anticipate enjoying making more. My take home is $2500 a month currently, to go up in july a bit. Mortgage combined with home eq is about $1100.

Thing is, I don't go hog wild on spending sprees. Don't take dates to McDonalds but don't spend $200 either. I just always seem to end up with dates who aren't really into fancy drinks and expensive shows. 😍

 

[deschutes]

There's a good story about Mark Allen, the 'lance' of triathlons in his day. He was racing Canada Ironman and running thru the crowds of Penticton...and had a bout of lower GI distress that day. Sporting the classic speedo attire, he didn't lose a stride, but flipped down the back and let her rip. He was banned from coming back. I say he was just a good competitor who overcame obstacles.

I did SO not see this! I agree with you 100% about overcoming obstacles! Where can I find this story? Did they ban him for always and always?

I actually got a little sick on Monday from eating instant noodles. I don't know how that is possible, but I was silly (not to mention ravenously hungry) and ate them even though they smelt a little odd because I had gone and added lots of yummy meat and veggies to the dish.

Welcome back banana! I am not sure what I would do if I had more kids than I could afford. Since that number is now set at "1" (can I afford a kid now? Nope, I can barely afford myself...), it is probably the reason I don't currently have kids.

 

[b&ierstiefel]

YOU SOB!! I just spent like 2-3 hours on strangeland.com.....f*ckin addicted now.

Stop spreading your poison.

It really is a f*cked up site. The postdoc who sits next to me introduced it to me a few weeks ago. All I could think was, I hope the boss doesn't catch you on this site.

 

[LADoc00]

Oh i totally agree - I am not going to be very happy if I keep making 40k for years here, but I am just saying that I am kind of surprised that I can live decently comfortable on it, and anticipate enjoying making more. My take home is $2500 a month currently, to go up in july a bit. Mortgage combined with home eq is about $1100.

Thing is, I don't go hog wild on spending sprees. Don't take dates to McDonalds but don't spend $200 either. I just always seem to end up with dates who aren't really into fancy drinks and expensive shows. 😍

What is "combined with home eq" mean? grats on buying a place during residency, I wasnt so smart. But how do you afford the property tax bill each year, home owner insurance? Rent for $1000 is not = mortgage of $1000, there are tons of hidden costs of ownership.

No idea how people get through residency with kids. Kids in general seem like multi-million dollar ventures nowadays.

 

[yaah]

What is "combined with home eq" mean? grats on buying a place during residency, I wasnt so smart. But how do you afford the property tax bill each year, home owner insurance? Rent for $1000 is not = mortgage of $1000, there are tons of hidden costs of ownership.

No idea how people get through residency with kids. Kids in general seem like multi-million dollar ventures nowadays.

Well, my mortgage is (I think) 80% of the purchase price, if I remember right. I can't remember what the % is off the top of my head but you have to pay a certain percentage of the mortgage up front or you have to pay extra - but most places will allow you to take out a home equity line of credit which provides the extra amount to get you to that 20% if you don't have or want to put enough down to cover the 20%. I basically paid 15% down payment cash with another 5% in home equity line of credit.

Property tax bill is built into the mortgage, so that you pay a bit of your bill every month towards an account which pays for the taxes. So your bill doesn't change.

Home owner insurance I have a combined car insurance/home insurance package. Interestingly, the combined home insurance and car insurance was CHEAPER than just the car insurance alone. That makes no sense, but it's true.

So my $1100 a month includes mortgage principle and interest, plus the home equity interest, plus the yearly property taxes.

 

[LADoc00]

I decided that with no family, no kids and nothing tying me down Im gonna take my vacation the coming year and do locums. Pays about 700-800 a day and the locums company pick up your room and board, malpractice and travel costs. Hopefully post tax that can add another $15,000 to the savings.

 

[yaah]

I decided that with no family, no kids and nothing tying me down Im gonna take my vacation the coming year and do locums. Pays about 700-800 a day and the locums company pick up your room and board, malpractice and travel costs. Hopefully post tax that can add another $15,000 to the savings.

They do this for path? What kinds of places and types of jobs? I foresee lots of pap smears and basal cell carcinomas.

 

[LADoc00]

They do this for path? What kinds of places and types of jobs? I foresee lots of pap smears and basal cell carcinomas.

Happens very commonly in path for small groups where one person is sick or pregnant and the rest of the group cant take vacation until they hire locums person for a week or so.

The cool thing is can do it anywhere, the company pays for your state license fee and they pay all travel costs. Also you get to see how different groups run their operations, getting a better business sense of path practice.

 

[gungho]

I decided that with no family, no kids and nothing tying me down Im gonna take my vacation the coming year and do locums. Pays about 700-800 a day and the locums company pick up your room and board, malpractice and travel costs. Hopefully post tax that can add another $15,000 to the savings.

have actually thought about doing this after i finish residency-wife and i will be empty-nesters, maybe take a little time to get the lay of the land before deciding on fellowship/job/etc.