I dunno—he’s got the right idea, though he carries it to an extreme. I know a fair amount of people who make very good money, but piss it away on things like eating out 3X a week, Starbucks every day, new cars every 2 years, and the latest crap gadgets. A lot of people also have no tracking system for their income or savings, which is a huge mistake as well.
That being said, a $40K computer job in NYC is the equivalent of making minimum wage.
Don't balance your checkbook. You'll err on the conservative side and periodically move the excess to savings. It's real estate that's key, though, in making real money.
As to Federal housing ripoffs, lawyers have analogous ways to do the same thing. This kid's got gumption, and I wish him luck.
I know a lot of them as well. People where both spouse earn $100K yet they are continually struggling keep their heads above water. Season tickets to Hurricanes, 4 wheelers for when he goes deer hunting. Hunting and fishing trips all over. New cars and pickups every couple years. Tons of gadgets. Got suckered into a $35,000 time share and now travel all over the place.
Its tough to watch sometimes.
I agree. Thrift and savings is what we want to teach our children. If they can exercise self-restraint, they will have the resources to take advantage of the opportunities life grants them.
When I first started out, I lived pretty frugally. I never bought into all the stuff other people were telling me I could afford. Then when it came time to buy a house, I had a big chunk of change to put down on it. The rest is history.
I know! My son makes about this, no degree to pay for but trained and certified by the industry, and he lives in HAWAII.
He’s had this job since he was 19, had his own computer business from 15-18.
He’ll be 21 soon, and I expect great things for him.
I want him to be frugal, but not obsessive.
That's the one thing every financial book I have read agrees on - cars are the biggest money drain you can find.