tlh
Ideal_Rock
- Joined
- Dec 31, 2008
- Messages
- 4,508
it is a shame bernie madoff was in charge of those trust funds....Date: 7/15/2009 1:54:05 PM
Author: Gypsy
Here''s what it comes down to.
You asked a question to which the ONLY CORRECT answer was ''It depends''... and people told you what types of things it depended on. Then you came back with more information, you aren''t married (so wedding costs), have no home (but plan to buy in 3 years), and want to adopt kids later in life. Taking those factors into account, coupled with condition of the economy. Especially since MANY of us have been laid off, furloughed, or had spouses laid off recently and understand how fluid that 100K a year is...that it isn''t written in stone at all... we gave you advice.
There is no rule of thumb. As deco pointed out... that answer is '' IT DEPENDS ON EACH PERSON''S CIRCUMSTANCES'', so really what you WERE ASKING IS FOR YOU TELL YOU IN DETAIL OUR CIRUMSTANCES, and that''s why it was so off putting. Because we would have had to tell you (none of this is true):
We are 24 and 26 years old.
Our combined income is 225
We live in Manhattan and rent and we pay 4000 a month. We would like to buy a house, but want to live in Manhattan so we''re not sure when that''s going to be possible so we''re not thinking about it. Renting is fine for us for now. Manhattan is worth it.
We only need one car, and we lease it.
We both have over 100K in school and credit card debt we are paying down
We are planning an expensive wedding (70K plus) that we are paying for ourselves-- thank god for credit cards.
We do not want children-- but do plan on travelling A LOT when we get older (after 35)
And we both have million dollar trust funds that we get when we turn 35.
We have no savings and live paycheck to paycheck (we consider our trust fund our savings)
So we plan to buy (on credit!) a 25K ring because I''m WORTH IT, and I told him so, and OF COURSE he agreed. Plus, there''s always the trust fund.
Nobody is going to put that information out on the net, and without that level of detail : Net income to diamond ratio is useless. Because on the face of it 225 a year... some people would thing SURE buy a 25K ring. You can afford it, enjoy it. It''s only 10% of your income!
But you know what... the couple I described are short sighted idiots who SHOULDN''T spend 25K on the ring. They should have started paying down debt (instead of running it up with a ring purchase), putting money into savings, and doing a whole lot of other things. If that couple came to me and asked me what they should spend on a ring... I''d say... um. Buy the setting you love. Stick a lovely CZ, Mossanite, etc. in it for now. Cut up your credit cards, get a financial planner. Start paying down your debt, move to a cheaper apartment, either delay the wedding or elope, and putting money in savings. After you have at least 6 months worth of income saved up and your debt is gone, and you''ve maximized your 401K and ESPP plan options... buy a diamond to replace that center stone. And consider it your reward for maturity. On your five year wedding anniversary you can throw a big party and re-new your vows in style.
But... the thing is, you don''t want to hear all that. BUT THAT IS THE ANSWER TO YOUR QUESTION.
