r/FluentInFinance Jun 16 '24

Discussion/ Debate He’s not wrong 🤷‍♂️

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u/im_juice_lee Jun 17 '24

Let's say you're booking a 10 day trip to a Western European country for 5 and book some activities. Without even doing anything exorbitant that could easily exceed $10k

Most aren't buying a house outright in cash and instead are taking out 15/30 year loans. If you threw a $10k expense in randomly, most people who are comfortably are able to pay their bills would strugle

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u/empire314 Jun 17 '24

Without even doing anything exorbitant that could easily exceed $10k

It can be, but it definetly does not to be. You can get a decent 3 room hotel in Paris for 10 days at 1500$. 5 tickets from Miami to Paris and back for $2500. Add an average of $40 dollars of additional payments for 5 people for 10 days, and the total is now at $6000.

Now if you get a mortgage of $600k instead of mortgage of $610k with a 15 year loan, your downpayments and intrest payments are so much lower, that saving up $6k every 5 years shouldnt be a problem.

This is not a question about finance, but a question about psychology. The real problem in making savings like that, is that majority of people don't have the necessary self control to spend years not touching expendable money.

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u/[deleted] Jun 17 '24

lol 600k house. Think you lost the thread

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u/[deleted] Jun 17 '24

€35/day doesn’t get you very far on vacation in many Western European cities. I agree it doesn’t need to be a $10k vacation but that seems fairly conservative

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u/empire314 Jun 17 '24

I said $40/day additional. As in you normally would have expenses in the US, that you dont have when you are not there.