Enjoy the Fruits
Kyle in Dallas and his wife are completely debt-free with savings, and they have a disagreement about their new budget.
QUESTION: Kyle in Dallas and his wife are completely debt-free with savings, and they have a disagreement about their new budget. When can they start enjoying the fruits of their labor? Dave says it’s time to start.
ANSWER: I think you’re there. Your house is paid for, you have money in savings, and retirement is underway. I think you guys are rock stars.
I want to teach people to save, and I want to teach people to invest. I’m going to challenge your wife that she’s operating in fear instead of contentment. I want you to be ambitious, aggressive savers. When you save 50% of your income, you’re an aggressive, ambitious saver. You have no debt—house or anything—and you’re 32 years old. You guys are rock stars.
If she were a good friend of mine, I would challenge her on a spiritual basis and ask where is the fear coming from that’s driving this, and why are you trying to seek security that you’ll never find? At this point, you’re chasing a rainbow. There isn’t a big enough pile of money to make you feel okay if you’re not feeling okay now.
If you save $70,000 a year—half of your income—you’ll have $85 million at 72 years old. If I’m half wrong, shut up! If I’m 90% wrong, you’ll have $8 million at retirement. If you can’t project into that and find a level of contentment and comfort, then something else is going on. What is driving this is the question I would have for her.