If you are ‘upper class’ how did you make your fortune?

amother

↑ Linen ↓

Sat, Nov 23 2024, 11:19 pm

For those criticizing the Ramsey method, we’ll have by earning 200k annually (100k each), almost 2 million by the age of 50. On paper, we’re not there yet. We live in Israel and we do plan on saving about 100k per child, a little less. Tuition for college is cheap here also so it’s a smaller consideration. It’s more than enough, we grew up with nothing and didn’t know basics of finances. I do recommend.

amother

Crocus

Sat, Nov 23 2024, 11:25 pm

amother Linen wrote:

We follow Dave Ramsey. My husband will be able to retire and learn by 50 according to our plans and spreadsheets. I’ll continue working a little bit longer and retire after him. We’re not sure yet of what age I’ll retire, too far away to really know. He teaches you how to plan and invest to become a net worth millionaire. We wish we heard of him younger and we’d be there earlier. We both have jobs earning 100k, and we think we’ll be very comfortable in retirement by the numbers.

I am not understanding how you will retire at 50 earning 200k NOW.

Most frum families are barely making it on 200k.

I, for example, at mid 40s pay 90k in tuition.

Havent made a wedding yet.

amother

↑ Khaki ↓

Sat, Nov 23 2024, 11:40 pm

amother Crocus wrote:

I am not understanding how you will retire at 50 earning 200k NOW.

Most frum families are barely making it on 200k.

I, for example, at mid 40s pay 90k in tuition.

Havent made a wedding yet.

If they are very young, they can invest a lot and their money will compound.

amother

↑ Linen ↓

Sat, Nov 23 2024, 11:41 pm

amother Crocus wrote:

I am not understanding how you will retire at 50 earning 200k NOW.

Most frum families are barely making it on 200k.

I, for example, at mid 40s pay 90k in tuition.

Havent made a wedding yet.

We’re still 16 years away first of all, we’re making 200k now b”h. We’re planning based on this salary even though it should go up and who knows if we’ll have emergencies come up. We live in Israel, our tuition is $800 a month including after school activities. If we were in the USA, our salaries would be 350k in our old OOT community, which is much higher. We really are doing this by following Dave Ramsey’s method. We grew up with zero financial literacy and since stumbling into Dave Ramsey, we’ve been planning toward our long term goals using concrete numbers with saving/planning/investing with a written plan. We are very intentional with our money like he teaches.

amother

↑ Stone ↓

Sat, Nov 23 2024, 11:48 pm

amother Dahlia wrote:

what would be the best index fund you recommend investing in?
Thanks so much!

The only thing that matters with an index fund is fees. Get the one with the lowest fees.

(Other mutual funds are different. I'm talking about index fund.)

amother

DarkMagenta

Sun, Nov 24 2024, 12:05 am

What bothers me about Dave Ramsey type of approach is that people are so busy with spreadsheets and cheshbonos it feels as if Hashem is totally out of the picture. It is not a Jewish way of living. Of course save what you can, invest and don’t spend above your means. But the belief that we can control our finances until the day we die is anti Torah.
Op, my answer to you is Mazel. I’ve seen it so many times. If Hashem grants someone mazel, they will earn well.

amother

Dimgray

Sun, Nov 24 2024, 12:53 am

My DH has owned several businesses.
We invest in the stock market and in real estate when we have spare money.
BH we have passive income now from the rental property we bought so he can be more flexible on his salary and reinvest in his current business.

amother

Phlox ↓

Sun, Nov 24 2024, 1:01 am

amother Stone wrote:

That's the basics of financial responsibility. Wealth has its own language. If you followed Ramsey's philosophy, you're unlikely to ever become as wealthy as you can. That's just not what he's aiming for. He doesn't have a wealth mindset.

I was speaking to a friend who's a business owner recently. And she's super responsible with money and in that sense is financially literate. But she doesn't have the mindset it would take to become wealthy. She won't push her business in the direction it would need to become wealthy. She's afraid of risk, and to some extent, probably afraid of owning a big business.

What I'm trying to say to OP is that the answer to becoming wealthy isn't, for example, invest in real estate or go to medical school. The answer is, like most worthwhile things in life, long and complex and understood mainly by the people who are really dedicated to putting in the effort to learn it.

Which is why, despite there being some great podcasts out there, casually listening to podcasts is unlikely to put you in the right mindset and give you thorough knowledge of how wealth works.

(Obviously money is from Hashem and mazel. And a person can study and be dedicated and work hard and still not make it big. But in terms of hishtadlus, knowledge and mindset is more important than how many hours you work.)

So what DOES put you in the right mindset?

amother

Tanzanite

Sun, Nov 24 2024, 1:03 am

amother Linen wrote:

A net worth millionaire is not enough the days with a frum lifestyle. You really have to take onto account inflation when running your numbers. Similar salary and don't see how we'd retire at 50.

Edited to add l see it's 2 million. That's better. And that you don't have tuition in Israel. I guess that makes all the difference. Someone with 200k is barely making ends meet and not retiring early.

amother

Coral ↓

Sun, Nov 24 2024, 1:17 am

amother Linen wrote:

1 mill shek or dollars? Can I ask what you and your husband do to have such salaries?

amother

Blush

Sun, Nov 24 2024, 1:17 am

Obviously,first and foremost - Bracha from Hashem , which we always express our hakaras hatov for His chasadim to us.
1. We give a lot of tzedakah. A lot. BH. And that was already from before we “made it big”
2. Financial literacy. Neither of us learned enough of this in school , we actively seek out information.
3. We live quite a bit below our means. In every way Our clothing , our vacations etc. the bar mitzvahs weddings and all Simchas we make are simpler than others who I know make less than us. Our kids are more than ok with this , because they don’t see ostantasciousness (sorry about the spelling !) as a value. They see living Below one’s means, giving tzedakah , and saving money as values. I daven for continued Bracha and that our kids should keep to this way.

amother

↑ Coral ↓

Sun, Nov 24 2024, 1:18 am

amother Tanzanite wrote:

There is tuition. Just much less.

amother

↑ Linen ↓

Sun, Nov 24 2024, 1:36 am

amother Coral wrote:

1 mill shek or dollars? Can I ask what you and your husband do to have such salaries?

Close to 2 million US dollars. Again, this is paper calculations and not our reality today. Today we live carefully for tomorrow but we are people who are happy with less and we thank Hashem for every blessing. I just wanted to bring up this idea so people can see that it can be done and it’s not a foreign idea.

And it’s not lack of tuition, we’d make 150k more per year in the USA which would cover tuition and put us dollar wise in the same place.

We’re both in nerdy and in hi-tech.

Again, just wanted to bring up such an approach for those who were interested. B”h we’ve been very very blessed.

amother

Lightcyan

Sun, Nov 24 2024, 1:42 am

amother Linen wrote:

All my friends following Dave Ramsey are miserable. I wonder if the end justifies the means. I’d rather live a little less crazy now and not save as much. I don’t know that this method actually works. So I’ll be miserable and make my kids miserable so that at 50 I can have money? It just doesn’t make any sense to me. You should be able to live and save.

amother

↑ Coral

Sun, Nov 24 2024, 2:18 am

amother Linen wrote:

Ok, but what do you or did you do to bring 2 mill dollars in israel?

amother

↑ Phlox ↓

Sun, Nov 24 2024, 3:08 am

amother Lightcyan wrote:

I feel like it doesn’t work with the current inflation. I am sad that I spent my young years in poverty (not due to David Ramsey but in general).
My dh is adamant that pinching pennies doesn’t help to become rich. It only helps to generate more income.

amother

Mintgreen

Sun, Nov 24 2024, 6:02 am

amother Linen wrote:

Thanks so much for sharing your story. We live in Israel and my husband is a real tech nerd, but with a very low salary. If you're comfortable, can you share how you both found your jobs/what you specialize in?