Quote:
Originally Posted by Sport-Tech
In major urban centres up here in Canada most younger peoples' "retirement savings" are getting sunk into 25 year mortgages. The average house in Toronto recently topped $1.1 million, and prices rose about 10% in the last 12 months, even with Covid. Dumpy little condos worth under $100k 20 years ago are now valued at over $500k.
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Similar situation here in the Los Angeles area, and especially in the beach cities/coastal area where I live. But I'm talking about the luxuries that young people spend on, in addition to the crazy mortgages they're paying. Not everything they spend on is essential, and if they can put aside $500/month instead of leasing that new BMW or trendy Tesla or eating out less during the week, that's where some of that discretionary money can be 'sacrificed' and put towards retirement. Or that daily $5 coffee vs. making one yourself. The little bits eventually add up.
When I graduated in 1990 and got my first job, most of my college buddies who also got their first jobs bought new cars within the first year. I drove my 280Z which I'd had since 1985 until 2013, when I bought my first new car for myself - my BRZ. 28 years for the first new car is an extreme example, of course, but I had co-workers who kept changing cars every few years, and saw them spend money that could have gone towards a better retirement nest egg. It's about priorities, and making some of the sacrifices
now (when you're younger) in order to benefit yourself 20-30 years down the road.