Finances and The Obliviousness of the Masses

It doesn’t matter if it’s Monday or Wednesday or Friday. Every time I drive by a restaurant at night, the parking lot is packed. How can this be? Inflation is still soaring. Interest rates are ballooning. The overall cost of living is rising in every conceivable way. How the hell do these people afford this? Are they going into mountains of debt? Are they forgoing their future retirement? Are they not sending their kid or kids to college? All three?

I recently conducted a completely unscientific survey that asked folks how much money they will need to comfortably retire one day. Dozens responded and estimates ranged from $1 million to $6 million. Let’s repeat that: $1 million to $6 million.

Looking at Illinois, let’s say someone retires at 65 and lives to 95. To retire comfortably, one estimate says they’ll need approximately $1,796,910.

Now, let’s say you have one kid you want to send to a four-year, public, in-state university in 15 years or so? That’ll arguably cost you around $250,000.

Let’s contrast that with the median Millennial net worth right now, which is approximately $127,793. That’s not terrible, but it’s not great either. Especially when you might need millions to retire and between $200,000 to $300,000 to send your kid to college in 18 years.

Next time, consider skipping Outback Steakhouse on a Monday night.