I’ve written before about my friend Shelly, who makes probably about twice what I do and spends probably about 3 times as much.
She was complaining recently about how much money her financial planner is making her save for a down payment on a house. Apparently he has already told her that she’ll be adding her pay raise (and then some) to her monthly savings, for a total of $1500 per month. She’s secretly cutting back her 401K contributions to compensate. Oh, and she hasn’t told him about her 401K loan because she’s worried he’ll make her pay it back more quickly.
She was clearly looking for someone to agree that saving $1500 per month is ridiculous and that $1000 was already a lot to be saving, but all I could think about was the bottom line on my budget: $1800. She seemed confused by the fact that I wasn’t impressed with what she had managed to save – $10,000 last year, she crowed.
I am happy that she’s saving, and I know that going from not saving to saving $1000 per month is a huge leap. But it’s hard to be impressed when she takes home $1500 more per month than I do and complains about how hard it is to save money.
(On a completely unrelated note, she also told me that it’s useless to try to put down more than 3% on a house because you pay PMI no matter what (and I guess it’s not even possible to come up with the full 20%?). I stopped talking to her then because I wanted to pull out my hair at all the things wrong with her logic.)
But maybe I’m a savings snob. I have Chad, so I don’t have to go out to get social interaction when I crave it. We share an apartment (although we do share a really small one, which she might not be willing to do), so that helps us save. We don’t do anything that requires a big outlay of cash, most of the time we like hiking or just hanging out on the beach. Perhaps I’m a snob because my personality is one that welcomes alone time and enjoys simpler activities.
And the weirdest thing is, if she was a PF blogger, I would be impressed with (and jealous of) her savings & earnings and I would cheer her on. I’d encourage her to indulge when she felt deprived, although I might go off a bit in the comments about her 3% down payment spiel.
What do you guys think? Am I a snob?