Both max out the 401(k) per the article and then the article adds (disingenuously), “only $7,300 left each year to go towards other savings goals, investment accounts or retirement funds.” Boohoo.
I can see two areas where they could save some money:
1) Cars
2) Vacation
Drop to one vacation a year (probably more than most people do) - bam, an extra $12k per year (assuming each vacation is a $6000 luxury outing - you could probably drop that to $2-3k and gain some more).
Purchase their vehicles outright - and more importantly, buy used, and keep them for 5-10 years. Don't go for "high end" (BMW? Land Cruiser?) - because that translates to "high end maintenance". Instead - stick to something that requires little maintenance and is reliable - Toyota would probably be best here; a late-90s Camry and a late-90s 4-runner would probably work well to meet their needs. Once purchased, then gone over by a mechanic (which won't be cheap that first year) - after that, saving another $9k per year (maybe more, since there might be better mileage and lower insurance).
There's potentially $20,000+.
Other possibilities? Well - there isn't much left that wouldn't mean sacrificing some real stuff. Maybe a cheaper home, but for where they are living that may not be an option.
But I think the first two basics identified would be the best place to start. Ultimately it comes down to not living within your means, but living below your means. But that a decision each of us has to make, based on what is wanted from life.
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[ 2.5 ms ] story [ 17.9 ms ] threadPurchase their vehicles outright - and more importantly, buy used, and keep them for 5-10 years. Don't go for "high end" (BMW? Land Cruiser?) - because that translates to "high end maintenance". Instead - stick to something that requires little maintenance and is reliable - Toyota would probably be best here; a late-90s Camry and a late-90s 4-runner would probably work well to meet their needs. Once purchased, then gone over by a mechanic (which won't be cheap that first year) - after that, saving another $9k per year (maybe more, since there might be better mileage and lower insurance).
There's potentially $20,000+.
Other possibilities? Well - there isn't much left that wouldn't mean sacrificing some real stuff. Maybe a cheaper home, but for where they are living that may not be an option.
But I think the first two basics identified would be the best place to start. Ultimately it comes down to not living within your means, but living below your means. But that a decision each of us has to make, based on what is wanted from life.