Ask HN: If you make more than $200k, how do you manage your money?

3 pointsdalerus10y ago4 comments

Hey Everyone,

I've just finished my taxes for 2015 and after reviewing all my accounts I had an interesting thought. Over the last year, my wife and I have really stopped budgeting like we use to. Most of our eight years of marriage has been a combination of graduating university, getting into serious debt, being broke, paying off debt, and now we are financially fine. We have no debt and I've made a reasonable salary for the last three years.

Now that we have no debt and more cash coming in, we've gotten away from our budgeting habits. We use to follow an envelope system to manage money but we've just stopped doing it.

For those of you that take home $200,000+ a year, how do you manage your money? I've started maxing out my employers 401k matching, but beyond that I have no idea. Any good resources, or blogs to read? I've read Dave Ramsey's books, but not sure if there are any others our there that I should look at.

Thanks for any help!

4 comments

4 comments · 3 top-level

nness10y ago· 1 in thread

Assuming FI\ER is a goal, Reddit has a good place you can ask the same question: https://www.reddit.com/r/financialindependence

dalerusOP10y ago

Awesome! Thanks!

brudgers10y ago

The amount of money and effort it takes to reliably make money from money are significant. Ron Conway is a billionaire and his full time job is investing.

Whatever you read today about the system by which ordinary people beat the system is the same advice that was peddled in the 80's, 90's and 00's. It worked equally well for the S&L crisis, the dot.com bust, and the recent financial cluster fuck. Which is to say that it didn't work well at all.

My advice from further down the life cycle, put it in the bank and preserve it. The number of people I know who have had their "portfolios" destroyed vastly outweighs those whose investments consistently do well. I don't know anyone who beat the high frequency traders by anything other than dumb luck.

Good luck.

pacnw10y ago

I would recommend the book 'The Intelligent Asset Allocator' by William Bernstein, if you happen to find yourself in the position of worrying about what to do with excess funds.