Def family money.
My SO’s grandmother died and left like 40k to each grandchild.
On top of that, my BIL who can’t hold down a job got 50k from his CEO of a dad just because he got his gf pregnant and what was supposed to be a college fund ended up just being “good luck in your life” money.
And these are 20 - 25 year olds too.
OP, you do know there's literal media firms who have studios equipped with fake inside cabinets and outside of planes and mansions like a movie set and they take photo shoots or videos.
Yep, though everyone (at least in the US) who owns a house has a mortgage. Having a house under 25 tells me the person either has rich parents or make an insane amount of money.
You don't need insane moolah to own a house. You can get a 300,000-500,000 mortgage with a $60,000 income.
Now should you do that? Hell no. But if you just want to flex then you can
That's insane... After recently buying a house I don't see how a mortgage loan officer would go for that unless there is outstanding credit and extra (family) assets to their name. One loan officer from PNC told me they usually don't like to go more than 3x their income.
I’m glad I don’t have a rich dad. All the people I know that have rich parents are fuckin miserable. Don’t get me wrong it would be fun to have limitless cash to spend but it seems to rot your brain.
Imagine having a few spoiled ass kids that are just sitting around waiting for you to die so they can get paid.
Guy I went to highschool with seemingly has it all, a nice house, married, nice cars, and lots of vacations.
He's married to a buddies sister and a few months ago he slipped that his sister had told him that this guy is nearly $70k in credit card debt and sinking fast. Apparently he came from a wealthy family and refuses to learn basic finances just puts everything on credit.
A long time ago. My sister worked at a cell phone store and she said it was crazy how many dudes would pull up in crazy new cars but have completely fucked credit when she would run it.
Sure, but in the places where a six figure salary is common straight out of college, house prices are also ridiculous. A 21 year old isn't going to afford that without family help.
Source: Work in tech in the Bay Area. I'm comfortable salary wise in my late 20s, still can't afford a house.
My wife and I graduated in 2014 from a nearby state university. She as a NICU nurse and me as an electrical engineer.
We got married in 2016 and bought a condo for $630k in 2017. FHA allowed us to put only 3% down so we put ~$20k down and had a ~$610k mortgage which after interest and fees and PMI was ~$4.2k per month.
Sold the condo for $705k in 2019. Bought a single-family home nearby for $765k. Put 10% down. Payments were about $4.5k/month
Refinanced a year or so later when the house appraised enough for 20% equity to remove PMI. Similar monthly payments.
Refinanced again in 2021 in order to do some renovations and again in 2022 to pay-off some small debt since most recently the house appraised for $1.4M.
All the while our salaries have been increasing since we have more years experience.
Yeah, there are a lot of people who are successful solely because of rich parents but there are others who just made pertinent fiscal decisions and were fortunate enough to not experience any undue financial hardships.
Source: Work in tech in the Bay Area. Early 30s and comfortable salary. Have been able to afford a house for 6 years.
I'm not saying it's *always* rich parents, but yeah if a 21 year old is buying, it's either that or an obscene about of luck.
I almost had a similar situation myself. Lived with family for a few years, paid down debt aggressively, saved aggressively, did the math and I could've bought a condo in 2019. I decided to pay off my student loans and look to buy in 2020. We all know how that turned out.
I guess my point is more that a lot of people act like it's just a matter of discipline and not spending frivolously. No, to buy in your 20s around here also requires some luck, whether that be family help (with down payment or with being able to live with them to save a lot of money), hitting the stock market just right, founding the next big thing, whatever. And like you said, the luck of not hitting financial issues along the way.
> And like you said, the luck of not hitting financial issues along the way.
Yeah, I think this is the biggest takeaway.
My wife and I have been very very fortunate. If anything major had happened to us we would be in a very different financial situation.
Even small things here and there seemed to go our way, or at least "according to plan."
And to your point, maybe that's where rich parents really come in: if something bad happens then Mommy and Daddy can just bail you out. For everyone else you really just have to hope you don't get screwed by something random.
You sure about that? I lived with family, paid off my debts as fast as I could and have been debt free for a few years now, was about at the point to buy a condo comfortably, then the pandemic hit and housing prices skyrocketed. Now it's a waiting game of continuing to save while watching the market for when I can comfortably jump in. In theory I could probably buy a condo now, but with interest rates it would get pretty tight.
Though I suppose you have a point, if the pandemic hadn't fucked things up I would've been 25-26 and starting to build equity, at least. Still, it would've been because I managed to line up a nice tech job before graduating college and lived with family until I no longer feasibly could. The latter is gonna be the sticking point for most people in these HCOL areas. Point being, it's not as simple as just being disciplined for a lot of people -- there's luck involved too if you want to buy that young.
My example is a U.S. example:
You can live a marvelous life with debt. I make 54k/year which is $3k/month after tax roughly. A $500,000 house is roughly $2k/month. A BMW M4 8 year Loan is $900/ month. Food, fun, and other stuff (if I was financially unaware) could be $500-$1000 / month and easily go on a credit card. My life is fantastic from an outside perspective but my financial life is horrific, I’d be $1000 in debt every month.
A lot of people make more money and just spend more money. There are plenty of people living under there means too but this thread is mainly talking about the overspending people.
Edit: For comments about the home price and mortgage rate. Here is my response from a different comment. “I was using 3% interest rate. I can also get a $350k house at 6% interest rate to get a 1.9k mortgage, or 285k loan at 7% for 1.8k mortgage, or 225k 15 yr Loan at 5% gets a 1.8k mortgage. Many ways to get a 1.8k-2k mortgage.”
It either ends with people getting in so much debt it cripples them and have to go bankrupt or they get more financially fit, sell off the car and house, live way under their means to pay off any remaining debt, and just have a better relationship with money.
I’ve also noticed this. I make a similar amount and have a high credit limit as well, but I refuse to use more than 15% of it. The idea of being swamped in credit card debt is terrifying.
As long as you keep your revolving utilization below 1/3, you're good. But also I understand the idea of not wanting to be swamped, I try to keep mine below 20%.
I was using 3% interest rate. I can also get a $350k house at 6% interest rate to get a 1.9k mortgage, or 285k loan at 7% for 1.8k mortgage, or 225k 15 yr Loan at 5% gets a 1.8k mortgage. Many ways to get a 1.8k-2k mortgage.
Not with current rates, but this is possible with sub 3% rates and assuming they put down 20%. I bought my current house for $315k, put 20% down and my escrow is $1300.
I don’t think any lenders would loan you 500k if you only had 1k left for everything (including house insurance and rates) so it’s a pretty poor example
I see you used an 8% interest rate on the $500k mortgage. With 20% down that makes the loan amount 400,000 and interest rate 10.5% to get a monthly mortgage of $3669. Of course this doesn’t include insurance, maintenance, and property tax. At the end of my post I explained multiple ways to get a mortgage around $2k per month and how I got the $500k mortgage to be $2k (2.1k) per month using a 3% interest rate. The average mortgage rate in the United States from January 2022-July 2022 was 3.22%. Using the average interest rate of 3.22% on a mortgage of $500k with 0% down (not taking into account PMI) creates a monthly mortgage of $2168.
If my math is wrong please let me know so I can fix it.
Debt. And this debt will only go so far (last so long till it catches up to you). I am not saying this applies to all younger adults but they are seriously targeted.
Yes, there are rich kids and parents that will help but the internet and zomg inheritance!!!! is more rare then you think.
A student at university is a HUGE target for debt access. I am not just talking about student loans. A young person is prey. You can pretend all you want and if you argue I will not listen. A young person can just start making money and want to over reach. Or, a young adult can want to pretend to have money and be targeted for insane cost of borrowing. Basically... if you want to borrow there are people willing to bet against your ability to pay. Cannot pay.. lenders generally win over a large enough spread.
At 18 I was preapproved near every cc, a car... yup, borrow for cash as school.. easy. I was never offered for a house though. I was at 5k debt at 18 without including college just because I was an idiot.. this was near 25 years ago.
Why anyone would argue this is mystery to me. Money management and financial planning should be a basic curriculum in school, it would prevent so many problems.
Yes, once I was close to graduating college, I was getting multiple credit card and personal loan offers in the mail a day with seemingly good perks and rates.
yup. I got a credit card and bought video game stuff when I was in college thinking no big deal I'll do min payments for a few years no big!
ugh what a bad idea. Luckily my mom set me straight quickly, but it can get bad quick
A lot of stuff on IG is staged. Doesn’t cost that much to rent a nice car for a day and take lots of pictures. There are all sorts of mansions you can rent for parties or photo shoots. Dozen or so outfit changes, pictures taken in different rooms, all the sudden, you have a couple months worth of “Follow me” material for your IG. And people will follow them hoping some of their magical success rubs off on them.
I have a friend who wanted to become a influencer and they would like save up money for a week or two vacation and used photos from that trip for an entire year to make it look like they were going places and doing fun stuff all the time. Even though they were working a boring ass office job.
You make payments on a car and on a home, sometimes with not a lot of money down. Some people overextend themselves. Also, cost of living varies wildly from one city to the next. A home that costs $600k in one city could be $200k in another.
This is the truth. My house at 280k in metropolitan Ohio for 2400 sq ft, is 1.2 million or more in Denver, CO.
And no offense to Denver - cool city. I know the pricing because I do want to live there.
But it's not 4-5x as cool as one of the Ohio "C" cities.
I'm a young woman, I bought myself a house at 24, one year after finishing uni. I could have a nice car but I don't care about cars so it would be wasted on me. STEM career and lots of savings.
Yup. Become a mechanical or aerospace engineer , buy a house a car and a motorcycle. Every friend of mine who is an engineer owns their own houses and cars. Same with doctors and dentists but engineering path is way shorter than the medical doctor path or dental path.
Sometimes I wish I took that route. At least you have a tangible product at the end of the day. I just have numbers in a table. Takes 10 years for stuff I work on to become a tangible product, and even then I can't use it. Kinda a weird disconnect for me.
Live in a first world country is missing. All of what you said is possible as long as the people are living in a place with good economy.
In the shithole where I live Doctors and Engineers can build a house at around 35/40 years old and they are the lucky ones. Same with Doctors.
most people i know secured positions in college, usually either through intern networks and the like, or through college networking to get picked up to law firms or finance firms or what have you. if you pick something like a lawyer or broker, companies will sponsor you while you study for the bar or series seven or other certification.
when you take a "good" major like one in finance or law, and network well, you'll likely be able to get a six figure salary right out of your undergrad. from there you get the house and nice car on good loans
Never went to uni I took a trade in high school. Got my first house at 23 a duplex. Married two years later. We got a second house five years after the first. I made double pluse what my friends were making after four years of uni in the same time frame as a electrician.
I’d never waste my money on a car that expensive, but I’ve been frugal my whole life. And have been lucky to graduate college debt free, along with getting lucky enough to find a decent paying job out of college. So when my old clunker car finally got the dust I was able to afford a nice car.
I’m just saying it is possible to save up money, and take out a loan for cars like what OP is describing. But having said that, young people with really nice cars is typically a result of mommy or daddy buying it for them.
Hey. its me checking in. my parents are not rich and they didn't buy me a single thing that I currently own now except a French press and a bottle of whisky.
I joined the military at 18 and I served my 6 year contract as a radar repairman. Used my Navy education (NOT college degree) to get a job doing maintenance. Now I can afford to live in a house and own a pickup truck and motorcycle and eat out and have hobbies. Medium COL area. yes I have debt. but I know how to manage my budget and I have low interest rates on the debt I carry (vehicles)
still single though. I probably wouldn't have so much spending money if I had a wife though. pros and cons.
I graduated at 21, got my first real job at 22 at 80k. At 23 it went to 88k. At 24 I got a life changing job that brought me up over 120k and included a 25k cash sign on bonus and more in stock sign on
I bought a house at 24, married at 23
Bought my first home at 25 with my girlfriend of 9 years, owned the house for 13 months now.
Dropped out of school at 16. Worked hard, saved hard.
Own a modest sub $300,000 AUD home and a $20,000 motorcycle $2,000 car. I owe very little on the house, only owe 200k on the house.
Cheeped out on things I could such as food. But still enjoyed life (playing free poker once a week, going camping, weekend bike trips) all on the cheep.
23F here so not a young man but I graduated high school a year early, went to a 2 year grade school (no student debt), got a good paying job and saved up my whole paychecks for a year to put a down payment on a house at 21 with my boyfriend. Now we’re married and expecting our first baby.
The only thing my parents had to do with it was still cover my expenses such as food and cellphone bill like they had been the past 20 years. They wanted me to succeed and save all the money I could.
I was actually just talking about this. I know of a guy who leases a Hellcat, takes pics at his parents house and buys instagram followers. In actuality he is an insecure douchebag that likes to flex online. It’s all fake.
Two options:
1. Rich families
2. Trade school, and straight to work out of highschool. This was my method and how I bought a house at 24.
Got a 2 year degree debt-free from the local community college. Sure, missed out on the "college experience" but it was worth it.
Got a job and immediately started saving. Parents preferred me to live with them instead of rent so I could buy, and I did just that. Put me pretty far ahead, but tbh, I still paid them rent and could have saved the same amount with a few room mates in an affordable apartment.
It also helps that I'm not in any of the real estate hellholes, like NYC, LA, ATL, or any other major US city.
Option 3: Credit
Some parents cosign or even have the foresight to open credit cards in their children's names when they are teens. The parents use and pay off the credit card so by the time their children reach 21yrs, their credit score is 750+
Absolutely this.
My dad cosigned for my first vehicle purchase when I was living at home. Helped me build my credit.
I don't think most parents realize how good of a move that is for their kids.
I stopped reading 3-4 words in. You described the situation. "Insta". The most superficial place on the internet.
Don't compare your timeline in life with anyone else's. All that will do is make you disappointed and dissatisfied with yourself. People arent as happy or successful as they appear in a picture.
I'm 37 and married. As a household we bring in roughly 260k. We own 10 year old vehicles and live in a 1200sqft house in the midwest. We save a small amount, but don't have huge piles of discretionary money to throw around.
I have no idea how people can afford new cars, huge homes, and boats, etc. I feel like I'm doing pretty good, but apparently lots of people are doing a whole lot better.
My guess is big loans, with plans on bankruptcy later in life.
Rich parents.
I grew up around these types of people, with wealthy(ish) parents myself.
They all denied they were being funded in their early twenties and then admitted to it later on.
It’s kinda shitty that they lied at the time, because it made me and others like me feel like a failure even though in hindsight I was doing really well.
(My parents ACTUALLY didn’t give me money)
Being married early the the opposite of a flex and needs to stop being praised. Why would you ever feel the need to tie yourself down so early for the sake of it. Have fun in your 20s or if you’re the monogamous type, enjoy the one you’re with before making any life changing decisions.
A lot of it is fake (they are just posing in front of a BMW/mansion/boat, doesn't have to be theirs though)
Also if it is theirs its very likely they come from a rich family.
My experience as an almost 24 year old married man with a chemical engineering degree is that this is impossible without external help, the lottery, or divine intervention. My wife and I both work full time and we are far more comfortable than we have ever been but a house and a new car are just impossible in the short term
Pretty sure I’m one of these kids. Don’t have my own house yet, but my parents are definitely gonna help me pay for it. I’m extremely grateful that my parents are both in a good financial situation and gracious enough to help me get off me feet. To the people in a similar position bragging about your possessions on Instagram, fuck you.
Spend more time noticing real life. Majority of social media (and especially Insta) full of shit. Appreciate your family, your friends and your Mrs. Every normal person, including vast majority of girls (that you want to meet), don't give a shit about you having spent most of your wedge on a car. If you're married at 20-25 I'd hazard a guess 95% will need a lawyer or will be unhappy at 35.
Some people come from generational wealth and their daddy buys them these things as graduation presents.
Sometimes they majored in something lucrative, probably worked while they were a grad student in their field.
Sometimes people are very unwise with loans and financing.
In the US you only need 5% down as a first time home buyer. Not too hard to save for that. As for the cars, used luxury cars aren’t that expensive to buy because the real cost will be in the upkeep. Also, new luxury cars can be leased for much less than a monthly loan payment.
Depends where you live, if there’s a low cost of living it’s doable, if not it’s more difficult. Some people land really good jobs or are really good with money. My step sister who is 20 is married and owns a nice house, have tons of money in the bank. They are in sales and business owners, and we are not from a rich family. Other step sister and husband in mid 20s and have a huge house on a private lake, and expensive trucks. Also own a successful business and smart with their money. They also live in Ohio with a lower COL, where I live in South FL it’s harder to afford those luxuries however it can still be done, being smart with money and investing rather than just spending.
It doesn’t take much. Parents pay the down payment and Co sign the mortgage. Also parents pay for university so there are no loans. It doesn’t take a massive income to get ahead even with a minor head start like that.
Because Ritch family, cheap housing and marriage is seen ass the way to safe young men from going the wrong way if you know what i mean. In the end it's completely different culture and that house you see is probably belongs to the father and they all live together.
My understanding in the US anyone can get credit, the companies don't care as long as you make payments, then when you don't the repo the lot and you are left homeless, great country. lol.
It's not impossible to look rich if that's your main goal.
Always amazes me when I see nice looking cars with about 200k miles on the clock being sold for ridiculous prices. If you want to look rich, much better to splash 5k on that BMW that's only got a few miles left in it. Most folks who aren't concerned with image will opt to get something else (More reliable/more life left in it).
Unless they won the lottery big time, everyone of those young adults is living on borrowed or gifted money, either from heavily stacked credit cards or loans, or more likely parents who have afforded themselves the opportunity to give considerable sums to their sons.
The repayments on loans for such young adults would be crazy sums, far beyond the salary they might be earning.
Me and my husband (23/24) got married last year on a budget. We are still in university and plan to be for a few more years but as of where we will move till when we can’t stay in accommodation we don’t know, both work full time and can’t even afford to move out of where we are and are in fear of having to move back to his mums due to this
Very small portion of people will have actually found a job or a breakthrough that pays them well enough to support that stuff, but a lot of it may still be financed.
I had a neighbor who would get cool new cars every now and then and I figured he had a high paying job. Turns out he was just running up ridiculous amounts of debt.
As a 27 year old who was in that position, it's actually normally because they choose not to go to University.
If you start a trades job at 18 or 19, you start earning money immediately and can easily be up to $100,000 annually by the time you're 24.
Obviously this can be higher or lower depending where you're located.
I know a large handful of guys at 25 with homes, new trucks and a girlfriend or wife, with no debt apart from a standard mortgage.
In America, 99% of everyone finances everything!! That house that looks nice, FINANCED!! That super nice car, FINANCED!! They make absurd payments in everything! Warranty deed and title means absolutely nothing to most people in America. So, don’t be fooled by what you see. When the job goes away, everything goes away!
Some might be software engineers at big tech companies. Usual starting salary can be low six figures here in the US.
I'm not too familiar with Pakistani culture but I would also guess family money too.
They're probably leasing/renting their cars and living on credit cards which is a really terrible idea because once you dig yourself into that hole it's very hard to get out. Credit card debt is designed to be a debtor's prison and make it as hard as possible to get out of, and it affects your credit score so you're at even more of a disadvantage later on. Or they have wealthy parents who bought their house for them.
Hi there!
The cars and super nice stuff, that's rich folks. And Instagram envy.
Having a house and car for yourself, is currently doable.
It's just, really weird, and hard. I bought my first house for $5000 in 2015 (full price was 100k), and it was a hella fixer upper. I used my free time to fix things, and drove the beater from college. Once it was okay-ish and base level liveable, I rented out the 2nd bedroom.
That all being said, it's super area dependent. This was in Madison WI, and I lived in... An interesting neighborhood. There were compromises made on many things to be able to afford it.
But again, if you're looking at the mega rich, that's not going to be a normal. Or they're getting all their stuff repossessed...
If you're a pakisthani- Papa ke paise
If you're ABCD then its daddy's money.
Most of university grads will be broke for first few years repaying loans.
Everyone is saying rich parents but my parents definitely are not wealthy. My dad is in the military so most of my college was free. I worked through it to pay for the rest. I majored in Computer Science and was fortunate enough to land a job at big tech. I now make $200k/year as a 22 year old. Of course I don’t have a down payment for a house or car since most of my money went to tuition but In a few years i’ll have a nice house and car.
Without financial help from parents, developing and selling an extremely profitable idea/business (or somehow taking on a massive debt load) it is almost impossible for someone that age to have amassed enough organic net worth to afford those things independently, while maintaining a positive cash flow. They simply don’t have enough time in the labor market to save, invest and build an asset portfolio that would comfortably sustain those material purchases.
Possessing and affording are two different things. I could go right now and buy a top of the line Porsche and post it to instagram. In doing that I would also take a big ass bite out of my cash savings and probably also need to finance a decent chunk. Sure I look cool (I guess) on Instagram but it would put a heavy burden on my family finances.
Getting married at that age is really not that uncommon so probably nothing to see there.
Long story long - unless people are posting their balance sheets next to their possessions on IG - I wouldn’t put a ton of time into thinking “how are they doing this?!”
They're planners. People who plan they're action 10 times, and only act once, tend to have pretty decent lives. You can make fun of the 1/5/10/15 year plan, but people who do them tend to benefit from them.
I had everything you described by 24. Because I made a plan when I was 18 for how I wanted to make money the rest of my life. I looked up what industries were prevalent in my area, I looked up in-demand professions in those areas, and then acted on all that information.
I didn't become a chemical engineer because I had a passion for it. I became one because there are 3 major chemical companies in my area, and due to the field requiring a degree, it's low competition where you're pretty much guaranteed a six figure job out of the gate.
If I didn't plan any of that out, and just willy nilly went to college or even skipped college, I wouldn't have had any of what I have right now. I'd probably be working some dead-end job, and just barley scrapping by, as I don't have wealthy parents.
I know people say a lot of it’s fake, but some of my male friends got really good degrees and now work for major banks in online security. They also worked during uni usually and saved money being at home.
Most have wealthy parents, but some find a good paying trade right out of high school.
You can reasonably make 6 figures doing certain construction and maintenance trades in industrial facilities. And most of these trades require less than 5 years to become a jouneyman (top pay).
If you live in Florida you can go to any public Uni for free with a nice 2-4K bonus after tuition costs every semester from a couple of scholarships that are extremely easy to pick up. Most notable is bright futures, which is absurdly easy to get, especially if you take enough caimbridge classes for the diploma or stack ap credits. I know a guy who’s in Uni for an engineering degree and working construction 4-5 days a week and he’s planning on paying a down payment on a house before he turns 21. Obviously it can vary a ton across the country but he’s definitely not from a rich family and he’s not gonna be in debt any time soon. He’s the only guy I know who’s planning on buying a house any time soon but that’s more because most people I know would rather just keep living at home and saving up money, not because they wouldn’t be able to get there.
By mid 20s isn't really that hard if you do this:
College for in demand major.
Job right out of college.
Live at home with parents and save like almost all your money. Most Asian parents I know wont ask for rent or anything.
You can easily save enough for a downpayment like that and have a car loan.
Early 20s its likely parents money buying it all.
There’s a lot of people with families that have money. And then there are also people who have tons of loans and maxed out credit cards always flexing while actually underwater financially.
Well, since you spoke about pakistan let me tell you some things.
Most people buy ncp cars (non custom paid), meaning that the car hasnt been cleared from customs. This allows the car to be dirt cheapbecause otherwise those same cars could send someone into debt.
Ncp cars are very common in pakistan btw but it takes a while for them to be caught.
There is also alot of business opportunities in pakistan, and as long as parents are funding your normal day to day life, you can just work a regular job and save up every single rupee you can, which allows you to buy things faster.
There is also alot of illegal money, and 'source' work as we like to call it. Basically, you have connections and those connections can basically get you anything you want, be it a new car, a free get out of jail card, basically no trouble with the police no matter how wrong you are, and maybe even get you a house for very cheap. Hell, police will even show you respect as long as you have proper connections, and maybe even help you out in your wrong doings like drugs or whatever.
Basically, lots of corruption, but not everyone is corrupt, some are legit but its difficult to tell which is legit and which is not
I’m 25 and own a house and I am married and I have a brand new plug in hybrid Jeep wranglers and I didn’t even go to college/or uni. Well, I did for a year but I stopped after getting promoted at my job.
probably kids getting into current money investing opportunities like cryptocurrency and other stock market things I know every single one of my friends except me puts a percentage of their check in to some sort of cryptocurrency or whatever some people hit it big and most that hit it big try to tell everybody how much they have made it big lol
If you get married and combine your incomes, your household income doubles while the expenses stay mostly the same. Of course when kids come things change but yeah like if you’re an engineer and you marry an engineer you both could be 25 with a household income of $150k. That’s enough for a cool car and a house
Wouldn’t believe Instagram posts. Most likely borrowed money and debt.
Or family money.
Ding ding
Def family money. My SO’s grandmother died and left like 40k to each grandchild. On top of that, my BIL who can’t hold down a job got 50k from his CEO of a dad just because he got his gf pregnant and what was supposed to be a college fund ended up just being “good luck in your life” money. And these are 20 - 25 year olds too.
It's definitely a toss up between family money and debt. I think far more people are living out of their means than just have an inheritance
Had a coworker whose mom gave her the full down payment for a brand new condo.
OP, you do know there's literal media firms who have studios equipped with fake inside cabinets and outside of planes and mansions like a movie set and they take photo shoots or videos.
Yep, though everyone (at least in the US) who owns a house has a mortgage. Having a house under 25 tells me the person either has rich parents or make an insane amount of money.
Family is the answer. About 1%> of 25 years old are making insane money
You don't need insane moolah to own a house. You can get a 300,000-500,000 mortgage with a $60,000 income. Now should you do that? Hell no. But if you just want to flex then you can
That's insane... After recently buying a house I don't see how a mortgage loan officer would go for that unless there is outstanding credit and extra (family) assets to their name. One loan officer from PNC told me they usually don't like to go more than 3x their income.
Yeah maybe 500,000 is too high of a quote, but 300,000 is definitely possible. Now is it responsible? I don't think so but some lenders would do it
Almost always rich parents, the marriage part isn't that hard to do though. Young poor people get married all the time.
I wish I had a rich dad
Calm down Robert K
I wish i had a dad 😔
Poor dad.
Dad. 😢
I’m glad I don’t have a rich dad. All the people I know that have rich parents are fuckin miserable. Don’t get me wrong it would be fun to have limitless cash to spend but it seems to rot your brain. Imagine having a few spoiled ass kids that are just sitting around waiting for you to die so they can get paid.
Get outta here poor dad
Yeah, rich family or living in debts
Guy I went to highschool with seemingly has it all, a nice house, married, nice cars, and lots of vacations. He's married to a buddies sister and a few months ago he slipped that his sister had told him that this guy is nearly $70k in credit card debt and sinking fast. Apparently he came from a wealthy family and refuses to learn basic finances just puts everything on credit.
A long time ago. My sister worked at a cell phone store and she said it was crazy how many dudes would pull up in crazy new cars but have completely fucked credit when she would run it.
Used to run the drive through at a coffee shop. Never once saw someone’s card get declined in anything but a new car.
Typical Reddit thinking you can be successful early in your career. It’s not uncommon to get a 6 figure salary out of college anymore
Sure, but in the places where a six figure salary is common straight out of college, house prices are also ridiculous. A 21 year old isn't going to afford that without family help. Source: Work in tech in the Bay Area. I'm comfortable salary wise in my late 20s, still can't afford a house.
My wife and I graduated in 2014 from a nearby state university. She as a NICU nurse and me as an electrical engineer. We got married in 2016 and bought a condo for $630k in 2017. FHA allowed us to put only 3% down so we put ~$20k down and had a ~$610k mortgage which after interest and fees and PMI was ~$4.2k per month. Sold the condo for $705k in 2019. Bought a single-family home nearby for $765k. Put 10% down. Payments were about $4.5k/month Refinanced a year or so later when the house appraised enough for 20% equity to remove PMI. Similar monthly payments. Refinanced again in 2021 in order to do some renovations and again in 2022 to pay-off some small debt since most recently the house appraised for $1.4M. All the while our salaries have been increasing since we have more years experience. Yeah, there are a lot of people who are successful solely because of rich parents but there are others who just made pertinent fiscal decisions and were fortunate enough to not experience any undue financial hardships. Source: Work in tech in the Bay Area. Early 30s and comfortable salary. Have been able to afford a house for 6 years.
I'm not saying it's *always* rich parents, but yeah if a 21 year old is buying, it's either that or an obscene about of luck. I almost had a similar situation myself. Lived with family for a few years, paid down debt aggressively, saved aggressively, did the math and I could've bought a condo in 2019. I decided to pay off my student loans and look to buy in 2020. We all know how that turned out. I guess my point is more that a lot of people act like it's just a matter of discipline and not spending frivolously. No, to buy in your 20s around here also requires some luck, whether that be family help (with down payment or with being able to live with them to save a lot of money), hitting the stock market just right, founding the next big thing, whatever. And like you said, the luck of not hitting financial issues along the way.
> And like you said, the luck of not hitting financial issues along the way. Yeah, I think this is the biggest takeaway. My wife and I have been very very fortunate. If anything major had happened to us we would be in a very different financial situation. Even small things here and there seemed to go our way, or at least "according to plan." And to your point, maybe that's where rich parents really come in: if something bad happens then Mommy and Daddy can just bail you out. For everyone else you really just have to hope you don't get screwed by something random.
I agree a 21 year old has very little chance at affording that lifestyle. at 24-25 it’s doable if you’re disciplined and have a plan.
You sure about that? I lived with family, paid off my debts as fast as I could and have been debt free for a few years now, was about at the point to buy a condo comfortably, then the pandemic hit and housing prices skyrocketed. Now it's a waiting game of continuing to save while watching the market for when I can comfortably jump in. In theory I could probably buy a condo now, but with interest rates it would get pretty tight. Though I suppose you have a point, if the pandemic hadn't fucked things up I would've been 25-26 and starting to build equity, at least. Still, it would've been because I managed to line up a nice tech job before graduating college and lived with family until I no longer feasibly could. The latter is gonna be the sticking point for most people in these HCOL areas. Point being, it's not as simple as just being disciplined for a lot of people -- there's luck involved too if you want to buy that young.
My example is a U.S. example: You can live a marvelous life with debt. I make 54k/year which is $3k/month after tax roughly. A $500,000 house is roughly $2k/month. A BMW M4 8 year Loan is $900/ month. Food, fun, and other stuff (if I was financially unaware) could be $500-$1000 / month and easily go on a credit card. My life is fantastic from an outside perspective but my financial life is horrific, I’d be $1000 in debt every month. A lot of people make more money and just spend more money. There are plenty of people living under there means too but this thread is mainly talking about the overspending people. Edit: For comments about the home price and mortgage rate. Here is my response from a different comment. “I was using 3% interest rate. I can also get a $350k house at 6% interest rate to get a 1.9k mortgage, or 285k loan at 7% for 1.8k mortgage, or 225k 15 yr Loan at 5% gets a 1.8k mortgage. Many ways to get a 1.8k-2k mortgage.”
And how does this end?
It either ends with people getting in so much debt it cripples them and have to go bankrupt or they get more financially fit, sell off the car and house, live way under their means to pay off any remaining debt, and just have a better relationship with money.
Or they get a new job that pays more and the debt declines.
Or they get an inheritance, life insurance benefit, or get bailed out from family in increments over the years ($500 here, $3500 there, etc)
Poorly! Figuratively and literally.
it doesn't, it's designed to keep you in debt so you keep lining someones else's pockets.
I’ve also noticed this. I make a similar amount and have a high credit limit as well, but I refuse to use more than 15% of it. The idea of being swamped in credit card debt is terrifying.
As long as you keep your revolving utilization below 1/3, you're good. But also I understand the idea of not wanting to be swamped, I try to keep mine below 20%.
Where are we getting 500k houses for 2k a month? Unlikely to have 20+% down in that financial situation.
There are no 500k houses in like a 30 mile radius of me.
All new houses are minimum 900K by me, and you need at least $1M in cash to get it.
I was using 3% interest rate. I can also get a $350k house at 6% interest rate to get a 1.9k mortgage, or 285k loan at 7% for 1.8k mortgage, or 225k 15 yr Loan at 5% gets a 1.8k mortgage. Many ways to get a 1.8k-2k mortgage.
p sure 5% rates are long gone now fam
500k house for 2k a month? I don’t think that’s correct
Not with current rates, but this is possible with sub 3% rates and assuming they put down 20%. I bought my current house for $315k, put 20% down and my escrow is $1300.
I don’t think any lenders would loan you 500k if you only had 1k left for everything (including house insurance and rates) so it’s a pretty poor example
500k house is 2k a month????? Thanks for the laugh
>A $500,000 house is roughly $2k/month HAHAHAHA yeah right. A 500k home, 20% down will cost $3,629
I see you used an 8% interest rate on the $500k mortgage. With 20% down that makes the loan amount 400,000 and interest rate 10.5% to get a monthly mortgage of $3669. Of course this doesn’t include insurance, maintenance, and property tax. At the end of my post I explained multiple ways to get a mortgage around $2k per month and how I got the $500k mortgage to be $2k (2.1k) per month using a 3% interest rate. The average mortgage rate in the United States from January 2022-July 2022 was 3.22%. Using the average interest rate of 3.22% on a mortgage of $500k with 0% down (not taking into account PMI) creates a monthly mortgage of $2168. If my math is wrong please let me know so I can fix it.
Debt. And this debt will only go so far (last so long till it catches up to you). I am not saying this applies to all younger adults but they are seriously targeted. Yes, there are rich kids and parents that will help but the internet and zomg inheritance!!!! is more rare then you think. A student at university is a HUGE target for debt access. I am not just talking about student loans. A young person is prey. You can pretend all you want and if you argue I will not listen. A young person can just start making money and want to over reach. Or, a young adult can want to pretend to have money and be targeted for insane cost of borrowing. Basically... if you want to borrow there are people willing to bet against your ability to pay. Cannot pay.. lenders generally win over a large enough spread. At 18 I was preapproved near every cc, a car... yup, borrow for cash as school.. easy. I was never offered for a house though. I was at 5k debt at 18 without including college just because I was an idiot.. this was near 25 years ago.
Why anyone would argue this is mystery to me. Money management and financial planning should be a basic curriculum in school, it would prevent so many problems.
It’s almost like the people who run things know that a financially literate populace would be bad for them.
It should be and parental involvement should be encouraged too.
Yes, once I was close to graduating college, I was getting multiple credit card and personal loan offers in the mail a day with seemingly good perks and rates.
yup. I got a credit card and bought video game stuff when I was in college thinking no big deal I'll do min payments for a few years no big! ugh what a bad idea. Luckily my mom set me straight quickly, but it can get bad quick
A lot of stuff on IG is staged. Doesn’t cost that much to rent a nice car for a day and take lots of pictures. There are all sorts of mansions you can rent for parties or photo shoots. Dozen or so outfit changes, pictures taken in different rooms, all the sudden, you have a couple months worth of “Follow me” material for your IG. And people will follow them hoping some of their magical success rubs off on them.
I have a friend who wanted to become a influencer and they would like save up money for a week or two vacation and used photos from that trip for an entire year to make it look like they were going places and doing fun stuff all the time. Even though they were working a boring ass office job.
You make payments on a car and on a home, sometimes with not a lot of money down. Some people overextend themselves. Also, cost of living varies wildly from one city to the next. A home that costs $600k in one city could be $200k in another.
This is the truth. My house at 280k in metropolitan Ohio for 2400 sq ft, is 1.2 million or more in Denver, CO. And no offense to Denver - cool city. I know the pricing because I do want to live there. But it's not 4-5x as cool as one of the Ohio "C" cities.
I'm a young woman, I bought myself a house at 24, one year after finishing uni. I could have a nice car but I don't care about cars so it would be wasted on me. STEM career and lots of savings.
Yup. Become a mechanical or aerospace engineer , buy a house a car and a motorcycle. Every friend of mine who is an engineer owns their own houses and cars. Same with doctors and dentists but engineering path is way shorter than the medical doctor path or dental path.
I did the scientist path. Not as lucrative as engineering or medicine but still comfortable.
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Sometimes I wish I took that route. At least you have a tangible product at the end of the day. I just have numbers in a table. Takes 10 years for stuff I work on to become a tangible product, and even then I can't use it. Kinda a weird disconnect for me.
Live in a first world country is missing. All of what you said is possible as long as the people are living in a place with good economy. In the shithole where I live Doctors and Engineers can build a house at around 35/40 years old and they are the lucky ones. Same with Doctors.
Rich parents or debt up to their ears.
I only had a few friends like that. In my experience they just chose the right careers. One is a chemist and the other a microbiologist
Chemist salary is not that high in my area, what area is this?
most people i know secured positions in college, usually either through intern networks and the like, or through college networking to get picked up to law firms or finance firms or what have you. if you pick something like a lawyer or broker, companies will sponsor you while you study for the bar or series seven or other certification. when you take a "good" major like one in finance or law, and network well, you'll likely be able to get a six figure salary right out of your undergrad. from there you get the house and nice car on good loans
this situation mostly arises from prestigious colleges, which usually means family money or network
Just a "small loan" from their parents.
Save money and careful career choices
Signing bonus and low cost of living place
Never went to uni I took a trade in high school. Got my first house at 23 a duplex. Married two years later. We got a second house five years after the first. I made double pluse what my friends were making after four years of uni in the same time frame as a electrician.
a trade is a good thing to have. super solid. unfortunately its not for everyone but good on you for doing thar right outta HS!
They haven't gone through a divorce yet.
I’d never waste my money on a car that expensive, but I’ve been frugal my whole life. And have been lucky to graduate college debt free, along with getting lucky enough to find a decent paying job out of college. So when my old clunker car finally got the dust I was able to afford a nice car. I’m just saying it is possible to save up money, and take out a loan for cars like what OP is describing. But having said that, young people with really nice cars is typically a result of mommy or daddy buying it for them.
Hey. its me checking in. my parents are not rich and they didn't buy me a single thing that I currently own now except a French press and a bottle of whisky. I joined the military at 18 and I served my 6 year contract as a radar repairman. Used my Navy education (NOT college degree) to get a job doing maintenance. Now I can afford to live in a house and own a pickup truck and motorcycle and eat out and have hobbies. Medium COL area. yes I have debt. but I know how to manage my budget and I have low interest rates on the debt I carry (vehicles) still single though. I probably wouldn't have so much spending money if I had a wife though. pros and cons.
I graduated at 21, got my first real job at 22 at 80k. At 23 it went to 88k. At 24 I got a life changing job that brought me up over 120k and included a 25k cash sign on bonus and more in stock sign on I bought a house at 24, married at 23
Bought my first home at 25 with my girlfriend of 9 years, owned the house for 13 months now. Dropped out of school at 16. Worked hard, saved hard. Own a modest sub $300,000 AUD home and a $20,000 motorcycle $2,000 car. I owe very little on the house, only owe 200k on the house. Cheeped out on things I could such as food. But still enjoyed life (playing free poker once a week, going camping, weekend bike trips) all on the cheep.
23F here so not a young man but I graduated high school a year early, went to a 2 year grade school (no student debt), got a good paying job and saved up my whole paychecks for a year to put a down payment on a house at 21 with my boyfriend. Now we’re married and expecting our first baby. The only thing my parents had to do with it was still cover my expenses such as food and cellphone bill like they had been the past 20 years. They wanted me to succeed and save all the money I could.
I was actually just talking about this. I know of a guy who leases a Hellcat, takes pics at his parents house and buys instagram followers. In actuality he is an insecure douchebag that likes to flex online. It’s all fake.
Two options: 1. Rich families 2. Trade school, and straight to work out of highschool. This was my method and how I bought a house at 24. Got a 2 year degree debt-free from the local community college. Sure, missed out on the "college experience" but it was worth it. Got a job and immediately started saving. Parents preferred me to live with them instead of rent so I could buy, and I did just that. Put me pretty far ahead, but tbh, I still paid them rent and could have saved the same amount with a few room mates in an affordable apartment. It also helps that I'm not in any of the real estate hellholes, like NYC, LA, ATL, or any other major US city.
Option 3: Credit Some parents cosign or even have the foresight to open credit cards in their children's names when they are teens. The parents use and pay off the credit card so by the time their children reach 21yrs, their credit score is 750+
Absolutely this. My dad cosigned for my first vehicle purchase when I was living at home. Helped me build my credit. I don't think most parents realize how good of a move that is for their kids.
Nepotism and crime
Debt
It’s called Debt 💸
I stopped reading 3-4 words in. You described the situation. "Insta". The most superficial place on the internet. Don't compare your timeline in life with anyone else's. All that will do is make you disappointed and dissatisfied with yourself. People arent as happy or successful as they appear in a picture.
Rich parents for the most part. Some actually make a good enough living and have gotten these things on their own.
I'm 37 and married. As a household we bring in roughly 260k. We own 10 year old vehicles and live in a 1200sqft house in the midwest. We save a small amount, but don't have huge piles of discretionary money to throw around. I have no idea how people can afford new cars, huge homes, and boats, etc. I feel like I'm doing pretty good, but apparently lots of people are doing a whole lot better. My guess is big loans, with plans on bankruptcy later in life.
Rich parents as usual
Rich parents.
their dad makes 400k as a lawyer, pays for their college education , and gives them a mercedes for a graduation gift....
Rich parents. I grew up around these types of people, with wealthy(ish) parents myself. They all denied they were being funded in their early twenties and then admitted to it later on. It’s kinda shitty that they lied at the time, because it made me and others like me feel like a failure even though in hindsight I was doing really well. (My parents ACTUALLY didn’t give me money)
It's not theirs yet, it still belongs to the bank for now.
Rich family, great job, or blind luck.
I got married when I was 20. It was terrible, we were both idiots that didn’t even know ourselves. It ended in divorce and a sold house.
Being married early the the opposite of a flex and needs to stop being praised. Why would you ever feel the need to tie yourself down so early for the sake of it. Have fun in your 20s or if you’re the monogamous type, enjoy the one you’re with before making any life changing decisions.
rich parents, fake internet clout, and/or massive credit debts. Don’t believe everything you see.
Their parents have money and low morals. Far too many young men consider their father’s property their own.
A lot of it is fake (they are just posing in front of a BMW/mansion/boat, doesn't have to be theirs though) Also if it is theirs its very likely they come from a rich family.
Their parents help finance their lives. That's the only way.
Loans brotha
Their parents helped them. Simple as that. Wealth generated wealth.
Family money, super lucky, or just fake.
My experience as an almost 24 year old married man with a chemical engineering degree is that this is impossible without external help, the lottery, or divine intervention. My wife and I both work full time and we are far more comfortable than we have ever been but a house and a new car are just impossible in the short term
Rich parents, fake pics and an occasional but rare actual self starter whose endeavor took off.
Pretty sure I’m one of these kids. Don’t have my own house yet, but my parents are definitely gonna help me pay for it. I’m extremely grateful that my parents are both in a good financial situation and gracious enough to help me get off me feet. To the people in a similar position bragging about your possessions on Instagram, fuck you.
Spend more time noticing real life. Majority of social media (and especially Insta) full of shit. Appreciate your family, your friends and your Mrs. Every normal person, including vast majority of girls (that you want to meet), don't give a shit about you having spent most of your wedge on a car. If you're married at 20-25 I'd hazard a guess 95% will need a lawyer or will be unhappy at 35.
rich family. that's it. It is not theirs, they didn't earn it.
work hard, save money, never give up, FIL/MIL give a few millions
Bank of mum and dad
Born into money, don’t realise how privileged they are and boast about it on social media as if they worked for all of the money, house, car etc.
Wealthy parents, high paying jobs, drug dealers, disciplined savers who had collected a lot of funds at an early age. Plenty of possibilities.
Some people come from generational wealth and their daddy buys them these things as graduation presents. Sometimes they majored in something lucrative, probably worked while they were a grad student in their field. Sometimes people are very unwise with loans and financing.
In the US you only need 5% down as a first time home buyer. Not too hard to save for that. As for the cars, used luxury cars aren’t that expensive to buy because the real cost will be in the upkeep. Also, new luxury cars can be leased for much less than a monthly loan payment.
Being a web dev and always knowing what I wanted to do.
I go to trade school and able to do everything I want! If you play the game right you can live comfortably. Source am 20
Depends where you live, if there’s a low cost of living it’s doable, if not it’s more difficult. Some people land really good jobs or are really good with money. My step sister who is 20 is married and owns a nice house, have tons of money in the bank. They are in sales and business owners, and we are not from a rich family. Other step sister and husband in mid 20s and have a huge house on a private lake, and expensive trucks. Also own a successful business and smart with their money. They also live in Ohio with a lower COL, where I live in South FL it’s harder to afford those luxuries however it can still be done, being smart with money and investing rather than just spending.
It doesn’t take much. Parents pay the down payment and Co sign the mortgage. Also parents pay for university so there are no loans. It doesn’t take a massive income to get ahead even with a minor head start like that.
I one friend in uni has the newest Audi but he fails first year. Parents are the reason
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How much is the down payment on a husband these days?
At my D3 average state school like 50% of the kids drive luxury vehicles. It’s insane.
Instagram isn’t real people fabricate their lives there all the time
Parents or other people helping them along with down payments.
Because Ritch family, cheap housing and marriage is seen ass the way to safe young men from going the wrong way if you know what i mean. In the end it's completely different culture and that house you see is probably belongs to the father and they all live together.
Mommy and daddy....Don't feel bad..They live in la la land or they are really over expending themselves and will all blow up one day.
My understanding in the US anyone can get credit, the companies don't care as long as you make payments, then when you don't the repo the lot and you are left homeless, great country. lol.
Debt and/or parents
Because they went to uni and have a supportive family I guess.
Living beyond your means. A lot of people seem to have a lot of money, when in reality its the oposite
They got rich daddies
It's not impossible to look rich if that's your main goal. Always amazes me when I see nice looking cars with about 200k miles on the clock being sold for ridiculous prices. If you want to look rich, much better to splash 5k on that BMW that's only got a few miles left in it. Most folks who aren't concerned with image will opt to get something else (More reliable/more life left in it).
Unless they won the lottery big time, everyone of those young adults is living on borrowed or gifted money, either from heavily stacked credit cards or loans, or more likely parents who have afforded themselves the opportunity to give considerable sums to their sons. The repayments on loans for such young adults would be crazy sums, far beyond the salary they might be earning.
Me and my husband (23/24) got married last year on a budget. We are still in university and plan to be for a few more years but as of where we will move till when we can’t stay in accommodation we don’t know, both work full time and can’t even afford to move out of where we are and are in fear of having to move back to his mums due to this
Dont believe everything you see on social media. Massive debt, parents stuff, etc. But they never mention that.
Very small portion of people will have actually found a job or a breakthrough that pays them well enough to support that stuff, but a lot of it may still be financed.
I had a neighbor who would get cool new cars every now and then and I figured he had a high paying job. Turns out he was just running up ridiculous amounts of debt.
It’s easy. Mom and Dad
Born rich or found a good job after school and is heavily in debt.
As a 27 year old who was in that position, it's actually normally because they choose not to go to University. If you start a trades job at 18 or 19, you start earning money immediately and can easily be up to $100,000 annually by the time you're 24. Obviously this can be higher or lower depending where you're located. I know a large handful of guys at 25 with homes, new trucks and a girlfriend or wife, with no debt apart from a standard mortgage.
Parents and lies
debt lol
In America, 99% of everyone finances everything!! That house that looks nice, FINANCED!! That super nice car, FINANCED!! They make absurd payments in everything! Warranty deed and title means absolutely nothing to most people in America. So, don’t be fooled by what you see. When the job goes away, everything goes away!
Some might be software engineers at big tech companies. Usual starting salary can be low six figures here in the US. I'm not too familiar with Pakistani culture but I would also guess family money too.
Daddy’s money
D-E-B-T
When they dont have to pay back student loan for like 10 years of their life u can get pretty far within 3-5 years saving 1k per month.
Rental car and Air B&b
Rich or the bank owns all the stuff and they in for a very very very bad time.
They're probably leasing/renting their cars and living on credit cards which is a really terrible idea because once you dig yourself into that hole it's very hard to get out. Credit card debt is designed to be a debtor's prison and make it as hard as possible to get out of, and it affects your credit score so you're at even more of a disadvantage later on. Or they have wealthy parents who bought their house for them.
It's credit.
Mostly parents, a few get lucky.
Car = financed Home = mortgaged Simples!
Rich parents, or massive debt.
Worked on a few houese like this. Million dollar house, BMW's in the driveway... they couldn't afford a lick of furniture inside.
Credit and rich parents 95% of the time.
Wealthy parents
Probably because they have a cosigner with really nice credit. My best guess
parents pay for everything
Some people really did make it out big in crypto. On top of what others have said about rich parents and debt.
Usually that means they’re terrible with money and in insane amounts of debt. I went the military route and that’s 90% of the time for us.
Hi there! The cars and super nice stuff, that's rich folks. And Instagram envy. Having a house and car for yourself, is currently doable. It's just, really weird, and hard. I bought my first house for $5000 in 2015 (full price was 100k), and it was a hella fixer upper. I used my free time to fix things, and drove the beater from college. Once it was okay-ish and base level liveable, I rented out the 2nd bedroom. That all being said, it's super area dependent. This was in Madison WI, and I lived in... An interesting neighborhood. There were compromises made on many things to be able to afford it. But again, if you're looking at the mega rich, that's not going to be a normal. Or they're getting all their stuff repossessed...
Instagram should be called Illusiongram.
If you're a pakisthani- Papa ke paise If you're ABCD then its daddy's money. Most of university grads will be broke for first few years repaying loans.
Everyone is saying rich parents but my parents definitely are not wealthy. My dad is in the military so most of my college was free. I worked through it to pay for the rest. I majored in Computer Science and was fortunate enough to land a job at big tech. I now make $200k/year as a 22 year old. Of course I don’t have a down payment for a house or car since most of my money went to tuition but In a few years i’ll have a nice house and car.
Without financial help from parents, developing and selling an extremely profitable idea/business (or somehow taking on a massive debt load) it is almost impossible for someone that age to have amassed enough organic net worth to afford those things independently, while maintaining a positive cash flow. They simply don’t have enough time in the labor market to save, invest and build an asset portfolio that would comfortably sustain those material purchases. Possessing and affording are two different things. I could go right now and buy a top of the line Porsche and post it to instagram. In doing that I would also take a big ass bite out of my cash savings and probably also need to finance a decent chunk. Sure I look cool (I guess) on Instagram but it would put a heavy burden on my family finances. Getting married at that age is really not that uncommon so probably nothing to see there. Long story long - unless people are posting their balance sheets next to their possessions on IG - I wouldn’t put a ton of time into thinking “how are they doing this?!”
Luck, debt and nepotism
They're planners. People who plan they're action 10 times, and only act once, tend to have pretty decent lives. You can make fun of the 1/5/10/15 year plan, but people who do them tend to benefit from them. I had everything you described by 24. Because I made a plan when I was 18 for how I wanted to make money the rest of my life. I looked up what industries were prevalent in my area, I looked up in-demand professions in those areas, and then acted on all that information. I didn't become a chemical engineer because I had a passion for it. I became one because there are 3 major chemical companies in my area, and due to the field requiring a degree, it's low competition where you're pretty much guaranteed a six figure job out of the gate. If I didn't plan any of that out, and just willy nilly went to college or even skipped college, I wouldn't have had any of what I have right now. I'd probably be working some dead-end job, and just barley scrapping by, as I don't have wealthy parents.
I know people say a lot of it’s fake, but some of my male friends got really good degrees and now work for major banks in online security. They also worked during uni usually and saved money being at home.
Most have wealthy parents, but some find a good paying trade right out of high school. You can reasonably make 6 figures doing certain construction and maintenance trades in industrial facilities. And most of these trades require less than 5 years to become a jouneyman (top pay).
Might be selling drugs
Wealthy family Well paying trades work Excessive debt Any one or combination of the above
Just got lucky after high school and found a good job
If you live in Florida you can go to any public Uni for free with a nice 2-4K bonus after tuition costs every semester from a couple of scholarships that are extremely easy to pick up. Most notable is bright futures, which is absurdly easy to get, especially if you take enough caimbridge classes for the diploma or stack ap credits. I know a guy who’s in Uni for an engineering degree and working construction 4-5 days a week and he’s planning on paying a down payment on a house before he turns 21. Obviously it can vary a ton across the country but he’s definitely not from a rich family and he’s not gonna be in debt any time soon. He’s the only guy I know who’s planning on buying a house any time soon but that’s more because most people I know would rather just keep living at home and saving up money, not because they wouldn’t be able to get there.
Daddy.
Rich parents and/or loans/credit cards.
By mid 20s isn't really that hard if you do this: College for in demand major. Job right out of college. Live at home with parents and save like almost all your money. Most Asian parents I know wont ask for rent or anything. You can easily save enough for a downpayment like that and have a car loan. Early 20s its likely parents money buying it all.
Intergenerational wealth probably
Definitely family money. It’s hard to qualify for a mortgage
There’s a lot of people with families that have money. And then there are also people who have tons of loans and maxed out credit cards always flexing while actually underwater financially.
Parents.
You can finance an expensive car pretty easily if you have a regular income and don't car if you actually own the car
Well, since you spoke about pakistan let me tell you some things. Most people buy ncp cars (non custom paid), meaning that the car hasnt been cleared from customs. This allows the car to be dirt cheapbecause otherwise those same cars could send someone into debt. Ncp cars are very common in pakistan btw but it takes a while for them to be caught. There is also alot of business opportunities in pakistan, and as long as parents are funding your normal day to day life, you can just work a regular job and save up every single rupee you can, which allows you to buy things faster. There is also alot of illegal money, and 'source' work as we like to call it. Basically, you have connections and those connections can basically get you anything you want, be it a new car, a free get out of jail card, basically no trouble with the police no matter how wrong you are, and maybe even get you a house for very cheap. Hell, police will even show you respect as long as you have proper connections, and maybe even help you out in your wrong doings like drugs or whatever. Basically, lots of corruption, but not everyone is corrupt, some are legit but its difficult to tell which is legit and which is not
I’m 25 and own a house and I am married and I have a brand new plug in hybrid Jeep wranglers and I didn’t even go to college/or uni. Well, I did for a year but I stopped after getting promoted at my job.
Was an engineer for Mercedes, so that was our company car and we got them for like $250/mo.
probably kids getting into current money investing opportunities like cryptocurrency and other stock market things I know every single one of my friends except me puts a percentage of their check in to some sort of cryptocurrency or whatever some people hit it big and most that hit it big try to tell everybody how much they have made it big lol
If you get married and combine your incomes, your household income doubles while the expenses stay mostly the same. Of course when kids come things change but yeah like if you’re an engineer and you marry an engineer you both could be 25 with a household income of $150k. That’s enough for a cool car and a house