How do you live?

[StevieC]

Regardless of the money you make and the expenses you have do you live within your means?

Do you shop to find the best price before buying something?

Do you turn off the lights in rooms that you are not in?

How do you live and what are your habits?

Thought this might be an interesting topic for discussion with the BITOG folk.


My way of living:

I live as frugally as I can, but I'm not cheap. I will spend the money on something if I feel it is warranted and I will get my money out of it over time. I live within the confines of the income I generate, I never carry a balance on a credit card or credit line unless I have the money to pay for it but am using the credit to my advantage such as investment reasons.

The only things I would go into debt for without having the full value up front for would be a house and a vehicle but I would never take on these purchases without the income to support them.

I make 99% of my meals from scratch and pack a lunch/snacks for the road. I very seldom go to the movies and never go shopping without a list.

I bank everything I don't need to spend for "living" so that I can "live" another day without working.

I take few vacations but do see the need for "Time off work" to reboot the system.

I don't drink (anymore) or smoke.

I like to help others where possible instead of donating aimlessly to charities at cash-registers at various retailers.

 

[javacontour]

I make a great income, drive a 6 year old car, live well below my means, took 4 days off this summer, and have been known to pay for items the person in front of me "put back" in the grocery line from time to time.

I bought 1/2 the home I could afford on my salary not considering my wife's.

Heck, I just moved up from a 16 year old daily driver to a 6 year old, so I'm living large, relatively speaking

 

[JHZR2]

I agree pretty much. Live under your salary, save well for retirement (or whatever), pay more where it counts or can help make something better for some reason. Avoid charity overhead where possible, look out for myself/family first, but care for humanity where it can make a real difference, and do it.

Take time to enjoy ourselves at the same time - might get hit by a bus tomorrow and all the savings in the world could be useless.

Avoid unsustainable behaviors, regardless of what they are, at all cost.

Realize that we dont "deserve" anything, luxury is wasteful and even if nice, for most things is just garbage, and that we cannot be too fancy if the finances don't support it. We arent billionaires...

 

[Steve S]

That is how I was taught to live. For example I am sure most of us would like to have a boat a fancy truck to tow it around maybe a fancy vette or a Porsche [911 turbo] or even a good used Ferrari would be fun. . But I would rather have the extra $$$ in the bank for the exact reasons you posted

 

[hemitom]

You are doing it the right way, in my opinion. I do have credit cards never carry a balance, don't buy it unless i need it, if i can't afford it i wait . Credit is a easy way to get caught up in for a lot of people, which leads to a insurmountable debt.

 

[StevieC]

I dunno, I'm not a materialistic person... I like nice things but there is a limit to it. If I won the lottery tomorrow I would be more inclined to pay off friends/family debts who deserve it and who need the help and would appreciate it. I would also do good with the money but I wouldn't live lavishly and spend it just because...

I would buy lots of exotic Coffees though because I love coffee.

 

[javacontour]

Actually, I use credit for the cash back bonus.

Yes I know all the Dave Ramsey fans are shuddering right now.

But if I'm buying groceries, paying my utilities, etc with a card and paying it in full each month, that extra $1K or so at the end of the year makes for some nice, stress free Christmas shopping money.

 

[StevieC]

Originally Posted By: javacontour
Actually, I use credit for the cash back bonus.

Yes I know all the Dave Ramsey fans are shuddering right now.

But if I'm buying groceries, paying my utilities, etc with a card and paying it in full each month, that extra $1K or so at the end of the year makes for some nice, stress free Christmas shopping money.
I do the same... I put everything possible on my cash-back Mastercard and I get back a fat cheque at the end of the year too. It's great that I spend so much money on gas/hotels for work and that all adds up!

Not carrying a balance is key though for those that don't understand credit...

 

[Burt]

Having seen in the 1980's and 90's that lots of colleagues and relatives were pushed out of their work in their fifties only to slide back to lower middle class, I decided to pack the money away in the stock market which was great until 2008. Before the crash my financial advisor said that I would be able to retire early at a significantly higher income than in my working days. Now it looks like it will be about even assuming things hold up. So I'm still blessed.

I am the only one of my work associates that still changes my oil, repairs the cars and house myself. There is no one to talk over such at work or in the neighborhood, therefore I come to this site.

I used to bargain to the max and squeeze the last nickel, but now I try to lighten up just a bit because I have been blessed.

 

[Johnny]

Pay check to pay check. Not the way it was planned but that is the way it turned out.

 

[LS2JSTS]

Originally Posted By: StevieC


I make 99% of my meals from scratch and pack a lunch/snacks for the road.



I agree with you, the savings "ethic" of most of the people I know is abysmal.

Just curious, doesn't Quiznos ever give you a free meal? Or do you just not like the "product"

 

[rjundi]

We live within our means but I would like to have a larger buffer(savings) in the just in case fund. I save for retirement.

I use credit cards for everything as I earn excellent rewards but never have carried a balance in at least 10 years.

We drive 6 year old cars and never will buy a brand new car nor car loan again.

The only hard part is I imagine my wife/I will send our kids latter to private school for high school. Unless something changes.

 

[StevieC]

Originally Posted By: LS2JSTS
Originally Posted By: StevieC


I make 99% of my meals from scratch and pack a lunch/snacks for the road.



I agree with you, the savings "ethic" of most of the people I know is abysmal.

Just curious, doesn't Quiznos ever give you a free meal? Or do you just not like the "product"
I have eaten a ton of Quiznos in the time I have been with the company both when we had our store and now as a DM. I just can't eat it anymore. I do have it from time to time if I was pressed for time and didn't have a chance to pack a lunch etc.

 

[StevieC]

Originally Posted By: rjundi
We live within our means but I would like to have a larger buffer(savings) in the just in case fund. I save for retirement.

I use credit cards for everything as I earn excellent rewards but never have carried a balance in at least 10 years.

We drive 6 year old cars and never will buy a brand new car nor car loan again.

The only hard part is I imagine my wife/I will send our kids latter to private school for high school. Unless something changes.


I keep a $25K credit line free and clear as my Emergency fund and invest my "emergency" savings in investments that could be liquefied if need be. I do this so I won't touch the savings easily and so that my money is making money not just keeping up or barely keeping up with inflation in a savings account which doesn't pay peanuts and so anything I do put on the Credit Line gets paid back right away because I hate paying interest and its good motivation.

I would drive a S/B car if I didn't do so many miles for work, but doing so I drive a new car and keep it until I get my money out of it.

 

[JHZR2]

Originally Posted By: javacontour
Actually, I use credit for the cash back bonus.

Yes I know all the Dave Ramsey fans are shuddering right now.

But if I'm buying groceries, paying my utilities, etc with a card and paying it in full each month, that extra $1K or so at the end of the year makes for some nice, stress free Christmas shopping money.


I do the same thing. Ive even been known to take a 0% teaser rate or leave a balance/transfer a balance after making big purchases if the deal was right (no more of those though).

The key is doing something better with the money, and being disciplined enough to pay it back right without incurring excessive interest.

 

[Steve S]

I do not carry a balance on my credit cards ever! I know what I spend!.

 

[JHZR2]

You can have a balance and know what you spend. But for example, when spending thousands of dollars (which I have) for something at home depot, why not put it on the HD CC getting the 0% for 6 months, pay back 1/6 per month, and accrue the interest all the while?

Or when there is a long-term 0% balance transfer offer, where I can use money elsewhere without any fees, why not keep my money making interest or doing something else, and use theirs?

You can carry a balance and know what you spend... and never pay a dime in interest either.

 

[StevieC]

I meant carry a balance in the sense of paying interest, not in the grace period given whether it's 10 days or 10 months...

 

[Schmoe]

Live within my means. A lot like SteveC. Only thing I owe is the house and car. Never carry a balance on the credit cards but put everything I can on them to get the 1% back from USAA. Put 10% of my wages in a 401k that was doing really great until last year, along with most of you. I do have a boat/seadoo/1 acre of "investment" property at Lake Texoma, and they are all paid off. Close to 20K in a 529 college savings plan for my daughter that, thank the Lord, is locked in safe funds. When we started hearing rumors of the massive Hertz layoff in Oklahoma City, we saved like crazy and have a comfort zone. It has afforded us to pay for my wife to go back to school to become a nurse. She got diagnosed with breast cancer here recently and we were, thank the Lord again, able to survive that financially. We can survive on my single paycheck and that's the way I had planned things out. Almost cost me a divorce because I was too "tight" or "cheap." But now she sees what I planned and protected for and is grateful. A lot of her friends have gone broke and or Chap. 7. That, is NOT an option to me. Credit rating is over 800. I miss the second pay check, but we'll make it barring no major, not covered under insurance, "problem," like AC goes out, cars give up the ghost, etc. etc. Hopefully in two years she'll be done and we'll then get the stuff we've been putting off like kitchen remodel, adding more to childs 529, etc. etc.

 

[Scienceman]

Actually, I use credit for the cash back bonus.

Yes I know all the Dave Ramsey fans are shuddering right now.
quote]

YEP!!!!!