How do you live?

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Originally Posted By: 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.



I'm right with ya.....................
 
Right now I am trying to control expenses because I'm trying to build up a nest-egg. I want to use that nest-egg to make a downpayment on a house so I'm not renting forever.

I've had several opportunities to take trips to Vegas, buy nice stuff for the car, etc. but I've learned to use some restraint.

Mint.com and some personal budgeting really helped me get a grip on my expenses. My parents were also gracious enough to loan me some cash when I got out of school so I wouldn't be living paycheck to paycheck. Now that I've gotten some promotions and raises, I've been able to pay that back and start saving more money.
 
With some help from my mom, we purchased a house and pay 200 a month LESS than the rental. The "struggling" we are experiencing now is the cliche American dream struggle, and first time ownership stress is nothing like worrying about where you are going to live by Christmas time. I welcome owing home depot 600 bucks or whatever the balance is. It's for OUR HOME :)

As far as money management, get to where you can pay all bills every 3 weeks instead of 28-31 days and you'll end up so much better off. If you can stick to that plan on revolving debts that don't punish for early pay you'll reap great long run benefits. (Did I do that heck no but we're trying right?)
 
All I can say is that frugality and saving pay off. I lost my job in late June. Wife and I are savers, only purchases that are not cash are interest free on credit, and paid before any interest accrues. Needless to say, there have not been any purchases of late. Almost never go to restaurants (twice in the last twelve months, both times with gift cards), and do as much DIY as we can.

Until I find a new job, we are on a spending freeze. I have friends that carry 5 and six digit credit card balances. I think I'd have a heart attack in the middle of the night if I did that.
 
I'm with StevieC in that I can't stand to pay interest! Aside from our 12 year old house we have no substantial debt and if we chose to liquidate some investments we could easily pay it off. Hopefully the investments will soon resume making more than the very low interest rate we have on the house so we will be back in the black from a cash-flow perspective.

We have older vehicles and still use tube type TV's but will replace them when needed. As a matter of fact, we lost a 32" tv about 6 months back but I was able to find how to repair it on the net and fixed it (replaced 2 capacitors) for less than $5. Yep, guess I fix a lot of stuff that others would replace but I can't justify spending a lot on something fixable at a reasonable cost.

When we do purchase we research and buy quality and seldom have regrets. If I can find something second hand that is appropriate (appliances, electronics, cars, etc) I love the savings!

My Camry is a good example of how I work. I had a merchandising/sales associate job in 1997 and was getting paid about $.32/mile for driving my old Integra. Since I had already replaced 5th gear with a deep overdrive I could get 35 to 42 MPG if I drove it right so I saved the difference from what my mileage allowance vs. actual expenses and bought the Camry in 1999. It had 119k on it and I put another 180k on it as a garden supply sales rep again making money from the mileage expense. It just keeps going! Still looks ok and runs and drives great! Plus I have quite a few lifetime warranty parts on her now so maintenance costs are minimal.

I'd like to quote a wealthy friend of mine who lives in a 1920's $45k home..."Don't let anyone kid you, I got it by not spending it."
 
Originally Posted By: getnpsi
With some help from my mom, we purchased a house and pay 200 a month LESS than the rental. The "struggling" we are experiencing now is the cliche American dream struggle, and first time ownership stress is nothing like worrying about where you are going to live by Christmas time. I welcome owing home depot 600 bucks or whatever the balance is. It's for OUR HOME :)

As far as money management, get to where you can pay all bills every 3 weeks instead of 28-31 days and you'll end up so much better off. If you can stick to that plan on revolving debts that don't punish for early pay you'll reap great long run benefits. (Did I do that heck no but we're trying right?)


I pay my mortgage and oilBabe's car payment that way so I make an extra payment every year. I pay every 4 weeks, not every 30 or so days. That adds up to 13 payments each year.

It's great on the mortgage because it provides more interest to deduct each year. Plus it builds a sort of cushion if needed.
 
I suspect bitogers are a thrifty and financially responsible bunch. After all, we are looking to squeeze every drop out of our oils and cars. Ask the same question at the BMW forum and you'll probably get a very different answer (if people tell the truth).

Anyways like most bitogers I live within my means. I pack away 25% of my paycheck toward savings and retirement and have no debt except my mortgage.
 
Last edited:
Originally Posted By: CROWNVIC4LIFE
Originally Posted By: LS2JSTS
I live in a VAN, down by the RIVER!


Very sorry to hear!


I know he died young but has everyone already forgotten Mr Farley?
 
That was a classic episode... Still laugh thinking about it.
lol.gif
 
Man, you guys sound like you have EVERYTHING planned to a T.

Wife and family turns life way more complicated and life's twists and turns can ruin the best of plans.

We live a simple country life. Only essential material possessions. I diy a lot of stuff. My wife processes food out of our garden. Eating out is our once a week extravagance, usually places like Cracker Barrel! (cut us some slack).

I invest in a good workplace retirement plan, but we don't have enough emergency $ saved. We've NEVER had any help from our parents, including my college education, and we haven't inherited any windfalls. I work too much, am underpaid, but love my career and the positives it has provided me.

My wife has been out of work for 2 years with very serious health issues (expenses above our insurance). We had to hire a lawyer once - lets just say $$$$$$$$ for a kid related issue. Oh yea, kids (adults)...all of ours are with jobs, but challenged here in Michigan's career wasteland. They still cost me some money because that's what parents do (we are not enablers).

So, I also am somewhat in Johnny's boat in spite of "good" living and planning. Life's twists can beat you down, and I know many who are much worse off.

I somewhat despise people that "appear" to lead a charmed life. Usually, later, I learn they get beaten down also. Then I feel better.
 
I'm the kid who delivered newspapers when I was old enough to have a route. I mowed every yard in the neighborhood by the time I was 10.

I work as a mechanic for a airline. I have a six figure household income when wife's grocery store job is counted. I keep a quarter of a million dollars in my money market acct as my 'rainy day' money. I put the maximum allowed into my tax deferred 401k (wife does the same) and fund the Roth when the mood strikes me.

I bought my 2000 sq. foot starter home and paid cash for it and have never had a mortgage payment in my life. I pay cash for my cars when I want a new one.

I own a BMW.. and am quite sick of hearing the cliche about BMW owners. I prefer to drive my Volkswagen diesel because it's fun and unique. I don't carry debt beyond my monthly utility bills. I just spent a week in Munich because I like Weißwurst for breakfast and fresh Paulaner beer in the evenings. I stay in 5 star hotels (stayed at the Mandarin Orient Munich last week) and I fly first class.

I'll never be ashamed of being prosperous and I enjoy life. If I die tomorrow I'll not owe a single solitary soul a penny and I'll have no regrets.

As my best friends says,, "Stay thirsty my friends".
 
I've been lucky to have good jobs all my life. I try to live well within my means. I'm old school and still refuse to carry any debt except for a mortgage. I use credit cards all the time but it's been many years since I've paid any sort of finance charge.

We have some luxuries, but not many since we prefer to stash money away for retirement. We also keep six months of our gross accessible for emergencies.

My father taught me to put away 10% of your gross salary and spend the rest as you wish. Not a bad rule.

In general, we are frugal but comfortable and secure. Also lucky. Most people are really just one disaster away from poverty.
 
Originally Posted By: FowVay
I'm the kid who delivered newspapers when I was old enough to have a route. I mowed every yard in the neighborhood by the time I was 10.

I work as a mechanic for a airline. I have a six figure household income when wife's grocery store job is counted. I keep a quarter of a million dollars in my money market acct as my 'rainy day' money. I put the maximum allowed into my tax deferred 401k (wife does the same) and fund the Roth when the mood strikes me.

I bought my 2000 sq. foot starter home and paid cash for it and have never had a mortgage payment in my life. I pay cash for my cars when I want a new one.

I own a BMW.. and am quite sick of hearing the cliche about BMW owners. I prefer to drive my Volkswagen diesel because it's fun and unique. I don't carry debt beyond my monthly utility bills. I just spent a week in Munich because I like Weißwurst for breakfast and fresh Paulaner beer in the evenings. I stay in 5 star hotels (stayed at the Mandarin Orient Munich last week) and I fly first class.

I'll never be ashamed of being prosperous and I enjoy life. If I die tomorrow I'll not owe a single solitary soul a penny and I'll have no regrets.

As my best friends says,, "Stay thirsty my friends".


Not to doubt you but how does a ~$100K income allow you to live a lifestyle of the rich and famous? I know people who make more than you and they can't simultaneously pay cash for a house, a BMW, a VW, stay at five star hotels, while flying first class, AND compile a 1/4 million MM account. That sounds more like a $200K income.
 
+1, I was going to say that... We make a lot more than the poster and wouldnt think of doing many of those things.

That said, the saving spirit is great, and he may be far older than my wife and I.

Kind of like the Dave Ramsey mantra, "live like no others so you can live like no others".
 
Originally Posted By: StevieC
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?



Yes.

No.

Sometimes.

Never thought much about it; we are very blessed as everything we have is paid for and our present businesses are modestly profitable. We could live larger.

When in doubt, I try to do what's right.
 
haha,, Wow.. all of this doubting. It's all really quite simple and has been stated on this thread numerous times. You simply live within your means.

Here's exactly how I do it:

Stick $1500 per pay check into my money market acct. I get paid twice a month so that's only $3,000 per month savings. Over the years it adds up.

I live very efficiently. I DO turn off the lights when I leave a room. I NEVER leave a TV set on if nobody is using it. I keep the A/C set up in summer and low in winter to save energy.

I pay ZERO in interest to anyone. This is huge.

And finally,, I have no children.

But I have to admit that I'm quite disappointed in the responses from you guys. You all preach the 'live within your means' dialog but when you meet someone who has done this their whole life you act offended and distrusting. Do the simple math.. saving $30,000 per year for 10 years gives you a nice savings. Investing your $15,000 per year ($30,000 per year total including wife in 401k) over the years adds up.

Every person I know dribbles out countless thousands of dollars a year on expenditures they have nothing to show for. One hundred fifty for phone and internet each month, $200 for all the cable stations, spending the extra five on a mocha java latte late night... it goes on and on.

I probably should have not even commented in this thread. When I mentioned renting the Porsche on my last trip to Germany I was scoffed at. When I mentioned driving Stelvio pass in Italy I was literally called a liar on here. It was my mistake to think a group of adult men could understand the rewards of hard work in a world that caters to the FICO score and the good old debt payment.

Sorry,, I'd delete my previous comment if I could. I didn't mean to offend you all. Just let me share this bit of knowledge for those who think financial freedom is out of their reach: $250,000 dollars is a lot of money if you don't have it. It really isn't much if you do.

And just to verify, I am 46 years old, been married for nearly 20 of those.
 
No, seriously, thanks for your post - you are a great model. We live a lot like you (except we do have a mortgage). We save like you, and it is great to see the fruits of that labor.

Not to be rude, but we could not do the things you mention... But a few more years and I guess we could/will. Never really thought about it.

Thanks for being a model for how to live frugally.
 
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