How good are you with your money?

[permabear]

This type of behavior is well-documented in “The Millionaire Next Door”, which finds that most millionaires are coupon-clipping miserly folk that amass money by (surprise) not spending it. They have paid-off cars, worn-down shoes, and live in modest neighborhoods. Warren Buffett is the most famous example.

Think about this: If you save $100k a year, with 0% interest, in 10 years you will be a millionaire. Add a modest interest rate (say 4%) and your riches get much larger. Turn the time period into 20 or 30 years, and you’re set.

Think of your own income. How much do you and your spouse make? Many people I know make $150k+ as a family. But they squander their money on fancy cars, new TV’s, the latest clothes, etc. It takes hard work and humility to live below your means, especially when all your peers have new BMW’s.

I’m NOT claiming to have it “all figured out”, but I’m 34 and have $500k in the bank. I make > $200k a year, but we live in a $2k/month rental, have cars that are paid off, and as a result save >$8k a month.

You have two choices: increase your earnings, or decrease your expenditures.

[UCGal]

I’m not as cheap as that guy – but I’m cheap. Our goal has always been to be able to live (stress free) on one of our incomes. Since both hubby and I work – it means we bank the other income.

Savings is divided up into buckets – retirement, kids 529’s, and rainy day fund. And we’re paying off the mortgage early – which will reduce our expenses in the future.

Like the guy in the article, our carpet is old and threadbare, we’ve got 1960’s original bathrooms in our house. But we’re slowly upgrading, doing the work ourselves, buying materials at discount.

I’m not a product of the depression but both my parents and my husbands parents were – and some of that rubbed off.

Cheap is the new black.

[UCGal]

I’m not as cheap as that guy – but I’m cheap. Our goal has always been to be able to live (stress free) on one of our incomes. Since both hubby and I work – it means we bank the other income.

Savings is divided up into buckets – retirement, kids 529’s, and rainy day fund. And we’re paying off the mortgage early – which will reduce our expenses in the future.

Like the guy in the article, our carpet is old and threadbare, we’ve got 1960’s original bathrooms in our house. But we’re slowly upgrading, doing the work ourselves, buying materials at discount.

I’m not a product of the depression but both my parents and my husbands parents were – and some of that rubbed off.

Cheap is the new black.

[UCGal]

I’m not as cheap as that guy – but I’m cheap. Our goal has always been to be able to live (stress free) on one of our incomes. Since both hubby and I work – it means we bank the other income.

Savings is divided up into buckets – retirement, kids 529’s, and rainy day fund. And we’re paying off the mortgage early – which will reduce our expenses in the future.

Like the guy in the article, our carpet is old and threadbare, we’ve got 1960’s original bathrooms in our house. But we’re slowly upgrading, doing the work ourselves, buying materials at discount.

I’m not a product of the depression but both my parents and my husbands parents were – and some of that rubbed off.

Cheap is the new black.

[UCGal]

I’m not as cheap as that guy – but I’m cheap. Our goal has always been to be able to live (stress free) on one of our incomes. Since both hubby and I work – it means we bank the other income.

Savings is divided up into buckets – retirement, kids 529’s, and rainy day fund. And we’re paying off the mortgage early – which will reduce our expenses in the future.

Like the guy in the article, our carpet is old and threadbare, we’ve got 1960’s original bathrooms in our house. But we’re slowly upgrading, doing the work ourselves, buying materials at discount.

I’m not a product of the depression but both my parents and my husbands parents were – and some of that rubbed off.

Cheap is the new black.

[UCGal]

I’m not as cheap as that guy – but I’m cheap. Our goal has always been to be able to live (stress free) on one of our incomes. Since both hubby and I work – it means we bank the other income.

Savings is divided up into buckets – retirement, kids 529’s, and rainy day fund. And we’re paying off the mortgage early – which will reduce our expenses in the future.

Like the guy in the article, our carpet is old and threadbare, we’ve got 1960’s original bathrooms in our house. But we’re slowly upgrading, doing the work ourselves, buying materials at discount.

I’m not a product of the depression but both my parents and my husbands parents were – and some of that rubbed off.

Cheap is the new black.

[paramount]

All of this is because of one of the following two reasons or both:

1. You live in fear

2. You LOVE money

There are no other reasons.

[paramount]

All of this is because of one of the following two reasons or both:

1. You live in fear

2. You LOVE money

There are no other reasons.

[paramount]

All of this is because of one of the following two reasons or both:

1. You live in fear

2. You LOVE money

There are no other reasons.

[paramount]

All of this is because of one of the following two reasons or both:

1. You live in fear

2. You LOVE money

There are no other reasons.

[paramount]

All of this is because of one of the following two reasons or both:

1. You live in fear

2. You LOVE money

There are no other reasons.

[joec]

This is all well and good, just hope he isn’t one of those wealthy folks who complain that they “can’t afford this or that…everything is so expensive, woe is me” (I’ve met a few), but sit on a few hundred million bucks. Those folks really suck.

In the end, some folks simply don’t care what they wear, where they live, etc…good for them. Their life, their money.

He should fix the house though.

[joec]

This is all well and good, just hope he isn’t one of those wealthy folks who complain that they “can’t afford this or that…everything is so expensive, woe is me” (I’ve met a few), but sit on a few hundred million bucks. Those folks really suck.

In the end, some folks simply don’t care what they wear, where they live, etc…good for them. Their life, their money.

He should fix the house though.

[joec]

This is all well and good, just hope he isn’t one of those wealthy folks who complain that they “can’t afford this or that…everything is so expensive, woe is me” (I’ve met a few), but sit on a few hundred million bucks. Those folks really suck.

In the end, some folks simply don’t care what they wear, where they live, etc…good for them. Their life, their money.

He should fix the house though.

[joec]

This is all well and good, just hope he isn’t one of those wealthy folks who complain that they “can’t afford this or that…everything is so expensive, woe is me” (I’ve met a few), but sit on a few hundred million bucks. Those folks really suck.

In the end, some folks simply don’t care what they wear, where they live, etc…good for them. Their life, their money.

He should fix the house though.

[Author]

Posts