I think that most people who say "I'm not the sort of person who..." have not had enough hard times to know what they would or wouldn't do. And good for them. But as you say, what a person will do in the name of frugality can change with circumstances.
I think the same holds true for people who say "I'd never give up (cable TV ... manicures ... getting my hair done in a salon ... my cell phone ... etc). If they were in a big enough financial bind, I hope they would give those things up before ruining themselves financially.
I appreciate these comments. Your point is well taken. Also, don't forget what "I'm not the sort of person who..." seems to say about the people who DO choose these alternatives you are rejecting. It's one thing to reject a choice for yourself, but it puts you in a much different position if you feel that you also have to reject the "sort of person" who makes that choice. We don't need more division as we move toward sorting out economic realities in a changing world.
We were already using public transportation and combining trips before gas prices skyrocketed, so things really didn't change much then, and they won't change much now, either. The big difference will be a little more money in my budget! I don't see any reason to be wasteful, though, now that gas is cheaper.
One of the most interesting people to return to our small town is a Marine vet. He has personally initiated several large scale community events. "To give back to the community", he says. This includes all the details of permission to use borough or private properties, lining up participants, funding, publicity. He has also opened several small shops to help revitalize our downtown. A think outside the box visionary with an ability to tackle details. He freely attributes the skills he has to his military stint.
You brought up a couple of good points. Overall, I think its all about balance, cooperation and communication within a marriage. Like you said, money will be a factor, so make sure its communicated.
I was disappointed to find such an emotional subject addressed with so few practical answers. What do do about it: "nothing". When you address something like this you have a responsibility to know what you're talking about. You didn't.
I put the same amount of money for gas each month into my short term savings account. When gas prices are down, it builds up an excess that I can use for when gas prices are up. If I ever go negative, I will adjust the monthly amount up to something more appropriate. I conserve as much as possible through the usual proven ways: Keep vehicle tuned and maintained, drive and accelerate calmy and consistently, combine trips, reduce trips, and carpool.
Good to read that fuel prices are falling up your way. Down-under (i.e. Australia) they have fallen this week to around AUD1.15 a LITRE. Now that may look cheap - and it does to us after highs of a AUD1.50 - but there are 4.55 litres in a gallon. That means our fuel price - per gallon - would be AUD5.23. At today's rate of conversion that equates to USD3.32 a gallon - twice what you are now paying. Our biggest problem down here is that the fuel retailing is in the hands of the two big supermarket chains (they control 80%+ of the food trade), so competition is stifled.
Great to read all these tips, i too have small dogs, two, and one large one. They dont sleep in my bed due to space and smells and my clothes dont smell of bacon either but i do like to save energy and money. I always walk the dogs after work a good brisk walk warms me up, when i get home afterwards i change into pj`s and dressing gown and woolley socks straight away, i also take off my make up, when i do go to bed later i have less to do and less time to get cold ustairs. Ive introduced red cushions, and ornaments into my lounge for winter and i light candles to give a warmer feeling and look to the room. I have a tiny house so my cooking warms all downstairs area for a while,eating a hot meal warms us furhter,later on then only if its 1 degree or less do we think about putting the heating on. i have reduced our electric and gas bills from £130 a month to £140 for 3 months by moving house and living with thought.
You situation sounds like a good one to be in. You are truly almost debt free! Having no car payments must be nice!
I am not sure about your age, but the best thing to do is prepare for retirement. So many of our younger people are ignoring this fact.
First I would recommend building your emergency fund to 6 months for peace of mind. Then at least 10% into the 401k. An additional percentage should go to an IRA, ROTH if you qualify. If you going to have children then a small amount to a 529 college savings program is smart as well.
Remember your supposed to have 3 income streams for retirement and social security may not be there. 2nd we are living longer and longer so if you are 30 and retire in 30 years at 60, you will probably live to be 100 based on advances in science and medicine, so retirement money has to go further.
Depending on how much you have in the home equity LOC, you can create a comfortable schedule to pay that off say less than 5 years.
No matter what your age, you want to try and put the yearly maximum into your 401K, the sooner the better. Keep a higher interest savings account going to pay cash for cars, future home improvements, vacations and such. A credit card of your choice is also good to have on hand for shopping online or paying bills if your disciplined enough to pay it off at the end of the month. If your not disciplined then keep a card open and freeze it in a block of ice for emergencies!
As your comfortable, you can roll savings dollars in and out of high yield CDs and such.
All it takes is a little discipline. Ask around and find good financial planner as I am not one. Everyone's situation is different. I just hang around with very wealthy successful people and have picked up a couple things.
I currently do work at a VA hospital, many of the employees and volunteers at the hospital are veterans themselves. And though like all things there are exceptions, I personally can vouch for these qualities and can honestly say that I have been shocked at the kindness and devotion they exhibit when they do anything.
Even those who occasionally have a bout of bitterness (often rightly entitled to them) have gone above and beyond simply because they want to or think those they are helping deserve it.
While I'm enjoying the lower prices for now, I have absolutely NO DOUBT they will go back up. There's no way they will stay down. So, nothing changes on this end. I still plan to get a much more efficient car for my next one (I drive my cars into the ground, I should have another five years on this one). I consolidate my driving as much as possible, drive slowly for the improved mileage and so on. It's just nice not to have my eye twitch at the gas station for now ;-)
@ nirvanadiva
100% Agree. I think it's best called irrationality. And seems to be plenty of it to go around, especially if you watch or read the news on a regular basis.
@ Jared
So how do you intend to keep all that gas stored without significantly raising the cost? Insurance, equipment, shipping, storage, security, taxes, interest on the upfront cash it would take to buy that much gas, not to mention all the environmental regulations for storing that much gas.
I think there's an infrastructure in place to do all that. And it's driven by market conditions that allow for all that overhead, distribution etc.
I'm betting it would drive your $1.20 a gallon to about $3.60 give or take depending on which state.
When I read the title, all I could think of was, "What will I do? I'll DANCE!" Being disabled in the legs, this is a bold statement indeed. What I have already done, though, is to open a savings account. $2.50 a gallon is my "comfort zone." Anything above that and I start curtailing trips out of the house. So, on fill up day, I get a $62.50 allowance to fill my car. Whatever is left goes directly into the savings account (I fill up at the gas station that shares a parking lot with my bank) do-not-pass-Starbucks on the way. Someday, that money will be used to make up the difference when gas prices go back up.
sometimes people make silly choices in an attempt to be frugal. why would anyone trade in their old car(if less than 5 years old) to buy a hybrid is beyond me. thats penny-wise & pound foolish!where do you think the old car might go?eventually many of the old vehicles being traded in will wind up in landfills. the chemicals in the batteries, fuel lines and motor will go into our water supply . are we really"saving"anything?
I will keep my car, combine trips,"staycation" more, and re-use, recycle, & re-think!
As far as I could tell (and the media were practically no use, here) the price of gas rose because of wall-streeters playing the futures game with oil. When the economy tanked and the risk-takers started to pull in their risk-taking, the futures market in oil stopped being lucrative. As the future, as it were, of oil prices stopped rising meteorically more and more pulled out, and the process of investors removing their money from a market is that the prices drop. Futures only work when the prices are rising.
So it looks to me like oil prices (and gas prices as a result) were artificially inflated by futures gamblers, and has been artificially un-inflated by them going away. At no time during the crisis was there a credible report that supply was down or that demand was up! The best I can tell, gas futures trading was the third wave of the Telecomm bubble-burst, with the realestate bubble being the second wave.
Since the economy really didn't work on the basis of supply-and-demand, it's hard to claim that the economy must be going bad if gas prices drop: quite the contrary, rising gas prices, divorced from the economy, was driving the economy bad. Now that gas prices are falling, prices of shipped/trucked goods will also fall, the airline industries (which seemed headed for its deathbed) may recover enough that you don't have to pay more to check your baggage than your suitcases cost to buy, and our household budgets will seem to grow.
Frugality is good, and in its way this period of high gas prices forced a lot of folks to abandon profligate habits, which is also good.
For me, I'm seeing my 100-mile-a-day commute (the nearest work I can find) is becoming only outrageously expensive, rather than deadly-expensive.
on frugality that I've seen in a while.
I think that most people who say "I'm not the sort of person who..." have not had enough hard times to know what they would or wouldn't do. And good for them. But as you say, what a person will do in the name of frugality can change with circumstances.
I think the same holds true for people who say "I'd never give up (cable TV ... manicures ... getting my hair done in a salon ... my cell phone ... etc). If they were in a big enough financial bind, I hope they would give those things up before ruining themselves financially.
I appreciate these comments. Your point is well taken. Also, don't forget what "I'm not the sort of person who..." seems to say about the people who DO choose these alternatives you are rejecting. It's one thing to reject a choice for yourself, but it puts you in a much different position if you feel that you also have to reject the "sort of person" who makes that choice. We don't need more division as we move toward sorting out economic realities in a changing world.
We were already using public transportation and combining trips before gas prices skyrocketed, so things really didn't change much then, and they won't change much now, either. The big difference will be a little more money in my budget! I don't see any reason to be wasteful, though, now that gas is cheaper.
One of the most interesting people to return to our small town is a Marine vet. He has personally initiated several large scale community events. "To give back to the community", he says. This includes all the details of permission to use borough or private properties, lining up participants, funding, publicity. He has also opened several small shops to help revitalize our downtown. A think outside the box visionary with an ability to tackle details. He freely attributes the skills he has to his military stint.
You brought up a couple of good points. Overall, I think its all about balance, cooperation and communication within a marriage. Like you said, money will be a factor, so make sure its communicated.
I was disappointed to find such an emotional subject addressed with so few practical answers. What do do about it: "nothing". When you address something like this you have a responsibility to know what you're talking about. You didn't.
That sucks....
haha FUSTERATED...
don't buy the sticker.
It kills your phone.
I put the same amount of money for gas each month into my short term savings account. When gas prices are down, it builds up an excess that I can use for when gas prices are up. If I ever go negative, I will adjust the monthly amount up to something more appropriate. I conserve as much as possible through the usual proven ways: Keep vehicle tuned and maintained, drive and accelerate calmy and consistently, combine trips, reduce trips, and carpool.
Good to read that fuel prices are falling up your way. Down-under (i.e. Australia) they have fallen this week to around AUD1.15 a LITRE. Now that may look cheap - and it does to us after highs of a AUD1.50 - but there are 4.55 litres in a gallon. That means our fuel price - per gallon - would be AUD5.23. At today's rate of conversion that equates to USD3.32 a gallon - twice what you are now paying. Our biggest problem down here is that the fuel retailing is in the hands of the two big supermarket chains (they control 80%+ of the food trade), so competition is stifled.
Great to read all these tips, i too have small dogs, two, and one large one. They dont sleep in my bed due to space and smells and my clothes dont smell of bacon either but i do like to save energy and money. I always walk the dogs after work a good brisk walk warms me up, when i get home afterwards i change into pj`s and dressing gown and woolley socks straight away, i also take off my make up, when i do go to bed later i have less to do and less time to get cold ustairs. Ive introduced red cushions, and ornaments into my lounge for winter and i light candles to give a warmer feeling and look to the room. I have a tiny house so my cooking warms all downstairs area for a while,eating a hot meal warms us furhter,later on then only if its 1 degree or less do we think about putting the heating on. i have reduced our electric and gas bills from £130 a month to £140 for 3 months by moving house and living with thought.
MKB,
You situation sounds like a good one to be in. You are truly almost debt free! Having no car payments must be nice!
I am not sure about your age, but the best thing to do is prepare for retirement. So many of our younger people are ignoring this fact.
First I would recommend building your emergency fund to 6 months for peace of mind. Then at least 10% into the 401k. An additional percentage should go to an IRA, ROTH if you qualify. If you going to have children then a small amount to a 529 college savings program is smart as well.
Remember your supposed to have 3 income streams for retirement and social security may not be there. 2nd we are living longer and longer so if you are 30 and retire in 30 years at 60, you will probably live to be 100 based on advances in science and medicine, so retirement money has to go further.
Depending on how much you have in the home equity LOC, you can create a comfortable schedule to pay that off say less than 5 years.
No matter what your age, you want to try and put the yearly maximum into your 401K, the sooner the better. Keep a higher interest savings account going to pay cash for cars, future home improvements, vacations and such. A credit card of your choice is also good to have on hand for shopping online or paying bills if your disciplined enough to pay it off at the end of the month. If your not disciplined then keep a card open and freeze it in a block of ice for emergencies!
As your comfortable, you can roll savings dollars in and out of high yield CDs and such.
All it takes is a little discipline. Ask around and find good financial planner as I am not one. Everyone's situation is different. I just hang around with very wealthy successful people and have picked up a couple things.
I didn't think such a close minded and innacurate portrait could be painted by such a revered man, so I did a little research.
David R. Kamerschen is indeed a professor at the University of Georgia. I found his page on that server:
http://davidk.myweb.uga.edu/
Read the first paragraph.
I didn't think such a close minded and innacurate portrait could be painted by such a revered man, so I did a little research.
David R. Kamerschen is indeed a professor at the University of Georgia. I found his page on that server:
http://davidk.myweb.uga.edu/
Read the first paragraph.
I currently do work at a VA hospital, many of the employees and volunteers at the hospital are veterans themselves. And though like all things there are exceptions, I personally can vouch for these qualities and can honestly say that I have been shocked at the kindness and devotion they exhibit when they do anything.
Even those who occasionally have a bout of bitterness (often rightly entitled to them) have gone above and beyond simply because they want to or think those they are helping deserve it.
While I'm enjoying the lower prices for now, I have absolutely NO DOUBT they will go back up. There's no way they will stay down. So, nothing changes on this end. I still plan to get a much more efficient car for my next one (I drive my cars into the ground, I should have another five years on this one). I consolidate my driving as much as possible, drive slowly for the improved mileage and so on. It's just nice not to have my eye twitch at the gas station for now ;-)
Falling Gas Prices Jump-Start GM SUV Sales
Great article, and I think I'll be trying the Skittles trick soon (seems like a great way to mask the taste of super-cheap spirits!).
I love the taste of Cilantro. I wonder if that work or just result in a disgusting mess?
If gas drops to $1.50, I will only be filling up my tank once a week and traveling a little bit more than I have currently been.
@ nirvanadiva
100% Agree. I think it's best called irrationality. And seems to be plenty of it to go around, especially if you watch or read the news on a regular basis.
@ Jared
So how do you intend to keep all that gas stored without significantly raising the cost? Insurance, equipment, shipping, storage, security, taxes, interest on the upfront cash it would take to buy that much gas, not to mention all the environmental regulations for storing that much gas.
I think there's an infrastructure in place to do all that. And it's driven by market conditions that allow for all that overhead, distribution etc.
I'm betting it would drive your $1.20 a gallon to about $3.60 give or take depending on which state.
I agree. I refuse to be duped.
1) starting to drive excessively is bad for the environment. Those of us who care should drive even less now that others are driving more.
2) Prices will go back up. Mark my words. It's bad to get used to low prices again. Don't be fooled! You're right, "Once bitten, twice shy."
I'm still planning on selling my car for the superior bicycle. Not even $1.91/gal can convince me!
When I read the title, all I could think of was, "What will I do? I'll DANCE!" Being disabled in the legs, this is a bold statement indeed. What I have already done, though, is to open a savings account. $2.50 a gallon is my "comfort zone." Anything above that and I start curtailing trips out of the house. So, on fill up day, I get a $62.50 allowance to fill my car. Whatever is left goes directly into the savings account (I fill up at the gas station that shares a parking lot with my bank) do-not-pass-Starbucks on the way. Someday, that money will be used to make up the difference when gas prices go back up.
sometimes people make silly choices in an attempt to be frugal. why would anyone trade in their old car(if less than 5 years old) to buy a hybrid is beyond me. thats penny-wise & pound foolish!where do you think the old car might go?eventually many of the old vehicles being traded in will wind up in landfills. the chemicals in the batteries, fuel lines and motor will go into our water supply . are we really"saving"anything?
I will keep my car, combine trips,"staycation" more, and re-use, recycle, & re-think!
As far as I could tell (and the media were practically no use, here) the price of gas rose because of wall-streeters playing the futures game with oil. When the economy tanked and the risk-takers started to pull in their risk-taking, the futures market in oil stopped being lucrative. As the future, as it were, of oil prices stopped rising meteorically more and more pulled out, and the process of investors removing their money from a market is that the prices drop. Futures only work when the prices are rising.
So it looks to me like oil prices (and gas prices as a result) were artificially inflated by futures gamblers, and has been artificially un-inflated by them going away. At no time during the crisis was there a credible report that supply was down or that demand was up! The best I can tell, gas futures trading was the third wave of the Telecomm bubble-burst, with the realestate bubble being the second wave.
Since the economy really didn't work on the basis of supply-and-demand, it's hard to claim that the economy must be going bad if gas prices drop: quite the contrary, rising gas prices, divorced from the economy, was driving the economy bad. Now that gas prices are falling, prices of shipped/trucked goods will also fall, the airline industries (which seemed headed for its deathbed) may recover enough that you don't have to pay more to check your baggage than your suitcases cost to buy, and our household budgets will seem to grow.
Frugality is good, and in its way this period of high gas prices forced a lot of folks to abandon profligate habits, which is also good.
For me, I'm seeing my 100-mile-a-day commute (the nearest work I can find) is becoming only outrageously expensive, rather than deadly-expensive.