This is one of the best articles I've read since becoming a regular reader of Wise Bread. I too agree with the author. We decided not to relocate purely because we know we need help with our two boys. Looking back, that is/was one of the best decisions we made.
We live well below our means (learned to do this through 2 recent layoffs) and are planning to buy a home (well below what we were "approved" for) this year. Choices that were hard to make initially when all our friends/family were buying mega homes during the bubble. However, now we will be able to not only buy but keep our home (even on income 50% less than what we make now if that ever happens).
For us home ownership is not worth blowing our net worth or having to live beyond our means. We like having savings at the end of the month and have taken into account any potential rise in heating/cooling (rent in our area is the same/more than many mortgages in our area). This is another benefit of being close to our parents, they share with us the "real" costs of home-ownership in our area.
Another choice we made was not to bog our kids down with so many extra activities. We found that by taking ownership of their free time and not having every minute planned...we could live a slower paced life. My boys really aren't missing out on much and when they do participate in activities, it means more to them.
The only area left for us on your list is to make career changes. We both "fell into" our careers. Our goal is for me to go back to what I have my degrees in and for hubby to pursue his passion. Thus the possible initial dropping of our income. It makes sense to us and will allow us even more free time to enjoy our lives together.
The latte factor. Don't you DARE take away my weekly treat. I also don't like the "if you save $X a week and make X% return, you'll have $XX in 10 years. Um, I never get X% return now...
It really does not apply to me as I don't drink coffee but I get tired of hearing "don't buy Starbucks." Anybody who is really having money problems surely is not spending $4 or more for a cup of coffee. Get real!
At the end of the day dump all your change in a jar. As a SAHM, I usually don't spend any money and if I do I am usually using my debit card. This tip might have applied before the majority of people starting using debit cards.
Also, bring your lunch to work. Make your coffee at home. Don't drink coffee and I already eat lunch at home.
Reading through the comments, everyone make it sound so easy to pay off the credit cards and give up all non-essentails. Ok that makes sense, but we are still living and my husband is not about to give up his expanded basic cable. He had a hard enough time giving up the digital tier and the DVR.
But the biggest piece of advice I have seen that drive me crazy is when the "frugal experts" want me to save money on bed sheets by buying a queen-sized top sheet for my king size bed. Yes, it covers the top of the bed, but have you every wrestled with getting enough covers when your bedmate rolls over?
I hate being told to pay cash. I can't track where I spend cash unless I keep all the receipts. Credit cards are so much easier (plus reward points/cash back/statement credits) so long as you're responsible.
I tired of hearing about all the easy ways to save money that I'm already doing. Pack a lunch instead of buying (do that), eat at home rather than eating out (yep), drink water when you do eat out (check), cut down on the expensive coffees and other "treats" (not really my issue), use coupons (been doing since I was a kid helping Mom shop), drop cable in favor of Hulu and Netflix (I've never paid for cable and don't even have Netflix). I've been doing all of these for years. I even do the "more advanced" options - shop around for cheaper rates on recurring bills (in the middle of an ongoing conversation with my insurance agent to lower my auto insurance while also shopping around for cheaper rates), ask for discounts (I always look for the AAA logo at local shops, know where my employment status gets me a discount and regularly email customer service for companies that do great work as well as those that I have issue with).
I've grabbed all the low hanging fruit and a lot of it on the upper branches. I'd like to hera some NEW ideas on how to save even more money.
Oh, and also, how it's horrible to use credit cards. I pay mine off every month, have no annual fee and get airline miles which I use to visit family or go on vacations. Plus it's more convenient to use than cash and safer than a debit card. For me, it would be silly not to use my credit card.
Same as others: "Save 20-30% for retirement." Blogs hardly ever mention that if you have a good-paying government job, you might have a pension...and if it increases each year by 3% for cost-of-living, that's like, about 1.5 million dollars worth of pension!
Do we ALL need to save 20-30% or can I just take out a 1.5 mil whole life policy on my husband (since if he passes -- morbid, but life isn't always roses and rainbows -- the beneficiary, me, will only get 30% of the benefit)? Can't there be a disclaimer w/that advice?
I would have liked it if you had actually tried these programs. I had a bad experience with Mozy; the free plan worked fine, but due to the 2gig limit, all I was backing up was documents and the like. When I upgraded, I learned that it had a terrible time uploading pictures, and pretty much froze up the computer when it tried to get my videos. Also, it took weeks to get 8 gig. Not at all what I was expecting after having used the free version. They also will not give you your money back if you end up having issues like I did. I signed up for a couple months in advance (not too smart for anything like this, I have learned), and was hoping I could get some of it back. Their response was that the free trial should have been enough of a test to see if I liked it.
So, buyer beware - there's a HUGE difference between uploading documents and MP3 files and the big stuff. Make sure you really test that before committing to months like I did.
Your comment is short sighted and ignorant.
The people who are underwater on their houses did not cause this crash. The thieves passing off the ownership of bad loans as grade A stocks did! The flippers who were giving kickbacks to signers the banks knew weren't capable of paying did!
There is a GIGANTIC difference between someone who owns a home that is no longer worth what is owed on it and someone who the bank knew couldn't afford the loan they were giving them in the first place. You're lumping everyone together.
For instance, I have perfect credit but my house is worth about 80K less than it was a couple years ago. I no longer want to live in my neighborhood because more and more of the homes are filled with renters after they were foreclosed on after the bank gave so many damn loans to people they knew weren't going to pay.
It would make more financial sense for me to file bankruptcy than wait for this market to recover. I could care less about ruining my perfect credit. I'll forever make more money and be a better risk than almost everyone in your dream scenario - where all these people who never made enough money to buy a home but now suddenly can because the prices are so low...
you're dreaming if you think the people who've in the past been incapable of so little as buying a home (when loans were freely handed out) are going to rescue the market because prices have dropped!!
anyone who never owned a home in the past (when loans were freely given out) will have an even harder time in the future!!
1) Using public transportation: The busses and trains where I live are so overpriced, run very infrequently, and do not go to every location I need to be at. Having a car getting 30+ mpg that's paid off and being on my family's insurance plan, my cost of transportation is simply MUCH smaller by driving that taking the (joke of a ) public transportation here in S. California.
Ditto for getting a more fuel efficient car. Only way that's gonna happen given my current car is to dish out a fortune for a hybrid (how's that frugal?)
2) Getting a second job: I work 50+ hours a week at a job I really like.. it doesn't pay that great, at least in this economy but I simply do not have time for another job on top of it.
3) Moving to a new location (and/or move back in with your parents): My career is in investment banking. There's almost no place in this country with both investment banking jobs AND a low cost of living. (And who said investment bankers can't be frugal?)
4) Lay off the internet: Not gonna happen because a) I use the internet to find deals and ways to be more frugal and b) It's already included in my rent.
5) Lay off the cable/blackberry/gym-membership/etc.: I don't subscribe to any of those since I have so little time outside of work to enjoy any of them.
6) Buy store brands and stop shopping at fancy stores: Whenever I need to buy some big ticket item, I'll check Ebay and GoodWill first. Then Big Lots. Then Walmart's my last resort.
I'm tired of hearing "Save your money" I want to hear about making more money. I save a lot. It's easy but it hardly makes a dent, I want to be able to enjoy that money sometimes.
I really appreciate your post on this. I have *no idea* how differently (and it would've been differently, all right) I would've acted had my attacker been male. And bigger. These experiences really are priceless...you just don't know the different habits & ways of living that'll turn out on the other side.
Thanks for the comment on my post, btw. Everyone can learn!
I agree with the "get a second or third job". I'm grateful for the one I have, but after putting in 8-10 hours a day and then taking the kids to their activities, PTO, housework, grocery shopping, cooking, helping with homework, checking in on elderly parents, etc., there are only so many hours in a day!
The one that gets me irritated "Pay in cash!" There is nothing wrong with using credit if you can pay it off at the end of the month. It also helps build your credit score, whereas paying in cash leaves no record that you have financial discipline. On the flip side of that: If on rare occasions you can't pay your statement balance and you're broke, atleast you still have a credit card to keep you from going hungry until payday.
I get tired of hearing how much I should be saving each year towards my retirement. I KNOW that is important. I am 29 years old and I fully believe that there will be no such thing as social security when I am old enough to retire (or I won't be able to retire until I am 80). BUT right now I am living paycheck to paycheck with a job I LOVE! I might not be able to buy everything I want, and I might not be able to save as much as I am supposed to, but I do what I can, and again, I LOVE my work. I have a savings account, I have a retirement account, but I cannot put in as much as the "experts" say I should or else I would not be able to pay my basic bills (house, car, utilities). My job also only pays ONCE a month, it is hard to budget that!
I'm tired of hearing "Pay yourself first." Yes, all well and good GRANTED YOU HAVE MONEY! Sometimes paying yourself first is simply done by eating and catering to basic needs. What do they really mean when they say that? When I have more, I will do more, including putting aside a bit more for myself. Until then, it's food and shelter and something alloted to simple pleasures. I do need the occasional lip gloss, pair of socks, hair pin...
This is one of the best articles I've read since becoming a regular reader of Wise Bread. I too agree with the author. We decided not to relocate purely because we know we need help with our two boys. Looking back, that is/was one of the best decisions we made.
We live well below our means (learned to do this through 2 recent layoffs) and are planning to buy a home (well below what we were "approved" for) this year. Choices that were hard to make initially when all our friends/family were buying mega homes during the bubble. However, now we will be able to not only buy but keep our home (even on income 50% less than what we make now if that ever happens).
For us home ownership is not worth blowing our net worth or having to live beyond our means. We like having savings at the end of the month and have taken into account any potential rise in heating/cooling (rent in our area is the same/more than many mortgages in our area). This is another benefit of being close to our parents, they share with us the "real" costs of home-ownership in our area.
Another choice we made was not to bog our kids down with so many extra activities. We found that by taking ownership of their free time and not having every minute planned...we could live a slower paced life. My boys really aren't missing out on much and when they do participate in activities, it means more to them.
The only area left for us on your list is to make career changes. We both "fell into" our careers. Our goal is for me to go back to what I have my degrees in and for hubby to pursue his passion. Thus the possible initial dropping of our income. It makes sense to us and will allow us even more free time to enjoy our lives together.
The latte factor. Don't you DARE take away my weekly treat. I also don't like the "if you save $X a week and make X% return, you'll have $XX in 10 years. Um, I never get X% return now...
It really does not apply to me as I don't drink coffee but I get tired of hearing "don't buy Starbucks." Anybody who is really having money problems surely is not spending $4 or more for a cup of coffee. Get real!
Cut up all your credit cards.
How stupid.
Like the credit cards themselves are running out and swiping themselves.
The better advice is to grow up and learn how to use them effectively--to get them to make money for you rather than costing you money
At the end of the day dump all your change in a jar. As a SAHM, I usually don't spend any money and if I do I am usually using my debit card. This tip might have applied before the majority of people starting using debit cards.
Also, bring your lunch to work. Make your coffee at home. Don't drink coffee and I already eat lunch at home.
Reading through the comments, everyone make it sound so easy to pay off the credit cards and give up all non-essentails. Ok that makes sense, but we are still living and my husband is not about to give up his expanded basic cable. He had a hard enough time giving up the digital tier and the DVR.
But the biggest piece of advice I have seen that drive me crazy is when the "frugal experts" want me to save money on bed sheets by buying a queen-sized top sheet for my king size bed. Yes, it covers the top of the bed, but have you every wrestled with getting enough covers when your bedmate rolls over?
I hate being told to pay cash. I can't track where I spend cash unless I keep all the receipts. Credit cards are so much easier (plus reward points/cash back/statement credits) so long as you're responsible.
I tired of hearing about all the easy ways to save money that I'm already doing. Pack a lunch instead of buying (do that), eat at home rather than eating out (yep), drink water when you do eat out (check), cut down on the expensive coffees and other "treats" (not really my issue), use coupons (been doing since I was a kid helping Mom shop), drop cable in favor of Hulu and Netflix (I've never paid for cable and don't even have Netflix). I've been doing all of these for years. I even do the "more advanced" options - shop around for cheaper rates on recurring bills (in the middle of an ongoing conversation with my insurance agent to lower my auto insurance while also shopping around for cheaper rates), ask for discounts (I always look for the AAA logo at local shops, know where my employment status gets me a discount and regularly email customer service for companies that do great work as well as those that I have issue with).
I've grabbed all the low hanging fruit and a lot of it on the upper branches. I'd like to hera some NEW ideas on how to save even more money.
Oh, and also, how it's horrible to use credit cards. I pay mine off every month, have no annual fee and get airline miles which I use to visit family or go on vacations. Plus it's more convenient to use than cash and safer than a debit card. For me, it would be silly not to use my credit card.
Buy coupons!! ?????
Same as others: "Save 20-30% for retirement." Blogs hardly ever mention that if you have a good-paying government job, you might have a pension...and if it increases each year by 3% for cost-of-living, that's like, about 1.5 million dollars worth of pension!
Do we ALL need to save 20-30% or can I just take out a 1.5 mil whole life policy on my husband (since if he passes -- morbid, but life isn't always roses and rainbows -- the beneficiary, me, will only get 30% of the benefit)? Can't there be a disclaimer w/that advice?
I would have liked it if you had actually tried these programs. I had a bad experience with Mozy; the free plan worked fine, but due to the 2gig limit, all I was backing up was documents and the like. When I upgraded, I learned that it had a terrible time uploading pictures, and pretty much froze up the computer when it tried to get my videos. Also, it took weeks to get 8 gig. Not at all what I was expecting after having used the free version. They also will not give you your money back if you end up having issues like I did. I signed up for a couple months in advance (not too smart for anything like this, I have learned), and was hoping I could get some of it back. Their response was that the free trial should have been enough of a test to see if I liked it.
So, buyer beware - there's a HUGE difference between uploading documents and MP3 files and the big stuff. Make sure you really test that before committing to months like I did.
Your comment is short sighted and ignorant.
The people who are underwater on their houses did not cause this crash. The thieves passing off the ownership of bad loans as grade A stocks did! The flippers who were giving kickbacks to signers the banks knew weren't capable of paying did!
There is a GIGANTIC difference between someone who owns a home that is no longer worth what is owed on it and someone who the bank knew couldn't afford the loan they were giving them in the first place. You're lumping everyone together.
For instance, I have perfect credit but my house is worth about 80K less than it was a couple years ago. I no longer want to live in my neighborhood because more and more of the homes are filled with renters after they were foreclosed on after the bank gave so many damn loans to people they knew weren't going to pay.
It would make more financial sense for me to file bankruptcy than wait for this market to recover. I could care less about ruining my perfect credit. I'll forever make more money and be a better risk than almost everyone in your dream scenario - where all these people who never made enough money to buy a home but now suddenly can because the prices are so low...
you're dreaming if you think the people who've in the past been incapable of so little as buying a home (when loans were freely handed out) are going to rescue the market because prices have dropped!!
anyone who never owned a home in the past (when loans were freely given out) will have an even harder time in the future!!
The video shown vulcanized tires on the highway. It is not quiet convincing.
I would say the one on how easy it is to make money on the side, in addition to your day job, family, etc and wanting to enjoy some part of your life.
1) Using public transportation: The busses and trains where I live are so overpriced, run very infrequently, and do not go to every location I need to be at. Having a car getting 30+ mpg that's paid off and being on my family's insurance plan, my cost of transportation is simply MUCH smaller by driving that taking the (joke of a ) public transportation here in S. California.
Ditto for getting a more fuel efficient car. Only way that's gonna happen given my current car is to dish out a fortune for a hybrid (how's that frugal?)
2) Getting a second job: I work 50+ hours a week at a job I really like.. it doesn't pay that great, at least in this economy but I simply do not have time for another job on top of it.
3) Moving to a new location (and/or move back in with your parents): My career is in investment banking. There's almost no place in this country with both investment banking jobs AND a low cost of living. (And who said investment bankers can't be frugal?)
4) Lay off the internet: Not gonna happen because a) I use the internet to find deals and ways to be more frugal and b) It's already included in my rent.
5) Lay off the cable/blackberry/gym-membership/etc.: I don't subscribe to any of those since I have so little time outside of work to enjoy any of them.
6) Buy store brands and stop shopping at fancy stores: Whenever I need to buy some big ticket item, I'll check Ebay and GoodWill first. Then Big Lots. Then Walmart's my last resort.
"Sell your stuff." I've already sold all my excess stuff because you've already told me to do it 300 times.
How about the all too familiar turn the water off while brushing your teeth. Didn't we learn that one in preschool?
I'm sick of hearing to pay things in cash and to stop using credit.
I'm tired of hearing "Save your money" I want to hear about making more money. I save a lot. It's easy but it hardly makes a dent, I want to be able to enjoy that money sometimes.
I really appreciate your post on this. I have *no idea* how differently (and it would've been differently, all right) I would've acted had my attacker been male. And bigger. These experiences really are priceless...you just don't know the different habits & ways of living that'll turn out on the other side.
Thanks for the comment on my post, btw. Everyone can learn!
I agree with the "get a second or third job". I'm grateful for the one I have, but after putting in 8-10 hours a day and then taking the kids to their activities, PTO, housework, grocery shopping, cooking, helping with homework, checking in on elderly parents, etc., there are only so many hours in a day!
The one that gets me irritated "Pay in cash!" There is nothing wrong with using credit if you can pay it off at the end of the month. It also helps build your credit score, whereas paying in cash leaves no record that you have financial discipline. On the flip side of that: If on rare occasions you can't pay your statement balance and you're broke, atleast you still have a credit card to keep you from going hungry until payday.
I am overwhelmed by the gorilla coupon warriors. I can't measure up. I have mother guilt.
I get tired of hearing how much I should be saving each year towards my retirement. I KNOW that is important. I am 29 years old and I fully believe that there will be no such thing as social security when I am old enough to retire (or I won't be able to retire until I am 80). BUT right now I am living paycheck to paycheck with a job I LOVE! I might not be able to buy everything I want, and I might not be able to save as much as I am supposed to, but I do what I can, and again, I LOVE my work. I have a savings account, I have a retirement account, but I cannot put in as much as the "experts" say I should or else I would not be able to pay my basic bills (house, car, utilities). My job also only pays ONCE a month, it is hard to budget that!
I'm tired of hearing "Pay yourself first." Yes, all well and good GRANTED YOU HAVE MONEY! Sometimes paying yourself first is simply done by eating and catering to basic needs. What do they really mean when they say that? When I have more, I will do more, including putting aside a bit more for myself. Until then, it's food and shelter and something alloted to simple pleasures. I do need the occasional lip gloss, pair of socks, hair pin...