I think that others think my family is more well off than we are.
I am only making the national average for registered nurses ($54K) despite being a nurse for over 23 years. We opt for my having more flexible hours, no weekends, holidays and such to be more conducive to family time. Given our large family size (4 kids) and my partner's stay at home status (cheaper than daycare and afterschool programming costs), our school age kids qualify for reduced cost school lunch. Others see having a stay at home as status, but the math spoke for itself.
But we have no wireless in the middle of nowhere... I sometimes have to use my iPhone as my internet provider. Even with no 3G network where I live, I can get 2 little weak bars most anywhere, and can stay connected through tornado season :)
Living in what many consider an affluent part of New Jersey, plus working in the field of medicine (but not a physician) causes most people I meet to assume I'm making far more than my actual salary. The fact I did both my undergraduate and graduate studies at an Ivy also seems to "up" people's estimations on my current salary. I gift friends generously, and people notice I dress well, wear designer suits, and drive a decent car. What people don't always see is my frugal lifestyle- I buy clothing at thrift stores and do alterations myself (or have my mom help) so they are well-fitted; my home is clean but sparsely furnished without the expensive kithchen gadgetry and electronics (I always tell myself I have my whole life to acquire those things); and unlike most 20-30 year olds, I am very much the homebody who stays away from the clubs, bars and expensive costs associated with those places. I save aggressively and still live comfortably on about $2000/mon (that is with mortgage payments). Everyone assumes I have a 6-figure salary and am living it up but in reality I am allocating my budget to cover necessary expenses and then saving up the rest.
I was one of the unfortunate causilties with the down economy but also very fortunate since I found a new job within a month and a half. The only problem was I was making 30% less. Oddly enough by only changing a few things my wife and I live pretty much the same life style. We eat out, once a month (used to be two or three) go to a movie about every weekend (It's the dollar theater but still fun and enjoyable.), and we watch our grocery budget (coupouns and sales, I picked up 5 pounds of chicken breasts and 10 pounds of leg quarters for $8 the other day). After 10% into a 401k we are still able to save $300 a month.
Buy the iPod Touch instead! It has nearly all of the same capabilities (minus the phone plan) and you don't have to pay the extra $200 a month for a wireless plan. Though the Touch doesn't come with its own 3G network, you can tap into wireless internet almost anywhere these days (McDonald's, airports, libraries...). So, with a little less accessibility, you can still save in most of the same ways! (PLUS more!)
Yep -I've been 20 years in retirement.
Twenty years of never touching the principal.
The first ten years I had my monthly retirement checks.
And as the medical bills got bigger I had my Social Security checks and Medicare to pay those off. The only time I have touched the base number is when my kids need money.
I lost over $400,000 last years on my Vangaurd IRA base.
I can't wait to see this years numbers.
Carl from Illinois
I read a great article on starting a retirement fund for your children at a very young age, and with they way that it appreciates, it can total nearly $1 million by the time they are at retirement age. I think saving young is the key to a good retirement. And not drawing from that fund until retirement.
I think people would be surprised at how little I make- but I stretch it as far as I can while I'm getting my masters and hope to jump a salary bracket soon thereafter!
This is how I like to keep track of my own savings progress - rather than look at the round sum number (which is still small), I add up the cashflow I'm getting in terms of what bills it can pay, and so, build up my "retirement" lifestyle piece by piece that way. It keeps it tangible - "cable/phone/internet taken care of, next!"
When people find out I am an engineer (just 3 years out of school...not licensed yet) working for a consulting firm, they assume that we must be bringing in a ton of money, and can't figure out why we live like we do.
When people don't know what I do for a living and see that we live in an extremely affordable house, have not replaced the 96 dodge I drove in high school, and that my husband is in school again they assume that we are broke!
In reality, we are doing quite a bit better than many people in our area. The median income for our area is around 43,000, and on one income we are quite a bit higher than that.
This was a great post. Our generation should start looking at some of the older traditions. Traditions which the nation was built on: love, family, true friends, pride in work/job, gratitude, integrity, etc. The most popular shows and music today encourage everyone to spend "more money" to get "more happy" and we've become suckers for all the latest marketing tactics. The carrot keeps moving as the hole gets deeper.
No matter what, "things" alone don't lead to real peace of mind and happiness!
I make $10 an hour but must work two jobs to make it. I live in a small town in Maine and it is not unusual for people to have at least two jobs. Many people work two jobs during the summer in this tourist town to supplement their incomes and to pay for heat for the coming winter.
I live very frugally, but very comfortably. I put anything extra in my savings account so that I have a buffer of 6 months if anything should happen to me. My main concerns are oil for winter heat and paying off my mortgage. I pay extra every month and have reduced my mortgage by 7 years already. I have no debt (except the mortgage), but do use my credit cards to earn extra points, etc. I pay them off the day after I use them. I like to travel, and people are surprised that I can vacation in Europe. But, I research like crazy to make sure I get the cheapest flights (going to Europe from the East Coast is often less expensive then traveling in the States) and the best hotel deals. I guess I would rather spend the money on travel then putting in pools and buying new furniture.
I would like to make a comment about farmers markets. There is a lot of talk out there about purchasing from local producers. I dont know about elsewhere, but the cost of purchasing food at these markets in Maine on my income is prohibitive. I wish I could, but I must always follow the sales in "regular" grocery stores.
I'm a grad student, which in and of itself says "HEY, I'M POOR", but I also own a house and have a pretty decent lifestyle. I think if someone met me and didn't know where I worked, they would assume I make more than I do.
They'd be more surprised, I think, at how little we make. For almost a year, we were on this side of having to ask for food stamps. Since I started working again (it took 9 months to find a job two years ago), our combined income has just about doubled--to the amount an entry-level engineer makes straight out of college (I know this because my brother is an engineer).
We shop for bargains, and are very very patient when it comes to finding things like furniture and clothes. Our motto, for shopping for things like that, has become, "You should only have to buy it once." Obviously clothes wear out, but with proper care they can last for quite a long time.
My husband is a pastor and we live in a parsonage. He works crazy hours and loves his job and people. His salary is negotiated every November and is a matter of record for anyone in the congregation. The down side of being public people is that our actions are scrutinzed. So we've encountered some really off-the-wall suggestions for our spending. What people don't realize is how our taxes are calculated, how his long, sometimes irregular, hours impact my work options and availability, or what area colleagues make. When people understand what we actually clear and think through how it's portioned out they're surprised. We've had to be creative in how we manage, and can encourage others in the same boat with some measure of credibility when those opportunities arise. Those are good things. The down side is dealing with oblivious people's expectations.
I know some of our friends feel we are very frugal and live well below our means. I disagree with that. I feel we doing OK but still have to watch every penny. My mom thinks we live too conservatively with a 15 year mortgage and she feels we should be rolling in money. Of course, we make less than our friends and substantially more (7 times) more than my mom. Maybe it's all about perspective.
Some of these are pretty crazy. I just read another article somewhere else that suggests using baking soda and vinegar for a lot of cleaning needs. (http://tiny.cc/jQv88) It even says you can use tea bags as air freshener... hmm, not as crazy as wiping with newsprint I guess.
I am a grad student in my early 20s. My income is very limited and I live far below it. However judicous use of sales, etc. often fools people into thinking that I make a lot more money than I do.... For example, I wear a lot of designer clothing; however, I pick it up on sale at prices that compete with the big warehouse stores. Also, I drive a large SUV...I bought it a few years ago with cash (that's easy to do when you live within your means). I have a sweet ride, while many of my friends are tryig to figure out how they can finagle a car loan on top of their student loans and their credit card debt...
... but they wonder, why I never have any money left. It gets eaten up by debts.
But step by step its getting better, although I had to cut down my lifestyle a little bit (but not that much).
i will get one of these smartphones very very soon oh and a macbook pro too. these are things that i really want but just dont need. and just so you know, i blame you for convincing me to but the cellphone
I think that others think my family is more well off than we are.
I am only making the national average for registered nurses ($54K) despite being a nurse for over 23 years. We opt for my having more flexible hours, no weekends, holidays and such to be more conducive to family time. Given our large family size (4 kids) and my partner's stay at home status (cheaper than daycare and afterschool programming costs), our school age kids qualify for reduced cost school lunch. Others see having a stay at home as status, but the math spoke for itself.
But we have no wireless in the middle of nowhere... I sometimes have to use my iPhone as my internet provider. Even with no 3G network where I live, I can get 2 little weak bars most anywhere, and can stay connected through tornado season :)
Linsey Knerl
Living in what many consider an affluent part of New Jersey, plus working in the field of medicine (but not a physician) causes most people I meet to assume I'm making far more than my actual salary. The fact I did both my undergraduate and graduate studies at an Ivy also seems to "up" people's estimations on my current salary. I gift friends generously, and people notice I dress well, wear designer suits, and drive a decent car. What people don't always see is my frugal lifestyle- I buy clothing at thrift stores and do alterations myself (or have my mom help) so they are well-fitted; my home is clean but sparsely furnished without the expensive kithchen gadgetry and electronics (I always tell myself I have my whole life to acquire those things); and unlike most 20-30 year olds, I am very much the homebody who stays away from the clubs, bars and expensive costs associated with those places. I save aggressively and still live comfortably on about $2000/mon (that is with mortgage payments). Everyone assumes I have a 6-figure salary and am living it up but in reality I am allocating my budget to cover necessary expenses and then saving up the rest.
I was one of the unfortunate causilties with the down economy but also very fortunate since I found a new job within a month and a half. The only problem was I was making 30% less. Oddly enough by only changing a few things my wife and I live pretty much the same life style. We eat out, once a month (used to be two or three) go to a movie about every weekend (It's the dollar theater but still fun and enjoyable.), and we watch our grocery budget (coupouns and sales, I picked up 5 pounds of chicken breasts and 10 pounds of leg quarters for $8 the other day). After 10% into a 401k we are still able to save $300 a month.
Here's my tip on this one:
Buy the iPod Touch instead! It has nearly all of the same capabilities (minus the phone plan) and you don't have to pay the extra $200 a month for a wireless plan. Though the Touch doesn't come with its own 3G network, you can tap into wireless internet almost anywhere these days (McDonald's, airports, libraries...). So, with a little less accessibility, you can still save in most of the same ways! (PLUS more!)
Friends in similar professions (engineering) but different (i.e., higher paying) industries would probably expect me to make more.
Most of my family would probably be surprised by the hard figures, only because I live in a much cost of living area (Chicago metro) than any of them.
More people would probably be surprised by how much I save and give away, particularly because I don't appear to be more than moderately frugal.
Yep -I've been 20 years in retirement.
Twenty years of never touching the principal.
The first ten years I had my monthly retirement checks.
And as the medical bills got bigger I had my Social Security checks and Medicare to pay those off. The only time I have touched the base number is when my kids need money.
I lost over $400,000 last years on my Vangaurd IRA base.
I can't wait to see this years numbers.
Carl from Illinois
I read a great article on starting a retirement fund for your children at a very young age, and with they way that it appreciates, it can total nearly $1 million by the time they are at retirement age. I think saving young is the key to a good retirement. And not drawing from that fund until retirement.
I think people would be surprised at how little I make- but I stretch it as far as I can while I'm getting my masters and hope to jump a salary bracket soon thereafter!
This is how I like to keep track of my own savings progress - rather than look at the round sum number (which is still small), I add up the cashflow I'm getting in terms of what bills it can pay, and so, build up my "retirement" lifestyle piece by piece that way. It keeps it tangible - "cable/phone/internet taken care of, next!"
When people find out I am an engineer (just 3 years out of school...not licensed yet) working for a consulting firm, they assume that we must be bringing in a ton of money, and can't figure out why we live like we do.
When people don't know what I do for a living and see that we live in an extremely affordable house, have not replaced the 96 dodge I drove in high school, and that my husband is in school again they assume that we are broke!
In reality, we are doing quite a bit better than many people in our area. The median income for our area is around 43,000, and on one income we are quite a bit higher than that.
This was a great post. Our generation should start looking at some of the older traditions. Traditions which the nation was built on: love, family, true friends, pride in work/job, gratitude, integrity, etc. The most popular shows and music today encourage everyone to spend "more money" to get "more happy" and we've become suckers for all the latest marketing tactics. The carrot keeps moving as the hole gets deeper.
No matter what, "things" alone don't lead to real peace of mind and happiness!
I make $10 an hour but must work two jobs to make it. I live in a small town in Maine and it is not unusual for people to have at least two jobs. Many people work two jobs during the summer in this tourist town to supplement their incomes and to pay for heat for the coming winter.
I live very frugally, but very comfortably. I put anything extra in my savings account so that I have a buffer of 6 months if anything should happen to me. My main concerns are oil for winter heat and paying off my mortgage. I pay extra every month and have reduced my mortgage by 7 years already. I have no debt (except the mortgage), but do use my credit cards to earn extra points, etc. I pay them off the day after I use them. I like to travel, and people are surprised that I can vacation in Europe. But, I research like crazy to make sure I get the cheapest flights (going to Europe from the East Coast is often less expensive then traveling in the States) and the best hotel deals. I guess I would rather spend the money on travel then putting in pools and buying new furniture.
I would like to make a comment about farmers markets. There is a lot of talk out there about purchasing from local producers. I dont know about elsewhere, but the cost of purchasing food at these markets in Maine on my income is prohibitive. I wish I could, but I must always follow the sales in "regular" grocery stores.
I'm a grad student, which in and of itself says "HEY, I'M POOR", but I also own a house and have a pretty decent lifestyle. I think if someone met me and didn't know where I worked, they would assume I make more than I do.
They'd be more surprised, I think, at how little we make. For almost a year, we were on this side of having to ask for food stamps. Since I started working again (it took 9 months to find a job two years ago), our combined income has just about doubled--to the amount an entry-level engineer makes straight out of college (I know this because my brother is an engineer).
We shop for bargains, and are very very patient when it comes to finding things like furniture and clothes. Our motto, for shopping for things like that, has become, "You should only have to buy it once." Obviously clothes wear out, but with proper care they can last for quite a long time.
My husband is a pastor and we live in a parsonage. He works crazy hours and loves his job and people. His salary is negotiated every November and is a matter of record for anyone in the congregation. The down side of being public people is that our actions are scrutinzed. So we've encountered some really off-the-wall suggestions for our spending. What people don't realize is how our taxes are calculated, how his long, sometimes irregular, hours impact my work options and availability, or what area colleagues make. When people understand what we actually clear and think through how it's portioned out they're surprised. We've had to be creative in how we manage, and can encourage others in the same boat with some measure of credibility when those opportunities arise. Those are good things. The down side is dealing with oblivious people's expectations.
I know some of our friends feel we are very frugal and live well below our means. I disagree with that. I feel we doing OK but still have to watch every penny. My mom thinks we live too conservatively with a 15 year mortgage and she feels we should be rolling in money. Of course, we make less than our friends and substantially more (7 times) more than my mom. Maybe it's all about perspective.
Some of these are pretty crazy. I just read another article somewhere else that suggests using baking soda and vinegar for a lot of cleaning needs. (http://tiny.cc/jQv88) It even says you can use tea bags as air freshener... hmm, not as crazy as wiping with newsprint I guess.
I don't think anyone would be shocked by what we earn, but our kids have the idea that they will be inheriting debt, even thought that is not true.
I am a grad student in my early 20s. My income is very limited and I live far below it. However judicous use of sales, etc. often fools people into thinking that I make a lot more money than I do.... For example, I wear a lot of designer clothing; however, I pick it up on sale at prices that compete with the big warehouse stores. Also, I drive a large SUV...I bought it a few years ago with cash (that's easy to do when you live within your means). I have a sweet ride, while many of my friends are tryig to figure out how they can finagle a car loan on top of their student loans and their credit card debt...
I live from what I can make at student jobs and teaching and performing, starving artists unite !
... but they wonder, why I never have any money left. It gets eaten up by debts.
But step by step its getting better, although I had to cut down my lifestyle a little bit (but not that much).
It would be nice if you can clarify where you live ,
I'm trying to get a payday loan in Georgia, but I'm rejected everywhere.
Any ideas ?
Thanks.
Andy G - Georgia
i will get one of these smartphones very very soon oh and a macbook pro too. these are things that i really want but just dont need. and just so you know, i blame you for convincing me to but the cellphone