First: Deciding on a budget together before we got married. Second: Getting out of debt as soon as possible. Third: Living within our means, even when it takes a little sacrifice of "fun stuff".
The best money move I ever made was when looking for a piece of property to build a house on. One piece had 6 subdivided lots and a view of San Francisco Bay. It had been on the market for a long time and when we looked at it, we could see why. A sewer line went right down the middle exactly where a house would be ideally built for the view and street access. The parcel was only $12,000. My husband went to the sewer department of the county and asked what it would cost to move the sewer line and manhole to the side of property next to the property line. When they said $1,000, we immediately bought the property. Then we had the line moved and started building. The house was 2800 sq. feet and cost $62,000 to build and after we lived there for many years with a very small mortgage that we paid off early, we are retiring and selling it now for $579,000.Plus there are 2 view lots that can also be sold . If the sellers had had that sewer line moved themselves, they would have been able to sell that land for a lot more than $12,000.
Our best money move was selling our house in an expensive real estate market, paying off that old 6.5 percent mortgage, moving to a cheaper area, and using the remaining profit from the sale to buy a house for cash. We now live in a newer, more energy efficient house and have no mortgage and lower property taxes.
The wisest financial move I made was actively budgeting my money to make sure that every dollar has a place and function. In particular, this is very helpful after one gets a raise since lifestyle inflation is far too easy.
I moved to Europe from the US - this has a problem that got up my nose like you wouldn't believe. I'm still trying to get one of my machines region free - its a real pain having to keep two units (one region free and one region 2).
I am Indian-American, and a lot of Indians have similar traits, though it took me a while to develop them myself. Big emphasis on education and being frugal on lots of other things.
I am pleased to see this story. The social media is a huge help in some larger cities allowing like-minded frugal folks to come together to share information about cheap entertainment and enjoy it as a group. Meetup.com - is a great social media, event planning site for many different groups internationally, groups on many topics - including frugal entertainment. Anyone can start a group locally, screen new members, collect dues to pay the small hosting fee for the group, advertise, maintain a calendar, email system, photo album and comments forum.
This is really interesting insight. What strikes me about what you describe is that certain categories of expenses would be considered "savings" in China, though they're "expenses" here.
For example: If you save up for 10 years to pay cash for a house, you'd be "saving" (perhaps 30-50 percent of your income) for that entire time. However, if you buy a house in the U.S. and begin making mortgage payments, that money is considered an "expense" (even though part of it goes towards building your equity). Similarly, if you save up to pay cash for a car -- that's considered savings. But if you make car payments, that's considered an expense, even though a large chunk of it goes towards your 'car equity,' so to speak.
I suppose the difference is that if you're saving, you have the option, the opportunity, to NOT make those "payments" into your savings account, if an emergency happens and you need to re-direct that cash. If you're making payments on a loan, though, that option is no longer there. That's probably where the Chinese term "fangnu" comes from.
I suppose, also, that if you made excess, accelerated payments (above-and-beyond your minimum monthly mortgage or your minimum monthly car payment), that might be considered savings.
You're probably familiar with the concept of Inbox Zero -- clearing clutter out of your inbox so you can breathe easier, stay more organized, and remain "on top of your game." Keeping your home at "zero" (not literally) has many of the same benefits. There's a huge psychological relief to walking in the door and not seeing clutter and junk everywhere. Some people have a tough time throwing away items that they once spent money on, but the mental relief at purging things you no longer need is pretty great.
That said, I think it's fine to keep some supplies stocked, so you're not zooming to the store every time you finish a roll of toilet paper, but those supplies should ideally be reasonable and often-used. It's one thing to keep excess items on-hand to minimize the amount of time you spend running errands; it's another thing to hoard and stockpile.
Thanks for your comment and information on accounts with Schwab and Fidelity. When I researched and wrote the article, I debated about whether to include info on bank accounts linked to brokerage accounts as you mentioned. In the interest of simplicity, I opted to cover the brokerage account info only rather than how they might work with linked accounts.
I generally go to meetup.com and type the zip code and most of the times it puts the meetups by interests in your area. Its a nice way to make new friends.
My biggest minimal rule is if I don't love it, I leave it. I did a large purge, and have continued to week through my possessions from there. I think minimalism is what you choose it to be for YOU, not owning a set number of things.
Great read! Thanks for sharing with us :)
First: Deciding on a budget together before we got married. Second: Getting out of debt as soon as possible. Third: Living within our means, even when it takes a little sacrifice of "fun stuff".
You're welcome, Tony! I too was amazed when I found out you could do this!
It was buying my first house at age 22.
The best money move I ever made was when looking for a piece of property to build a house on. One piece had 6 subdivided lots and a view of San Francisco Bay. It had been on the market for a long time and when we looked at it, we could see why. A sewer line went right down the middle exactly where a house would be ideally built for the view and street access. The parcel was only $12,000. My husband went to the sewer department of the county and asked what it would cost to move the sewer line and manhole to the side of property next to the property line. When they said $1,000, we immediately bought the property. Then we had the line moved and started building. The house was 2800 sq. feet and cost $62,000 to build and after we lived there for many years with a very small mortgage that we paid off early, we are retiring and selling it now for $579,000.Plus there are 2 view lots that can also be sold . If the sellers had had that sewer line moved themselves, they would have been able to sell that land for a lot more than $12,000.
By far the best move I ever made was to draw up a budget and to start using coupons to maximize our disposable income.
1) Investing in single family homes and letting my Tenants pay off the mortgage.
2) Downsizing from a big fancy house to a more modest one.
~ darlene
Our best money move was selling our house in an expensive real estate market, paying off that old 6.5 percent mortgage, moving to a cheaper area, and using the remaining profit from the sale to buy a house for cash. We now live in a newer, more energy efficient house and have no mortgage and lower property taxes.
The wisest financial move I made was actively budgeting my money to make sure that every dollar has a place and function. In particular, this is very helpful after one gets a raise since lifestyle inflation is far too easy.
The best money move we ever made was selling our first 2 homes years ago when home prices were sky high. I wish we were in that position again.
Best money move was buy Mastercard stock on day one! Never picked a stock so well. Still kicking myself that we sold too early.
Best Move Ever? Consolidating credit cards into one.
I moved to Europe from the US - this has a problem that got up my nose like you wouldn't believe. I'm still trying to get one of my machines region free - its a real pain having to keep two units (one region free and one region 2).
Moderation in all things--including minimalism.
This is a great tool- thank you!!
I am Indian-American, and a lot of Indians have similar traits, though it took me a while to develop them myself. Big emphasis on education and being frugal on lots of other things.
I am pleased to see this story. The social media is a huge help in some larger cities allowing like-minded frugal folks to come together to share information about cheap entertainment and enjoy it as a group. Meetup.com - is a great social media, event planning site for many different groups internationally, groups on many topics - including frugal entertainment. Anyone can start a group locally, screen new members, collect dues to pay the small hosting fee for the group, advertise, maintain a calendar, email system, photo album and comments forum.
This is really interesting insight. What strikes me about what you describe is that certain categories of expenses would be considered "savings" in China, though they're "expenses" here.
For example: If you save up for 10 years to pay cash for a house, you'd be "saving" (perhaps 30-50 percent of your income) for that entire time. However, if you buy a house in the U.S. and begin making mortgage payments, that money is considered an "expense" (even though part of it goes towards building your equity). Similarly, if you save up to pay cash for a car -- that's considered savings. But if you make car payments, that's considered an expense, even though a large chunk of it goes towards your 'car equity,' so to speak.
I suppose the difference is that if you're saving, you have the option, the opportunity, to NOT make those "payments" into your savings account, if an emergency happens and you need to re-direct that cash. If you're making payments on a loan, though, that option is no longer there. That's probably where the Chinese term "fangnu" comes from.
I suppose, also, that if you made excess, accelerated payments (above-and-beyond your minimum monthly mortgage or your minimum monthly car payment), that might be considered savings.
You're probably familiar with the concept of Inbox Zero -- clearing clutter out of your inbox so you can breathe easier, stay more organized, and remain "on top of your game." Keeping your home at "zero" (not literally) has many of the same benefits. There's a huge psychological relief to walking in the door and not seeing clutter and junk everywhere. Some people have a tough time throwing away items that they once spent money on, but the mental relief at purging things you no longer need is pretty great.
That said, I think it's fine to keep some supplies stocked, so you're not zooming to the store every time you finish a roll of toilet paper, but those supplies should ideally be reasonable and often-used. It's one thing to keep excess items on-hand to minimize the amount of time you spend running errands; it's another thing to hoard and stockpile.
Thanks for sharing your experiences!
Thanks for your comment and information on accounts with Schwab and Fidelity. When I researched and wrote the article, I debated about whether to include info on bank accounts linked to brokerage accounts as you mentioned. In the interest of simplicity, I opted to cover the brokerage account info only rather than how they might work with linked accounts.
I know! I tried my best, but the photos really don't do them justice. Especially the drop earrings -- they're GORGEOUS in person.
Wow! You got some great stuff! I think I need a Wantable box myself! How fun!
I generally go to meetup.com and type the zip code and most of the times it puts the meetups by interests in your area. Its a nice way to make new friends.
Good questions! I am gonna note this down ...
My biggest minimal rule is if I don't love it, I leave it. I did a large purge, and have continued to week through my possessions from there. I think minimalism is what you choose it to be for YOU, not owning a set number of things.
Great read! Thanks for sharing with us :)