Posted on 03/09/2019 7:16:36 AM PST by CptnObvious
Money Observations: Living within Your Means. The movies and Television broadcast over and over to live on other-peoples-money and to live beyond your means. But in the "Everyday Millionaires" book by Chris Hogan and on the "Millionaire Theme Hour" with Dave Ramsey, millionaires say over and over again to live within your means and to get debt out of your lives.
Indeed, I did not. for the first 20 years of work, I dabbled in credit and did not have an emergency fund. Soon I found myself living paycheck to paycheck while having a decent salary. I saw something I wanted, I whipped out the credit card and bought it even though the money was not in the bank. I was definitely not Living within My Means.
Then on the way to work I heard "Attack Debt with a Vengeance", "Live within your means" on the radio with Dave Ramsey. I listened again and went and bought his book "The Total Money Makeover" and started applying it.
One thing is that we had an income that didn't fit within the months. The paychecks were every two weeks and all our bills fell within the first two weeks. We formed a budget and a "Preload Amount" that we had to have to make it through those first two weeks. After that we could look at having some cheap fun (walking the mall and some ice cream).
What we didn't know back then is that we were starting to live within our means. We did get out of debt totally and are far better off than we deserve. But one key to staying better off is to be a "Giver" and to stay within your means.
Now while investing over $3000 a month we still stay within our means. It is now part of our lives.
Congratulations! Well done.
“Rich people control their cash flow.”
- Robert Kyosaki
Love it!
I grew up thinking that anyone living in a single house was rich——and there were NO vacations——none.
.
You and your wife sound like good people. Please please do not make the mistake my parents did. They sacrificed to leave a big estate. Why do that? You should be good to yourself and still be plenty to descendents your home etc. My parents sacrifices were spent on huge lawyer fees between siblings.
Thanks to my wife, who makes Dave Ramsey look like a spendthrift, and having no desire for toys or the high life, we were able to retire debt free. This allows us to live modestly on social security without tapping a modest nest egg. We even were able to financially survive two medical crises. Our frugality comes from the values of our parents who experienced the Great Depression. That said, we realize the state of our financial security in retirement is fragile and all could be wiped out in the blink of an eye.
I am looking at the “City of Lewiston” {Maine} issued 25 cent bill that my grandmother carried in her wallet for the 80 years that she lived thru after she and my grandfather lost everything in the Great Depression. When the banks closed, some municipalities issued script in desperation to try and float the economy. It was her reminder to herself that “stuff” happens and to be ready for it. Now it hangs above my desk and serves the same purpose. Being one paycheck away from bankruptcy is no way to survive a downturn. Be an ant, not a grasshopper.
My dad grew up in Queens, N.Y.. Dirt poor. Made a meal out of beans and pasta. Cardboard in shoes. But his grandma owed the house they lived in. Candy store in front of house. We have always owned homes.
We’re on Baby Step 6 of Dave Ramsey’s plan. Talking to the teens, we were able to say you don’t need to fill out the FAFSA, though we appreciate you applying for scholarships. But I don’t need to attend the college loan application session they were inviting my firstborn’s class to because we don’t need it.
Then had to discuss expectations and requirements with firstborn. We can pay for school if state school and you live with us. We’ve already discussed her career plans, how she can get that degree and certification, and schools that have decent programs. But this is not a blank check to attend a private school for four to five years.
Yes, that is what Living within Your Means produces. The ability to have a good financial bandwidth and the hope that it may last (If those fools in Washington can ditch this Socialistic tomfoolery -getting "rid of Farting Cows and Airplanes").
LOL-—I remember cardboard in shoes.
My mother was widowed in 1938,2 small children,she never owned a home——but we survived.
.
Unfortunately I came upon Ramsey late in life, around 50. Put my foot down at that point and said no mas. Paid everything off, house, car, CCs etc. Once debt free, I felt like I got a 10% raise because the money I was spending on interest, amounted to that at least.
20 years later I have all I could almost want as I have a chunk of money in the bank and investments rather than using CCs to quell any problem. I still use CCs but pay them off each month no matter the balance. We also decided to not support the car companies and drive older cars and plan to do it till the wheels fall off!
I was raised in a small rural community where everyone older had lived through the depression. Just having basic amenities like electricity, your own well, or a telephone line were luxuries and greatly appreciated and never taken for granted. Folks had to save up for years to finally afford having power brought in or a well drilled because things like this had to be paid for up front and banks would seldom loan for these things. Viewing finances and budgeting from this perspective of appreciation for what you do have rather than what you do not have can serve one very well.
There is a difference between “wants” and “needs”. And if you can work on the “cash up front or you don’t really need it” principle it is quite easy to live comfortable within your means. Question is what is your perspective of “comfortable”?, Having a bigger house, and bigger lawn, or a bigger lawnmower than all your neighbors? Or having the time to go fishing while all your neighbors work their butts off trying to maintain these competitive status symbols?
Myself... I am going fishing and appreciate not having to beat myself up trying to be more “status comfortable” than my silly neighbors. lol
I thought you cant attend college without without completing FASFA. I filled it out for my kids. They got 80k in free money for college. I’m not talking loans.
Nice. I agree. My parents also went through the depression.
(Sorry that money split your marriage. )
My grandparents’ stories of hunting for 3 pennies to buy ice to make ice cream back in their poor days affected me. And my parents lived within their means.
Fortunately, my husband and I agreed to do our best to live without debt. We bought a humble home and paid it off in a few years so that I could stay home with our children. No debt. We pay cash for our cars - usually buy used cars which are fine with us. Not into fancy.
I agree 100%. We never traded up like many in our town. We stayed in the same small home despite our family size growing.
We don’t have 50k cars in our driveway. We own 2 cars one with 90k other 100k. I drove the last one 14 yrs til died on side of road.
Yes, exactly. We told ours the same. This is what we can do for you and we did. We were able to cash-flow the third and have no college debt and no mortgage in 2008. No Student loans for any of the 3 and they thank us profusely.
More power to you on Baby Step 6. We weren't totally gazelle intense on it but we were close. We kept figuring ways to throw more at it. Then I got layed off and the severance package paid off the house even after we tithed on it. My wife had a job and we sailed on through it. I came back and was a contractor for 2 years and saved some in Roth IRAs. The wife still loves her work (nursing) and we are on baby step 7 and giving.
D.R. Rocks!
My mom grew up in the country. They had an outhouse for many years til plumbing installed. She said living in country easier than city cousins. At least they could grow vegetables in Garden. Grandpa had a small business. She said it provided extra rations probably during WWII.
Many people confuse a Budget with Cash Flow. A budget is where the money is going out every month, regardless of when it goes. Once you establish the budget, then you work on the cash flow.
Most people are also backwards on savings and credit. Credit is for emergencies (i.e. spending money you don’t have). We tend to use credit like cash. We buy “things” with it. Don’t buy things with money you don’t have.
Example: My sister had a $1,800 hospital bill. I told her to borrow the money and pay it off. Instead she paid them half of what they asked every month and they sent her to collections. Now she’s owes $3,000 and she will owe that $3,000 until she dies.
Yeah, that's part of it for sure. Just driving a new car off the curb drops its value hugely! We buy nice used cars with low mileage. Bought one with a defect. Couldn't update the console because of software licence with Microsoft. Was almost brand new. It doesn't do navigation but does use the smartphones phone calling and music. So we just do navigation with the smartphones. Was a bargain. We paid for it in Cash!
Living within your means makes you Smart!
They were telling parents you have to come to a seminar on college loan applications.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.