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.
Those are precious memories. Indeed. So much better than the kids of more recent years who sit in front of a Nintendo game for hours.
oh, yes. Spent then entire decade of the 50s in rural central Utah as a free-range kid. Barefoot all summer, clunky brown leather oxfords and long brown cotton stockings all winter. :o) It was the best of all worlds! I wouldn’t trade those memories for a million anything....
Wife and I have lived this way ... this year is 25 years since we married. I splurged a bit when I was single - she was mad at me for not having more savings.
We both get an allowance each month for fun. The big debate is how much of an allowance. I only get an increase when I get a raise. It works out. I actually track the budget closer than she does because I’m trying to sock away more into higher growth opportunities. There are a few things we could do without, but we don’t do resteraunts, theater, sports venues, etc...we’re pretty much home bodies with home hobbies. Internet and access to Japanese programs has been a godsend for her.
She’s all about CDs and Savings accounts which barely keep up with inflation. She understands it, but is just too risk averse. Has to do with growing up on the edge in Japan with a single parent and 2 siblings.
We’re right at the edge of being able to claim the big $M and have 15 years to go for retirement. House was paid off 10 years back and only carry cards month to month for the free no interest loan and a better credit score. 1st kid graduates college without debt this year. 2 more years and we’ve done all our “duty” except maybe the weddings and an emergency here and there.
They can attend but they can’t get scholarships or loans without it. One of my daughters is in the same boat as yours. She has a massive scholarship so we have to fill it out every year. Without it she couldn’t have attended her school. With it she’s pays less than a community college would need and the opportunities are better.
Good for her. Thats why we gladly and gratefully filled out fafsa.
We’re at 175k on the 7 year old and 125k on the 17 year old :)
Way Cool! This is what living within you means does. It is awesome! I'm believing you will celebrate the $M soon!
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