Frugal couple accumulate large nest egg by choosing not to live beyond means

Seattle Times ^ | 01/04/04 | Kathleen Lynn

[woofer]

Look what is going on here. Dad paid for college. They have no kids. The wife isn't at home, but working, even though they don't need her to do so.

What would you have her do? Sit on the couch at home all day, eating BonBons and watch soaps?

[Alouette]

I paid my nephews way through college and what might be left after we die will go to nephews, nieces, and FR.

My brother in law has no kids, he is a millionaire, fanatically frugal and UNCLE SAM is getting all his money after he assumes room temperature.

Living the life of a homeless bum (he lived with his mother until she had to move into the nursing home, and even then he would sneak in her room to take a shower) is not something to admire.

[Ursus arctos horribilis]

"...Spendthrifts! When I get married, she'll wear her mother's wedding gown and I'll wear my blue business suit..."

The following is the truth.

A little over forty four years ago the girl to be my wife and I picked cotton one Saturday morning until ten AM. We cleaned ourselves up, went to the local Baptist preacher, said our "I do's" and were back in the field by 1 PM and picked cotton until dark. We did not have the proverbial pot to @iss in or a window to throw it out of.

To those who never had the pleasure (not) of dragging a 13 foot tar bottom cotton sack with a 100 pounds of cotton in it, picking a grab row with one who believes it when a kid with a seventh grade education tells her you will make things better, then you have no concept of the blind faith that girl had.

That winter I hitch hiked north to Chicago with ten dollars in one shoe, twenty in the other and five bucks in my pocket. I got a bed at the YMCA , took the first job I found as a night janitor, in two weeks I got a one room apartment and had sent a bus ticket to the wife.

I vowed to make it so my wife someday would not have to ever again experience that life we had gotten out of, or of having to work out side the home. This was accomplished, we raised three great children, was very lucky in calculated choices made, and I retired at age 52. Though not rich, we have little to be concerned about financially or of becoming a burden to others at this stage of life in our sixties, and it feels simply great.

[spectre]

Don't be so sure Uncle Sam is going to get his money. If he dies without a WILL, then the money should go to the next of kin. If parents are deceased, then it goes to his siblings...:~)

sw

[Trajan88]

Ahh... the priciple of spending less than one makes shows its face... good stuff.

The folks in N. Dallas/Plano, TX that have had their homes foreclosed on in record numbers should study this complex principle.

Trajan88

[ItisaReligionofPeace]

Some people know the price of everything and the value of nothing...

[Harmless Teddy Bear]

Holly, if I can offer one bit of advice, a good way to stay out of debt is buy a used car.

May I add, pay cash for it. I had just bought a very nice used car two weeks before my job went bye bye. If I had known I never would have bought it but at least I didn't have car payments to worry about because I had paid cash. Tuck away what you would pay in car payments for a couple of years and you can get something nice and worry free.

Car's drive a whole lot better when the bank doesn't own most of them.

[gcruse]

My New Year's Resolutions -on the financial front- are to put away $6,000 in savings, $700 in my 401K, reduce my taxable income by $1,000, and shave $2,000 off my credit card debt.

I wouldn't do it that way.  I'd forego putting anything into savings until all my credit card debt was paid off.  Then I'd max out my 401K contribution and adjust my lifestyle to living with those means, plus save what I could. With the interest you are paying on your credit cards, you're throwing money away.  Get own to zero owed.  Then start saving and begin paying cash for everything except home mortgages.  Let your money work for you, not the credit card company.

[madison10]

Meaning no disrespect to anyone, but how "rich" are you if you have no children? What is our purpose on Earth? To die with a fat bank acount? My children are my reason for working my ass off - to provide for them (not for me).

There is the possibility that there was no choice about having children. The kids don't always come. The couple may have not intended to choose money over children, but that is how it worked out. Without kids they needed SOMETHING to strive for...

[RightWhale]

no one ever owns property in the USA>

One of the benefits of choosing some other system besides monarchy.

[bonfire]

Yep. One right next door to me. The guy still had his job, they just overspent. After filing bankruptcy and moving, he wrote a BIG bogus check and now is in jail. They could never understand how we would buy used cars (he was a car salesman). Drove him nutz that we were frugal. Now his whole family is probably at the homeless shelter while he sits in jail. Sad and stupid.

[Kadric]

I know the feeling and acted on it in January of last year. Then took 9 months off to do what ever I wanted. I decided to go back to work and found a decent job 2 days after starting it the old company asked if I would come back for a package deal that was close to 4 times what I was making before. I have never been to college and am self taught, I do industrial controls/electronic tech.

The one thing that always getts me is all the people that say I need to buy a new car, I drive a '91 Jeep that I bought used. While saying they wished they didn't have to worry about the CC, House payment, or car payment. I payed off my house in 5 years, sure there were other toys I would have liked to have gotten then but the thought of that house payment made me stay focused.

[RippleFire]

bump

[OldFriend]

Unfortunately, by the time the mortgage is paid off the taxes will equal the mortgage payments thanks to the spend spend spend crowd.

[the gillman@blacklagoon.com]

Years back in Worcester MA a guy from Providence came and built a nice big highrise.

The town fawned all over him. In the paper there was an article on his life. A self made man, he had goofed off til he was in his thirties then decided to try Real Estate.

In the paper he told the secret of his success.

He found a million dollar property in Providence that he wanted. No bank would lend on it because it was in rough shape and he had no track record.

He says, "Right then I knew I had to get going, if I wanted to be a success. When I couldn't get financing, I just paid cash."

[paul51]

His wife sums it up: "I want to be as common as an old shoe."

Sounds like her life is about as exciting as one also. I'm going to write a book on an alternative startegy for anyone who wants a life that consists of more than counting your pennies.

Start your own business unless you want someone else in control of your life. Buy whatever you feel like buying and spend as much money as you want, however, do it after you have earned it, paid the taxes and socked away 20 or 30% of the net.

[Dog Gone]

Net worth is calculated a lot of ways, but it certainly includes more than liquid investments. You have to include personal property including vehicles, furniture, jewelry, TVs, etc. Most people have bought more stuff than they realize.

An even truer measure of net worth would include the present value of any future payments you've already earned but not yet received, such as retirement pensions and even social security.

[RoseofTexas]

"Though the Manzos, who are CHILDLESS."

Heck if my husband and I were childless, you bet we would be in the same category! Putting three kids through college can but a HUGH :) strain on the bank account! Not to mention the moola it takes to raise them! KIDS ARE VERY EXPENSIVE now a days. College tuition isn't what it was 24 years ago when my husband got his degree!:(

[Voltage]

The Manzos' lifestyle would not work for everyone. Their wedding 30 years ago cost all of $700.

Compared to these $20,000 weddings which are very common (and insane!), its quite cheap.

My parents can't keep from reminding me that they were married 62 years ago, for less than $50.00 including the honeymoon at the Lemmington Hotel in Minneapolis for which they still have the room receipt ($7.00).

How times have changed!

[protest1]

Yes I tend to agree, I do not think their achievement is any big deal. They have two incomes and no children, most people in their circumstances would have very good finances.