[cyborg]

That is a really good book. It is much better to be debt free than be depressed paying bills.

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[baltodog]

"Her husband had help from his parents to pay for college, but it came at a great sacrifice to his father, a welder."

I find phrases like this in just about every article about "self-made" wealth.
More power to him for being frugal and I certainly wish them the best of luck.
But how much did his father "greatly sacrifice"? Would it make any difference in their current lifestyle if he had to pay it himself?

[FReepaholic]

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

Heretics! Blasphemy!

[mykdsmom]

I haven't read the book but my husband has.

We aren't in the wealthy category "yet" but it sure does feel great not having a penny of debt. We do it on one income too so I can stay home with the kids.

We plan to retire in 10 years at the age of 50.

MKM

[dalereed]

I've neever owed anyone a cent other than a mortgage and it was paid off 14 years ago.

[PISANO]

$400,000 — not including home equity

This seems a bit strange. That must mean that their savings/401k's/IRA's etc have to be 400k more than their mortgages/credit card bills/liabilities. That seems pretty steep for a 40 year old making 100k per year. Am I missing something here/

[kcpopps]

"...walked through the house as if I owned it."
"Because we did," said her husband, Joe, 56

Great story - good people - however I would say that no one ever owns property in the USA, even when there is no mortgage. Through never ending assessment of property taxes, and the burden of inheritance taxes, the state holds true ownership over the property now and forevermore.

[JoeSchem]

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

Spendthrifts! When I get married, she'll wear her mother's wedding gown and I'll wear my blue business suit. For the reception, we'll have cake and soda in the general-purpose room at our church. She'll get a gold ring instead of a diamond ring because the mark-up isn't as high. Of course, I'll have to make it up to her by being affectionate and faithful, but hey, some women prefer that. Not most American women, obviously, but some women.

[proxy_user]

"The book gives the following yardstick for measuring assets: You should have an amount equal to your age times your annual income, divided by 10. So, for example, a 40-year-old couple with $100,000 income should have net worth of $400,000 — not including home equity.

This is a good formula to use, and I have it in my net worth spread sheet. I am at two and a half times the resulting number.

I'm not cheap, and buy whatever I want. I think it is more important to have a high enough income to save substantial amounts while still living decently.

[Johnny_Cipher]

Anti-capitalist terrorists. Lock 'em up and throw away the key, I say.

sarcasm OFF

[avenir]

"I can purchase anything I want because I have a financial nest egg."

She's right. I'm not in her position now, but I have been before. Somehow when you're financially solvent the "want" factor subsides to a reasonable level. With a nest egg you have more freedom and true buying power.

I'm working my way back there.

[Conservative til I die]

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.

The bills will kill you if you let them get out of hand (i.e., live beyond your means).BTW, I'm in my mid-20s and making OK money, which is why some of those #s seem low.

[Alouette]

Looks like they have no children. So, guess who gets all their money when they go? Sam, everybody's uncle.

[Clinging Bitterly]

It'd be nice to be in that situation, but yeah, some of the things in their lifestyle that make it possible aren't workable for a lot of us. They don't have kids, and that makes a huge difference.

Still, we can all recognize the choices we made that took us out of that league. Like getting married.

[mcenedo]

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).

[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...

[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.