The subject of money comes up more and more as the Great Recession drags on. Folks have been downsized or had their hours cut, or had
inflation magically increasing prices in random areas such as food, fuel and medical insurance that are clearly not an indicator of inflation, chipping away at their purchasing power or whatever. In general the poor poor pitiful me stuff has been on the rise. I have been looking around my residence and thinking.
Right now I am sitting in a pretty comfortable recliner that we purchased slightly used for $100, new they are about 4 bills. The couch next to it was purchased by my parents in 1986. The coffee table in front of the couch was free as I found it beside a dumpster and carried it home. Our dinner table cost Wifey (actually her mom) $30 or something back in college. The chairs are slightly mismatched because we combined the best of what both of us had upon combining stuff. Our printer sits on a nice butcher block that my Dad handed down to me at 14 or so. Our entertainment center thing cost $80, it is sort of a wierd piece and we probably won't take it back to the states with us.
We have a coffee maker I got as a used hand me down about 8 years back. Our electric griddle is about the same age and has some issues with maintaining temperature and hot spots. Our Queen sized bed cost Wifey $50 back in college. I think the frame cost us $100 in Georgia. The bed in kiddo's room cost us $30 if I recall. We paid an average of about 15 cents on the dollar for all of his stuff. He thinks toys come from Grandma, thrift stores and the dumpster. So much so that he urges me to go to dumpsters when we walk by them.
We wear clothes until they fall apart. Wifey recently decreed that a pair of shorts of mine had to go. Something about refusing to sew a half dozen holes and not wanting me to be arrested for public indecency in the near future when those holes expanded. I think they were about 8 years old. My clothes are purchased at used stuff places or Walmart. The hat I wear when not at work was given to me as a promotion. I regularly find myself wearing entire outfits of stuff I was given or scavenged. Wifey'c clothes come from thrift shops, personal sales, gifts and apartment stores when they have good sales. Kiddo's clothes are from personal sales, gifts or once in a blue moon purchased new when something really cute is at the store.
Our stuff is all servicable if a bit worn and quirky. When something stops being servicable we replace it though of course we try to get a deal.
I realize that we are different from most folks. I have had enough conversations with people to know that what we do is not common or normal. The income I bring in is decent, but not anything worth bragging about. We probably live on 60% of my take home wages. Wifey stays with kiddo and takes care of the homefront. We paid cash for both of our modest but decent vehicles and do not have any debt. We have put some money away for emergencies and have some fairly decent preps for our place in life.
Aside from guns, precious metals and vehicles the most expensive thing we own is a Sony flat screen TV we spent $800 or so on, which was a huge deal for us. After that we have a couple lap tops that cost about $500 new and it goes downhill rapidly from there.
This is why every time somebody talks about how they can't afford to prepare or save or pay off debt I WANT TO SCREAM
BULLSHIT, YOU CAN BUT JUST DON'T WANT TO!
I am not saying that you could or should live like we do. My point is that folks can choose not to be like the broke jokers with maxed out visa cards and home equity loans who live next door. It is fine if you don't want to but it is certainly possible. You can afford to prepare and or save if it is important to you and you are willing to do what is necessary to make it work. I hope this all gives you guys something to think about.
Edited Later to include:
Commander_Zero said...It's an easy enough thing to do on your own, it's bringing the wife onboard that makes or breaks it. If you're both genuinely on the same page about it you have a good deal going...you each act as the others accountability partner.
Once the debts are paid off, its pretty easy to live within your means. Everytime I feel weak and want to splurge I listen to some Dave Ramsey on the internet and it gets my head back on straight. (And usually puts me into a work-and-make-money frenzy.)
What are you doing with the other 40%? Socking it away, Im guessing? Saving for a house? Just wondering what the longer terms goals are.
I wanted to discuss this on the main page because it brought up a couple points worth discussing.
While spouses are a whole subject of their own it is worth touching on. I think it is fair to say that nothing significant can happen in a marriage without both spouses being on board. If you are the guy who takes a spatula to the mayo jar even though you have a full jar in the shelf a spouse who blows through money shopping faster than a cokehead gambling addict it will be an issue. Having some degree of financial compatability is important for a relationship to work and is one of those practical things folks so often ignore when choosing life partners. This is particularly problematic for folks who do a financial 180 degree turn after a decade of marriage. The scenario where you want to go all Dave Ramsey and the Mrs still likes to take her visa shopping for designer clothes is an ugly one. In a lot of ways I have more sympathy for the spouse who wants to keep on with what she signed on for. I wish there was a good answer but if there is I don't know it.
A partner who is on the same page helps, especially if your weaknesses are different. She is strong when you are weak and visa versa. Also generally being passionate about the same goals helps too. Folks aren't usually willing to sacrifice much for things they aren't passionate about.
I agree with you about debt. The thing is that both the good and bad cycles are self perpetuating. If you pay down debt it is easier to focus on paying it off. It is a lot easier to pay cash for stuff when you have no bills except basic living expenses. Then you can really start getting ahead. On the other hand when your income is going to a couple car payments, a payment on a toy like a bike or boat, 2 credit cards and a line of credit on the house it is very hard to save up to buy stuff with cash. Also you are paying a bunch of interest for the privledge of paying tomorrow for a cheeseburger today. The further you go in this cycle of debt the harder it is to get out.
As to the other 40%. You pretty much guessed it. For awhile we were putting most of it into our emergency fund, then we started making huge payments on my student loan. Sometimes we save for big stuff (maybe that isn't saving parse but more of a save to spend which is kind of it's own category but I digress) like when we need a car. About 15% goes for retirement. A little bit goes for precious metals. Some goes for kiddo's college fund.
You are 2 for 2 with guesses. Right now we are saving to buy a house. If it works out right we will have a solid downpayment in a bit more than a year.
As to long term goals. Continue to not make stupid decisions. Buy a reasonable home and pay it off at an accelerated rate. Help the kid(s) pay for college. Continue to save for the future. Get a little doomstead on a few acres in the middle of nowhere. Put away enough cash to retire with some dignity or at least not on a diet of rice and dog food. Also I want a Harley.
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