For Those Who Need to Find Ways to Save $$$

[Josiah]

Okay, I have a nice job and so does my wife. But here's what we do...

We simply buy less than we can afford. For us, in the middle class like the vast majority of Americans and Western Europeans, it's pretty much that simple.

Our house.... we qualified for about 150K bigger loan than we ended up needing, because we didn't buy as big or fancy of a house as our income suggested, we looked for something that met our needs. And we love this place. And we could have bought an Audi or Acura or Lexus SUV, but the Honda we bought is awesome (and is virtually the same as the Acura anyway) and saved thousands. The result is that we underspend our income... and thus we can can 20% to charity (which is our commitment) and move some nice funds into investments. We go out to eat when there is a REASON to - to meet with friends or perhaps to celebrate a special event, not simply because we can.

I think a LOT (most?) middle class folks just spend WHAT THEY CAN (and usually more)... and thus find themselves broke, in debt up to their eyeballs, looking to save money on hamburger. We see so many of our people our age and in the middle class ACTING like they were upper class, just consistently spending everything they've got (and more) - and thus feeling poor and having to find tiny ways to save because of the big ways they spent - and it's impossible. Now, it helps us A LOT that neither of us entered marriage with any debt (no student loans, that's huge) and we make more than our parents so we were raised in a standard that we're both comfortable with. And we have no need to impress anyone or keep up with anyone ('tude issue).

I realize, it's a whole other enchilada for those who have a very limited. But if you look at the stats, the big problem with debt and stuff is with those in the middle class. And WHERE POSSIBLE, the same principle applies: Don't spend just because you CAN.

I think another thing is that we have a clear budget and we keep tract for every dime. We MANAGE our money, it doesn't manage us. Every dime is recorded - and is accountable. Nothin' wrong with fun - as long as what is spent on that is what we want to spend on that.




.

 

[tango]

Okay, I have a nice job and so does my wife. But here's what we do...

We simply buy less than we can afford. For us, in the middle class like the vast majority of Americans and Western Europeans, it's pretty much that simple.

Our house.... we qualified for about 150K bigger loan than we ended up needing, because we didn't buy as big or fancy of a house as our income suggested, we looked for something that met our needs. And we love this place. And we could have bought an Audi or Acura or Lexus SUV, but the Honda we bought is awesome (and is virtually the same as the Acura anyway) and saved thousands. The result is that we underspend our income... and thus we can can 20% to charity (which is our commitment) and move some nice funds into investments. We go out to eat when there is a REASON to - to meet with friends or perhaps to celebrate a special event, not simply because we can.

I think a LOT (most?) middle class folks just spend WHAT THEY CAN (and usually more)... and thus find themselves broke, in debt up to their eyeballs, looking to save money on hamburger. We see so many of our people our age and in the middle class ACTING like they were upper class, just consistently spending everything they've got (and more) - and thus feeling poor and having to find tiny ways to save because of the big ways they spent - and it's impossible. Now, it helps us A LOT that neither of us entered marriage with any debt (no student loans, that's huge) and we make more than our parents so we were raised in a standard that we're both comfortable with. And we have no need to impress anyone or keep up with anyone ('tude issue).

I realize, it's a whole other enchilada for those who have a very limited. But if you look at the stats, the big problem with debt and stuff is with those in the middle class. And WHERE POSSIBLE, the same principle applies: Don't spend just because you CAN.

I think another thing is that we have a clear budget and we keep tract for every dime. We MANAGE our money, it doesn't manage us. Every dime is recorded - and is accountable. Nothin' wrong with fun - as long as what is spent on that is what we want to spend on that.




.

The key issue is to spend less than you earn. It's not necessarily easy if you're very low paid and your car suddenly needs an expensive repair, but in a lot of cases a focus on the distinction between what is necessary and what is not is key. I know a couple who were drawing down six figures between them but were falling behind on their mortgage. This was in a rural area where the cost of living is very cheap, and they weren't living like kinds. I have no idea what they are doing with the money they make but it seems they would rather go out and party than worry about trivial things like paying their bills and their mortgage.

It is remarkable to see how many times people spend a little more than they earn, figuring their next pay raise will cover it all. Then they get the pay raise and respond by spending all their pay raise and a little bit more. The result is a mass of bills and, despite the good job, they remain no more than a couple of paychecks away from being homeless.

I think back to the days that my next door neighbor had a large flat screen TV (back when they were expensive), fancy games consoles and the like. I had the kind of honking great CRT that took two people to move and an old Nintendo Game Cube. You literally couldn't give away the stuff you could see if you looked through my living room window. But if I had an unexpected expense I was ready for it, if they had an unexpected expense they were stuck. When one of their (elderly) parents died they struggled to find the money to buy train tickets to go to the funeral. For good measure when Mr Burglar came calling they ignored my house and visited next door. I'd been away for two weeks, they had been away for two days, and in those two days a burglar raided their house and ignored mine completely.

 

[Ruth]

I stopped getting cable tv as it's too expensive. Instead I got a firestik and Directtvnow. I'm not sure if I'm crazy about it but like the channels I get with it. What bothers me is that at times it buffers a lot and then for a lot of the time it does not. Looking into Sling, too, as it's less expensive but I don't know what channels you get.

 

[tango]

So much is down to priorities. I know a guy who constantly complains he can't afford this and can't afford that. If something happens with his house his first response is to worry about how he's going to fund any repairs that are needed. But if a new bar opens in town there's almost no pause between him mentioning it opening and asking when I want to go check it out with him.

 

[Ruth]

So much is down to priorities. I know a guy who constantly complains he can't afford this and can't afford that. If something happens with his house his first response is to worry about how he's going to fund any repairs that are needed. But if a new bar opens in town there's almost no pause between him mentioning it opening and asking when I want to go check it out with him.

That's kind of funny!

 

[Lamb]

So much is down to priorities. I know a guy who constantly complains he can't afford this and can't afford that. If something happens with his house his first response is to worry about how he's going to fund any repairs that are needed. But if a new bar opens in town there's almost no pause between him mentioning it opening and asking when I want to go check it out with him.

Is he hoping you'll pay?

 

[tango]

Is he hoping you'll pay?

I don't think so, he's never asked or even hinted that he was hoping I'd pay. When his share of the bill is high he routinely puts his full share on the table rather than trying to get people to split it evenly. He just has tastes that he can't really afford.

 

[Lamb]

I don't think so, he's never asked or even hinted that he was hoping I'd pay. When his share of the bill is high he routinely puts his full share on the table rather than trying to get people to split it evenly. He just has tastes that he can't really afford.

He sounds pretty fair then...just no good at budgeting with priorities in mind! I know plenty of people like that.

 

[tango]

He sounds pretty fair then...just no good at budgeting with priorities in mind! I know plenty of people like that.

It's depressingly commonplace. A couple I knew some years ago were probably the ultimate examples of it - they could barely pay the mortgage and keep up to date with bills but they traveled at least twice a year, and always at the most expensive times of the year.

It's remarkable just how many people out there can find money to go out to eat and drink but then complain how much they struggle financially. Going out is a good idea if you're meeting people you don't particularly know but when you're talking people you know and trust it often makes so much more sense to entertain at home. You get far more for your money, you don't have to travel, you don't have waiting staff to tip, and so on.

At my last church there were a few of us who would often go for a drink or two after the evening service. After a while we figured that going out just meant we all paid over the odds so we said to people if they wanted to bring food and drink to share we'd host the group. It got a bit cosy having a dozen or more people in our little suburban living room but it worked just as well, and we all got to catch up over a couple of drinks as before but for half the price and sometimes less.

 

[Ruth]

Sometimes people who struggle financially are so stressed they need a vacation but I can't see taking expensive trips. I cannot afford to take any trips. I need to find a way to relax from the stress of living this way, though.

 

[tango]

Sometimes people who struggle financially are so stressed they need a vacation but I can't see taking expensive trips. I cannot afford to take any trips. I need to find a way to relax from the stress of living this way, though.

The trouble is that taking a vacation does little other than exacerbate the financial stress, making it even worse when you get back. Just getting out into nature is a remarkable (and mostly inexpensive) way of helping reduce stress. Personally I like to take a long walk in the mountains but for those who don't have mountains nearby, or who struggle with rugged terrain, a gentle walk in the park does a world of good.

 

[Ruth]

The trouble is that taking a vacation does little other than exacerbate the financial stress, making it even worse when you get back. Just getting out into nature is a remarkable (and mostly inexpensive) way of helping reduce stress. Personally I like to take a long walk in the mountains but for those who don't have mountains nearby, or who struggle with rugged terrain, a gentle walk in the park does a world of good.

I am going to start taking my dog to the park. It's a beautiful place. I only stopped going there because my neighbor told me coyotes were there.

 

[tango]

I am going to start taking my dog to the park. It's a beautiful place. I only stopped going there because my neighbor told me coyotes were there.

If coyotes are a problem can you get a carry permit and a small firearm? Even if you'd rather not hurt them you can probably scare them away.

 

[Ruth]

If coyotes are a problem can you get a carry permit and a small firearm? Even if you'd rather not hurt them you can probably scare them away.

Haven't thought of that. Must give it much thought. Thank you.

 

[tango]

Haven't thought of that. Must give it much thought. Thank you.

Obviously check out the local laws, particularly if there are specific bylaws in the park. If there aren't and you can get a permit to carry a concealed firearm even a relatively small handgun should give you enough to deter a coyote, if not kill it outright. Just make sure you practise with it so that if you ever do need it you can draw and aim quickly and accurately.

It's also worth knowing in advance what rules might apply if you do shoot and injure or kill a wild animal in self-defense. My guess would be that for something like a coyote it shouldn't involve too much officialdom but good to know beforehand rather than find out after the fact. There's obviously a big difference between someone who shoots a species widely regarded as something of a nuisance in self-defense and the person who shoots a deer claiming self-defense, but sometime rules do little to differentiate between situations that are very different.