17% of people don't have $500 saved

[Fifth]

I think many of us have been living close to the edge in our earlier years.
The only difference, we learned we didn't like that feeling...and we did something about it.

This is true.

To me, it's a bit of a double edged sword. I could never going back to living hand to mouth, I hated it too much. That's not to say that unfortunate circumstances might take be back there some day... but let's set that aside for a moment.

I've found myself becoming a bit neurotic about money. Though I'm far from the most frugal soul and some of my spending habits would have some of our more proficient TAs shaking their heads, I have find myself being unable to stop worrying about money and just live in the moment. I'm too wrapped up in the 'destination', there is no 'journey'. When I spend money, instead of enjoying it, I feel guilty.

Recently I started spending too much money on week to week living expenses. Sadly, I didn't enjoy any of it and I felt a bit like an anorexic would after an evening of binge eating. I've tried to pull myself up on it and am spending less, but I've just gone back to obsessing about the 'destination'.

Then I kick myself for caring so much about money and think to myself 'wow, how shallow are you, you can't even enjoy life because you're too preoccupied with money'.

So, sometimes, when I see someone with only $10 to their name until their next pay cheque, I think 'I'm glad I'm not in that situation', especially if the person is in a miserable headspace. But then I see other people with $10 until payday who live (seemingly) much more rich and fulfilling lives than me. They live in the moment and seem so much happier.

Anyway, I don't think you need to spend money to be happy, but it's hard to be happy when you can't even eat out without thinking 'this accounts for x% of our monthly budget'.

I know it's about moderation, but evidently I'm prone to extremes.

 

[kathryn d]

Fifth, I agree with almost everything you said.

Money is a very funny thing. For me, it is security and freedom.
I've found, the older I get, the less materialistic I become.

A week ago, I was walking..looked down and saw something orange.It was $20. I get the same bit of happiness finding a 5 cent coin.
Simple pleasures.

I find myself looking at things, and wondering how can I reuse it. I can certainly afford to buy anything I want, but what fun is that ?

My biggest decision this week was when I was cashing in my airmiles online. (Canada)
Do I get 3x$20 grocery vouchers or 2 X$20 grocery vouchers + 2 movie tickets w/popcorn and 2 pop? (I picked the latter)
...
for me that was a big decision, because the movie tickets is a splurge, but I like going to the movies occassionally..and this was cheaper than buying the tickets/pop/popcorn

Edit: the part I don't agree with you, is when you said it's hard to be happy when you cannot eat out without it eating into your budget. That's when people should plan/save for those 'treats'.

 

[Fifth]

My biggest decision this week was when I was cashing in my airmiles online. (Canada)
Do I get 3x$20 grocery vouchers or 2 X$20 grocery vouchers + 2 movie tickets w/popcorn and 2 pop? (I picked the latter)
...
for me that was a big decision, because the movie tickets is a splurge, but I like going to the movies occassionally..and this was cheaper than buying the tickets/pop/popcorn

This is *exactly* how my mind would've worked in that situation. You chose wisely!

Edit: the part I don't agree with you, is when you said it's hard to be happy when you cannot eat out without it eating into your budget. That's when people should plan/save for those 'treats'.

That part is definitely a 'me' problem rather than a actual problem. It's not that I can't eat out without it eating into my budget, we do leave money aside for treats (too much money, I think), I just find myself thinking 'this food is nice, but pasta and tuna at home would have been just as nice and would have cost a fraction of the price' or 'for the same price we could have bought something that would last forever so we'd have something to show for it'.

This is not to say that I don't spend money (I spend/waste a LOT), but I just end up kicking myself and not enjoying it.

I think I just need to relax

 

[kathryn d]

This is *exactly* how my mind would've worked in that situation. You chose wisely!



That part is definitely a 'me' problem rather than a actual problem. It's not that I can't eat out without it eating into my budget, we do leave money aside for treats (too much money, I think), I just find myself thinking 'this food is nice, but pasta and tuna at home would have been just as nice and would have cost a fraction of the price' or 'for the same price we could have bought something that would last forever so we'd have something to show for it'.

This is not to say that I don't spend money (I spend/waste a LOT), but I just end up kicking myself and not enjoying it.

I think I just need to relax

Yes, I find that happens to me, when it is food I don't find I am getting good value for.
Search out other places that are cheaper..or look for groupons/sales/promotions?

 

[Crabnet]

This thread reminds me of when I was a young man who had just got married.
I did my sums and realised that my income was insufficient to cover my expected outgoings. I had to go cap in hand to my employer of the time and ask for a pay rise. Each week was a struggle putting food on the table, paying household bills and transport costs.
One time I had blowout on the motorbike and needed a new tyre to get it going so that I could go to work. The only money available was the rent money due the next day.
Thankfully the landlady was gracious enough to cut me some slack and waited til next payday for the rent.
It took me a few years to improve my financial situation so that I had savings.

 

[DaveM]

2 movie tickets w/popcorn and 2 pop?

Do you get the choice of a soda, a pop or a coke?

 

[kathryn d]

Do you get the choice of a soda, a pop or a coke?

small popcorn and 2 fountain pop (coke,rootbeer,sprite,orange etc to pick from)

When we go normally, it is on cheap night, and we sneak in our own food treats

 

[nhg]

This thread reminds me of when I was a young man who had just got married.
I did my sums and realised that my income was insufficient to cover my expected outgoings. I had to go cap in hand to my employer of the time and ask for a pay rise. Each week was a struggle putting food on the table, paying household bills and transport costs.
One time I had blowout on the motorbike and needed a new tyre to get it going so that I could go to work. The only money available was the rent money due the next day.
Thankfully the landlady was gracious enough to cut me some slack and waited til next payday for the rent.
It took me a few years to improve my financial situation so that I had savings.

That scenario fits a lot of people. In fact there is a whole class of people out there stuck in a ‘working-poor’ scenario. They do work and stay off the dole, however they can’t get out of the cycle.

Yet there is a mindset out there where people cannot grasp the concept of financial-responsibility. One of my tenants was $2000k+ behind on rent due to losing his job. That’s fine I could afford to give them a hand (not for long). He had a few weeks to hit retirement age and have access to his super.
As soon as he got it, he paid the rent, bought a brand new car and hired a gardener to do the lawns, went on holiday, and then he owed me $2000 again.

The ‘millionaire mindset’ discusses this. They say a lot of people are use to having so little and then having emergencies occur that when they do have money, they spend it frivolously as they are afraid it will vanish anyways and will not get some enjoyment out of it otherwise.

 

[kathryn d]

The ‘millionaire mindset’ discusses this. They say a lot of people are use to having so little and then having emergencies occur that when they do have money, they spend it frivolously as they are afraid it will vanish anyways and will not get some enjoyment out of it otherwise.

Where I live in Canada, a man won 9 million. Within 2-3 years, he was broke, and working for a telemarket/customer support place (where my daughter worked)
He had lots of new friends until the money ran out. Not sure what he is doing now, because the place he worked at, has closed down.

 

[geoffw]

Where I live in Canada, a man won 9 million. Within 2-3 years, he was broke, and working for a telemarket/customer support place (where my daughter worked)
He had lots of new friends until the money ran out. Not sure what he is doing now, because the place he worked at, has closed down.

It's not that uncommon. If you don't know how to handle money when you only have a little, you won't know how to handle it when you have a lot.

http://www.money.co.uk/article/1002...ry-millionaires-went-disasterously-wrong.htmt

 

[nhg]

It's not that uncommon. If you don't know how to handle money when you only have a little, you won't know how to handle it when you have a lot.

http://www.money.co.uk/article/1002...ry-millionaires-went-disasterously-wrong.htmt

That was my issue. I could never break the $40k savings mark for years. All the money I started with when I bought my first place last year I saved at subway, very little of my engineering money was in that.

Now I'm comfortable with $1-2M projects. If someone gave me $20M right now, I honestly wouldn't know what to do with it just yet.

 

[hobo]

This is a topic that hits really close to home for me.

<< Deleting a heap of stuff I decided I'm not comfortable sharing. Sorry. >>

Suffice to say, I believe that there is a certain portion of society that just do not have the skills (and are incapable of acquiring them as well, regardless of how hard they work/try) to be fiscally responsible. It's sad, and difficult to deal with, but I believe it to be nonetheless true.

The ‘millionaire mindset’ discusses this. They say a lot of people are use to having so little and then having emergencies occur that when they do have money, they spend it frivolously as they are afraid it will vanish anyways and will not get some enjoyment out of it otherwise.

I see this *regularly*. Combine that with less-than-average mental ability, and it is a difficult life for some.

 

[lizzie]

We are very frugal in many ways - but it means we have cash for other things that we want/need ... we would be lucky to eat out 4 times a year ... last time I went to the pictures was - um ... but it does mean that I can get the lights I want for the new PPOR ... but I did buy the lights online at half the price of retail (delivered) ... and ... so the story continues ...

and didn't it free great to cash in the altitude rewards and get $800 of gift cards to go towards my new (Westinghouse) oven ... and that was after I got $200 off the price, a new induction cooktop at half price and a $200 coffee maker thrown in for free ... just because I asked ...

the other side of the coin is that we work hard to get financially lucky ... yep ... was lucky to be painting ceilings in 40+ heat for 3 days in a row ... lucky to be hauling loads of heavy boxes all hours of the night because I'm to cheap to pay the removalist to move things that I can (ahem) handle ... did I mention my elbows hurt?

to me money is all about the attitude you have towards it

 

[BayView]

This thread reminds me of when I was a young man who had just got married.
I did my sums and realised that my income was insufficient to cover my expected outgoings. I had to go cap in hand to my employer of the time and ask for a pay rise.

Could you not have gotten a second job?

 

[Crabnet]

Could you not have gotten a second job?

That would have been a problem logistically.
Anyhow, the ladies in the office badgered the Manager on my behalf so i got a payrise. I also worked 6 days a week, including weekends and afternoon shifts, so with overtime and penalty rates I had just enough to survive on. Later on I moved to a salaried position in a management role with bonuses.
After 10 years I left them and became self employed.

 

[kathryn d]

That would have been a problem logistically.
Anyhow, the ladies in the office badgered the Manager on my behalf so i got a payrise. I also worked 6 days a week, including weekends and afternoon shifts, so with overtime and penalty rates I had just enough to survive on. Later on I moved to a salaried position in a management role with bonuses.
After 10 years I left them and became self employed.

I bet looking back on it now, you realised there were better choices you could have made?
Cheaper accommodation
More 'scratch' food
Less cigs/alcohol
thrift store purchases

the trouble is many people cannot look at their budget objectively.What they see as a need, is actually a want.

 

[BayView]

That would have been a problem logistically.

I struck that same problem years ago when I was broke (which time? ) and needed to get a second job to live above poverty....

It was tough for those 3 odd years doing both with the travel involved.

 

[Fifth]

Yes, I find that happens to me, when it is food I don't find I am getting good value for.
Search out other places that are cheaper..or look for groupons/sales/promotions?

This is wise advice. Though, I refuse to use my Taco Bill coupons - their fruity margaritas look too tempting...

 

[BayView]

the trouble is many people cannot look at their budget objectively.What they see as a need, is actually a want.

My sister is one of those; she once had no less than 5 pairs of Christian Dior sunnies on her dressing table - at more than $100 a pop, easily....and she wasn't earning a whole lot, renting a 1 bedder.

 

[Crabnet]

I bet looking back on it now, you realised there were better choices you could have made?
Cheaper accommodation
More 'scratch' food
Less cigs/alcohol
thrift store purchases

the trouble is many people cannot look at their budget objectively.What they see as a need, is actually a want.

I don't think so in my case, really, you need a balance in life. Who wants to live to work rather than work to live?
I've always been fairly frugal and looked for value. Used layby rather than credit in those days for "wants".
When taking the kids on an outing it would be a packed lunch rather than takeaway most times with the occasional treat.
My biggest weakness would have been tools. I used them in my work. I love tools and tend to buy items that lasts a lifetime if possible.
There are exceptions like tile cutting, there I buy the cheapest grinder going and a good quality diamond blade. The dust damages even the best tools so I wouldn't want to disrespect the quality tool by torturing it.