Cheap asses - at what equity position did you begin to relax?

[jerrybee]

A lot of us have penny pinched and lived humbly to get started. But at what level of equity did you begin to allow yourself to just live comfortably?

I'm not talking about epic splurging and running out and buying an expensive car or whatever. I'm talking about just not having to check the prices on the menus when ordering out and just getting what you wanted. About being able to take a holiday and not worrying about what impact it's going to have on the bottom line. About being able to grab something off the supermarket shelf without comparing the 9 other alternatives first.

And I'm not asking people who were never had to go through this to begin with (maybe you were from a rich family, I'm not judging, just that this isn't applicable to you). Or if you were never a penny pincher to begin with and found other ways to climb the ladder. Or...people who are still tight asses - we all know of people who are loaded and still can't shake that mentality.

So at what equity position did you allow yourself to begin living comfortably? For me I think it was at around the 300-400k mark. I know it's not much, but by the time I had a few under my belt and it wasn't so tight anymore, I found myself enjoying things a lot more. What about you?

 

[WattleIdo]

I'm not quite there yet - but almost.
It's doing weird things to my head.
I can cover all my loans and I have some equity - but I don't quite believe it. I'm now working harder than ever and a little scared to let go.
On the other hand, that unconditional good attitude I had at work because I was so desperate sometimes fails me and I have to talk myself into being a good girl and swallowing my pride for just a bit longer.
Interested to see the responses you get from others because I'm still a mixed up kid.

 

[jerrybee]

Yeah it's not easy. I think it's an important part of the transition though. When I see millionaires that are so tight they won't even donate a few bucks to charity or shout a few friends to a meal, then I wonder what have they really achieved?

 

[alicudi]

Hi

I am 40 now but for many years I never cared about the prices of anything and purchased whatever I wanted and did whatever I want (waterfront home/several boats at a time/AMG's...etc etc). Never would I consider the need to check the prices of something at a car dealership let alone a menu in a restaurant. During this whole time I never owned an investment property and only had my ppor and thought I was set for life, but obviously wasn't.

A little while ago I wised up and decided not to rely on my business and got out of it and also sold off my ppor that I absolutely loved but needed a high income to maintain the lifestyle I was living.

I then purchased some investments and now that I have several properties all rented out and no debt whatsoever had I realised how easy it is to live without working.

As I now wish to continue purchasing investments I have become the biggest tight *** on this planet. So by increasing my equity and income from investments and not having to work has actually made me worry more about pricing of every day items and costs all the way down to saving money by not purchasing the daily newspaper and using the news.com.au website for free news.

So at what equity will my state of mind change from been a penny pincher considering I have only started to be a penny pincher?

Regards,

alicudi

 

[Biz]

I was never a penny pincher, pretty much always just bought what I wanted but i dont have expensive tastes. I have a hobby I blow about 3-5k a year on but its no big deal.

This year though i got to a tipping point where my investments are starting to cushion my income to large degree. I basically cant make a lot more week to week without a lot of extra hard work and frankly i cant be bothered to do it with a multi million dollar portfolio, a big chunk of positive cashflow and my ppor just about paid off. So i no longer work Saturdays now, dont really look at the prices of day to day stuff and just buy what i want like i always have. I will keep investing but this year i finally got to a point where i feel my families lifestyle is sustainable without my doing too much or risking a lot. Feels good!

 

[Rixter]

Since we hit net millionaire status we've upgraded our PPOR & started to take holidays & cruises over seas regularly. Thats about the only real lifestyle changes we've made. Took us about 6 years to attain that status from starting out down our property investment road.

 

[ellejay]

We don't have expensive tastes, not into expensive suburbs and restaurants etc so needing to be a tight *** was never an issue. Always worked and had enough for a nice home, cars, holidays etc. Nothing flash, just very comfortable. Now rental income has replaced a working wage I've changed jobs and gone part time, so has hubby. If anything work stopped us from spending money because extra travel would be the only thing we'd probably blow our money on. So that was the key for us, when you're mortgage free and have enough invested to return $50k plus pa or more income (or even if you need a bit of part time work to top up to that amount).

 

[Scott No Mates]

Seconded ellejay (only the numbers are changed to protect the innocent/maintain the lifestyle).

 

[cheekykoon]

I'm not quite there yet - but almost.
It's doing weird things to my head.
I can cover all my loans and I have some equity - but I don't quite believe it. I'm now working harder than ever and a little scared to let go.
On the other hand, that unconditional good attitude I had at work because I was so desperate sometimes fails me and I have to talk myself into being a good girl and swallowing my pride for just a bit longer.
Interested to see the responses you get from others because I'm still a mixed up kid.

Definitely feeling the same way... after building up so much, do you even want to relax? No way. How much more? I really don't know. Would I relax after 2x more?

 

[Phar Lap]

I don't like being called a tight *** when I have more than $1M in debt.

But budget we did and still do, however just today we tried a very new place to eat and drink in a regional city near us, saw the dinner menus out front and thought, mmmmmm?, but we weren't having dinner it was lunchtime, not very hungry so then I said hey love, we have done the hard yards, now it's time to enjoy some finer things in life.

Well, it was the most delightful $55 we have ever spent, 1 beer and 1 sparkly water, 3 snack size items (only needed 2), but the quality of food and service was top shelf and we felt great sitting in a place overlooking the street where most people were gawking inwards at us knowing (in their own minds) that they'll never go in there!
It was only $55 bucks! Lol.
We will be going back for dinner one night soon, even taking up their overnight stay offer of $330 includes dinner, cocktails and cont brekky. Saves us having to travel home the 70 Kim's if just decide to stay!

It's time and it's so nice to do little things like that to "spoil" ourselves here and there. We are off to Hawaii later in the year and actively planning Big trips to UK and Europe for next yr along with renoing the PPOR and 1 IP next yr.
This all courtesy of Jan Somers book and this forum and related team members derived from here.

Best thing is... We did it without any leg up from wealthy parents cause they certainly were not!

Time to live.

 

[Gockie]

I've just been on holidays (Adelaide, the partner wanted to go out for dinner, I wanted to buy some pasta from the supermarket and eat it at the place we were staying (cause I had pesto sauce I needed to use)! I'm possibly worth a lot more than him though. Net worth ~1.3mill. He reckons I'm tight.

 

[Biz]

I've just been on holidays (Adelaide, the partner wanted to go out for dinner, I wanted to buy some pasta from the supermarket and eat it at the place we were staying (cause I had pesto sauce I needed to use)! I'm possibly worth a lot more than him though. Net worth ~1.3mill. He reckons I'm tight.

Yes, you need help.

No one in their right mind goes on a holiday to Adelaide

 

[Blacky]

Im not sure I was ever tight. I set a budget and stuck pretty tightly to it - though did have the occasional blow out.

Some mates often comment about the amount I spend. Which I guess may exceed most people, however, they only see a fragment of reality. They see me spend $200 on a casual meal with the mrs on a weeknight and think I must always live like that. However, the $200 has a line item in the budget.

Plus I have such a low overhead living cost I have more expendable cash.
Ive never been one to focus on the label price of something. If I need it I buy it.

I guess what I am saying is I focus on the big ticket items to save money. It takes a long time to penny pinch a saving of $10,000 but its pretty easy to spend that much on a more expensive car/holiday etc.

Blacky

 

[datto]

Since the Sydney housing boom started I have decided to splurge out every second Friday on some KFC. That's $9.95 on a regular 2 piece meal. Expensive I know but what can I do as I'm not allowed within 100m of a soup kitchen

On other days I buy an .85c loaf of bread and approach delicatessens asking to sample some of their meats. A quick walk past some fruit and veg vendors and I top up on essential vitamins and minerals.

Watch the pennies and the pounds will look after themselves.

 

[ellejay]

Since the Sydney housing boom started I have decided to splurge out every second Friday on some KFC. That's $9.95 on a regular 2 piece meal. Expensive I know but what can I do as I'm not allowed within 100m of a soup kitchen

On other days I buy an .85c loaf of bread and approach delicatessens asking to sample some of their meats. A quick walk past some fruit and veg vendors and I top up on essential vitamins and minerals.

Watch the pennies and the pounds will look after themselves.

True, I forgot that one of the reasons I'm so tight just now is there's nothing to buy in this town. Moving down south next week which will see the start of a regular KFC blow out. Don't care what it costs, I've reached my target and throwing caution to the wind

 

[Terry_w]

Since the Sydney housing boom started I have decided to splurge out every second Friday on some KFC. That's $9.95 on a regular 2 piece meal.

Try the 9 piece for $9.95 on tuesdays instead

 

[Scott No Mates]

Since the Sydney housing boom started I have decided to splurge out every second Friday on some KFC. That's $9.95 on a regular 2 piece meal. Expensive I know but what can I do as I'm not allowed within 100m of a soup kitchen

You're making Pinkboy jealous

Watch the pennies and the pounds will look after themselves.

Didn't anyone tell you we went decimal back in the 1960's? or is this a poor diet choice making you put on weight?

 

[beachgurl]

It wasn't an equity figure for me but it was when our IP income covered our PPR mortgage.

 

[wombat777]

It wasn't an equity figure for me but it was when our IP income covered our PPR mortgage.

Baby steps for me. I'm just going to be happy when I confirm my IP income covers my IP.

 

[Rolf Latham]

rK says if you get wealthy by being cheap, when u get wealthy, you will still be cheap................

I see enough evidence to agree as a generality

ta

rolf