Weekly budgets

[jaycee]

Jaycee,
I am not referring to anyone in particular earning the $150k..but you can read it often here on SS, about people thinking they need to retire on it.
They have all their dreams on 5 star vacations, flying first class, spending $100 on meals etc.
Unless they have been in the IP business a long time, have a high income or inherit some money..most people won't be as well off as they hoped.
I am at least realistic.

I am more impressed with someone earning $30K a year and ending up with $250k in rental income, than someone earning $150k year and ending up with $500k income.

Wunderbar & Deltaberry,
There is nothing that we want materially, that we don't have.
It is a matter of prioritizing it.
I would enjoy a picnic at the park more.
I actually feel sorry for you needing to impress others with how much you need to spend.

Kathrym,

No one's life is about being impressive to you or not...

Hust some basic maths:

$30k x 5 = $150k
$150k x 5 = $750k

This is why someone earning $30k pa and retiring on $150k passive income than someon earnring $150k and turning it inot $500k passive income.

It is more impressive, it's more of a physical acheivement. Nothing subjective about it which relates to your view, it's just maths.

I actually feel it's patronising for you to tell other grown human beings you feel sorry for them for not thinking like you. A bit egotisictacl too possibly......

But perhaps you really are that much more enlightened and better a person than the rest of us.......

 

[kathryn d]

Skater, Who said there was any harm ?

It's gtreat kathryn has acheeived what she want to, jsut like anyone else....

the bit that we all seem to have dififcult getting voer, akahtryn included appears to be that we ahve to put tohers down

"People who continuously say they need $150k a year to live in retirement, make me laugh. They didn't need that much when they were working."

Kathryn does not accept others' view any better than others' haven't accpeted hers.

Like you insinuated skater, some DO earn this while working... and can achevie it in retirement.

Why would kathryn be righ to laugh at those people for it ? It's grat kahtyrn does what she does, but I dont think that makes others not wanting worng nor sugbjexts to be laughed just as much as kathryn's decisons dont' derserve to be ridiculed.

Jaycee you nit pick everything, anyone ever says...
You may think earning $150K a year is normal, but for posters like Skater and myself...it has been hard physical work.

 

[Deltaberry]

Jaycee,
I am not referring to anyone in particular earning the $150k..but you can read it often here on SS, about people thinking they need to retire on it.
They have all their dreams on 5 star vacations, flying first class, spending $100 on meals etc.
Unless they have been in the IP business a long time, have a high income or inherit some money..most people won't be as well off as they hoped.
I am at least realistic.

I am more impressed with someone earning $30K a year and ending up with $250k in rental income, than someone earning $150k year and ending up with $500k income.

Wunderbar & Deltaberry,
There is nothing that we want materially, that we don't have.
It is a matter of prioritizing it.
I would enjoy a picnic at the park more.
I actually feel sorry for you needing to impress others with how much you need to spend.

Haha no need to feel sorry for me because I don't spend money to impress anyone. I spend because it actually improves my quality of life.

To give you an easy example, I'd spend $40 on a salad and often would because I enjoy the ambience of fine dining and I like to indulge myself with quality food and service. I guess more importantly, I don't have the time and patience to go make a salad that's at the quality of a $40 one at a fine dining restaurant. Is the $40 a big set back for me? Well not really. There comes a point when $40 here and there for a salad isn't going to make a difference.

Re your point about who you'd be more impressed by in your two hypothetical examples, I'd say I'd be more impressed by someone earning $150k salary with $500k rental income rather than someone with $30k salary and $250k rental income, period. Why? Because to earn $150k instead of $30k, the former made life and career choices and excelled and what he / she did. You acknowledge yourself that earning $150k is not THAT easy (not that it's THAT hard at the same time though), so if someone achieved it it's obviously through a combination of hard work, determination and sacrifices too. Making $250k rental income can be achieved by taking silly, excessive bets and leverage on the market. You get through it if you're lucky. Someone making $150k with $500k rental income is probably much more sensible.

But in any case, impressing someone is actually not that important to me. Not sure why you even bring that up.

 

[jaycee]

Jaycee you nit pick everything, anyone ever says...
You may think earning $150K a year is normal, but for posters like Skater and myself...it has been hard physical work.

Kathryn, I saw somehting and repsonded it to it. I though, jsut like you did. I am sorry you see ti as nit picking.

I did not say anything is normal. For the record I earn alot less than $150k pa, always have, and I don't see myself eanring it. Idon't see what's wrong with other peopl ein other situations seeing it differently for themselves though

I just thought I might point out that things go both ways... While you felt he need to defended your opnion against some "harsh rcriticism", I just read that you gave the same sort of criticism to others.... by saying they make you laugh for example, or that you "feel sorry for them"

Sorry if you see it as nit picking, We can't all be the same, me being different to you surely doesn't make me wrong does it ? I never said you are wrong have I ?

 

[mary&mat]

$40 for a salad!!!!

Am I the only one falling off my seat!?!

Yes, it's the ambience, but I don't think, no matter how much I am ever worth, that I would pay $40 for a salad!

Maybe $15 & donate the rest, but they're my priorities. I grew up dirt poor & remember how far a dollar can stretch when it has to.

Qualifier:
I know we're all different, which makes the world a wonderful place

 

[Deltaberry]

$40 for a salad!!!!

Am I the only one falling off my seat!?!

Yes, it's the ambience, but I don't think, no matter how much I am ever worth, that I would pay $40 for a salad!

Maybe $15 & donate the rest, but they're my priorities. I grew up dirt poor & remember how far a dollar can stretch when it has to.

Qualifier:
I know we're all different, which makes the world a wonderful place

It's all relative. Here's two hypothetical examples with the $40 salad.

Is it more an indulgence if someone earn $500k and eats a $40 salad? Or is it more an indulgence for someone to earn $40k and eat a $15 salad?

There're wines out there everyday costing $1500. Occassionally you see some for $30,000. There're also wines that cost $50. Again, is it more an indulgence for say someone earning $1m to drink $1500 wine, or more an indulgence for someone earning $60k to drink $50 wines?

The point of both examples is that, the person eating the more expensive salad/drinking the more expensive wine can probably afford what he/she's doing way more comfortably than the second person eating the not-as-expensive salad and drinking the not-as-expensive wine. The way I look at it, is that there's a point at which your standard living expenses are well and truly covered. The rest is all bonus. To spend a little bit of your bonus on more expensive items is much more sensible than someone who hasn't got their standard expenses covered to spend even a dollar on a coke (to use an extreme example).

 

[ianvestor]

$40 for a salad!!!!

Am I the only one falling off my seat!?!

Yes, it's the ambience, but I don't think, no matter how much I am ever worth, that I would pay $40 for a salad!

I'd spend $4000 on a 'salad' if I valued the ambiance that highly. Not hard to imagine.

 

[jaycee]

$40 for a salad!!!!

Am I the only one falling off my seat!?!

Yes, it's the ambience, but I don't think, no matter how much I am ever worth, that I would pay $40 for a salad!

Maybe $15 & donate the rest, but they're my priorities. I grew up dirt poor & remember how far a dollar can stretch when it has to.

Qualifier:
I know we're all different, which makes the world a wonderful place

You do know that $15 will only get you Subway takeway type of sald most of the time ?

Not saying it's cheap !, but it's not as out there these days as it may have sounded say 20 odd years ago

 

[Luv2Travel]

I'm not paying anything for a salad, when I go out to eat, I want real food!

 

[bluestorm]

What is the point in becoming financially independent, if you end up counting every penny like a pensioner. Yeah specials are nice, but Financial independence to me is NOT having a weekly budget, or worrying about whether the eggs were $1.99 or $0.99.

Like sash, I couldn't live this way, even now. What is the point of accumulating wealth, if you don't enjoy it at the same time. Maybe the kids will be happy that you saved, cause their inheritence will be larger

Our "budget" is maybe $$35-40K/yr. $15K for holidays, and the rest enjoying life as well.

But a dollar saved is a dollar earned I suppose.

 

[Gordon Farkus]

The Florette Sea and Earth salad was devised by Chef Raymond Blanc for the Hempel Hotel in London in July 2003. It contained Almas golden caviar, Beluga caviar, kreel-caught langoustines, Cornish crab and lobster, plus Florette baby leaf salad tossed in premium olive oil, along with grated truffle placed in a basket hand-made from courgettes, red peppers and potato and decorated with gold leaf. A serving cost £635.60.

Not sure whether accompanying ambience was complimentary or whether there was an ambience-age fee.

 

[sash]

To clarify my point before....what I was saying is that there needs to be a balance.

It is no good to be worth say $2-$3m buy still wearing clothes of a hobo.....this does not mean that one has to keep up with the Jones. I still buy stuff at KMart and Target but also buy stuff at David Jones or designer shops.

To put it in perspective..I always look for things on sale but just won't go to every shop in the shopping centre. I don't have the time to do this.

I am currently looking at a holiday buy will be using Frequent Flyers and Reward points from my credit card. In the end I will get away with paying about $500-$800 for a week in Bali!

On other side....I spent $190 on a nice meal for two at a Northern beaches restaurant on Sat.

That to me is a balance.

 

[skater]

$40 for a salad!!!!

Am I the only one falling off my seat!?!

Maybe $15 & donate the rest, but they're my priorities. I grew up dirt poor & remember how far a dollar can stretch when it has to.

Well, I'd baulk at $40 for a salad too, however have paid $20-25 on many occasions. This is only in recent years, though, now that expenses have reduced a little, aka kids leaving home.

 

[sash]

To put it in perspective $150k per annum .....will give you a nice lifestyle but won't give you First Class flights to Paris or Europe twice a year. These flights can cost about $10-15k per person per trip add to that about $350 per 5 star hotel room for say 3 weeks, and food at say $250 per day...and you will easily spend $25k-$40 per trip.

Also....last time I looked $100 won't get you a decent meal with alcohol in Sydney's Inner West, North Shore, or Eastern suburbs where most of the better restaurants are. Well that is what Eatability and Urbanspoon tells me. Also most restaurants will charge between $10-$22 for a salad (dependents on whether expensive ingredients are added). On Sat. I had two entrees - Seafood in a Zuchinni batter and Crab, Shrimp & Calamari sicilian style Taglioni. Also had a couple of glasses of wine, dessert, and tea. The other similar dish but can't remember her other dish.

I did not do this to impress anyone....just wanted to try the restaurant and it has her birthday. I am also a die hard foodie....this is my biggest expense....going to restaurants....with the amount I spend...I can buy a Hyundai i20 every year!...but then you can't eat a car can you???

For the record...I am one of ones you refer to who want to have about $100-$150 per annum gross at retirement. It will probably be less as with property you get depreciation benefits which reduces the tax you pay on $100-$150k gross.

Jaycee,
I am not referring to anyone in particular earning the $150k..but you can read it often here on SS, about people thinking they need to retire on it.
They have all their dreams on 5 star vacations, flying first class, spending $100 on meals etc.
Unless they have been in the IP business a long time, have a high income or inherit some money..most people won't be as well off as they hoped.
I am at least realistic.

I am more impressed with someone earning $30K a year and ending up with $250k in rental income, than someone earning $150k year and ending up with $500k income.

Wunderbar & Deltaberry,
There is nothing that we want materially, that we don't have.
It is a matter of prioritizing it.
I would enjoy a picnic at the park more.
I actually feel sorry for you needing to impress others with how much you need to spend.

 

[wobbycarly]

I'm not paying anything for a salad, when I go out to eat, I want real food!

Steak and chips, or parma and chips!! Haute cuisine, in my book! And if it comes with bacon, that's a bonus!!

The Florette Sea and Earth salad was devised by Chef Raymond Blanc for the Hempel Hotel in London in July 2003. It contained Almas golden caviar, Beluga caviar, kreel-caught langoustines, Cornish crab and lobster, plus Florette baby leaf salad tossed in premium olive oil, along with grated truffle placed in a basket hand-made from courgettes, red peppers and potato and decorated with gold leaf. A serving cost £635.60.

Not sure whether accompanying ambience was complimentary or whether there was an ambience-age fee.

Sounds disgusting, sorry. Especially since I don't understand half the words!

 

[Luv2Travel]

Sounds disgusting, sorry.

Agree, you'd have to pay ME 635.60 pounds to eat that! Ewww!

 

[weg]

If you create that ambience at home you eat in style every day .

I eat out so I don't have to cook, and to enjoy the company of others when I don't want the work that inviting people around creates.

I rarely pay more than $16 for a salad, but when I do it's the company and good food that make it worth every cent.

It's not always the case where the more you spend the better the quality of your life.

Some of the best things in life cost very little, but when you budget so strictly that you cut out these little things as well, is when you deprive yourself and often those closest to you, ie. going out for a birthday dinner, taking your mum out for lunch or away for a couple of days for her birthday.

 

[kathryn d]

Maybe if I was used to spending this much on food, it wouldn't be a problem.
I am from a country where $1.70 will give you a large coffee that tastes good.
Where I can get a serve of fish and chips for $6.95 or an all you can buffet of lasagna, pizza, salads, garlic fingers etc for $9.99.
This is the food I enjoy. Whenever I have eaten at the "upscale" restaurants I never eat half of the food, because it is undercooked.I hate vegetables crunchy, when they are supposed to be cooked.I like restaurants who have an unlimited cup of coffee/tea.
I will not pay $4.00 for a cupcake, when I am used to paying 75c..or I can make a dozen from a cake mix for 75c.
One thing I do like here is the $6.95 Dominio Pizza..yumm

I hate wearing fancy clothes. If you looked at me you'd never know I was a millionaire.I do not want that type of lifestyle.
I like being able to putter around, read a book, watch tv, go visit landmarks in whatever town we happen to be in.I like wandering thru stores with my husband,or going to yardsales, recycle centers, or second hand stores

I think I have a great knack of figuring out how to get what I want at the least expensive way possible. I like to read how others (on other websites) have been able to do what we have done.
I suppose you think we are cheap for picking the apricots at the park, and bring them home to cook?

Originally I answered a question from Gordon Gekko, who was asking about when stores had the best deals.
I couldn't care less if you have issues with me being cheap, thrifty, frugal etc....but if you are going to comment on it, I will give it right back to you.

 

[jaycee]

Who are you talking to ?


I'm very easily confused & would hate to add that unnecessarily into the euqation...

 

[kathryn d]

Who are you talking to ?


I'm very easily confused & would hate to add that unnecessarily into the euqation...

I will assume you are asking me...but then again you didn't address your question to anyone in particular either.

If it was me..it was the posters who thought I was being cheap for not wanting to waste money...take your pick