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Old 08-26-2011, 10:55 AM
 
Location: Sinking in the Great Salt Lake
12,900 posts, read 18,450,622 times
Reputation: 13735

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Quote:
Originally Posted by jtur88 View Post
You know, it all really comes down to your psychological and social capacity to BE a proudly frugal person. Which of the following statements best describes you:

1. Oh, come in and look at my new sofa. It cost $1,000, but it looks perfect in my living room."

2. Oh, come in and look at my new sofa. I picked it up on the curb on trash amnesty day, and it's so-o-o comfy."
Frugal doesn't have to be trashy... I did the front room of my bungalow with cast offs, goodwill (DI here in UT), yard sale finds and hand-me downs for around $1500.00 (minus the TV and cabinet, which I bought on a 18 month no interest loan from my local home center)





The player piano was $200, the antique (and 2 reproduction antique) chairs were 20.00-100.00 each, the rugs 100 bucks each, the couch was 400 from the scratch & dent section of the local big-box home furnishing center; my book collection, paintings and assorted do-dads were either inherited or bought at bargain basement prices (I don't think I've paid more than 20 bucks for any single item, except for a couple books I got at Barnes and Noble ).

Last edited by Chango; 08-26-2011 at 11:18 AM..
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Old 08-26-2011, 11:27 AM
 
Location: Victoria TX
42,668 posts, read 71,556,197 times
Reputation: 35864
I'll tell you what. Give me a six-figure income, and I will be happy to tell you how I do it. Make it a little bit challenging, spread it out over several years. My last ten cars have cost, altogether, less than $40K. including repairs, and ran over a million miles.

For anyone who has had a 6-figure income for ten years, it is absolutely inexcusable to not have at least a half a million right now, standing in an offshore account.

If you are not a savvy businessman with plenty of time to spend on it, don't go into business---you will lose.
If you are not a savvy investor with plenty of time to spend on it, don't go into investing---you will lose.
You will be taken to the cleaners by the savvy ones, which is the first (and last) axiom of free-market capitalism.

If someone is willing to give you 6-figures for just showing up at the office every morning and doing what you're told, take it and run. You're home free. By the accident of birth, your good luck has placed you in the top one percent of all the people on the planet. Start thinking risk-aversion, because your potential is nearly all downside.

Last edited by jtur88; 08-26-2011 at 12:05 PM..
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Old 08-26-2011, 06:55 PM
 
2 posts, read 3,298 times
Reputation: 19
I came upon this thread yesterday and saw that it was old so didn't respond but I see its been revived. haha

I live on $900 a month social security disability. Thats it. It is very difficult but somehow I get by each month. There isn't alot for food. I get a whopping $16 a month in food stamps from that low income. It comes in handly the last 2 weeks of the month as I usually have nothing left for groceries but with that I can buy some milk and eggs and get by.

I live in my own manufactured house by myself. It is not a dump. I also have internet because I am rather addicted to the internet and it helps me find ways to get by. I also have satillite tv which I have considered getting rid of but its my only entertainment since I can't get out and do too much walking or anything. I have a tracphone for emergencys. And I do have phone service. I have no housepayment but I do have rent for the land.

Money is all relative. I would feel like a millionaire if I had 200,000 a year to live on. I would feel rich if I had 50,000 a year to live on. I can't believe the original poster is complaining. I don't need 3 properties to rent out etc and worry about. I do have some very nice friends that take me out to lunch or dinner a couple of times a month and give me the occasional gift card to Target, the grocery store or Starbucks. I can't tell you how appreciative I am for that. I also have medicare and medicaid. So you can squeeze by on $10,000 a year. You just can't live high off the hog, buy new furniture etc. But I do try to save a little bit each month which is getting harder and harder. Food is outrageously expensive. I own my car outright but got stuck with a car repair last month that cost me a wad and I had to borrow half the $$. Now I have to pay it back. I would love to get rid of the car but I live in a rural area with a half baked transportation system.
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Old 10-26-2011, 07:10 PM
 
Location: Forests of Maine
29,723 posts, read 47,495,927 times
Reputation: 17577
Quote:
Originally Posted by AnthonyB View Post
OK, I'm fascinated, how did the potatoes come out after re-hydrating them?

And also, potatoes keep pretty well in a cool environment, don't you have a root celler?
Re-hydrated potatoes are great!

We do not have a root cellar.
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Old 10-28-2011, 04:19 PM
 
Location: Olympus Mons, Mars
5,000 posts, read 8,034,941 times
Reputation: 4920
Quote:
Originally Posted by GreenMachine View Post
Forest,

I see your point, but most people nowadays would find it awkward to live without a phone. I was only pointing out that it seemed like a few things were missing in this person's budget. Living on $100 a month for food is not easy, unless you are eating a lot of refined carbs like rice, noodles, potatoes and bread -- the stuff that contributes to obesity.

Greenie
Totally possible, my grocery bill is under $100/mo. I eat a lot of fruits and vegetables...at my store bananas are .99 for 2 lbs and apples are $1.29/lb. Cereal costs around $3/box and last a few days, milk is $2.7/half gal. and also last a few days... etc. etc.

Not really expensive unless you're shopping at some rip off grocery store.

Food is expensive because most people eat processed garbage.
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Old 10-28-2011, 04:26 PM
 
Location: Olympus Mons, Mars
5,000 posts, read 8,034,941 times
Reputation: 4920
Quote:
Originally Posted by jtur88 View Post
For anyone who has had a 6-figure income for ten years, it is absolutely inexcusable to not have at least a half a million right now, standing in an offshore account.
not realistic to have that much. After taxes that 6 figures is greatly reduced, an average overall tax rate is around 30% for a single person making say about $100,000 or so (inclusive of a 8% state income tax - example California). That leaves $70,000 net. A comfortable lifestyle in a major metro area (assuming those are the expectations of someone who has busted their buns to reach the level to earn this much and is in a metro area where such jobs are usually) would be perhaps $4000/mo. (inclusive of a $2k average mortgage payment). This is for a SINGLE with no kids. That's $48,000 leaving $22,000/yr for savings.

$22,000 x 10 yrs = $220,000

over the 10 year period deduct $20,000 for incidentals and unexpected/unbudgeted expenses leaving $200,000

forget about investment returns as there are none nowdays, interest income is virtually zero especially after taxes and stock market risk is too much..you may not even have the $200k left.

And of course you're taking the IDEAL scenario where there is no job loss, pay cut or any other major expenses like falling ill etc. but life over a 10 year period is seldom so perfect.
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Old 10-28-2011, 04:35 PM
 
Location: Olympus Mons, Mars
5,000 posts, read 8,034,941 times
Reputation: 4920
Quote:
Originally Posted by jtur88 View Post
By the accident of birth, your good luck has placed you in the top one percent of all the people on the planet. Start thinking risk-aversion, because your potential is nearly all downside.
here we go again... making $100,000 is not the 1% making $1 million+ perhaps. $100,000 is more like the top 20% still respectable but not the elusive demographic like you make it out to be. We guys are just ordinary middle class folks trying to get by and do not belong to some exclusive club.
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Old 10-28-2011, 05:55 PM
 
Location: Forests of Maine
29,723 posts, read 47,495,927 times
Reputation: 17577
Quote:
Originally Posted by k374 View Post
Totally possible, my grocery bill is under $100/mo. I eat a lot of fruits and vegetables...at my store bananas are .99 for 2 lbs and apples are $1.29/lb. Cereal costs around $3/box and last a few days, milk is $2.7/half gal. and also last a few days... etc. etc.

Not really expensive unless you're shopping at some rip off grocery store.

Food is expensive because most people eat processed garbage.
Gotta avoid processed foods.
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Old 10-28-2011, 06:11 PM
 
Location: Forests of Maine
29,723 posts, read 47,495,927 times
Reputation: 17577
Quote:
Originally Posted by k374 View Post
not realistic to have that much. After taxes that 6 figures is greatly reduced, an average overall tax rate is around 30% for a single person making say about $100,000 or so (inclusive of a 8% state income tax - example California). That leaves $70,000 net. A comfortable lifestyle in a major metro area (assuming those are the expectations of someone who has busted their buns to reach the level to earn this much and is in a metro area where such jobs are usually) would be perhaps $4000/mo. (inclusive of a $2k average mortgage payment). This is for a SINGLE with no kids. That's $48,000 leaving $22,000/yr for savings.

$22,000 x 10 yrs = $220,000

over the 10 year period deduct $20,000 for incidentals and unexpected/unbudgeted expenses leaving $200,000

forget about investment returns as there are none nowdays, interest income is virtually zero especially after taxes and stock market risk is too much..you may not even have the $200k left.

And of course you're taking the IDEAL scenario where there is no job loss, pay cut or any other major expenses like falling ill etc. but life over a 10 year period is seldom so perfect.
You are making assumptions that are not realistic.

Our combined household income peaked at about $75k and held there for about 10 years, right before my forced retirement. We had started investing heavy about 5 years before that.

We paid no income taxes. My salary job was tax-free, and our portfolio was tax-sheltering; so it sheltered our small business incomes.

During the 15 years when we were really focusing on investing, we built our portfolio Net Worth up to very nearly a Million Dollars.

This was all while we raised 2 children.

A good part of our portfolio was lost with this recession; but not before we bought our current home [and farm] with cash.

So now in retirement we have no debt.
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Old 10-28-2011, 10:51 PM
 
18,856 posts, read 30,455,105 times
Reputation: 25990
I will never get ahead. I live on one income, support my daughter in college, and my Mom. I make a good salary, pay rent, utilities, food, car, am live pay check to pay check. It would make all the difference in the world if I was married. Forget it.
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