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Old 02-10-2016, 08:36 AM
 
Location: North Idaho
20,999 posts, read 25,750,723 times
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Quote:
Originally Posted by ncole1 View Post
The problem with this is that I, who make $25k, ........
If you are living below your means with a $25K income, you live on what you have, you do not run up debt, you put a little away most months, whatever you can spare.

If you are lower income, you are still going to get old and retire, just like anyone else. Whatever you have put away for retirement, it is sure going to be better than having absolutely nothing.

When I first got married, our family income was less than that. We bought two acres outside of town and lived in a travel trailer for a couple of years until we had finished building a very small house. I grew fruit and vegetables and ran a business out of the property. My husband drove into town to work. We never borrowed any money for anything. I work a mean budget. I consider that we lived well and very cheaply. That land was money in the bank.
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Old 02-10-2016, 08:49 AM
 
11,697 posts, read 16,443,612 times
Reputation: 16335
Quote:
Originally Posted by canadian citizen View Post
I am still waiting for the first person on one of those TV "home finder " programs who walks in to a 2800 sq ft house and says ..............Its too dam big.


It amazes me when I see a couple ( married but no kids ) who say they " need " a four bedroom, three bathroom house. Are they going to run a bed and breakfast business ?


JiM B.
My office, his toy room, a guest room. Our bathroom, guest bath, normally the third is a half bath. I do not care to have every guest or contractor on my pot
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Old 02-10-2016, 09:22 AM
 
12,404 posts, read 9,199,643 times
Reputation: 8863
Quote:
Originally Posted by oregonwoodsmoke View Post
If you are living below your means with a $25K income, you live on what you have, you do not run up debt, you put a little away most months, whatever you can spare.

If you are lower income, you are still going to get old and retire, just like anyone else. Whatever you have put away for retirement, it is sure going to be better than having absolutely nothing.

When I first got married, our family income was less than that. We bought two acres outside of town and lived in a travel trailer for a couple of years until we had finished building a very small house. I grew fruit and vegetables and ran a business out of the property. My husband drove into town to work. We never borrowed any money for anything. I work a mean budget. I consider that we lived well and very cheaply. That land was money in the bank.
I have managed to squirrel away, including retirement accounts, about $36k (backing out the value of all financial gifts I have been given by family members). But I certainly could not afford anything remotely resembling what you describe. There is no affordable land for sale within 40 miles of my location that does not have zoning rules that would prohibit what you describe. I also could not afford to have another person and I have a combined income of $25k - because two people cost significantly more than 1.

But by renting a room about a mile from work and not owning a vehicle I am able to save money.
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Old 02-10-2016, 09:51 AM
 
2,923 posts, read 1,708,807 times
Reputation: 1894
Quote:
Originally Posted by Art2ro View Post
To add, we live in a nice up scale neighbor anyone can be proud to live in! The Philippines does have poverty stricken areas, but we don't live in one!
Here's where we live in the Philippines: picture of Paseo de Sta Rosa - Google Search
that was sugarcane plantation 30 years ago..


we would retire up north when our time comes too
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Old 02-10-2016, 09:55 AM
 
1,040 posts, read 695,167 times
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I live the entire year on my January income alone.
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Old 02-10-2016, 06:54 PM
 
11,892 posts, read 14,359,727 times
Reputation: 7526
Quote:
Originally Posted by oregonwoodsmoke View Post
If you are living below your means with a $25K income, you live on what you have, you do not run up debt, you put a little away most months, whatever you can spare.

If you are lower income, you are still going to get old and retire, just like anyone else. Whatever you have put away for retirement, it is sure going to be better than having absolutely nothing.

When I first got married, our family income was less than that. We bought two acres outside of town and lived in a travel trailer for a couple of years until we had finished building a very small house. I grew fruit and vegetables and ran a business out of the property. My husband drove into town to work. We never borrowed any money for anything. I work a mean budget. I consider that we lived well and very cheaply. That land was money in the bank.
Of course, back in 73, that was good money!
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Old 02-10-2016, 07:33 PM
 
Location: Central IL
13,353 posts, read 7,121,412 times
Reputation: 31053
Quote:
Originally Posted by stan4 View Post
Sometimes, to get in the area you want, you have to buy a bigger house than you technically need.
Yes....and that's the rub, to differentiate "wants" from "needs". I suppose if you're buying truly as an investment property that's a consideration.
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Old 02-10-2016, 07:35 PM
 
Location: Ohio
115 posts, read 85,201 times
Reputation: 171
I prefer to spend no more than 10% of my post-tax earnings. If I don't save a minimum of $1,500 a month, I feel I'm broke. Money is hard to come by. In America, after-tax earnings of $100 will take you an entire day or longer to generate. That is why I don't like to spend money. It's so hard to obtain in the first place.
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Old 02-10-2016, 08:12 PM
 
12,404 posts, read 9,199,643 times
Reputation: 8863
Quote:
Originally Posted by zie92mg9z View Post
I prefer to spend no more than 10% of my post-tax earnings. If I don't save a minimum of $1,500 a month, I feel I'm broke. Money is hard to come by. In America, after-tax earnings of $100 will take you an entire day or longer to generate. That is why I don't like to spend money. It's so hard to obtain in the first place.
If my parents paid all my bills I could do it too. I'd have about $190k in savings and I could BUY a house like the one I'm now renting just one room in...

But alas, I'm a grown-up with grown-up responsibility.
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Old 02-10-2016, 09:53 PM
 
1,738 posts, read 3,883,003 times
Reputation: 4566
When indexed for the ability to replace 80% of one's working income in retirement, the suggestion of living on 99.8% of one's income as a "technical" definition of living "below" one's means is a laughable fallacy, a twisting of the spirit of the term, and a rather facetious scoff at the person asking the question by people who don't need a large percentage of their income to cover the cost of living line (flat for every man and woman regardless of income) lecturing the guy who needs 90% of his income to cover COL.

Since I'm not afraid to offend the affluent, nor do I believe any deference is owed to them nor to their sensitivity/defensiveness regarding living in a volatile and income-polarized Country of people they are increasingly NOT representative of, I'll tackle the term. Living below one's means is a socio-economic concept; only the well to do on here get uppity and try to sanitize it as some neutral arithmetic quantity. As a socioeconomic term, it effectively means choosing to live a social and material lifestyle below the social CLASS one could afford with one's income. A very pointed and conscious choice to downgrade one's appearance, material possessions and behavior, to include affronting personal and professional associations in the process of making said lifestyle choice. That's living below one's means.

Most Americans are highly expenditure-sensitive/inelastic, that is, even at the low levels of income, they are quite inelastic to a conscious downgrade in material consumption. Most americans are trying to maintain yesteryear's lifestyle by continuing to finance it; the thought of outliers willingly driving in the opposite direction is incomprehensible to them and a social pariah. This is not conjecture. Our human relationships penalize us for making downgrading choices (the hot girl won't sleep with you, the employer of choice won't hire you, et al). To be free is to proceed with our choices in spite of the shunning, in order to attain the freedom of the "position of F*** You", as coined by John Goodman in the movie the Gambler.

Very few people are willing to make such social stances, but it can prove quite financially solvent in the long run. Now back to your regular narrative driven by the well to do on here.
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