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Old 07-09-2010, 03:47 PM
 
Location: Scottsdale, AZ
4,472 posts, read 17,639,322 times
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I had an interesting conversation with a co-worker this morning about living above/below one's means. I haven't really noticed it before but it is pretty difficult to live below your means. With a spike in income after a promotion or raise, you adjust your lifestyle accordingly to your new income. Most people don't simply put that new income into a bank or mutual fund, they seem to add another expense to their current lifestyle which takes away that new money. I've even noticed it with myself (ashamed to admit it).

When I started out working, I was making less than half of what I do now but I still lived fairly comfortably. 8 years later, I make more but seem to have more expenses that eat away at the larger income I have. If I was intelligent, I'd sink that money away into a mutual fund and let it grow and live on the amount of money I was making many years ago.

Does anyone else feel it's very difficult to live a lesser life even if you're making an income that allows you to live better?

I can now understand how some lottery winners blow all their money within 5 years simply because they cannot manage such a larger amount at one time, they live like a king even though they don't understand all the costs associated with their new lifestyle.

Not really a profound thought but it was sort of like one of those "Duh!" moments!
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Old 07-09-2010, 03:53 PM
 
Location: Las Flores, Orange County, CA
26,338 posts, read 93,480,540 times
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Quote:
Originally Posted by SpeedyAZ View Post
it is pretty difficult to live below your means.

you adjust your lifestyle accordingly to your new income.

I've even noticed it with myself

If I was intelligent, I'd sink that money away into a mutual fund
Sounds like all you have to do is make an adjustment. Sure you can spend more if you earn more, just don't spend more than you earn. Like dieting, you can eat more if you work out but if you eat too much you'll get fat.
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Old 07-09-2010, 04:04 PM
 
Location: Australasia
387 posts, read 866,760 times
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Yes, agree it's hard not to spend the extra money when income goes up.
What helps is to have it automatically deducted on payday so you don't miss it.
Also.....I have found I feel better when I have quality around me. When I do have to buy something, I plan ahead to buy a quality item on sale. This way, it will last much longer and look better ...and be less expensive in the long run.
Exception being cars ....most of them are money pits....always buy decent secondhand and drive it forever
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Old 07-09-2010, 04:07 PM
 
Location: Denver, CO
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I went from eating processed cheap pasta with potted meat in college to fresh organic produce and farm meats. You'd be surprised how eating more healthy costs much more. That was the only lifestyle change we adopted, we didn't buy fancy cars or houses or go out more just because we had more disposable income. Of course, when you work 80 hour weeks, how much time do you have to really spend that money?
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Old 07-09-2010, 04:34 PM
 
Location: Australasia
387 posts, read 866,760 times
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Quote:
Originally Posted by Moonwalkr View Post
I went from eating processed cheap pasta with potted meat in college to fresh organic produce and farm meats. You'd be surprised how eating more healthy costs much more. That was the only lifestyle change we adopted, we didn't buy fancy cars or houses or go out more just because we had more disposable income. Of course, when you work 80 hour weeks, how much time do you have to really spend that money?
Isn't it so true ! Here in NZ my grocery bill triples if I buy all organic.
That is one thing that bothers me about living below ones means. I don't believe a healthy non-organic diet is a good substitute for an organic diet.
Perhaps eating well non-organically is false economy?
Am still thinking about that
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Old 07-09-2010, 04:45 PM
 
Location: Denver, CO
1,921 posts, read 4,758,390 times
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Quote:
Originally Posted by tuberose View Post
Isn't it so true ! Here in NZ my grocery bill triples if I buy all organic.
That is one thing that bothers me about living below ones means. I don't believe a healthy non-organic diet is a good substitute for an organic diet.
Perhaps eating well non-organically is false economy?
Am still thinking about that
Aren't there like 15 sheep per person in NZ? I can't imagine it be hard to find good fresh mutton there. I'd be salivating just walking down the road staring at the chops walking around.
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Old 07-09-2010, 04:47 PM
 
Location: Planet Eaarth
8,954 posts, read 20,612,845 times
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Quote:
Originally Posted by SpeedyAZ View Post
I had an interesting conversation with a co-worker this morning about living above/below one's means. I haven't really noticed it before but it is pretty difficult to live below your means. No it is not IF you have any self discipline at all! With a spike in income after a promotion or raise, you adjust your lifestyle accordingly to your new income. Most people don't simply put that new income into a bank or mutual fund, they seem to add another expense to their current lifestyle which takes away that new money. I've even noticed it with myself (ashamed to admit it). Again, a total lack of self discipline with no stated life goals to work towards.

When I started out working, I was making less than half of what I do now but I still lived fairly comfortably. It's hard but one must learn that inflation makes each dollar with less. 8 years later, I make more but seem to have more expenses that eat away at the larger income I have. If I was intelligent, I'd sink that money away into a mutual fund and let it grow and live on the amount of money I was making many years ago. It's not really about investments it's about using what you have to the best of your ability while you learn the difference between want and need.

Does anyone else feel it's very difficult to live a lesser life even if you're making an income that allows you to live better? We live on my small pension and our Social Security with no other income and WE SAVE MONEY EVERY MONTH!!!!!!!

I can now understand how some lottery winners blow all their money within 5 years simply because they cannot manage such a larger amount at one time, they live like a king even though they don't understand all the costs associated with their new lifestyle. Like the 99.9% of the wage earning public they have NO self discipline!

Not really a profound thought but it was sort of like one of those "Duh!" moments!
It's really hard to tell yourself that it's your fault (95% of the time) that you feel poor or are always broke. Wanting less is the key.
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Old 07-09-2010, 05:17 PM
 
Location: Scottsdale, AZ
4,472 posts, read 17,639,322 times
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Quote:
Originally Posted by Tightwad View Post
It's really hard to tell yourself that it's your fault (95% of the time) that you feel poor or are always broke. Wanting less is the key.
Never said I feel poor or always broke. I still save money but it seems everytime I get a raise or a bonus, I'm inclined to spend it rather than tuck it away. I have enough money in an emergency fund for a year without working as well as a good chunk of change in mutual funds and stocks.

I merely wanted to make a point that it seems with making a higher income, one adjusts their lifestyle to spend more as well. Didn't really need a lecture on how to spend my personal money although I'm hoping to see myself on a motorcycle pretty soon.
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Old 07-09-2010, 05:24 PM
 
171 posts, read 442,888 times
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I think you;re right, that spending up to the next level is common and easy to do. However, IME all it took was a good scare to bring me right back to reality, and renewed my interest in trying to live below my means.

I try not to waste energy thinking about it, but there were a couple of years when I was really wasteful, even though I convinced myself that I was just living a "normal middle class life." (Which objectively, I probably was, but still? Totally wasteful.)
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Old 07-09-2010, 07:21 PM
 
Location: Australasia
387 posts, read 866,760 times
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Quote:
Originally Posted by Moonwalkr View Post
Aren't there like 15 sheep per person in NZ? I can't imagine it be hard to find good fresh mutton there. I'd be salivating just walking down the road staring at the chops walking around.
LOL ... you're right, there are lots of sheep in NZ. However our farming methods are not as clean and green as many people imagine.
Lamb is pretty inexpensive.
However, an organic chicken is about NZ$20 and organic quality ground beef is about $24 per kilo. Organic steak is a silly price.
I wish organic was cheaper here ....but alas it's not. Probably the small market is the problem
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