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I moved away for grad school and really struggled to save anything at all for a few months. When I realized that I was about to have less money in the bank than I did a few months ago due to a car repair, I realized that I couldn't really afford the car.
So I sold it and started walking.
I also learned how to find really good deals on rooms for rent and how to eat cheaply even when I have no time for cooking.
My net worth is now, 7 years later, around $50k, most of which is personal savings but a few generous family members have topped up that sum.
The most I ever made in a year is $25k, and I live in a HCOL area. My biggest problem is that I am STILL in grad school....due to funding delays, publication delays, total loss of research funds in 2013, and having no other grad students or postdocs doing the same work as me...thus my research "group" is single-handed, apart from my advisor.
The good news is....I finally sent off my paper (not thesis just yet), so my CV is not blank. I need to find a job and graduate. Having to TA my way through all of this due to federal budget cuts [political comments suppressed] is totally brutal.
In my experience, the biggest way to not go under, financially, is to live like a student until you can afford not to.
I am a retired high school teacher, age 71. Despite the life-long low salary I earned, I always lived within my means - I just don't like waste and don't like to be in debt. After working 34 years in the system, I retired at age 61 with a defined benefit California teachers' pension. I live very comfortably and can afford little luxuries. I do not have designer clothes or expensive cars because I don't desire them. I am very content and feel fortunate.
These things are relative. In the Retirement Forum, it has been pointed out to me how well off I am financially, although my pension amount is close to the national median household income, which can hardly be called "well-off". To someone who is struggling, though, it may seem like a lot. But to a professional, it's quite modest at best.
It feels great not to have financial worries. Suppose I discover I need a new heating/airconditioning unit? No problem. Expensive car repair pops up as a surprise? No problem.
I'm not rich by any means but thank God I'm doing better than most people. I'd like to hear from people who are NOT finically stressed. Who DO have $500, $1000, or more discretionary income left over after living expenses other bills, and savings/investing are accounted for.
If you're doing well, what are your thoughts on saving versus spending? Your thoughts on money in general? The stories of others you hear about? The economy and jobs situation. Heck, even the serendipity of life….like health issues than can affect finances.
I think I'm doing well. But I am a SINK who probably has a lower income and lives a more scaled down lifestyle than you describe. As a personal choice, I save a lot for retirement, so I don't have a lot of discretionary spending. I'm glad I have the choice. My income is pretty modest for a high cost area, so I do have to be careful about spending.
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Originally Posted by selhars
How does it feel do be doing pretty well?
It feels good. I like this piece on the 6 stages of financial freedom. I'm at Stage 3...the stage at which I could quit my job and not worry too much about finding another right away. I'm appraching Stage 4. This is the stage where your investment portfolio could pay for very basic housing, food, and essential clothing & insurance. If I moved to a cheaper area, I could probably be at Stage 4 right now (just barely).
All that said, having a certain amount of financial security contributes to happiness, but it's not happiness itself. Having good personal and work relationships and one's spirituality and physical health are also essential pieces of the happiness puzzle.
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Originally Posted by selhars
I also asked because I saw coupons for Bush Beans…$1.00 if you buy two cans. And I thought to myself: do I really need to use my time to cut out a coupon to save a dollar on two cans of beans? Thank God I don't.
I have a somewhat different view. I am not a coupon clipper for the most part. But if I happened to see one for $1 and it was a product that I would buy, I would clip it. It takes very little time to do so, so it would be worth it to me. But it really depends. A lot of people in high paying jobs work more than a straight 40 hour work week and have long or semi long commutes on top of that. I work a relatively low stress job with a straight 40 hour work week, have no commute, and get lots of vacation time and paid holidays. I'm time rich and cash poor. Someone with a more demanding job doesn't have the time or mental bandwidth to deal with coupons. But I'm not that person, so it's not a big deal. That said, coupons in my area are usually for stuff I don't buy, so I don't bother with them much, although sometimes the machine at the grocery store will spit out useful ones.
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Originally Posted by selhars
Sometimes I wonder how people live who don't have enough money, or work two or more jobs. It's got to be sooo stressful. Worries about paying bills. No time for yourself.
I think people from all socioeconomic levels take on way too much stress--and they often do so for superfluous things that aren't even important. I never wanted expensive cars, houses, pets, kids, etc. I like the simple life and it drives me crazy that other people seem to create so much stress in their lives when they're young--right out of the gate. I knew from a young age that wasn't going to be me.
Quote:
Originally Posted by selhars
For example, I don't watch every penny. I go to the grocery store and buy what I want. I eat well, and eat out often. If I want bison or ostrich (at $10 a pound) I buy it. Thank God I don't need to use coupons or even care what's on sale.
I buy the same simple things at the grocery store and generally block everything else out. I do like my junk food treats. But $10 per lb. bison? No. I'm not a vegetarian, but I rarely buy or cook any kind of meat. I just don't see the need to spend a lot at the store. I like what I like and am in the habit of buying certain things. It's pretty cheap and un-stressful that way.
Mostly, I think my life is pretty good. But I do worry about the political situation in the U.S. and around the world. I see an encroaching global dictatorship on the way and it bothers me that so many other people seem blind to it. (For those who think I'm a nut, that's fine. No need to argue about it)
Last edited by mysticaltyger; 02-26-2016 at 07:50 PM..
Doing well financially through persistence, hard work, delayed gratification, living below means, looking and finding a few good investments, and some good fortune along the way...it wasn't always like that. Wife and I came from rural southern backgrounds from Middle of the Middle Class, if that. We both became educated but still struggled for many years, partly due to getting married too young and taking many years to finish our educations and having children during those early years.
We had to eventually leave our state of birth and family and took opportunities for financial advancement, moved a few times for better opportunities and once we both had good careers going, maintained them till our kids were out the door and then some. We are both in our 50's and both retired from our careers with no financial need to work though both of us have gotten offers to do some consulting with our former employers and likely will do so from time to time for extra income. Right now in my vacation house on the Mediterranean in southern Spain enjoying the life and wine of the region.
Made myself a 1% income earner for my age bracket, but getting there as far as overall. I'm over twice the average income for my area and in Manhattan, NYC albeit rented studio at about 27-29% of my income per month (I keep making more money, so this ratio keeps getting lower). Sadly I've also found that I compare myself financially to others and it's not really fair; I have friends whom do better than me, but there's not a whole lot of them.
Debt and wealth wise, it's still building. I'm very young for where I am in life and unless I had an inheritance or buckled down with rent expense, there's not much that would have changed. I truly love having my own place though so chances are this wouldn't have happened.
I'm not really that frugal anymore, but I don't have an expensive lifestyle. Outside of rent, my expenses have decreased enormously by moving to NYC, which for some is the most ironic statement one could hear. I find COL to be terribly subjective and for here way too all encompassing. I live within 3 blocks of maybe 10 different places to buy groceries where the milk ranges from $1.99 to whatever Whole Foods charges. Lets not forget Aldi exists as well, though it's a little far for me to justify shopping there. Regardless!
I find that I save about 60% of my after tax income after all expenses which is (parden my French) pretty damn amazing given I live downtown NYC on my own and am only 24. I'm living it up as the good times roll.
Keep this up and you'll be financially independent by age 30, like Mr. Money Mustache.
I would like to echo the part about education. I still think that the right academic -> career route offers the clearest path to upper-middle and upper class.
I would say this PLUS savings. There are 1% earners out there who spend it all. They may be upper middle class or upper class (depending on one's definition), but they have a lot of stress in their lives if they're spending almost all of it.
Last edited by mysticaltyger; 02-26-2016 at 07:53 PM..
We're doing embarrassingly well. By that I mean I never thought I'd be where I am. Twenty years ago, I was hitting up payday loans to get gas money to get to work. Over those years I learned how to work hard, play hard, spend hard and make more bad decisions. I always had a second part-time job because I was afraid I'd lose the first one and have to go back to the payday loan place. Six years ago I had a life milestone which made me evaluate and learn that I had made at least 70K in my part-time over a span of 10 years and had no idea where it went.
I remember when we were qualifying for our home, the mortgage broker kept commenting on how our income would grow as we aged. I couldn't for the life of me figure out how she'd know that. Twenty years later after raising 3 kids and settling in to middle age, we have about 3-4K extra per month after all of our expenses are paid. The only debt we have is our home and we are contributing to savings, IRA's , Roths and college funds. We are a couple with four incomes, and one kid left at home. 15 years ago it was a necessity but now it is a blessing.
I don't feel "rich" but I feel well taken care of and stress free. I'm embarrassed because when I shop and buy gas now I don't look at the prices which is something I should be doing to get a good deal and sense of inflation. Recently I had visitors who hadn't been to my house in a while and the look on their faces made me more embarrassed. I have a thing for gadgets and based on their expressions, I have an excess.
I remember when we were qualifying for our home, the mortgage broker kept commenting on how our income would grow as we aged. I couldn't for the life of me figure out how she'd know that.
Our financial advisor was kinda telling us the same thing the first time we went into see her... she ran some numbers and made it seem like hocus pocus and presented us some crazy numbers we could end up with on retirement day... I'm still not sure if I buy into it, especially since a LOT could happen in the next 25 years, but I'm like you, pretty amazed that we are where we are... and grateful. Very much so.
Increased savings doesn't change my happiness though as things currently stand. I fully understand the idea of having it later but once basic needs and then even wants are covered additional savings doesn't adds happiness
"Our" money needs to be used for our needs now and in "our future".. The system is not set up to help the middle class in their elder years (first hand knowledge) so don't be so anxious to give it away. Why do you think the rich are rich? They planned, kept as much of their money as they could and invested for their future. To give it away is short sighted. We all talk about "the right thing to do". But giving your money away, then not being able to take care of yourself later on is not the right thing to do.
The middle classes (lower, middle, upper) better save because you'll need your money for "your basic needs" later on in life... unless you too want to live in poverty.
I think each additonal dollar lost some impact on happines well ahead of the 200k mark and it had nothing to do with taxes but rather simply utility of the next dollar and the limited impact it had on daily life
Quite.
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