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Road to Financial Independence 500K

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Printed Date: Aug 14 2018 at 10:40am


Topic: Road to Financial Independence 500K
Posted By: talia
Subject: Road to Financial Independence 500K
Date Posted: Apr 13 2013 at 10:50am
I am curious to hear what does Financial Independence (FI) mean to the ladies of BHM.

For me FI means having 500K stashed away.  Not tied up in a house, but cash invested that is making me money without me even thinking about it, I'm well on my way.  

The road to FI meant me giving up some things that we do without even a consideration:

Salary - I live off 55% of my take home salary.  45% is automatically invested for me.  My 
goal is to increase the % of auto invest to 50% by 2014 and 60% by 2015.  So that by 
2015 I'm living off of 40% of my salary.

Ways to stop spending $$ - Every $ I spent is a $ that could have been saved. That mentality has helped me think about ways to cut expenses.  So instead of driving to work, I take the metro.  My gas guzzling SUV costs me about $300 a month to fuel, now I only drive it on the weekends and when the drive is over 3 miles.  The metro literally stops 1.5 blocks from the school where I teach, so I walk to the station in the am and back home after work.  

Retirement - I want to retire early enough in the game so that I can enjoy my life and pursue
some of the dreams/interests that I have.  For me that means travelling and teaching/volunteering overseas.  With two pensions that provide medical benefits - a public employees and a corp pension - I think I can walk away from the game and not worry about waiting until I'm old enough to draw social security and get medicare....cuz' there won't be any.

Debt - I don't carry credit card debt, only use them when I travel.  Student loan is the only debt I have and it is minimal enough that I can knock it out in about two years.

Blind consumerism - I shop only for what I need.  I'm not into the latest clothing styles, shoes, or must have handbags. I have a $2000 LV that a boyfriend gave me sitting in the bottom of my closet and I almost feel a bit ostentatious when I use it when I travel.  My clothing comes from thrift stores, with the exception of lingerie, and work out gear, sneakers.  

Food shopping - I have managed to cut down our household bill to about $250 -$300 per month for a family of 3, and I'm still tweeking it so I can get it to about $250 consistently.  We don't buy prepackaged, processed/frozen food, or sodas, no prepackaged juices....water, almond milk, green tea and making our own juices works well.  We eat fresh vegetables/fruits, very little canned stuff - aside from the soups, and lots of protein in the form of chicken and fish.

Home Expenses - Cable is a big drain at about $1,080 a year for the privilege of media telling you 
what you might want to purchase - commercials - and a ton of channels with jack crap on.  Looking into hulu/netflix subscriptions to finally cut the drain cord....of course not until after the basketball season cuz' my SO would have a cow.  

My biggest drains.....

Travel - I figure I've given up on lots of consumerism so that I can afford to travel, and when I do it isn't to an all inclusive, we rent apts and cook a majority of our food, but do eat out several times, we try to live like locals when we travel.  Our biggest expense is the airfare and any sightseeing that we do while we are there.

My SO says that I'm so frugal (cheap that I squeak when I walk)....I consider that a compliment, because he is uber frugal, most Europeans that I have met are.  

What say you BHM ladies, what does FI mean to you and what how are you getting there?  



Replies:
Posted By: niecy
Date Posted: Apr 13 2013 at 10:55am
This should be an interesting thread. I honestly never really set a plan for my financial goals although I should just so I know what I want.


Posted By: talia
Date Posted: Apr 13 2013 at 11:09am
I know Niecy, early on in my working career I did not set a plan either, and I never even blinked once when I'd purchase a $300 suit, when back in the day I was working in corporate.   I haven't always been this way, but along the way I realized that I need the flexibility to do things I want to do and not wait till  I'm 67 or hoping one of my relatives will die and leave me a large inheritance...lol.

I'm a visual person, so when I loaded up my accounts and tracked my spending using mint.com....suddenly everything was there...where my money drains are in red, and the good things in green.  I'm trying to get to more green than anything else.

Mint.com is also great for those who want to do a financial plan towards FI

https://www.mint.com/" rel="nofollow - https://www.mint.com/




Posted By: GoodGirlGoneGr8
Date Posted: Apr 13 2013 at 11:15am
I like this thread.

FI means having enough to live without ever NEEDING to work.

I need to start being frugal. I spend impulsively, and that's my downfall. I don't have that much debt, I just haven't taken the first step to get it paid off. I'll feel a burden lifted from my shoulders once I'm completely debt-free.

My name is GoodGirlGoneGr8, and I am not financially independent.


Posted By: talia
Date Posted: Apr 13 2013 at 11:29am
Originally posted by GoodGirlGoneGr8 GoodGirlGoneGr8 wrote:

I like this thread.

FI means having enough to live without ever NEEDING to work.ClapClapClapClapClapClapClap

I need to start being frugal. I spend impulsively, and that's my downfall. I don't have that much debt, I just haven't taken the first step to get it paid off. I'll feel a burden lifted from my shoulders once I'm completely debt-free.

My name is GoodGirlGoneGr8, and I am not financially independent.

GoodGirlGoneGr8 ---- I would add....I'm not financially independent yet.....Clap You know what you need to do get your debt paid off and then you just make a plan.

Hello girl, you are preaching to the choir!!!!  You know exactly what I mean.  I want to work at what I want to do if I want to do it, not because I need to punch the clock to get paid.

My dream to - Travel around South America and teach English while I stop off at a couple of places....to fund my dream I will leave my money in US banks....and use the currency exchange rate to my advantage.


Posted By: Alias_Avi
Date Posted: Apr 13 2013 at 11:46am
What do you do for a living talia?


Posted By: GoodGirlGoneGr8
Date Posted: Apr 13 2013 at 12:02pm
Originally posted by talia talia wrote:


GoodGirlGoneGr8 ---- I would add....I'm not financially independent yet.....Clap You know what you need to do get your debt paid off and then you just make a plan.

Hello girl, you are preaching to the choir!!!!  You know exactly what I mean.  I want to work at what I want to do if I want to do it, not because I need to punch the clock to get paid.

My dream to - Travel around South America and teach English while I stop off at a couple of places....to fund my dream I will leave my money in US banks....and use the currency exchange rate to my advantage.


Teaching English abroad?! That's amazing!!

You hit the nail on the head. There's nothing worse than waking up in the morning to get to a job that you HATE...simply for a paycheck. It's the pits.

My car is also a gas guzzler...unfortunately, I live in a state where driving is almost imperative. "Mass" transportation and/or sidewalks are pretty much non-existant. So my monthly gas bill exceeds my food expenses and my light bill combined.


Posted By: oh_so_moody
Date Posted: Apr 13 2013 at 12:51pm
Awesome thread.

My homebuying budget and 30th bday vaca are managed via Mint along with all my spending for my checking and saving accts.

It really gives you insight into where your funds are being allocated.

I eat fast food and shop too much.

Im working toward it though. But because of my student loan debt, I'll be mid 50's til I can truly proclaim financial independence.


Posted By: EPITOME
Date Posted: Apr 13 2013 at 2:22pm
i will not consider myself financially independent until all student loans are paid off
i have a lot of stuff so tbh i don't need to buy any material items as much as i try to convince myself i do 
the goal is to pay off all student loans within 5 years
this means living off one salary--we figure if we can do that for 5 years to aggressively pay off loans then we can pretty much do that forever. mre is not about that 30 year loan repayment life...unless i find something with the govt which will pay off everything after 10 years. that'd be nice too


Posted By: alynxx
Date Posted: Apr 13 2013 at 2:48pm
I love this thread Talia!

Things I am going to do to save my money:

- sell everything I don't need/wear on eBay this year
- stop buying crap I don't need (already winning with this one)
- save more than 1/4 of my paycheck monthly
- re-use my weaves more and stop buying more weave because it is "in"
- grow my own hair to a length that I can eventually stop buying weaves and wasting money on relaxers


Posted By: talia
Date Posted: Apr 13 2013 at 2:50pm
Dang nam it, BHM has made me recreate this answer now three times....

Here goes - @ Alias Avi - I'm a teacher, love what I do and loooooove having my summers off.  I wasn't always a teacher, I worked for a corporate 100 company and stayed there long enough to get vested Wink plus get them to pay for my tuition 100%....ahh the good old days...lol.  I wouldn't switch what I do for the world, I love working with kids, and I like not having to punch a clock everyday, wear a suit, and heels, but most of all only get 2 weeks paid vacation.  I wish my SO had a similar job, but that is not the case as he has publishing deadlines he has to adhere to.   


Posted By: talia
Date Posted: Apr 13 2013 at 2:59pm
Originally posted by oh_so_moody oh_so_moody wrote:

Awesome thread.

My homebuying budget and 30th bday vaca are managed via Mint along with all my spending for my checking and saving accts.

It really gives you insight into where your funds are being allocated.

I eat fast food and shop too much.

Im working toward it though. But because of my student loan debt, I'll be mid 50's til I can truly proclaim financial independence.

Girl why the sad face....mid 50s is still way ahead of the game ..... most people have to work until they are 65+....I'd rather it be a choice of what I want to do, rather than what I have to do.  Mid 50s is good, better late than never 


Posted By: talia
Date Posted: Apr 13 2013 at 3:02pm
Originally posted by EPITOME EPITOME wrote:

i will not consider myself financially independent until all student loans are paid off
i have a lot of stuff so tbh i don't need to buy any material items as much as i try to convince myself i do 
the goal is to pay off all student loans within 5 years
this means living off one salary--we figure if we can do that for 5 years to aggressively pay off loans then we can pretty much do that forever. mre is not about that 30 year loan repayment life...unless i find something with the govt which will pay off everything after 10 years. that'd be nice too

This what I mean, living off of one salary and banking the rest...or paying down debt.  Sometimes we fail to plan and we fail because we haven't planned.....but you've got a picture of what you need to do.  Most folks when you say financial independence....they think winning the lottery.Confused


Posted By: binky622
Date Posted: Apr 13 2013 at 3:04pm
I love this thread I will be back with my responses when its quiet in the house


Posted By: Ladybird0724
Date Posted: Apr 13 2013 at 3:09pm
for me, being financially independent is having no debt (except mortgage) and having passive income (if i'm thinking of the right term)

i'm looking for a higher paying job, and as soon as I get it, me and hubby will be living on one income and banking the rest/paying down debt. we have about 1K in credit card debt (car repair emergency) and student loans. my personal goal is to pay off my student loan debt in the next 5 yrs, something I can easily do if I aggressively save.

one of our goals is to purchase either build an add on or purchase another home and use one of them as rental income b/c so many ppl rent in this area.

one area i need to improve in is food related expenses. i hate cooking, so i buy convenient things...I need to learn how to shop smarter and cook using less processed ingredients




Posted By: talia
Date Posted: Apr 13 2013 at 3:23pm
Originally posted by Ladybird0724 Ladybird0724 wrote:

for me, being financially independent is having no debt (except mortgage) and having passive income (if i'm thinking of the right term)

i'm looking for a higher paying job, and as soon as I get it, me and hubby will be living on one income and banking the rest/paying down debt. we have about 1K in credit card debt (car repair emergency) and student loans. my personal goal is to pay off my student loan debt in the next 5 yrs, something I can easily do if I aggressively save.

one of our goals is to purchase either build an add on or purchase another home and use one of them as rental income b/c so many ppl rent in this area.

one area i need to improve in is food related expenses. i hate cooking, so i buy convenient things...I need to learn how to shop smarter and cook using less processed ingredients



Good for you.  Let me tell you about my SOs 83 year old aunt who lives on a farm in Austria...everything she makes is freshly bought, she even feeds her chickens, and get this
runs an apple press.  While we were there in November, we helped her take apart her apple
pressing machine, that thing was gynormous and clean it. Frail is not what I'd think about when I think of his aunt...she drives around town, goes to her apple orchard and even rides a bike into town.  

I kicked rocks to processed foods long before, but she just reinforced the idea that it is beneficial to my health to not ingest processed foods if I want to live as long as her and not be in a nursing home. Confused

I totally agree also on the idea of a rental property....we've got our eyes on the lookout always, but with the house being paid off in 5 years, it doesn't make sense to take out a mortgage for us. However, I wouldn't mind buying a house in South America and making that our residence and he can rent out the house in SoCalLOL after some work.


Posted By: Alias_Avi
Date Posted: Apr 13 2013 at 3:32pm
Gosh this thread makes me so sad Disapprove


Posted By: talia
Date Posted: Apr 13 2013 at 3:33pm
Originally posted by alynxx alynxx wrote:

I love this thread Talia!

Things I am going to do to save my money:

- sell everything I don't need/wear on eBay this year
- stop buying crap I don't need (already winning with this one)
- save more than 1/4 of my paycheck monthly
- re-use my weaves more and stop buying more weave because it is "in"
- grow my own hair to a length that I can eventually stop buying weaves and wasting money on relaxers

Hey Alynxx *waves*

I typed a response but the damn thing disappeared....I knew there was a reason I didn't venture back onto bhm for a while....lol.

Anywhoo....I totally agree with the bolded.  For me the stop buying crap, just became an issue of dumb consumerism....I had to analyze how much happier would I be having that iPhone, or iPad,or whatever latest gizmo there is....versus having the same amount of money going into the bank or towards my student loan.  It became a no brainer....same thing with the latest hair.

I have some EP Wavy, 8 ounces and a closure, that I kick myself for ever having purchased, granted I bought it about 4 years ago, it was a dumb purchase.  Everyone raved about it and I succumbed to wanting to have that hair.  What is the use of having a stash of hair, when I'd rather stash cash?  Will 8 more ounces of a particular brand of hair make me feel any better, I mean especially when we are already acknowledging that I'm opting to SEW IN SOMEONE ELSE'S HAIR on my head....I mean really now...I'm just keeping it real.  The weave habit is one I have yet to kick rocks to, and I'm working on learning how to do my own that way I don't have to pay someone else to do it........team frugal.  If I must wear someone else's weave, let me at least minimize the insult by not paying someone else to sew it in my headLOL


Posted By: CurlyHairedPerv
Date Posted: Apr 13 2013 at 3:39pm
Originally posted by talia talia wrote:

Dang nam it, BHM has made me recreate this answer now three times....

Here goes - @ Alias Avi - I'm a teacher, love what I do and loooooove having my summers off.  I wasn't always a teacher, I worked for a corporate 100 company and stayed there long enough to get vested Wink plus get them to pay for my tuition 100%....ahh the good old days...lol.  I wouldn't switch what I do for the world, I love working with kids, and I like not having to punch a clock everyday, wear a suit, and heels, but most of all only get 2 weeks paid vacation.  I wish my SO had a similar job, but that is not the case as he has publishing deadlines he has to adhere to.   

Tis why I want to teach.


Posted By: Carmensworld
Date Posted: Apr 13 2013 at 3:42pm
i like this thread.I need to gone on and head to mint.com


Posted By: talia
Date Posted: Apr 13 2013 at 3:45pm
Originally posted by Alias_Avi Alias_Avi wrote:

Gosh this thread makes me so sad Disapprove

Alias Avi - it shouldn't make you sad, it is meant to empower us.  We all control our own destiny, you have the power.  I know for me, I get sad when I compare myself to where others are financially, but we all have to start somewhere.  Smile 






Posted By: talia
Date Posted: Apr 13 2013 at 3:57pm
Originally posted by CurlyHairedPerv CurlyHairedPerv wrote:

Originally posted by talia talia wrote:

Dang nam it, BHM has made me recreate this answer now three times....

Here goes - @ Alias Avi - I'm a teacher, love what I do and loooooove having my summers off.  I wasn't always a teacher, I worked for a corporate 100 company and stayed there long enough to get vested Wink plus get them to pay for my tuition 100%....ahh the good old days...lol.  I wouldn't switch what I do for the world, I love working with kids, and I like not having to punch a clock everyday, wear a suit, and heels, but most of all only get 2 weeks paid vacation.  I wish my SO had a similar job, but that is not the case as he has publishing deadlines he has to adhere to.   

Tis why I want to teach.

Here is a blog you might like:

http://www.millionaireeducator.com/" rel="nofollow - http://www.millionaireeducator.com/

I don't know where in boom f*ck Georgia this town is, but these two teachers are basically working towards maxing out their contributions to their 403B and their 457B accounts.  Most of us know at one time or another - myself included oh boy, have maxed out that credit card....but when can we ever say that we maxed out our savings investment account by putting in the maximum contribution each year?  

I looked at the salary scale for Georgia teachers, imagining they taught at the reputable (scoffs at the idea) Atlanta school district at the beginning salary is 45K, and max was 90K a year after 17 years and numerous credits over the Masters Degree....so I'm imagining that this teacher had been there for let's say 10 years.....and they still managed to save $250K within 3 years.  That's a nice bunch of change to have sitting in your account....plus they also get pensions since we teachers don't pay into social security...so shucks they are set....I think at last that I checked his blog, he has a great "simple" life. Heck I'd go teach in Echols County, Georgia.....lol.  


Posted By: maysay1
Date Posted: Apr 13 2013 at 4:13pm
My idea of financial independence has definitely evolved. For me it's not about having a certain amount of money in the bank. To me FI=no debt & the ability to pay for all your needs. Since I don't believe in investing (401ks etc), I focus a lot on frugality and cutting out expenses as much as possible.

Basically, I look at it from a perspective of keep your needs as low as possible (at most 20k/yr) and then I can have a lot more freedom much earlier because it doesn't take much to maintain. It's all about freedom to me.


Posted By: carolina cutie
Date Posted: Apr 13 2013 at 4:17pm
I'm still in college limbo right now so my list reflects that.LOL

Debt-
Just student loan debt. I hope to have that gone within 4 years of working full time or get loan forgiveness if I am working for the govt.

Credit- Make sure my credit is good so I can get low interest and have to make little to no down payments on certain purchases if I choose not to.

Income- Savings and investments. I want my liquid savings to sustain me at least 2 years. Start investing in 401k asap so I will not be up the creek when I get older. Get into investing for real. I have the info and I need to use it. Having some 'play money' for vacation, recreational activities and other non-essential activity,

Not playing the 'keeping up with the Joneses' game- Buy what is in my budget and not try to give the appearance of having it if I don't. I started thrifting last year (I'm late as hell!) and I love it. The only clothing I am aiming to buy new is under garments, socks and shoes and those better be on sale/clearance. I cleaned out my closet and found a lot of clothes to sell or alter so I don't waste my money. So far so good.

Insurance- Life, car, renters, health, dental, whatever lol. I just want to make sure I have it in case of any emergency, especially health.


Posted By: smaison
Date Posted: Apr 13 2013 at 4:24pm
awesome thread. let me just say mint.com is a great tool. i have been thinking about my FI since i was a little girl, it was always instilled in me, however, i have fell through the cracks several times, mainly because of buying expensive crap that i do not need.

i have a closet full of expensive shoes, handbags, and clothes with tags on them, and most that i have only wore once.  i have this thing that if i'm pictured with an outfit then i will not wear it again, so even going on a date with SO requires a new dress and its gets expensive...shoot me, shoot me now. sometimes i think about how stupid i am. buying designer shoes just to decorate my shoe closet...ugh....seriously i am so disgusted.

every couple of years i get really disgusted with myself and put myself on a ban and the older i get the more i have been sticking to it, but its hard. luckily, i don't have much debt just a small student loan i took out which will be paid off by next year. i have no car note, my job is about 15 minutes away from my apartment, and i try not to eat out as much but fail since i am not a great cook and end up eating out. my other issue is traveling, after shopping this is where most of my money goes...its going to be a hard area to cut back on, since traveling is like my life, the only thing that keeps me going some days.

one good thing lately is that i have been able to save half my income every month, i gave up cable and use my computer for entertainment. i have even sold one of my LV bags that was just sitting pretty in my closet and boy was that hard...but i did it. and thanks to mommy for sneaking money in my account every month even when i tell her no, that has been helping a lot too and i just save that money as well.

eta: almost forgot about some of my investments (thanks to mommy...that lady is so damn smart and i don't know where i would be without her guidance)..i have made some smart decisions in this area as well but i have lost some too thanks to this crappy ass economy, i also participate in my company's 403b match savings and invest the maximum amount.


Posted By: afrokock
Date Posted: Apr 13 2013 at 4:33pm
5* thread


Posted By: talia
Date Posted: Apr 13 2013 at 4:40pm
Originally posted by maysay1 maysay1 wrote:

My idea of financial independence has definitely evolved. For me it's not about having a certain amount of money in the bank. To me FI=no debt & the ability to pay for all your needs. Since I don't believe in investing (401ks etc), I focus a lot on frugality and cutting out expenses as much as possible.

Basically, I look at it from a perspective of keep your needs as low as possible (at most 20k/yr) and then I can have a lot more freedom much earlier because it doesn't take much to maintain. It's all about freedom to me.

I agree with you up to a point.  I do share your view that FI = no debt and being able to pay for all your needs.  Frugality is the first step to financial independence and having a plan.  But given the current situation of Social Security, unless we all have a money tree in the backyard we are up the creek without a paddle come retirement time.  The government takes x% of our money before we even get it and puts it an account called "social security"....they decide how to invest it.  The ways they are choosing to invest it are leaving us who are working now, paying for those who are pulling from the social security system and knowing better than to rely on SS for retirement, as they keep raising the age on which one can retire at....it used to be 62, then it went to 65, now it's 67.  

With that in mind, it is best in my opinion to have an alternate plan....because taxation without representation (or minimal at best) in your elder years is the way this government is heading. It is all about a quality of life.  Do I want to be eating meat only once a week on an SS pension, or do I want to maintain my standard of frugal living and have meat?  I'm just planning for the inevitable when I put money in a 401K /403B /457.....oh and can I say this much too...I was part of the MCI employees that never saw a dime of their 401K when they went belly up, and became Verizon.  I would have had two 401Ks, but no use in crying over spilled milk.Confused Thank God my balance in that account wasn't huge, but it is what it is.  You live and you learn....


Posted By: talia
Date Posted: Apr 13 2013 at 4:55pm
Originally posted by carolina cutie carolina cutie wrote:

I'm still in college limbo right now so my list reflects that.LOL

Debt-
Just student loan debt. I hope to have that gone within 4 years of working full time or get loan forgiveness if I am working for the govt.

Credit- Make sure my credit is good so I can get low interest and have to make little to no down payments on certain purchases if I choose not to.

Income- Savings and investments. I want my liquid savings to sustain me at least 2 years. Start investing in 401k asap so I will not be up the creek when I get older. Get into investing for real. I have the info and I need to use it. Having some 'play money' for vacation, recreational activities and other non-essential activity,

Not playing the 'keeping up with the Joneses' game- Buy what is in my budget and not try to give the appearance of having it if I don't. I started thrifting last year (I'm late as hell!) and I love it. The only clothing I am aiming to buy new is under garments, socks and shoes and those better be on sale/clearance. I cleaned out my closet and found a lot of clothes to sell or alter so I don't waste my money. So far so good.

Insurance- Life, car, renters, health, dental, whatever lol. I just want to make sure I have it in case of any emergency, especially health.

ClapClapGood for you! You've got a plan....





Posted By: carolina cutie
Date Posted: Apr 13 2013 at 5:00pm
^I took a personal finance course last spring in place of economics and I swear everyone should have to take it in High school and not college. It was very helpful.


Posted By: talia
Date Posted: Apr 13 2013 at 5:10pm
Originally posted by smaison smaison wrote:

awesome thread. let me just say mint.com is a great tool. i have been thinking about my FI since i was a little girl, it was always instilled in me, however, i have fell through the cracks several times, mainly because of buying expensive crap that i do not need.

i have a closet full of expensive shoes, handbags, and clothes with tags on them, and most that i have only wore once.  i have this thing that if i'm pictured with an outfit then i will not wear it again, so even going on a date with SO requires a new dress and its gets expensive...shoot me, shoot me now. sometimes i think about how stupid i am. buying designer shoes just to decorate my shoe closet...ugh....seriously i am so disgusted.

every couple of years i get really disgusted with myself and put myself on a ban and the older i get the more i have been sticking to it, but its hard. luckily, i don't have much debt just a small student loan i took out which will be paid off by next year. i have no car note, my job is about 15 minutes away from my apartment, and i try not to eat out as much but fail since i am not a great cook and end up eating out. my other issue is traveling, after shopping this is where most of my money goes...its going to be a hard area to cut back on, since traveling is like my life, the only thing that keeps me going some days. LOLClap

one good thing lately is that i have been able to save half my income every month, i gave up cable and use my computer for entertainment. i have even sold one of my LV bags that was just sitting pretty in my closet and boy was that hard...but i did it. and thanks to mommy for sneaking money in my account every month even when i tell her no, that has been helping a lot too and i just save that money as well.

eta: almost forgot about some of my investments (thanks to mommy...that lady is so damn smart and i don't know where i would be without her guidance)..i have made some smart decisions in this area as well but i have lost some too thanks to this crappy ass economy, i also participate in my company's 403b match savings and invest the maximum amount.

Good for you.  I can totally relate to the travel thing.  We did two trips in 2012, South America in the summer and Europe in November....and ouch, that was a bit painful economically (when I think about having put that money away instead) but so worth it.  I have a picture in my classroom of me holding a sloth when I went to Cartagena and trust me when my day gets a little stressful....I just look at that picture and remember I'm working towards my next trip...and many more hopefully.LOL  I love my babies, but ooooh boy some days I might love them a little less...lol. 

I want to be able to do what I want without looking at life from a "the cost of opportunity lost" perspective and realistically I don't think I'm programmed to ever look at things in a way that I don't take that cost into account.  Travel for me is education, it is mind expanding and life enriching so yeah, I may bitch about how much it costs......but in the long run I'd do it all over again in a heartbeatLOL  So then I have to be frugal elsewhere in my life to keep things in balance.

How are you liking using the computer, are you finding it easier....I know it certainly would be cost effective better than cable.  

Good for you in doing the max contribution.  You know I attended a seminar on my pension program, and the facilitator basically said that if you ever take your money out of your 401K, 403b or 457 you are basically robbing yourself in the future.  Some lady took out like 16K from her 403b plan, I think and in order to put it back something like 7 or 8 years later that money had grown to some ridiculous figure of about 38,000K......so yeah, good for you.  What you put in now will be huge when you want to start withdrawing on it. 


Posted By: nitabug
Date Posted: Apr 13 2013 at 5:31pm


I want to live soley off of passive income and investments.

Salary - I need to finish school to finish my salary goals. I spend all my money on bills,, stupid ish and other people. I want to minimize stupid ish and stop lending/helping individuals who are not my sisters.

Ways to stop spending $$ - stop 'helping' Pinch & cut down on eating out.

Retirement - lawd...idk know who I am going to tackle this one...this may be a 2015 goal

Debt - My cc bills are nothing. I want to pay off student loans in the next 3-5 years, even if that means taking a position that will pay it off with hire/contract.

Blind consumerism - I shop only for what I need. I'm def into the latest but I don't know how to shop, so I don't

Food shopping - I think I can spend 400-800 eating out. Sad. I need to get a routine/patten and cook more.

Home Expenses - Just cable/cell. I got rid of my houses, finally.

My biggest drains.....

Travel -  I don't think I travel enough to admit I have a problem. lol




Posted By: nitabug
Date Posted: Apr 13 2013 at 5:33pm
This year's goal is to work on my credit report and increase my score. 


Posted By: talia
Date Posted: Apr 13 2013 at 5:50pm
Originally posted by nitabug nitabug wrote:



I want to live soley off of passive income and investments.

Salary - I need to finish school to finish my salary goals. I spend all my money on bills,, stupid ish and other people. I want to minimize stupid ish and stop lending/helping individuals who are not my sisters.

Ways to stop spending $$ - stop 'helping' Pinch & cut down on eating out.

Retirement - lawd...idk know who I am going to tackle this one...this may be a 2015 goal

Debt - My cc bills are nothing. I want to pay off student loans in the next 3-5 years, even if that means taking a position that will pay it off with hire/contract.

Blind consumerism - I shop only for what I need. I'm def into the latest but I don't know how to shop, so I don't

Food shopping - I think I can spend 400-800 eating out. ShockedSad. I need to get a routine/patten and cook more.

Home Expenses - Just cable/cell. I got rid of my houses, finally.

My biggest drains.....

Travel -  I don't think I travel enough to admit I have a problem. lol



I totally agree with the passive income/investments.  

Oooh and nitabug - where we going to eat child....dang that amount is high.....girl do you eat at...lol.  

Travel isn't a drain, it is mind expanding opportunity....I look at it like a classroom without wallsLOL


Posted By: smaison
Date Posted: Apr 13 2013 at 6:07pm
Originally posted by talia talia wrote:

Originally posted by smaison smaison wrote:

awesome thread. let me just say mint.com is a great tool. i have been thinking about my FI since i was a little girl, it was always instilled in me, however, i have fell through the cracks several times, mainly because of buying expensive crap that i do not need.

i have a closet full of expensive shoes, handbags, and clothes with tags on them, and most that i have only wore once.  i have this thing that if i'm pictured with an outfit then i will not wear it again, so even going on a date with SO requires a new dress and its gets expensive...shoot me, shoot me now. sometimes i think about how stupid i am. buying designer shoes just to decorate my shoe closet...ugh....seriously i am so disgusted.

every couple of years i get really disgusted with myself and put myself on a ban and the older i get the more i have been sticking to it, but its hard. luckily, i don't have much debt just a small student loan i took out which will be paid off by next year. i have no car note, my job is about 15 minutes away from my apartment, and i try not to eat out as much but fail since i am not a great cook and end up eating out. my other issue is traveling, after shopping this is where most of my money goes...its going to be a hard area to cut back on, since traveling is like my life, the only thing that keeps me going some days. LOLClap

one good thing lately is that i have been able to save half my income every month, i gave up cable and use my computer for entertainment. i have even sold one of my LV bags that was just sitting pretty in my closet and boy was that hard...but i did it. and thanks to mommy for sneaking money in my account every month even when i tell her no, that has been helping a lot too and i just save that money as well.

eta: almost forgot about some of my investments (thanks to mommy...that lady is so damn smart and i don't know where i would be without her guidance)..i have made some smart decisions in this area as well but i have lost some too thanks to this crappy ass economy, i also participate in my company's 403b match savings and invest the maximum amount.

Good for you.  I can totally relate to the travel thing.  We did two trips in 2012, South America in the summer and Europe in November....and ouch, that was a bit painful economically (when I think about having put that money away instead) but so worth it.  I have a picture in my classroom of me holding a sloth when I went to Cartagena and trust me when my day gets a little stressful....I just look at that picture and remember I'm working towards my next trip...and many more hopefully.LOL  I love my babies, but ooooh boy some days I might love them a little less...lol. 

I want to be able to do what I want without looking at life from a "the cost of opportunity lost" perspective and realistically I don't think I'm programmed to ever look at things in a way that I don't take that cost into account.  Travel for me is education, it is mind expanding and life enriching so yeah, I may bitch about how much it costs......but in the long run I'd do it all over again in a heartbeatLOL  So then I have to be frugal elsewhere in my life to keep things in balance.

How are you liking using the computer, are you finding it easier....I know it certainly would be cost effective better than cable.  

Good for you in doing the max contribution.  You know I attended a seminar on my pension program, and the facilitator basically said that if you ever take your money out of your 401K, 403b or 457 you are basically robbing yourself in the future.  Some lady took out like 16K from her 403b plan, I think and in order to put it back something like 7 or 8 years later that money had grown to some ridiculous figure of about 38,000K......so yeah, good for you.  What you put in now will be huge when you want to start withdrawing on it. 


gurlllll, every time i think about calling off from work, i have to remind myself of the trips that i could be taking with the money i would make, so i go in, but that is the only reason LOL.

using my computer is amazing...so one of my friends has a netflix account and the other has huluplus and they gave me their account info so that's how i am able to keep up with my showsLOL...plus projectfreetv is amazing (just don't download anything) and of course there's youtube. SO bought me this thingamajigLOL that allows me to transfer the image from my laptop to my big screen tv and i am able to watch everything on there.


Posted By: PurplePhase
Date Posted: Apr 13 2013 at 6:11pm
great thread Talia!


Posted By: EPITOME
Date Posted: Apr 13 2013 at 6:23pm
we have maxed out our contributions for the past two years. 

we might do 2 trips this year lol..but before that we hadn't vacationed since our honeymoon three years ago sooo...it's kinda ok.  we said we need to get on a consistent schedule so it wont seem soo expensive


Posted By: Nijjah25
Date Posted: Apr 13 2013 at 6:30pm
love this thread...* taking notes*


Posted By: talia
Date Posted: Apr 13 2013 at 6:49pm
Originally posted by EPITOME EPITOME wrote:

we have maxed out our contributions for the past two years.Clap 

we might do 2 trips this year lol..but before that we hadn't vacationed since our honeymoon three years ago sooo...it's kinda ok.  we said we need to get on a consistent schedule so it wont seem soo expensive

Me tooClap which caused me to dial down my other spending while I was dialing up my savings.  Without effort, I had passed a certain milestone balance I had set for myself without blinking, then I started thinking holy cow I can do this next year and the year after that, it became painless.  

I had less disposable income to spend just cuz it was lying around earning a mere 0.2% interest when I leave my money in the checking account - while to use a bank credit card they charge like 10% - 14% interest....a little unbalanced there.  So instead I decided to max out my contributions, which lowered my tax liability and in turn meant I got a smaller refund from the government....tax refunds are without interest anyways,  so uncle sam gets the benefit of using my money for a year without giving me a dime in return.  

Income should never be disposable....that whole term sounds like we can throw a ton of money away after we have taken care of our expenses....I'd rather have my money working for me.  

About the trips....yeah I feel ya' the only way I get to travel is with SO when he has to cover an event...I've seen more of Vegas than I cared to, but hey it is on his company's dime so I'm okay with that, and whenever he has to cover a bike show....I try to go unless it is back East in the winter...ummmm no thanks I'll stay here in sunny Cal and send you warm thoughts.  

One thing about traveling though, I hate the fact that the tix you purchase has this ridiculous amount of fuel surcharge attached to it....like almost 40% of the cost of flying.  Like dayum, tickets that cost $450 each person with taxes which should be something like $900 wind up being $1400 - $1500 for two because of the damn surcharge......this is the most expensive thing I hate about traveling.


Posted By: smaison
Date Posted: Apr 13 2013 at 7:47pm
do any of you guys monitor your credit?
if so, what do you use?
i'm currently using mint credit monitor.


Posted By: talia
Date Posted: Apr 13 2013 at 8:28pm
smaison - I do I use creditreport.com, but I'm about to find something else that doesn't cost me money each month....I know there are sites that you can pull your report for free, but they only allow you like 3 times a year or something like that.  


Posted By: uNaTtaiNAblE88
Date Posted: Apr 14 2013 at 1:51am
wow, this thread is the bees knees. I'm glad that I can talk about it here, because people think i'm cray for what i'm trying to accomplish.

i turned 25 this year, and I am adamant about becoming fiscally responsible. 

I started getting serious about finances last year, and have seen a marked difference. 50% of salary is saved, no exceptions. I was able to FINALLY get my court reporting program with that, and a sizable down payment for my partner's vehicle. that will be paid off for an 8 month loan total to establish his credit. projected interest: $330, ayyyCool

I opened two credit lines as a way to establish my own, no hanging balance allowed.

We hope to buy a house at the end of the year, nothing ostentatious, we must be able to pay all bills on a single salary JIC. 

my goals by the end of the year are to start a 401k, and look into investing on my own. 




Posted By: *Belle*Femme*
Date Posted: Apr 14 2013 at 6:26am
hmmm if I work and stay in jersey then I wont have to pay rent/mortgage. if I move to Atlanta I have to pay rent. hmmmmmm.

I think a lot of my spending is irrational and emotionally induced. Its hard for me to believe that I don't NEED that bmw because that's what I want. I figure I want to reap the fruits of my labor. Why drive a camry if that's not what I want.

sigh.......... I need to start thinking more seriously.


Posted By: journeytolong
Date Posted: Apr 14 2013 at 7:29am
Financial Independence for me means that I don't need to depend on anyone for anything. I am able to buy whatever I want without looking at my bank account, without having to worry if I'm going to interfere with rent or money for food...which I could truthfully do right now.

I could never see myself NOT working just because I have enough money to go without. I love working especially if its something I enjoy, its just what I do. I have to have something always challenging me. 


Posted By: talia
Date Posted: Apr 14 2013 at 8:03am
Originally posted by uNaTtaiNAblE88 uNaTtaiNAblE88 wrote:

wow, this thread is the bees knees. I'm glad that I can talk about it here, because people think i'm cray for what i'm trying to accomplish.LOLLOLLOLLOL

i turned 25 this year, and I am adamant about becoming fiscally responsible. 

I started getting serious about finances last year, and have seen a marked difference. 50% of salary is saved, no exceptionsClap. I was able to FINALLY get my court reporting program with that, and a sizable down payment for my partner's vehicle. that will be paid off for an 8 month loan total to establish his credit. projected interest: $330, ayyyCool

I opened two credit lines as a way to establish my own, no hanging balance allowed.Clap

We hope to buy a house at the end of the year, nothing ostentatious, we must be able to pay all bills on a single salary JIC. 

my goals by the end of the year are to start a 401k, and look into investing on my own. Clap



To the bolded, first congratulationsClap  

What I hate is that sometimes people think we are cray-cray if we have a goal and a plan to become FI.  

I hate hanging balances....I mean when you really examine it, unless you are carrying credit at 0% interest, then it is costing you money to buy stuff on credit.  I always do the comparison of what my bank pays in interest to use my money versus what they charge me in interest to buy stuff on credit....to me it is a no brainer.  I always ask myself do I really need this item or is it just a want.  


Posted By: talia
Date Posted: Apr 14 2013 at 8:11am
Originally posted by SamoneLenior SamoneLenior wrote:


Salary - I would have to move in order to save more of my salary.

Ways to stop spending $$ -  I'm trying to build my family so I don't know how I'm supposed to spend less. A home, kids, increased medical, child care, etc... all cost more. Could I cut more? Sure, but I'm not ballin here and live modestly as it is. I don't want only buy food at aldi's.

Retirement - seems like a joke at this point. I don't see myself ever achieving what my parents did. However I will still try to get close. They make more than me currently and my father has been retired for over 15 years, my mom for 5 years.

Debt - we have our mortgage (29 more years) and one car loan (4 more years), other than that I am debt free.

Blind consumerism - I am super cheap. I can't spend over a certain amount on items.

Travel - We don't really travel too much, maybe a trip every two years

My biggest drains.....

Food shopping - I think we spend $250 to $400 a month on food for two people. This includes grocery store shopping and eating out. My husband and I don't really like to eat left overs.LOL

Home Expenses - We have cable and yes it is a drain but I don't see us getting rid of it. Definitely cannot get rid of the internet.

Buying furniture is another thing I am focused on doing before we have kids. We won't be done buying 100% by then but I don't want to live in a house with little to no furniture/decor.


It is hard when you are starting out building a family together, but sometimes companies provide you with a 401K and they match what you put in.....so it becomes automatic....years go by after you've had your family and all of a sudden you have this little next egg without even breaking a sweat. 

Girl left overs are the bomb, I either take them to work before I started making all my salads on Sunday or we eat them the next day.  I hated left overs too until I looked at it from the perspective that I'm throwing away money.  That changed my thinking.....granted some ish just doesn't taste good as a left over....so we know if we make it, it's a one time meal consumption....or maybe the dog gets what's leftover. 


Posted By: nitabug
Date Posted: Apr 14 2013 at 8:14am
Originally posted by smaison smaison wrote:

do any of you guys monitor your credit?
if so, what do you use?
i'm currently using mint credit monitor.



I use equifax and mint rarely


Posted By: talia
Date Posted: Apr 14 2013 at 8:37am
Originally posted by *Belle*Femme* *Belle*Femme* wrote:

hmmm if I work and stay in jersey then I wont have to pay rent/mortgage. if I move to Atlanta I have to pay rent. hmmmmmm.

I think a lot of my spending is irrational and emotionally induced. Its hard for me to believe that I don't NEED that bmw because that's what I want. I figure I want to reap the fruits of my labor. Why drive a camry if that's not what I want.

sigh.......... I need to start thinking more seriously.

Girl, I've been needing a 300ZX convertible for years....I work hard, I take care of business, I should have what I want. So what it is a sports car,  we have another car for when we go out as a family, I should have my little sports car.  I deserve it.  I have been telling myself that for years....so then okay I decided I wasn't going to get a new one, I'd get a used one.  I was ready, had my down payment, it was my dream car until I saw the nightmare sticker price of $32,000 for a used one.  I was like hell no, I did a cost analysis of what it would cost me to carry a loan, and then how much more satisfaction I would get of driving that car and every month having to write a check to pay for it.....I was like nah! $32,000 I could pay for that in cash if I wanted to, but even still that made no sense, why take money out of the bank that is earning interest to purchase something that will require on going maintenance. So then why not buy it new with a maintenance package included - well you are still paying for the maintenance in the end, it is factored into the price.  

It wasn't until I read this:  http://www.mrmoneymustache.com/2011/11/28/new-cars-and-auto-financing-stupid-or-sensible/" rel="nofollow - http://www.mrmoneymustache.com/2011/11/28/new-cars-and-auto-financing-stupid-or-sensible/  that made me stop and think, do I really need that car or will something holding on to what i have be the more sensible thing to do?  

For me it was sensible hanging on to my 2002 SUV, I'm going to squeeeeeak 12 - 13 years out of that sucker, and it is only the fourth car I have owned in my lifetime, and when it is time to bid my SUV goodbye, I will be getting a Kia, Honda, or something that is gas efficient and very much USED.  

Trust me I still droolCry when I see a 300zx convertible on the freeway, as I'm chugging along in my SUV, but I don't think I will ever get one. LOL  It is just not that serious for me anymore, it is kind of like my $2000 Louis Vuitton purse sitting at the bottom of my closet, using those initials doesn't make me any happier or a better person than walking around with my $10.00 purse that I may have purchased from the Goodwill store. Except for the fact that someone gave me the LV purse as a gift, it has sentimental value because he purchased it while we were in Paris, truth be told.........one day Imma sell that bad boy. LOL   


Posted By: talia
Date Posted: Apr 14 2013 at 8:44am
Originally posted by SamoneLenior SamoneLenior wrote:


I remember when I had to drive my dad's Lexus for two weeks

the gas alone was crazy

I can't see myself spending that much weekly and then adding maintenance in

I'm rocking my 2002 Honda until it falls apartLOLClapClap

Girl you and me both.....I'm driving my 2002 SUV until it falls apart but only on the weekends...lol.  During the week I take the metro.  

To me a car is just no longer that serious.....for some it is a status symbol....for me it is just a means to an end to get from point a to point b using fossil fuel.  Here in LA I always crack up when I'm sitting behind someone in a Bentley, Maserati or a Ferrari on the freeway.....I'm like, hmmmmm you crawling along like me but in a 100K plus car....your quality of life *right now at this moment in time on the freeway* is no better than mine cuz' we are both stuck in traffic.....how's that workin' for ya'LOLLOLLOLLOL

Granted, they probably park it in a waaaaaay better driveway than ours....but for that one moment in time that ostentatious car didn't bring them a higher qualify of life...


Posted By: talia
Date Posted: Apr 14 2013 at 8:48am
Originally posted by journeytolong journeytolong wrote:

Financial Independence for me means that I don't need to depend on anyone for anything. I am able to buy whatever I want without looking at my bank account, without having to worry if I'm going to interfere with rent or money for food...which I could truthfully do right now.

I could never see myself NOT working just because I have enough money to go without. I love working especially if its something I enjoy, its just what I do. I have to have something always challenging me. 

ITA.....the difference is you don't have to scrape to buy it....but then for me, I always have to factor in what additional level of happiness or quality of life improvement will this one additional thing bring me.

I love working too, I just want to be able to work around what I love to do....travel and teach.  One could say that I'm doing that now, I travel during the summer and winter vacations......but I want to continously travel while I teach as I stop along various places...LOL  It is a dream of mine.  


Posted By: smaison
Date Posted: Apr 14 2013 at 8:57am
LOL
talia, you're a mess.
girl i sold an LV bag recently and got almost what i paid for it years ago, i was shock, so hold on to that bad boy and since LV has price increases every year, you'll be able to get a nice chunk of cash for it.

anywho, when i was younger i was into cars big time; mainly because mommy and daddy always had luxury cars. then i grew up and started doing my research and saw all the maintenance that goes along with it and the gas prices and i was like oh hell naw, ill pass. mommy wanted to get me a bwm when i graduated from undergrad and i remember thinking lady, i aint balling like you, i aint gonna be able to afford the maintenance and gas, i'll pass. instead i had her pay off the small school loan i had and i kept my old car. its funny because every time people see me they expect me to be driving something similar like my parents but like someone else mentioned i am not going to be able to live like my parents, times have changed so i have to be careful. granted i know they got me and i'll be taken cared of, i'm still careful and let them enjoy the fruits of their labor.

a car is just not a big deal to me at all anymore. its just not one of those things i wanna spend my money on. i mean spending it on shoes, clothes, and handbags isnt that much better, but seriously every time i think about cars i think about headaches, and i hate driving. i've even considered moving somewhere with massive public transportation just so i can forgo a car.


Posted By: journeytolong
Date Posted: Apr 14 2013 at 9:05am
Originally posted by talia talia wrote:

 

ITA.....the difference is you don't have to scrape to buy it....but then for me, I always have to factor in what additional level of happiness or quality of life improvement will this one additional thing bring me.

I love working too, I just want to be able to work around what I love to do....travel and teach.  One could say that I'm doing that now, I travel during the summer and winter vacations......but I want to continously travel while I teach as I stop along various places...LOL  It is a dream of mine.  

Well depending on what you want and how you buy things you never really have to scrape for anything. The only name brand of anything I buy is organic food. I don't have to buy clothes or jewelry...even purses because I make my own.


Posted By: zolloh
Date Posted: Apr 14 2013 at 10:37am
I paid off all my debts (credit cards, college loans, car note) before I decided to go to grad sch. I was determined to go to school for free, which I'm currently doing. When I was working "a real job" I lived on 50% of my salary and now save 25% of my stipend, it's split between IRA, mutual fund, stocks and savings acct.

Our cars are at least 10yrs old, I'll be riding that sucka till it breaks down on me on the side of the road somewhere. My SO wants to buy a new higher end car, which will be paid for in cash. He deserves one coz he works like a slave and doesnt splurge on himself other than iPhones, iPads and his work clothes.

We are buying a house next year, which we'll pay cash for. He fears debt and has practically no credit history, i'll work on his this year, get him some credit cards to slowly build it.

I'm naturally frugal and recently started couponing for grocery/household shopping. In the last 4 months I've saved more than half of our usual expenses. My SO hates leftovers and I do, I can eat the same meal for a week and not blink.

IMHO, it doesn't make sense for anyone who has debt (except mortgage) to have investments without first paying off those debts.


Posted By: talia
Date Posted: Apr 14 2013 at 10:53am
Originally posted by smaison smaison wrote:

LOL
talia, you're a mess.
girl i sold an LV bag recently and got almost what i paid for it years ago, i was shock, so hold on to that bad boy and since LV has price increases every year, you'll be able to get a nice chunk of cash for it.

anywho, when i was younger i was into cars big time; mainly because mommy and daddy always had luxury cars. then i grew up and started doing my research and saw all the maintenance that goes along with it and the gas prices and i was like oh hell naw, ill pass. mommy wanted to get me a bwm when i graduated from undergrad and i remember thinking lady, i aint balling like you, i aint gonna be able to afford the maintenance and gas, i'll pass. instead i had her pay off the small school loan i had and i kept my old car. its funny because every time people see me they expect me to be driving something similar like my parents but like someone else mentioned i am not going to be able to live like my parents, times have changed so i have to be careful. granted i know they got me and i'll be taken cared of, i'm still careful and let them enjoy the fruits of their labor.

a car is just not a big deal to me at all anymore. its just not one of those things i wanna spend my money on. i mean spending it on shoes, clothes, and handbags isnt that much better, but seriously every time i think about cars i think about headaches, and i hate driving. i've even considered moving somewhere with massive public transportation just so i can forgo a car.

I need to move off of the sentimentality issue and sell that daggone bag....LOL 

 Meeeeee too, on the bolded ---  but just a little differently....when they found out at school that I'm taking the Metro (because it's just not done...after all only people who don't have a car or the where-with-all to buy one {insert poor arses}  ride a train in flossing like-you-got-it like that Los Angeles, they were like ShockedShockedShockedShocked  

One teacher even asked me is your car out of commission.  I said no, I'm saving money, she kind of had this look like Shocked on her face.  Then I said.....I'm just cheap, my car is parked at home, I'd rather ride the train during the week, get some cardio as I walk the 1.5 miles to the train from my home, and the 1.5 block from the station to the school and instead spend the money that I would on gas for my daily commute on travelling. That shut her up....lol  Mind you this lady drives a Mercedes Benz S Class....see to me it is not that serious.  I guess I just look at a car as a means to an end ...to get from point A to point B.  

The point is ..... everyone's priorities are different, what is right for me isn't right for someone else and what someone else does with their money shouldn't bother me or how they get to work.  I respect that everyone has an opinion, but you don't know what that person's motivators are, so don't assume that what motivates you --- motivates them.  

 


Posted By: EPITOME
Date Posted: Apr 14 2013 at 11:02am
Originally posted by SamoneLenior SamoneLenior wrote:


I remember when I had to drive my dad's Lexus for two weeks

the gas alone was crazy

I can't see myself spending that much weekly and then adding maintenance in

I'm rocking my 2002 Honda until it falls apart


lol that's why we bought a Honda...my parents bought me an Acura as a wedding gift which was great! but the gas to school and back every day sometimes twice a day was bananas! anyway--we'll have to get rid of the Honda if we ever have kids bc i told that negro man not to buy a two doorDead but at least we paid it off last year..

our next goal is income property


Posted By: talia
Date Posted: Apr 14 2013 at 11:10am
Originally posted by zolloh zolloh wrote:

I paid off all my debts (credit cards, college loans, car note) before I decided to go to grad sch. I was determined to go to school for free, which I'm currently doing. When I was working "a real job" I lived on 50% of my salary and now save 25% of my stipend, it's split between IRA, mutual fund, stocks and savings acct.

Our cars are at least 10yrs old, I'll be riding that sucka till it breaks down on me on the side of the road somewhere. My SO wants to buy a new higher end car, which will be paid for in cash. He deserves one coz he works like a slave and doesnt splurge on himself other than iPhones, iPads and his work clothes.

We are buying a house next year, which we'll pay cash for. He fears debt and has practically no credit history, i'll work on his this year, get him some credit cards to slowly build it.

I'm naturally frugal and recently started couponing for grocery/household shopping. In the last 4 months I've saved more than half of our usual expenses. My SO hates leftovers and I do, I can eat the same meal for a week and not blink.LOLLOLLOL

IMHO, it doesn't make sense for anyone who has debt (except mortgage) to have investments without first paying off those debts.

We have two vehicles that are both 2002....my SUV has about 188K miles on it...and it is still going strong, when I bought it I rationalized that it was well worth it I travelled in it, our family was larger, now we are 3 folks....so it's just gynormous when it can accommodate 7 ---- well maybe if I take the 3 cats and the dog with me we are back at being a family of 7LOL

I eat the same salad for 5 days a week, I make all of us salads...that means 15 salads a week and we are all eating the same thing.  They're chockfull salads too, I will cut up some kale, baby spinach, red cabbage, white cabbage, cucumbers, tomatoes, peppers, cilantro, onions, I make my salads as healthy as possible and even add some flax seed along with the chicken or fish.  My SO says "fish again! I'm going to grow gills"...for me it isn't a problem, nor for my kid.  

I agree with the bolded about the investments vs. debt. I hate my student loan, from a purely mathematical stand point I'd be better off leveraging my loan and continuing to invest.  Psychologically, I hate my loan and would rather dial down my savings and put the money into the loan and pay it off by the end of this year. Instead I opt to split the difference and not forego investing and lose out on compounded interest, at 2% the loan interest rate isn't a killer.  But I still beat myself up for it.CryCryCryCryCry


Posted By: reashairjourney
Date Posted: Apr 14 2013 at 11:57am
Do you think I could retire at 45 with 500,000 in savings. I want a few income properties and/or a small business.


Posted By: reashairjourney
Date Posted: Apr 14 2013 at 12:04pm
And that doesn't include my maybe future husbands savings.


Posted By: zolloh
Date Posted: Apr 14 2013 at 12:30pm
I thought it would appropriate in this thread LOL

I still haven't filed Cry Ouch


Posted By: .hott.pink.
Date Posted: Apr 14 2013 at 12:42pm
Talia, that link you posted about the teachers is wonderful (LaGrange is a small town in western GA, btw; I almost went there for college).

As far as my goals, I'm really tryna cut down on impulse spending and save the income that I don't need to pay my bills. This year I'm working on paying off debts that I incurred while I was unemployed for 1.5 years and increasing my credit score.

Financial independence to me is having 0 debt and not having to work for your money--having something has has money always coming in.


Posted By: talia
Date Posted: Apr 14 2013 at 1:05pm
Originally posted by reashairjourney reashairjourney wrote:

Do you think I could retire at 45 with 500,000 in savings. I want a few income properties and/or a small business.

I think that is something only you can answer and it depends a lot on your income, debt, and investments.  I copied this from this website....I love his thinking.  The guy is spot on! 
I only wish that I had tuned into this way of thinking years ago, because honestly I would be a lot further along on my path but life happens and inevitably we move on....I've honed into what I need to do and what I cut out and on that path I'm continuing....God willing!

Copied directly from his February 2013 posting......

Early retirement.  Escaping the soul-crushing 9 to 5.  Doing the work you love, when and only when you choose to do it.  When it comes towork, these statements were all central to the original theme of Brave New Life when I founded the site a few years ago, and they still are.

But let’s face it… Pulling off early retirement in your 30′s while living on the grid and living a semi-normal life isn’t an easy path.  Particularly, not everyone can make enough income in 10-15 years to save up several hundred thousand dollars of investment capital, ultimately creating passive income that can sustain a family’s living expenses.

In my case, after paying off my home mortgage, my family and I are spending about $2300/month.  This works out to $27,600 per year in required income. Using the 4% rule, an investor must save up $690,000 in taxable savings in order to retire from that.  If you’re making $100K/year and living a simple life, it won’t take long to save up sufficient funds.  But if you’re making $40K/year and spending the same $27,600, saving up $690K will take several decades.  I regularly receive emails from readers in this predicament, and so I have one thing to say:

Hope is not lost.

Nano-Businesses

According to the always-reliable definition on Wikipedia, a  http://en.wikipedia.org/wiki/Micro-enterprise" rel="nofollow - micro-business  is a small business with 5 or less employees, and starting with capital of $35K or less.

I like running small businesses.  I enjoy the challenge of transforming nothing into something, the thrill of learning new skills, and the personal test to stretch beyond my comfort zone.  At the same time, I usually don’t want to commit to investing anything close to $35K for a business, nor do I have any desire to hire and manage so many employees.  This is why I’ve coined the term “nano-business” to describe the businesses I’ve started, and continue to run.

 

Nano-business (noun) – A business made up of 1-3 people, with less than $1,000 initial capital, that targets cash on cash returns, and does not necessarily target long-term capital growth.


His website:

http://www.bravenewlife.com/" rel="nofollow - http://www.bravenewlife.com/   


Basically it is about living a simple yet fulfilling life....what's the use of having all the accoutrements of life, the flashy car, the flashy latest designer clothes....or for us *hair*...if you've got to stay dialed into the man, punching the clock everyday whether you want to or not.  He's not preaching going off to live in a commune, raising a communal garden, but it is about financial independence.....whether that be as a business owner or with investments.



Posted By: talia
Date Posted: Apr 14 2013 at 1:09pm
Originally posted by zolloh zolloh wrote:

I thought it would appropriate in this thread LOL

I still haven't filed Cry Ouch


Bwaaaaaa haaaaa too cute!!!  Hey it's okay, cuz it is not like Uncle Sam is going to give you interest or something on your money that he borrowed interest free.....but now if one owes, 
he does ding us!  


Posted By: talia
Date Posted: Apr 14 2013 at 1:45pm
Originally posted by .hott.pink. .hott.pink. wrote:

Talia, that link you posted about the teachers is wonderful (LaGrange is a small town in western GA, btw; I almost went there for college). ClapClapClap

As far as my goals, I'm really tryna cut down on impulse spending and save the income that I don't need to pay my bills. This year I'm working on paying off debts that I incurred while I was unemployed for 1.5 years and increasing my credit scoreClap.

Financial independence to me is having 0 debt and not having to work for your money--having something has has money always coming in.
ClapClapClap

Girl I'm glad you liked it!  I was like baffled when I saw their figures, and what killt' yeap Imma keep it real and say killtLOLLOL (killed) it for me was that they did this in 36 friggin' months....what you could get a car loan for - 3 years....while some of us are paying off our car loans in 36 months, they were maximizing their savings.  Again, it is that motivation thing...what motivates me is not riding in a fancy car, but knowing that I have x in the bank....while I silently sit on the subway on my way to work.

After I read their story,  I went online and looked at how I can maximize my contributions to my 403B and 457, and found out I could contribute a total of $33,000 of my salary pretax.....it is a friggin' squeeze....but it also lowers my tax liability and while it doesn't leave a lot of wiggle room (disposable income LOL - I hate that term) .the benefits far outweigh the immediate discomfort, but with the compounded interest it is worth it.   I'm on a burst savings mode.  The more I save and the longer it is making interest or working the better my return will be. 

 I'm also going to be 100% honest, because without the support of my wonderful SO - I wouldn't be able to put that much money away.  He is the greatest ever and I appreciate him because we are both on the same page....while he has expenses related to his other daughters - like college tuitions - and I don't,  he knows that I'm it for the long haul.  I think it would be really hard to live so frugally while the other partner is out buying designer gear, or coming home with something new every paycheck.  

Here is an article about Burst Savings mode...no matter what age you start at you can reach your goal, but it is better to be in a burst savings mode for 10 years or more if you want to have a million put away....depending upon your salary:

Link:  
http://money.cnn.com/2012/07/20/pf/savings-budget-millionaire.moneymag/index.htm" rel="nofollow - http://money.cnn.com/2012/07/20/pf/savings-budget-millionaire.moneymag/index.htm

(Money magazine) -- Research shows that people who practice so-called burst saving are far more likely to sock away enough money for a comfortable retirement than those who don't.

According to a study by the research firm Hearts & Wallets, 64% of burst savers were able to build a nest egg equal to at least 10 times their annual pay, a common benchmark for a financially secure retirement.

< id="686040" name="686040" width="220" height="200" marginwidth="0" marginheight="0" border="0" scrolling="no" ="http://ads.cnn.com/.ng/site=cnn_money&cnn_money_brand=money&cnn_money_=220x200_ctr&cnn_money_rollup=magazine&cnn_money_section=money&cnn_money_subsection=quigo&page.allowcompete=no&s.styles=fs&page.allowcompete=yes&s.User.UserID=5168a6230ed4a30aa51475252b005d8a&transID=699083253612544&tile=7923604695631&domId=686040" =" adunit_220x200" style="margin: 0px; padding: 0px; border-width: 0px; outline: 0px; vertical-align: line; : transparent; : relative; top: 0px; left: 0px;">
http://money.cnn.com/pf/how-to-make-a-million/?iid=EL" rel="nofollow - How to Reach $1 Million

They were also likelier than non-power savers to hit that goal no matter what age they started their savings regimen.

Says Laura Varas, a principal at Hearts & Wallets: "Once you've got a base of assets that really matters, it puts a tail wind at your back."

Part of a special report on  http://money.cnn.com/pf/how-to-make-a-million?iid=EL" rel="nofollow - How to reach $1 million,  this story explains how saving aggressively for a decade can help you reach millionaire status by the time you retire.

KEY MOVE: Aim to save at least 15% of your income for a period of ten years or more.

HOW TO GET THERE

Get the timing right. Burst savers most commonly funded a ramp-up in their savings rate with money they received from pay hikes and bonuses, according to the Hearts & Wallets study. That way you don't feel the pain of living on less; you still take home more money, just not quite as much.

http://money.cnn.com/quizzes/2012/pf/millionaire/?iid=EL" rel="nofollow - Related: Test your millionaire smarts

Power savers also often timed bursts to periods when their expenses fell or their income spiked. For example, many substantially increased contributions to their 401(k) or other retirement accounts after their children left home or during periods when both spouses were working.

Rein in your biggest budget busters. While small expenses do add up, it's not really buying daily lattes or the latest tech toy that most undermines your ability to save at a double-digit rate.

It's the really big bills, the five- and six-figure expenses like your home, car, and your kids' college education that ultimately do you in, says Leah Ingram, founder of the blog SuddenlyFrugal.com. "Getting serious about super saving may mean making some hard choices," Ingram says.

Case in point: computer programmer Scott Moore, 54, who's managed to build a net worth of $735,000 on an annual salary of $83,000.

http://cgi.money.cnn.com/tools/saveyoung/?iid=EL" rel="nofollow - Related: Are you saving enough for retirement?

Moore says the secret to his success has been keeping his housing and transportation bills low.

He bought a four-bedroom fixer-upper in an estate sale for $63,000 in 1995 and did most of the repair work himself. He's since paid off the mortgage and estimates the 2,700-square-foot house in St. Louis is now worth about $250,000. He owns a 15-year-old Buick Riviera with 154,000 miles on it and saves on gas and maintenance by mostly taking a train or bus to work and driving only when absolutely necessary.LOLLOLLOL 

The payoff: Moore expects to hit millionaire status -- $1.2 million to be exact -- by the time he turns 60 in six years.

Create multiple streams of income. Your salary can stretch only so far and you can cut expenses only so much.

Another way to supersize your savings is to supplement your main income with side work, says Christine Fahlund, senior financial planner at T. Rowe Price.



Posted By: curious12
Date Posted: Apr 14 2013 at 4:01pm
My hubby and I both have pensions provided by our jobs. Federal and state employees for the win! We also contribute to our respective employer's version of 401k. I will retire at 55 ( I can also retire as early as 50). Because now we are mandated to retire at a certain age. Before people would retire and die the next week. Co workers have actually died on the job! . But I damn sure had no intentions of working pass 60 unless I was doing something that truely inspired me.

Our house will be paid in full by the time I retire. So we will only have upkeep, if we choose to keep it. I intend to sell. Move somewhere cheaper and use my equity to enjoy endless bingo nights.

I have a $500K life insurance policy. My hubby has both life insurance and disability policy. Last year he was out of work due to a surgery for more than a year. Between his sick leave and his disability payments he brought home more money than when he was working. I need to get a disabilty coverage insurance I have been slacking in that dept.

I only grocery/household items on sale ( well except meat). When its on sale, I hit them with the coupon and stock up! Not ridiculous like those on tv but enough to last a bit. Eg I buying eucerin lotion for $2.99! or crest 3d white toothpase for $1.99!

I even coupon at off 5th. I have no shame!

My wadrobe staples come from Club Monaco. I love their fit and cut. When they have sale I get $189 jeans for $19, $200+ blazers for $49 etc. I am a beast I can smell a good sale a mile away. my designer hand bags were purchased on sale. Yes Gucci and Ferragamo does go on sale!

Plus I have seen the actual value of some of these consumer goods. To say we are being raped is an understatement. E.g. A well known shoe designer actually puts his labels on shoes made in a factory overseas and designed by a no name designer. Then charges a hefty mark up just to have the priveldge of his name on the shoe.

In three years I intend to start applying for assignments in overseas post. This way I can keep my money. Rent our house and have the govt cover our expenses.

When I retire I intend to offer the wealth of knowledge I have acquired to earn money consulting, if feel like it. I know many will pay for it. My hubby's friend paid an attorney thousands and was given wrong advise. I took 20 mins out of my time and he was able to get what he needed done. He called thanking me.


Posted By: talia
Date Posted: Apr 14 2013 at 4:54pm
Originally posted by curious12 curious12 wrote:

My hubby and I both have pensions provided by our jobs. Federal and state employees for the win!ClapClapClapClap We also contribute to our respective employer's version of 401k. I will retire at 55Clap ( I can also retire as early as 50). Because now we are mandated to retire at a certain age. Before people would retire and die the next week. Co workers have actually died on the job! . But I damn sure had no intentions of working pass 60 unless I was doing something that truely inspired me.

Our house will be paid in full by the time I retire. So we will only have upkeep, if we choose to keep it. I intend to sell. Move somewhere cheaper and use my equity to enjoy endless bingo nightsLOLLOL.

I have a $500K life insurance policy. My hubby has both life insurance and disability policy. Last year he was out of work due to a surgery for more than a year. Between his sick leave and his disability payments he brought home more money than when he was working.Shocked I need to get a disabilty coverage insurance I have been slacking in that dept.

I only grocery/household items on sale ( well except meat). When its on sale, I hit them with the coupon and stock up! Not ridiculous like those on tv but enough to last a bit. Eg I buying eucerin lotion for $2.99! or crest 3d white toothpase for $1.99!

I even coupon at off 5th. I have no shame!

My wadrobe staples come from Club Monaco. I love their fit and cut. When they have sale I get $189 jeans for $19, $200+ blazers for $49 etc. I am a beast I can smell a good sale a mile away. my designer hand bags were purchased on sale. Yes Gucci and Ferragamo does go on sale!

Plus I have seen the actual value of some of these consumer goods. To say we are being raped is an understatement. E.g. A well known shoe designer actually puts his labels on shoes made in a factory overseas and designed by a no name designer. Then charges a hefty mark up just to have the priveldge of his name on the shoe.

In three years I intend to start applying for assignments in overseas post. This way I can keep my money. Rent our house and have the govt cover our expenses.ClapClapClapClap

When I retire I intend to offer the wealth of knowledge I have acquired to earn money consulting, if feel like it. I know many will pay for itClap. My hubby's friend paid an attorney thousands and was given wrong advise. I took 20 mins out of my time and he was able to get what he needed done. He called thanking me.

You hit on some key points:
- Pensions - man are they a wonderful thing  ---- especially in THIS economy.  I don't care what people say about state and fed gov't employees pensions - we pay into it, it is invested, and we reap the benefits - it is not as if we are being "given free money"...... if you take a govt job and they take X% out of check for your pension.  Some pensions are 60-90% of what a person's average top grossing salaries were.  Any other $$ you plan to invest in 403B or 457 is just gravy on top.  

- Working past 60 - I'm going to try to avoid it at all costs unless I'm doing what I love - traveling and teaching abroad.  

-  Designers - I am totally oblivious when it comes to that...but you are right about the privilege to wear their name.....costs more, should make you feel better.....I don't know about that the jury is still out for meLOL

- Some financial advisors will sell you the brooklyn bridge if the could get away with itAngry


Posted By: uNaTtaiNAblE88
Date Posted: Apr 14 2013 at 5:01pm
Originally posted by talia talia wrote:

Originally posted by uNaTtaiNAblE88 uNaTtaiNAblE88 wrote:

wow, this thread is the bees knees. I'm glad that I can talk about it here, because people think i'm cray for what i'm trying to accomplish.LOLLOLLOLLOL

i turned 25 this year, and I am adamant about becoming fiscally responsible. 

I started getting serious about finances last year, and have seen a marked difference. 50% of salary is saved, no exceptionsClap. I was able to FINALLY get my court reporting program with that, and a sizable down payment for my partner's vehicle. that will be paid off for an 8 month loan total to establish his credit. projected interest: $330, ayyyCool

I opened two credit lines as a way to establish my own, no hanging balance allowed.Clap

We hope to buy a house at the end of the year, nothing ostentatious, we must be able to pay all bills on a single salary JIC. 

my goals by the end of the year are to start a 401k, and look into investing on my own. Clap



To the bolded, first congratulationsClap  

What I hate is that sometimes people think we are cray-cray if we have a goal and a plan to become FI.  

I hate hanging balances....I mean when you really examine it, unless you are carrying credit at 0% interest, then it is costing you money to buy stuff on credit.  I always do the comparison of what my bank pays in interest to use my money versus what they charge me in interest to buy stuff on credit....to me it is a no brainer.  I always ask myself do I really need this item or is it just a want.  

Thank you! 

My contemporaries have a different mindset, and I get it, they're young. The recession terrified me though, and all this talk of not having SSI to fall back on is what is driving me.

My dad instilled the importance of great credit, he won't co-sign for ANYONE, including me, and his credit is beasty. debt=death, what do I look like owing someone money if I don't absolutely have to? like, eww.

With saving 50%, the last bolded part is key. There are very,very few things I need, but I do accomodate a want every now and then, makeup is my weakness. Even then, it's NYX and Inglot before UD or NARS.


Posted By: Ladybird0724
Date Posted: Apr 14 2013 at 5:11pm
Originally posted by SamoneLenior SamoneLenior wrote:


I remember when I had to drive my dad's Lexus for two weeks

the gas alone was crazy

I can't see myself spending that much weekly and then adding maintenance in

I'm rocking my 2002 Honda until it falls apart


my husband works with cars, and told me that a headlight for a cadillac was 1300. for just a single one.

that crushed my dreams of owning a caddy Ouch


Posted By: goodm3
Date Posted: Apr 14 2013 at 5:29pm
This year i've gotten very aggressive about my financial future. I've started to reading up on investments on my own because my dad is very knowledgeable about fiances...and he won't be here forever so I need to learn myself. 
He put 2 kids through college and grad with no student loans, retired at 50 when I was in high school but went to back to work because he got bored. He's 65 now and still working...
Some things he does:
1. Pays cash for cars
2. No spending for the latest and greatest. Get the item that services your needs, not whats shiny and bright
3. Read, Read, Read,...knowledge is power. 
4. Invest
5.Create other streams of passive income

I'm working on launching my own company right now so it's a hard to with most of my disposable income from my FT job going into the company....but I'm still planning/working towards it.


Posted By: .hott.pink.
Date Posted: Apr 14 2013 at 5:36pm
Why is this thread only 7 pages? Smfh


Posted By: goodm3
Date Posted: Apr 14 2013 at 5:54pm
SInce we're talking investments..below is a link to my thread on Friday about a IRA with a $100 bonus.

http://forum.blackhairmedia.com/free-money-friday-100-ira-sign-up-bonus_topic358943.html?KW=free+money+friday" rel="nofollow - http://forum.blackhairmedia.com/free-money-friday-100-ira-sign-up-bonus_topic358943.html?KW=free+money+friday


Posted By: smaison
Date Posted: Apr 14 2013 at 6:32pm
this thread has been bookmarked!!!!


Posted By: zolloh
Date Posted: Apr 14 2013 at 6:42pm
goodm3 is so classy, always trying to get us to get some education and moolah Approve Thumbs Up


Posted By: goodm3
Date Posted: Apr 14 2013 at 6:56pm
Originally posted by zolloh zolloh wrote:

goodm3 is so classy, always trying to get us to get some education and moolah Approve Thumbs Up

LOL i try, i try....lol


Posted By: EPITOME
Date Posted: Apr 14 2013 at 8:41pm
the dh wants to retire at 55.....


Posted By: talia
Date Posted: Apr 14 2013 at 11:12pm
Originally posted by goodm3 goodm3 wrote:

SInce we're talking investments..below is a link to my thread on Friday about a IRA with a $100 bonus.

http://forum.blackhairmedia.com/free-money-friday-100-ira-sign-up-bonus_topic358943.html?KW=free+money+friday" rel="nofollow - http://forum.blackhairmedia.com/free-money-friday-100-ira-sign-up-bonus_topic358943.html?KW=free+money+friday


ClapClap


Posted By: talia
Date Posted: Apr 14 2013 at 11:31pm
Originally posted by EPITOME EPITOME wrote:

the dh wants to retire at 55.....

55 is good, it is for me better than 60 and darn sure better than 65 or 67 of having to punch the clock because you have to


Posted By: talia
Date Posted: Apr 15 2013 at 7:26am
After reading Mr. Money Mustache.com I have come to the conclusion that I'm paying waaaaaay too much for my cellular phone service, at an average of $120 a month, that is about $1,340 or better each year.  So my quest is to see how I can reduce my cellular service, but still maintain a reasonable level of service that includes data, text and voice.  

On his website, he mentioned that he and his wife are paying $10 a month service for their Iphones...now granted that is in Colorado, and with some reseller of service.  I need to look into this, because even with my 20% employee discount, under contract with Verizon....it is still waaaay too much.

I need to trim the fat in my budget.  I want to keep my blackberry and need international svc for when I travel, but I want to find it cheaper.


Posted By: talia
Date Posted: Apr 15 2013 at 7:29am
For those of you interested:

http://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/" rel="nofollow - http://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/


He is frugal with a purpose, and they even have a forum where folks post their budgets and other frugal minded folks help them trim their excess fat..

The final goal in mind is Financial Independence


Posted By: EPITOME
Date Posted: Apr 15 2013 at 8:37am
lol--@ they even get to own bikes!LOL

i think cable and cell phone bills are high. i just asked my DH about some stuff and apparently his job no longer supplements our internet bill!!! i know when they switched subsidiaries our insurance went up but i didnt realize they stopped paying towards our internet. they do pay his cell phone

we can't get rid of cable..he likes sports.




Posted By: Miss SDY
Date Posted: Apr 15 2013 at 8:47am
This thread is awesome!!! A lot of this has been on my mind but I just didn't know how to turn my thoughts into actual plans. My sister has started helping me out. I love this thread and it is a bookmark. The ideas in here are awesome!


Posted By: EPITOME
Date Posted: Apr 15 2013 at 8:57am

yeah imma go with a no on this suggestion lol...i mean you have to BUY hair wax or nair. That's more than $5 a year. And hair is about $80 a session when I get it pressed.  Im hoping to train my hair so I can start flat ironing it more myself. 

Maybe I should...idk...the older I get the less I want to DIY.  I just think my time is more valuable :/


Haircuts, nails and waxing805A $1.00 pair of nail clippers and a $40 
http://www.mrmoneymustache.com/2011/05/30/get-rich-with-the-universal-mens-grooming-device/" rel="nofollow - Universal Men's Grooming Device  (aka hair trimmer).




Posted By: .hott.pink.
Date Posted: Apr 15 2013 at 9:19am
I'm coming to realize that saving more money has a lot to do with my mentality.

I never realize how lazy I'm being about not packing my lunch or eating breakfast at home until I look up and see that in a week's time, I've spent about $65 on eating out.  That's $260 a month.

That's a car payment.

So I have to find ways to curb unnecessary spending like that.

So far, I love my SmartyPig account.  Kinda hard to spend emergency cash or savings when it takes 2 days to transfer back to your bank account.


Posted By: talia
Date Posted: Apr 15 2013 at 9:34am
I did something out of character today Cry I drove to work.  I was sitting on the rainy freeway in the Valley, thinking I could be at work right now.  So I wasted a ton of gas...but yeah, I'm not quite so hardcore that I'm going to walk in the rain to the train...to save some extra money.  Now what I should have done was DRIVEN TO THE METRO, because when I got down here to my school, it wasn't even raining.  Just wasted a ton of gas....sitting in traffic.  *kicking self*  


Posted By: iSMILE13
Date Posted: Apr 15 2013 at 9:39am
Once I get the pay raise I deserve I will be able to save. I'm hoping to double my salary this year with a job offer. I plan to continue to live andspend llike my income never changed. I have become so accustomed to budgeting and making ends meet with my current salary. Surely I can continue to live like this and save more.


Posted By: talia
Date Posted: Apr 15 2013 at 9:47am
Originally posted by .hott.pink. .hott.pink. wrote:

I'm coming to realize that saving more money has a lot to do with my mentality.

I never realize how lazy I'm being about not packing my lunch or eating breakfast at home until I look up and see that in a week's time, I've spent about $65 on eating out.  That's $260 a month.

That's a car payment.

So I have to find ways to curb unnecessary spending like that.

So far, I love my SmartyPig account.  Kinda hard to spend emergency cash or savings when it takes 2 days to transfer back to your bank account.



We figured it out to be $4,320 that we'd spent a year by not taking our lunches.  At an average of $6.00 per person, family of 3 = $18.00 a day, x 5 days a week = $90 a day, x 4 weeks = $360 a month.
$360 a month x 10 months = $3,600.  $3,600 + $720 = $4,320 a year

I only work 10 months, but then he works a full year....


Posted By: EPITOME
Date Posted: Apr 15 2013 at 9:59am
wow that is a lot.  hmm maybe i'll try to make lunch for the DH


Posted By: niecy
Date Posted: Apr 15 2013 at 10:11am
The more I think about the more I realize I could do without spending my money on certain things that I don't really need. I don't go out much but I do notice I spend quite a bit on eating out especially when nobody feels like cooking that day. Sometimes with the amount spent buying from restaurants that same amount could probably be put towards savings or even towards a dinner that could probably last through 2-3 meals rather than just one meal. I also tend to buy things from the store or online that I don't NEED yet want but would be able to live without. I'm going to try and stop myself from doing such things and see how much I save by doing that.


Posted By: goodm3
Date Posted: Apr 15 2013 at 10:50am
i notice when i don't take my lunch i eat horrible. so for me its not only cheaper but healthier. And the healthier you are the less time your spend at the doctors and on medications...and that means, the less you spend on medical deductibles...




Posted By: binky622
Date Posted: Apr 15 2013 at 11:04am
My husband has been working as a contractor as of late so we have cut back on certain luxuries just in case.  

We got rid of our house phone only cells
switching security comp that that provide support to families with cell phones

Hotspot Internet (its killing me softly because you have to manage your usage) Its not really a good deal because you spend just as much per/mo

Groceries we spend about 500 per month

Cable is a huge expense

Utilities is also we have 2 HVAC systems in our house one for upstairs and one for the lower levels (sigh)

Mortgage (it is what it is)

My plan is to not use CC's pay them off, car loans, within 3 years.

I will only have the student loan


Posted By: goodm3
Date Posted: Apr 15 2013 at 11:11am
With Cable...if you have one of those Google TV boxes were you can stream the internet through your TV...does that help? 

I got my ex one those last year and it had various apps on it like youtube and Netflix's.  
http://www.amazon.com/Logitech-Companion-Google-Keyboard-Controller/dp/B0040QE98O" rel="nofollow - http://www.amazon.com/Logitech-Companion-Google-Keyboard-Controller/dp/B0040QE98O



Posted By: BeatriceBean
Date Posted: Apr 15 2013 at 11:26am
Awesome thread!
 
 
My hubs and I reached financial independence, but I still like to think that we're spendthrift on a great deal of things. DH doesn't believe in loans so he buys everything cash, and you'd be amazed at the deals you can get when you approach a dealer or salesman with cash in hand instead of financing. Not only do you save in the long run, but you save immediately as well.
 
Also, I taught my kids at an early age to create a zero-based budget monthly and to use cash. A lot of people hate carrying cash, and I can understand why. But as far as personal finance, it really does help to quell unnecessary spending. Seeing your cash deplete hurts, whereas it doesn't have the same sting to swipe a card. I know that I stop and think a little longer about needs vs. wants when I only have cash on me.
 
Finally, I advise people to borrow money for two things. Experiences (not weddings) and investments. Everything else, like "lifestyles," can either be bypassed altogether or can be saved for.


Posted By: chatnoir
Date Posted: Apr 15 2013 at 11:39am
I love this thread!

I'm a looooong way from financial independence, but one of the things that I need to start doing again is cut down the eating out and buying Starbucks / Peets.  Also, before I moved out of my old apartment, I had a love/hate relationship with Comcast.  I wouldn't cut them off because they had the best Internet speed around, but I did manage to cut off the use of their voice service by purchasing a little device called the OBi110 Voice Service Bridge and VoIP Telephone Adapter.  It works with Google Voice, and I needed something indoors because my cell phone reception was terrible.

How are people liking Mint.com?

Editing to say that I did drop Comcast's cable tv portion for awhile and switched to DirectTV, which seemed to save a few pennies.




Posted By: binky622
Date Posted: Apr 15 2013 at 11:44am
I like this table for short term savings goals or for folks that want to start off slow with saving:



Posted By: Tbaby
Date Posted: Apr 15 2013 at 11:51am
Originally posted by goodm3 goodm3 wrote:

With Cable...if you have one of those Google TV boxes were you can stream the internet through your TV...does that help? 

I got my ex one those last year and it had various apps on it like youtube and Netflix's.  
http://www.amazon.com/Logitech-Companion-Google-Keyboard-Controller/dp/B0040QE98O" rel="nofollow - http://www.amazon.com/Logitech-Companion-Google-Keyboard-Controller/dp/B0040QE98O



We have a Roku box, and I love it!!!!  I had contemplated going back to cable/sat TV because I missed the variety.  We pickedup a roku, subscribed to NetFlix and I'm a happy camper once again.

Also use Hulu TV to catch my fav shows.
  Why pay $100/mo w/ cable TV when you can get stuff practically free?  Netflix costs the same as one trip to ChiploteLOL
 
I need to read the whole thread now...


Posted By: binky622
Date Posted: Apr 15 2013 at 11:52am
Originally posted by Tbaby Tbaby wrote:

Originally posted by goodm3 goodm3 wrote:

With Cable...if you have one of those Google TV boxes were you can stream the internet through your TV...does that help? 

I got my ex one those last year and it had various apps on it like youtube and Netflix's.  
http://www.amazon.com/Logitech-Companion-Google-Keyboard-Controller/dp/B0040QE98O" rel="nofollow - http://www.amazon.com/Logitech-Companion-Google-Keyboard-Controller/dp/B0040QE98O



We have a Roku box, and I love it!!!!  I had contemplated going back to cable/sat TV because I missed the variety.  We pickedup a roku, subscribed to NetFlix and I'm a happy camper once again.

Also use Hulu TV to catch my fav shows.
  Why pay $100/mo w/ cable TV when you can get stuff practically free?  Netflix costs the same as one trip to ChiploteLOL
 
I need to read the whole thread now...

amazon streams now.  Netflix is slow to update their moviesSleepy


Posted By: alynxx
Date Posted: Apr 15 2013 at 11:55am
Originally posted by talia talia wrote:

Originally posted by alynxx alynxx wrote:

I love this thread Talia!

Things I am going to do to save my money:

- sell everything I don't need/wear on eBay this year
- stop buying crap I don't need (already winning with this one)
- save more than 1/4 of my paycheck monthly
- re-use my weaves more and stop buying more weave because it is "in"
- grow my own hair to a length that I can eventually stop buying weaves and wasting money on relaxers

Hey Alynxx *waves*

I typed a response but the damn thing disappeared....I knew there was a reason I didn't venture back onto bhm for a while....lol.

Anywhoo....I totally agree with the bolded.  For me the stop buying crap, just became an issue of dumb consumerism....I had to analyze how much happier would I be having that iPhone, or iPad,or whatever latest gizmo there is....versus having the same amount of money going into the bank or towards my student loan.  It became a no brainer....same thing with the latest hair.

I have some EP Wavy, 8 ounces and a closure, that I kick myself for ever having purchased, granted I bought it about 4 years ago, it was a dumb purchase.  Everyone raved about it and I succumbed to wanting to have that hair.  What is the use of having a stash of hair, when I'd rather stash cash?  Will 8 more ounces of a particular brand of hair make me feel any better, I mean especially when we are already acknowledging that I'm opting to SEW IN SOMEONE ELSE'S HAIR on my head....I mean really now...I'm just keeping it real.  The weave habit is one I have yet to kick rocks to, and I'm working on learning how to do my own that way I don't have to pay someone else to do it........team frugal.  If I must wear someone else's weave, let me at least minimize the insult by not paying someone else to sew it in my headLOL
Hey Talia *waves back*
 
I am so on the same wavelength as you are! I am even going to sign up to swagbucks to make some money that can just sit in my PayPal for emergencies. It's hard out there and I have to try and make the most for my cash.  Slowly but surely I will get there but threads like this are so encouraging.
 
I'm checking out the moneysavingexpert.com forums and reading up on other ways to make money. Might not be huge amounts at a time but every little helps! Big smile


Posted By: Tbaby
Date Posted: Apr 15 2013 at 11:57am
I'll have to see if Amazon has a channel on Roku.  TBH, I don't watch netflix movies, but I like their series they got.  I started watched Idris's show on there.  Him with that british accent makes me meltEmbarrassed


Posted By: smaison
Date Posted: Apr 15 2013 at 11:57am
with the amount of trash on tv, i refuse, absolutely refuse to pay for cable. it's like paying for my own demise. i'll pass. 


Posted By: binky622
Date Posted: Apr 15 2013 at 11:59am
Originally posted by smaison smaison wrote:

with the amount of trash on tv, i refuse, absolutely refuse to pay for cable. it's like paying for my own demise. i'll pass. 

I agree I don't watch it much, we do like Disney (all tv's stay there). I only watch a select few shows don't really have time and its boring


Posted By: alynxx
Date Posted: Apr 15 2013 at 12:00pm
Originally posted by binky622 binky622 wrote:

I like this table for short term savings goals or for folks that want to start off slow with saving:

Hey Binks! I have printed this and will totally be doing it!


Posted By: binky622
Date Posted: Apr 15 2013 at 12:01pm
^^Hey Aly I am going to do it too say like saving for a computer or some lux item. what are you going to use it for?



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