Encouraging LBYM and savings

[Siv]

I'm playing a nice sister.

My brother went out with his college friends and came back to call me complaining that he felt poor. One of his friend has a shiny new car and therefore owned 2 - she asked him if he is still driving the same one he has had for 7 years.

Another guy currently lives in downtown area paying $950 rent exclude utilities and has a new car.

Another has motorcycle racing hobby.

Meanwhile my brother paid $800 includes all utilities, living alone in 3 bedroom house...kind of a house sitter since the owner is somewhere else and been going on for 2 years. No car payment, stable job, single.

So I recommend this site and told him to call me should he feel poor...I probably should look poorer because I don't buy anything besides nice clothes ...my one advice to him is you can afford new BMW but would you want it? would you need it? I said, make friends with older and wiser crowds...not the newly graduate because seems like majority of them are merely trying to catch up with payments.

So now I'm proud of myself for extending LBYM.

[cho oyu]

Although some crowds may be older, I don't know that they are wiser. Overconsumption seldom seems to tail off; people quickly become accustomed to increasingly expensive lifestyles.

Some of the best advice around is to continue to live like you are in college for as long as possible. Well, minus the ramen noodles and boxed mac'n'cheese if you don't want to die from hypertension by the age of 30.

[teejayevans]

I've lived below and above. Don't regret either.
Hey, fast cars are fun, life is meant to be fun.
TJ
p.s. But I always was in my 401K to the max.

[YVR-Terri]

Quote:

Originally Posted by cho oyu Some of the best advice around is to continue to live like you are in college for as long as possible. Well, minus the ramen noodles and boxed mac'n'cheese if you don't want to die from hypertension by the age of 30.

Quit looking in my cupboards!

[heyyou]

Depreciation on new cars is a terrible waste of hard-earned money. I laugh at new car drivers. If I was that ignorant of personal finance, I wouldn't show it off by driving a new car--hey, look at me, I'm not good at numbers, and I like big shiny objects that smell like new plastic. Do I look like the models that drive this car in the ads on TV?

[Cut-Throat]

Quote:

Originally Posted by heyyou Depreciation on new cars is a terrible waste of hard-earned money. I laugh at new car drivers. If I was that ignorant of personal finance, I wouldn't show it off by driving a new car--hey, look at me, I'm not good at numbers, and I like big shiny objects that smell like new plastic. Do I look like the models that drive this car in the ads on TV?

Well yeah, but you can't take the money with you to the grave either. So if you had 100 Million dollars you wouldn't buy a new car to drive?

Money is made to be spent. Nothing virtuous in being a miser either. To me that is one of the saddest states in life! ---- Hey look at me "I never traveled the world or bought a new car, but I died with 3.5 million dollars!"

[JustCurious]

Quote:

Originally Posted by Cut-Throat Well yeah, but you can't take the money with you to the grave either. So if you had 100 Million dollars you wouldn't buy a new car to drive? Money is made to be spent. Nothing virtuous in being a miser either. To me that is one of the saddest states in life! ---- Hey look at me "I never traveled the world or bought a new car, but I died with 3.5 million dollars!"

Finding the right balance between being a miser and a spendthrift is the key to being happy, in my opinion.

[Cut-Throat]

Quote:

Originally Posted by JustCurious Finding the right balance between being a miser and a spendthrift is the key to being happy, in my opinion.

Yup!

[JustCurious]

There's an old saying that goes something like this.... "I spent half my money on fast cars and loose women, and the rest of it I just wasted!" LOL Seems apropos.

[Alex]

Quote:

Originally Posted by Cut-Throat Well yeah, but you can't take the money with you to the grave either. So if you had 100 Million dollars you wouldn't buy a new car to drive? Money is made to be spent. Nothing virtuous in being a miser either. To me that is one of the saddest states in life! ---- Hey look at me "I never traveled the world or bought a new car, but I died with 3.5 million dollars!"

Amen to that.

[unclemick]

Quote:

Originally Posted by Cut-Throat Well yeah, but you can't take the money with you to the grave either. So if you had 100 Million dollars you wouldn't buy a new car to drive? Money is made to be spent. Nothing virtuous in being a miser either. To me that is one of the saddest states in life! ---- Hey look at me "I never traveled the world or bought a new car, but I died with 3.5 million dollars!"

Mabbe not - Buuuut - then again being a cheap bastard with a pickup truck having a rusty fender, a couple of good old dogs and used Dickies coveralls bought 'on sale' at Salvation Army - ain't bad either especially if it floats your boat/gives you some jollies.

Do get get a grip - and drive the new car for long trips - reliability and all that boring rot.

heh heh heh - some things are just plain fun!

[Mwsinron]

If you take money to the grave its not like you will give a ****. However if you run out of money at an old age you will.

[Khan]

Quote:

Originally Posted by Mwsinron If you take money to the grave its not like you will give a ****. However if you run out of money at an old age you will.

Maybe some people have never lived in a car.

[Siv]

My point is while still young and just started accummulating wealth/net worth, one should stay in budget. Once someone has significant amount, it's easy to buy things and to spend it on monthly payment plans will only slow down the process.

I wish someone had told me or guided me when I was in 20's...I would have had a lot more!

[73ss454]

Quote:

Originally Posted by Siv My point is while still young and just started accummulating wealth/net worth, one should stay in budget. Once someone has significant amount, it's easy to buy things and to spend it on monthly payment plans will only slow down the process. I wish someone had told me or guided me when I was in 20's...I would have had a lot more!

Siv, but would you have listened?

I didn't wake up till I was 47, my son is 33 and makes big money and won't save a dime. He just want's to have more stuff. I keep telling him but he won't listen. We each have to learn our lessons.

[Siv]

Yeah you could be right!

Sometimes I'm amazed at how dumb I was back then! To correct this mistake I often preach to my brother on how not to buy. I hope when he reach 30, he will understand what I mean...luckily, he has been pretty sensible with money ever since 8 so it's not that difficult to steer him into right direction.

[Mwsinron]

Quote:

Originally Posted by Khan Maybe some people have never lived in a car.

Probably Khan people come from different backgrounds and learn to appreciate things differently.

[Alan]

Quote:

Originally Posted by Siv My point is while still young and just started accummulating wealth/net worth, one should stay in budget. Once someone has significant amount, it's easy to buy things and to spend it on monthly payment plans will only slow down the process. I wish someone had told me or guided me when I was in 20's...I would have had a lot more!

The key for us in our twenties was not to save like crazy after growing up with nothing and going to college on a shoestring, but not to go into debt for stuff we couldn't afford, even after we started having kids. We saved for short term things like vacations and replacing the car. Later when the income went up well into the 30's we were in a much better position to save for the long run.

My advice to my kids who are now in their 20's is pretty well exactly that except that I now throw in the 10% into the 401(k) pitch since they don't have pension plans where they each work.