Millionaire stuff

[mickeyd]

I call this keeping it under control. Others may call it being cheap. Whatever it is called, it works for those who appreciate the end result of controlling expenses to the max.

Be cautious about spending money. Before spending money on large purchases, ask yourself:


Will I still be satisfied if I spend less?

Can I find a version of this product that costs less but is still good quality?

Would I rather have a TV with all the latest technology or would I rather be wealthy?

Would I rather buy a car that is so expensive that I have to stretch the payments out over five years or would I rather be wealthy?

Would I rather take a $5,000 vacation or would I rather be wealthy?
There's no secret to becoming wealthy. It's these day-to-day decisions that determine whether you will become a millionaire.


http://financialplan.about.com/od/investing/a/Millionaire.htm

 

[peggy]

Not all of these are contradictory, depending on your salary bracket and savings methodology.

For example, DH and I have taken a couple of nice (i.e., in the $5k range) vacations while still saving at least 20% of our gross income.

But for people caught in the "more is better" mindset, these are great questions to consider.

 

[Caroline]

Would I rather take a $5,000 vacation or would I rather be wealthy?

I kinda line up with Peggy and Cut-Throat on this one too -- once-in-a-lifetime experiences are hard to value. Some of them are just nice -- others actually change your view of the world who you are in fundamental ways.

I had a friend who couldn't spend Christmas in Mexico with the gang because he "had two much work to do." A few months later he was diagnosed with a brain tumor, and within six, he was dead.

First thing he said when he heard the diagnosis -- "I should have gone to Mexico."

Moderation in all things, even saving.

 

[Patrick]

I think it's important to ask the questions, but the answer doesn't always have to be yes.

 

[mathjak107]

everythings a balance... my wife and i love our toys (bikes,big tv's, hi-end audio , hunting trips) but we are serious investors and savers to0 cutting other things where we can.

 

[dmpi]

You only enjoy stuff above & beyond what you are use too. If you took a 5K vacation every six months for 10 years, you won't get much of a rush for taking another one. However if you are use to taking 2K vacations every year and then take a 5K vacation... well that'll be something special. A poor guy in India would be overjoyed with just taking a vacation.
let alone a 1K vacation.
The bottom is line is: once you basic needs are met, money won't buy happiness. Pace yourself, when you young... live cheap. As you get older open that wallet up and start spending.

 

[unclemick]

Hmmm

I guess there's a 'because you can' form of getting your jollies - going on a cruise in the balcony suite - while ratting around town in your old rusty pickup/Salvation Army bib overalls.

Being able to splurge on what floats your boat AND being independant enough to be a really, really cheap bastard on those frugals you enjoy - is the soul of FI. And having the time in ER is the frosting on the cake.

heh heh heh

 

[HFWR]

The ongoing costs of, say, the McMansion, are the real budget killers. Sure, you can "afford" the mortgage, but the utilities, taxes, and insurance keep going and going, just like the Cute Fuzzy Energizer bunny...

 

[Nords]

The bottom is line is: once you basic needs are met, money won't buy happiness. Pace yourself, when you young... live cheap. As you get older open that wallet up and start spending.

You make it sound so easy to overcome a lifetime of habit...

 

[Cut-Throat]

The ongoing costs of, say, the McMansion, are the real budget killers. Sure, you can "afford" the mortgage, but the utilities, taxes, and insurance keep going and going, just like the Cute Fuzzy Energizer bunny...

Agree here! - It's not the cost of the new $3K HDTV - It's the cable bill of $75 a month that kills you. - Not having a cable bill has paid for both of my new HDTV's multiple times. Great reception over the air with an Antenna in the attic!

 

[Dawg52]

Agree here! - It's not the cost of the new $3K HDTV - It's the cable bill of $75 a month that kills you. - Not having a cable bill has paid for both of my new HDTV's multiple times. Great reception over the air with an Antenna in the attic!

How many channels you get?

 

[Cut-Throat]

How many channels you get?

More than I can watch. - All the networks - ABC, NBC, CBS, FOX - 6 Channels of PBS - and some others that I can't remember - Probably about 15 or so.

 

[HFWR]

Most of the channels I like to watch - HGTV, Food Network, DIY, History Channel - are available only on cable.

Of course, none of those are hi-def either...

 

[Dawg52]

Most of the channels I like to watch - HGTV, Food Network, DIY, History Channel - are available only on cable.

Of course, none of those are hi-def either...

Same here. I like the golf channel so I have to have the full package to get that. $54/mo on Comcast. Damn golf is gonna break me.

 

[Cut-Throat]

Same here. I like the golf channel so I have to have the full package to get that. $54/mo on Comcast. Damn golf is gonna break me.

well, we all have to have our vices!

 

[astromeria]

6 channels of PBS!!! <drooling emoticon> I only got 2 (or was it 3?) in San Francisco, and only get one in Charleston...maybe I'll have to revisit the retire-in-the-South plan

 

[LOL!]

There are several PBS HD channels in Houston. It's the nature of digital TV and not a feature of PBS.

But what does HDTV have to do with MillionaireStuff anyways?

 

[mountaintosea]

I agree it depends on where you are at in your life. When I was 39 going on 40, I took a year leave of absence and traveled around the world. The entire year cost about $16,000. However at that time I was not thinking about retirement. I have a pension so saving every penney at that time was not a priority. At the time I had no debt and paid off my little cabin.
When I returned I started thinking about saving. I read the book Your Money or Your Life . That year was terrific and I would not trade it for anything!!! Actually if I had stayed home living out that year here would have cost me at least just as much as the trip.
Right now I am 54 with about $846,000 in stocks and cash. I am hoping to reach that big M status before I retire in 2 years. In fact I think I will or at least come pretty darn close.

 

[MooreBonds]

However at that time I was not thinking about retirement. I have a pension so saving every penney at that time was not a priority. At the time I had no debt and paid off my little cabin.
...
Right now I am 54 with about $846,000 in stocks and cash. I am hoping to reach that big M status before I retire in 2 years. In fact I think I will or at least come pretty darn close.

MTS, if you have a portfolio of $846k PLUS a pension, unless the pension is worth $20 bucks a month, you are already well beyond the "Big M status" in portfolio equivalents.

Just don't go out and blow $250k to celebrate...

 

[shorttimer]

We think carefully about large purchases, get consumer reports etc. and save for them in cash.

It is the day to day stuff that makes it easy to blow lots that we are really good at avoiding. Coffee with a couple of scratch off lottery tickets and lunch out every day adds up to a nice European vacation every year. Excessive Shoes or clothes hanging in the closet with tags on them, eating a mediocre meal out as opposed to a simple meal home and paying for premium channels and never watching HBO or Showtime for example all wasting money. Five or six year car loans - huge waste of money.

On the other hand, our travel experiences, nice furniture we bought with cash one room at a time, and DH's nice tools and annoying big screen HDTV with surround sound give us pleasure and are worth more than just more money in the bank.

 

[dt123]

I'll just say my HDTV is the one thing I've purchased in the last couple of years that reallly seems worth it. HD, Dish, Netflix and Tivo have revolutionized the way we watch TV around our house. We used to be part of the anti-TV movement, but now we are happily rotting our brains with high-quality, no commercials stuff.

 

[Outtahere]

I have to agree with the statements that it's the monthy bills that do you in. Sure I can afford the big house, fancy car, latest gagets and electronics but I don't want the on going payments, bills and taxes that go along with owning those things. The only real splurge I have is cable internet and right now the company pays for that, I'll pickup the cost when I leave here.

 

[F M All]

Most of the channels I like to watch - HGTV, Food Network, DIY, History Channel - are available only on cable.

Of course, none of those are hi-def either...

FYI - HGTV and Food Network are HD on Dishnetwork. Different schedule from the SD channel but stunning HD pictures.

With the latest HD DVR to kill ads some TV is now enjoyable.

 

[OkieTexan]

I like the term "balance"; but for me, since ER I have had to set some priorities. It has been fairly easy so far because when I was working I had no time to take a vacation. I would fall asleep in the chair while watching the TV (so no need for a bigger HD model). So I see some decisions ahead about thnigs I had no choice about when I was on the job all the time. The rules have changed about money and it may take a while to get used to it.

 

[justin]

Moderation is the key. You can have the big tv and cable. Or the boat and slip rental. Or the macmansion. Or the pair of new german autos. Or the luxury vacations. Or ER. But not all of those at the same time.

I plan on spending money on moderate vacations (hopefully a cruise or two per year, or something similarly costly). And new cars when the current ones die/become maintenance chores. Don't really care for the rest. It might set ER back by 11.2456 months, but who cares if you're living an enjoyable life in the meantime?