How to Afford Anything

[Charlie_Boy]

There are a number of sites that I visit frequently like this one. Many others are photographic sites like Ken Rockwell's. I never expected to read an article there on finance but I found this one very informative. As he says, "It doesn't take money. It takes the guts to be a cheapskate."

How to Afford Anything

[Moemg]

Thanks , I enjoyed the article .

[tightasadrum]

I loved the "houses are my wife's hobby" or something like that. Now I understand MY wife needs concerning our home. It's her hobby TOO!! Now I get it. I like Ken's position on buying stuff. Has anyone else read the book on negotiating the price on everything you buy? I think I'll look for it. I love to negotiate prices, love to embarrass my DW & DD.

[Niko]

Thanks for posting this. I have also read a lot of Ken Rockwell's site. He has a ton of information for photographers. I've often wondered how he could afford everything he has.

[haha]

Interesting site!

This quote about housing caught my eye, because recently I have been thinking about this.

"My condo was so nasty that I cried when I moved in. It was awful, but it was a place I came to love as the years rolled on and I renovated it. It also meant I always had cash to burn on anything that really mattered. I also was where I wanted to live, far more important than in what you live. "

Where I live space costs 2.5 to 3 times what it would just 10 miles from city center. (To buy. More like 1.75 to 2 times to rent.) I have looked at a few condos out there, and they are newer and in some ways nicer. Still, I am finally figuring out that I can always have less stuff to enable me to fit into a small space, but I can't move the city attractions that I enjoy any closer. I use these attractions over and over each week, so the handiness and the ability to walk to a club or gallery or coffee house or dance class or dance on short notice is worth the extra rent or mortgage.

Often we think that city attractions are too expensive; and big time opera, symphony etc can be. But even these are doable- dress rehearsals can be open for example. But I notice that more important to me are very high quality entertainments that are more neighborhood based. Excellent music, dance performances, plays- done by very skilled but not famous groups in small venues are often “suggested donation $5”, or more or less the price of 2 coffees!

Last night I was walking home from listening to some incredibly good band that played Coltrane, Miles Davis, Monk-- and I realized that I felt young again. Why? Because I was again living like I did when I was young. 50 years ago I started listening to live jazz, going to foreign movies, attending gallery openings, and I liked it. My parents took care of the infrastructure. And now, my infrastructure is so simple that even I can handle it as an afterthought.


So surprise, I still like it! Finally I am again released to point toward pleasure, and leave being practical to somebody else.

Ha

[danm]

Some bloops.

Quote:

Don't Rent I've never rented a house or apartment. Whenever I've moved to a new city I've always just rented a room in house from the owner who also lived there, even when I had real jobs that paid me six fat figures, before I bought something myself. Rent is money pissed away and never seen again. If you have a good time or it's a business expense which makes you more money, great, but if you want to have more money than you need, this is not a good idea. Renting a room is cheap. Renting an apartment. or a house is serious money never seen again." Absolutes are often untrue. I'm renting my house at 1/3 the cost of owning, and lo! that ownership cost is quickly coming back down to rental cost again. My rent wouldn't even cover the cost of interest on a mortgage for a house down the street - which has been on the market for 2 years empty because the chowderhead owners think it's worth that much.

Damn - the differential between my house capital being invested, versus the plummeting value of the original asset is about a 40% return so far.

[pedorrero]

Good web link. thanks!

-- Pedorrero, eating his $4.25 dinner (w/ coupon) at Arby's, drinking several (free) refills of soda, and surfing on some body's free wi-fi signal, on his $100 (used) POS laptop.

[starter82]

So right, especially about renting. People always tell me buying is such a great thing or that renting is so bad. Rent a room!

[Walt34]

It's not that hard - just decide what's most important to you and allocate resources accordingly. As Rockwell said, he likes to travel a lot and he found a way to do it within his means.

When I retired I bought a brand-new GMC 4WD pickup truck with the bells & whistles that I wanted, but it replaced an 18-year-old truck, and I expect to keep this one as long or longer. I use it to haul bulky R/C airplanes, and never had much luck with used vehicles. DW and I could have done a lot of travel with that money instead, but that's not important to us. To each his own.

[Orchidflower]

He has some ideas I totally agree with, but some I think are just over the top for me like the restaurant thing. I agree it can be a waste, but I am thinking quality of life...and I love to cook and to eat. He's probably thin and skinny, and isn't into food that much, anyway, I would guess.
I particularly loved the "live with your parents" idea. So, you mooch off your parents and let your girlfriends pay for their own things...mmmm, what a catch! (And I say that rolling my eyes sarcastically...)
But he does have some good ideas, and this was a good read. Thanks!

[haha]

Quote:

Originally Posted by Orchidflower He has some ideas I totally agree with, but some I think are just over the top for me like the restaurant thing. I agree it can be a waste, but I am thinking quality of life...and I love to cook and to eat. He's probably thin and skinny, and isn't into food that much, anyway, I would guess. I particularly loved the "live with your parents" idea. So, you mooch off your parents and let your girlfriends pay for their own things...mmmm, what a catch! (And I say that rolling my eyes sarcastically...) But he does have some good ideas, and this was a good read. Thanks!

Orchidflower, this prety much sums up my feelings about this peice, and about most pundits who claim to be able to live on much less than would seem possible. If they are not lying, there has to be some severe lifestyle modifying going on. Living off one's parents would be one example. Though letting the ladies pay seems like nice work if you can get it.

Ha

[W2R]

Quote:

Originally Posted by haha Orchidflower, this prety much sums up my feelings about this peice, and about most pundits who claim to be able to live on much less than would seem possible. If they are not lying, there has to be some severe lifestyle modifying going on. Living off one's parents would be one example. Though letting the ladies pay seems like nice work if you can get it.

True! There are many things that I would be too proud to do, and living with my parents (when they were alive) is one of them. Never did that after age 18, despite some rough years.

But Ha, before contemplating the possibility that the author could be lying, don't forget that you have made some unusually expensive choices in life. You live in an area that has a relatively high cost of living, though it is probably a remarkably pleasant place to live. Also, you have decided not to live in a paid off home. While that gives you a certain freedom, rent must be included in your budget as well.

These are good decisions because they are appropriate to you and the lifestyle you wish to lead, but because of them you have expenses that many people just do not have and never think about.

[haha]

Quote:

Originally Posted by Want2retire But Ha, before contemplating the possibility that the author could be lying, don't forget that you have made some unusually expensive choices in life. You live in an area that has a relatively high cost of living, though it is probably a remarkably pleasant place to live. Also, you have decided not to live in a paid off home. While that gives you a certain freedom, rent must be included in your budget as well.

Good point, Want2. I have to get more openminded. It's just that I can even subtract my rent and just pretend that living in a paid house is free, and I still can't hit some of the budgets I have seen. But I likely have holes in my pocket that I can't even preceive.

I didn't mean to say anyone was lying, though I am afraid it came off that way. Thanks for gently setting me straight.

Ha

[youbet]

Quote:

Originally Posted by Want2retire Also, you have decided not to live in a paid off home. While that gives you a certain freedom, rent must be included in your budget as well. .

When you own a home and are comparing that cost to renting, or when calculating your annual expenses, you really should calculate the opportunity cost of the value of your home in dollars being tied up generating zero income. It's true, you don't need cash flow to cover opportunity cost, but the cost is there just the same.

[W2R]

Quote:

Originally Posted by youbet When you own a home and are comparing that cost to renting, or when calculating your annual expenses, you really should calculate the opportunity cost of the value of your home in dollars being tied up generating zero income. It's true, you don't need cash flow to cover opportunity cost, but the cost is there just the same.

Well, I am sure that Ha does that! But it still must make the expenditures of those who have their money tied up, seem small.

In other words, I'm afraid I hit a knee-jerk reaction for many of us. This was not a "pay of the mortgage or not" post, as much as a "why are their expenditures so low?" (regardless of income) post.

[Moemg]

Quote:

Originally Posted by Want2retire In other words, I'm afraid I hit a knee-jerk reaction for many of us. This was not a "pay of the mortgage or not" post, as much as a "why are their expenditures so low?" (regardless of income) post.

I also look at some of the budgets and wonder how they do it .Especially when I see a working women's clothes budget of $80.00 .When I was working my pantyhose budget alone was close to that .Plus I wonder where do they buy their underwear . My underwear needs replacement yearly .I can see buying things at Good will but going years without buying any clothing just amazes me . How do you all do it ? Especially if you are working at a job that doesn't have paid uniforms? Please enlighten me ?.

[figner]

Quote:

Originally Posted by Moemg I also look at some of the budgets and wonder how they do it .Especially when I see a working women's clothes budget of $80.00 .When I was working my pantyhose budget alone was close to that .Plus I wonder where do they buy their underwear . My underwear needs replacement yearly .I can see buying things at Good will but going years without buying any clothing just amazes me . How do you all do it ? Especially if you are working at a job that doesn't have paid uniforms? Please enlighten me ?.

Well I've never done $80/yr, but have spent about $300 the last few years, including shoes (which are probably half of the total). I work in IT, am not a manager, and never have to dress for clients. So most days it's jeans/khakis, long sleeved tshirts, and a sweater or jacket. I shop for a lot of basics at sierratradingpost.com. A couple packs of Hanes undies a year. A pair of new trail runners each year (I'm picky about shoes, so will spend $60-100 on this). Sitting at a desk all day doesn't put much wear on clothes, and for non-gross things I'll wear 'em several times between washes.

[starter82]

Quote:

Originally Posted by Orchidflower He has some ideas I totally agree with, but some I think are just over the top for me like the restaurant thing. I agree it can be a waste, but I am thinking quality of life...and I love to cook and to eat. He's probably thin and skinny, and isn't into food that much, anyway, I would guess. I particularly loved the "live with your parents" idea. So, you mooch off your parents and let your girlfriends pay for their own things...mmmm, what a catch! (And I say that rolling my eyes sarcastically...) But he does have some good ideas, and this was a good read. Thanks!

I don't see anything wrong with these things. It's part of culture. Also, it's about how certain people interact with others. For some families and relationships, this is completely normal and not strange at all. If parents are willing to have their children remain at home without paying toward it, good for them. I don't consider it to be a bad thing in this case. There are a lot of parents that want to give their children the best; this can be part of that. It doesn't necessarily foster the best but forcing them out of the home doesn't necessarily engender the best either.

Why shouldn't girlfriends pay for their own things? I'm expected to pay because she's a woman or because he's a man. It didn't make sense back when it was more popular, and it makes even less sense today.

[haha]

I spent $609 on clothes last year. About $150 of it was resoling my Birks. The major vendors other than repairs were Federal Army and Navy, Old Navy, Clarks, and REI. I spend more on shoe soles than I do on tires for my car. And according to my shoe repairman I wear soles evenly.

I dress unstylishly enough that my kids always give me clothes for Christmas, etc.

And I have no job.

I guess just like many people can run faster than I, many can dress cheaper too.

Ha

[megacorp-firee]

While I don't see anything wrong with living with your parents, I do grimace a bit when your life style is built upon other people paying the bills.

Growing up in a big city with ethnic communities, it used to be common to see extended families. The grandparents taking care of the grandchildren, ...etc. I think that American culture has lost a lot as they moved away from that.

IMO Rockwell is a bit over the top with his lifestyle, but hey .. this is still a free country. Each to his own. But I do yearn for the 'old times' when neighbors actually 'knew' each other and helped and looked out for each other. sigh ... I'm a dinosaur ...