Lbym

[mickeyd]

LBYM through the eyes of this blogger is not very different than the way I see it.

Quote:

*Living on less prepares you for taking on the unexpected *What you drive, wear or the home you reside in does not make you *The more we have the more we have to pay for it.

Frugal For Life: You Can't Take It With You

[dumpster56]

Frugal For Life: You Can't Take It With You

There is a part of the story that well reeks of BS. Sure live below your means but come on now, enjoying the fruits of your labor, being responsible and yes Living for today is not a problem for many. I believe we go thru the planet one time, do it the right way. Denying yourself for 40 or 50 years is well odd. Sure save for retirement but to live as frugally as some it just doen not seem enjoyable. Hey now what do I know, lived frugally for 30 years saving and such but always got a new car when needed, always ate good food, had cable, a computer a cell phone, bought nice things, but never bought things I could not afford.

Its all good.

[mickeyd]

Quote:

Living for today is not a problem for many.

Well, from what I read about the savings habits (or lack of same) of my fellow American citizens, it seems to be a really big problem for many of them these days.

[barbarus]

Although they are oddities, almost to the point of being "space aliens" in our society, some people hate w*rk much more than they value "things".

That's the reason this board exists. A minuscule island of sanity in a world gone insane with consumption.

[ziggy29]

As is often the case, "LBYM" means different things to different people. Some people treat it as spending the lowest amount possible and obsessing on it; others insist that the "L" in LBYM means "living" and we shouldn't stop living.

The simple fact is that if you earn more than you spend, you ARE LBYM, but the degree may vary from person to person. Some of the more extreme LBYMers wear maximum frugality as a badge of honor and for them, their hobby IS to find ways to save a few bucks which most people would consider...well, extreme or even bizarre. These are the type of people who chastise others for buying anything that isn't absolutely necessary and who often act as if people who occasionally purchase something frivolous -- no matter how much they can afford it -- are being financially irresponsible.

We all have to find what works for us as individuals. LBYM is a good thing, but decide what's important to you and do it on your terms, not someone else's.

[Helen]

My partner and I live below our means. We save 42% of our gross. Fortunately, our combined income is quite high so it really isn't painful to do. Last night we went out to dinner and then saw a movie. It was a $70 dollar evening.

When I got home I thought about trying to live on minimum wage and how long it would have taken to be able to afford that kind of evening.

I feel very fortunate.

[Dog]

Ziggy - I agree. LBYM does not mean living without. Quite simply it is not living paycheck to paycheck and having to juggle what bills you will pay for the month. You save and invest before you spend on the extras. I have friends that cannot invision retirement because of their debts. They have nice homes/cars/clothes/vacations, but they are living for today on tomorrow's paycheck.

[calmloki]

Quote:

Originally Posted by Helen My partner and I live below our means. We save 42% of our gross. Fortunately, our combined income is quite high so it really isn't painful to do. Last night we went out to dinner and then saw a movie. It was a $70 dollar evening. When I got home I thought about trying to live on minimum wage and how long it would have taken to be able to afford that kind of evening. I feel very fortunate.

Rather than LBYM I always liked the double entendre Live Well Below Your Means - LWBYM. Something perhaps easier to do when one's means are substantial, but a worthy goal in any case.

[Donzo]

Having nice, fun things are potentially a great investment.....esp. in retirement. If it is something that consumes time in an enjoyable manner and gets you together w/ people you enjoy -- it's all good. It can be new golf clubs, a collectable car, or in my case.....my dream ATV(quad). I have always LBMM, but ya gotta have fun and get out there also -- as a side note - I have wanted this new quad for years, but, would not buy it - even tho I had loads of liquid money. Finally, I attached its purchase to the sale of an investment property - property sold.........I shopped like a madman for the best price and bought the new toy. I have been having a great time w/ it and I gained a new riding buddy - my son, he is the proud owner of my last quad.
We were high enough in the sierras last week to play in some snow!

At the threat of sounding repetitive of the mantra oft heard here...life IS good.. so are toys! IF you can afford them

[JustCurious]

LBYM is easy to do if your "M" is high enough.

[DJRR]

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Originally Posted by JustCurious LBYM is easy to do if your "M" is high enough.

LOL. I have lived with my family on $30k and $120k. It is definitely better at $120K.

What always worked for us was to save 10% give 10% and live on the remaining 80% without taking on any additional debt.

That 20% haircut is enough to keep you mindful of your spending and making sure you spend it on what is most important to you.

As we went on we found that we liked spending on travel, fixing up our house, giving to charities that help poor people become entrepreneurs, etc. but not so much on cars, TVs, boats, etc. We also discovered that we did not want to w*rk forever, so the saving % got bumped up as the M went up instead of the spending number. We now save 20% of our higher income, our lifestyle reflects what we enjoy and we are on track to FIRE.

[TromboneAl]

Picked up a hardcover Tightwad Gazette at a garage sale last Saturday (for 20 cents). I first read it a few years ago, and looking through it, I was interested to see how much of her advice and outlook I've taken to heart.

We rarely, if ever, feel deprived. I have to admit, that in part that's because we've already "been there done that" for many expensive things (e.g. skiing, club med trips, etc.).

[aaronc879]

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Originally Posted by JustCurious LBYM is easy to do if your "M" is high enough.

Exactly. After over 2 years of visiting this site i've realized most people here don't realize that the average income is only around 40K per year. If you make 150K then it's easy to LBYM AND have your toys too. But try it on 45K per year. I make 45K per year after bonuses and a small amount of overtime. After I put 15K into my 401K I have 30K pretax. After taxes I have 22.5K. 5K goes to roth ira leaving 17.5K or less than 1500/month for all living expenses which dosen't leave room for new cars or other toys. Just think half of the country makes less than me. LBYM isn't easy for the average person.

[FinanceDude]

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Originally Posted by aaronc879 Exactly. After over 2 years of visiting this site i've realized most people here don't realize that the average income is only around 40K per year. If you make 150K then it's easy to LBYM AND have your toys too. But try it on 45K per year. I make 45K per year after bonuses and a small amount of overtime. After I put 15K into my 401K I have 30K pretax. After taxes I have 22.5K. 5K goes to roth ira leaving 17.5K or less than 1500/month for all living expenses which dosen't leave room for new cars or other toys. Just think half of the country makes less than me. LBYM isn't easy for the average person.

But if yoy work hard and take promotions, you'll make far more, and if you keep the same "mindset",you'llbe retired DECADES before 95% of your peer group.......

[packrat44]

Quote:

Originally Posted by aaronc879 Exactly. After over 2 years of visiting this site i've realized most people here don't realize that the average income is only around 40K per year. If you make 150K then it's easy to LBYM AND have your toys too. But try it on 45K per year. I make 45K per year after bonuses and a small amount of overtime. After I put 15K into my 401K I have 30K pretax. After taxes I have 22.5K. 5K goes to roth ira leaving 17.5K or less than 1500/month for all living expenses which dosen't leave room for new cars or other toys. Just think half of the country makes less than me. LBYM isn't easy for the average person.

Aaron, I believe most on this forum are aware the average income is in the $40K/yr range. (In 1966 my income was $936/yr - $78/mo while on AD. Yeah, money was worth more then, but not that big a spread.) Those that earn $150K/yr are the exception. There are numerous people on the forum that do have high NW, but the majority got it from LBYM and a good dose of time - not high incomes. The percentage you are saving/investing is very high on the LBYM scale. Keep it up while you can.

[barbarus]

Get a little more accurate take on where you stand in an income sense by comparing against others of your specific age, gender, race, education etc.

PINC-03 Table of Contents

[TromboneAl]

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In 1966 my income was $936/yr - $78/mo while on AD. Yeah, money was worth more then, but not that big a spread.

$936 in 1966 = $6,006 in 2007.

CPI Inflation Calculator

[ziggy29]

Quote:

Originally Posted by TromboneAl Picked up a hardcover Tightwad Gazette at a garage sale last Saturday (for 20 cents).

Sounds appropriate.