1) Going from owning a new car on payments to owning a fully paid used car to going car free and renting when i need was the single biggest step in cutting costs. 2) Being involved and motivated in my job, overdelivering the results and THEN negotiating pay raises over the few years when there was something to show,
When I bought my previous home, I was 'approved' for @250k. Instead I had my house built for 150k. It was basic no frills but with a big yard in a nice subdivision. I paid it off in 9 years. I learned from that experience that I have to be my own 'finance' guru and not follow the crowd.
Hi Annie! Very wise point of view and approach. Be your own Finance Guru is really the key to winning just like you have. Thanks for watching and sharing ? What state are you located in the purchase a home at the price !
A new concept I've discovered is "Loud Budgeting". That is where people are not afraid of saying "that's not in my budget". I think it's great, and I've starting saying that when I know my budget won't allow me to do something. AND, I'm not afraid of saying it.
How Being LOUD About My BUDGET Changed My Life & Wealth ua-cam.com/video/gwMSNoVPIBg/v-deo.html Hi Mary. I actually made a video about that movement above. I think it’s great, it really hasn’t drawn quite the interest on UA-cam so, haven’t done much more around it. Keep up the great work!!
Bought first house on 15 years, paid off in 10. No debt since then. Maximized ALL employer savings plans plus more. We retired very comfortably at 52. No regrets.
I made the mistake of telling a close relative what my net worth was and he said, "Well, you were always frugal." My answer to myself was that, no, dear relative, when you were making the big money you were busy buying the expensive toys, like the boat, the share in an airplane, the big house, the luxury car, etc. I was happier watching my retirement accounts grow and paying off my average size house in 11 years. I told my kids that I worked the extra hours because I did not want to be a bag lady when I was old. It worked. Now I'm old and I don't have money worries. I'm still not extravagant because I might need assisted living when I'm in my 90's, etc.
Not good advice, how many people tried what you did and by the team they managed to amase a good net worth, they just died. What is the point of saving so much money for old age if you are barely able to change your own diapers by then?
We are past this point of saving 50%. We are FI. It took 25 years to get here. And the number one thing that helped us was Learning how to cook and grocery shop. I can feed us for almost nothing if I have to. So all of the noise about grocery prices and how they are going up I do not understand. Cook more. Quit buying all of the convince items. Rice, beans, produce and a little meat is all one really needs. Add a few spices and all is good. Make it fancy by making some flat bread. We eat damn nice. But it takes time in the kitchen.
Congrats on Financial Independence. Great perspective on Cooking, I didnt mention but, we have our food staples as well that are go to meals. Thanks for sharing
I agree! I cook ALL my meals and snacks. I bought my meat in bulk once I bought my freezer. I only grocery shop for small stuff I need. And that’s maybe once a month. I don’t eat junk food AT ALL. Too Expensive and they use the cheapest meat and oils in that stuff. No thanks. I unfortunately didn’t learn this overnight. But better late than never, right?
@@princessdumbarton9877Perhaps, but since I have gone full-on carnivore I‘ve never felt better. I buy locally produced, grass-fed beef; no more Wal-mart meat for me after two bad bouts with food poisoning, likely due to poor sanitary practices at the processing plant. Yes, eating carnivore is more expensive than rice and beans. But, after having a kidney stone removed I researched and found out that beans, along with spinach and almonds, are high in stone-causing oxalates, so they are now gone from my diet, along with carbs and processed foods (chocolate, cakes, pies, etc.). In the past I was never able to conquer my cravings for processed foods for very long, but since going carnivore the cravings have disappeared. To anyone steeped in the USDA’s food pyramid, carnivore sounds crazy. I am, however, a living testament to its health-conferring utility. I am 64 so I’m old enough to remember when seeing a morbidly obese person was a rarity, not an everyday occurrence. As people went on low-saturated fat diets, people have ballooned because they are replacing good fats that satisfy hunger for carbohydrates that never really satisfy their bodies at the cellular level. Finally, YMMV, but I doubt it. If someone wants to trust the USDA’s pyramid, have at it. But I am highly suspect of anything the government puts out, mainly because of the revolving door between government bureaucrats and corporations. Anyone remember the see-nineteen (sic) hysteria and the safe and effective vakx (sic) trope?
I used to be super frugal, and still am pretty frugal. You really can live 80% of life on 20% of the cost But one thing I learned was the difference between value and cost Don’t make purchases based on cost. Make purchases based on value One example. I used to dress like a bum. Everyone treated me like a bum. A one time investment of $3K on nice clothes that fit well might sound like a lot, but it has transformed my social/dating life. My quality of life is 2x-3X better for a seemingly frivolous clothing expense Another example: Eating out at Mid-level restaurants might seem like a waste of money, but for me it’s an inexpensive form of entertainment and luxury. I don’t eat out for everyday meals. But a couple times a week I spend $20 on a sit down meal. At 100X per year this adds like $1500 to my expenses, but I get a lot of enjoyment from it Spending money isn’t the enemy. Just be value focused
@@seanmiller8151 I really like your spending money isn’t the enemy just be valued focus. I say something similar that I call the “frugal bliss point” it’s finding the balance of cost vs value. Thanks a lot for watching! It sounds like the clothes investment was an incredible investment:)
@@mojojojo560 I live in Columbus/Salt Lake… so maybe this doesn’t work on the coasts… but If you get water, no appetizers, no desserts, you don’t get steak/expensive items, and you’re intentional about the restaurant you go to, you can definitely get mid level sit down for $20-$25 per person (tax/tip included) I’m talking real mid-level, not just chains like applebys and Chiliz… though I will say Texas Roadhouse is amazing. Only chain I go to Even a handful of lower mid level options at $15
@@seanmiller8151not to mention taking advantage of happy hour and early bird specials!! My husband and I do this on date nights or we split a meal. We also do free activities like hiking or exploring local areas via walking.
Hubby and I started off (1990 lol) living off half our income, we paid off our student loans (only about 30k), bought a car (no loan), maxed both 401ks and socked away money in mutual funds. We couldn’t keep it up when we first had kids (had to have a nanny - expensive!, then I went stay at home which dropped our income by more than 50%). But we were accustomed to living on 50%, so it was doable. As hubbys income increased we eventually got back to saving 50%. Retired in our 50s, after fully paying kids undergrad and grad schools. Compounding returns (when you start early) are like magic.
Look at you! Thats incredible. I'm so glad you are sharing your story to show others it can be done. Couldnt agree more, its like Magic and makes you think differently on spending when you realize your money can make money and that money earned also makes money. 😀
Fantastic story Dharma. Your combined early work is paying dividends now, very well done! Ours is sort of the opposite (we enjoyed life before kids, lots of holidays, then with kids only one income for almost 10 years) but as my wife is now working almost full time again we can really save enormous amounts and that should fix things very quick, well on the way to retirement, hopefully around 50 if we want to.
I’m grateful for the fact that I never developed a taste or care for high end things. I don’t own a nicer outfit than a pair of jeans and a flannel, and I probably haven’t bought any new clothes in about a year. I drive a 1998 F150 single cab that I bought in 2012 for $4,000 and have no desire to upgrade. I actually prefer driving cheap, beaters. If someone offered to trade a Beamer or something straight up for my truck I wouldn’t even be interested. I still live in a 2 bedroom apartment and don’t really have a desire to move into anything bigger. I don’t notice a difference between expensive fancy restaurants and cheap ones, so I never go to expensive ones. I just genuinely have no interest in upgrading any of these things, I don’t envision a nicer car or expensive clothes making my life any better. None of its even a little bit appealing to me, and I feel like I lucked out in that sense because it makes living below my means really easy and I don’t really even feel like I’m making any sacrifices. I only make about $70k/ year and that’s more than enough to never stress about money
I've been at this a bit longer than most and I've got a few tweaks. I don't buy movies or books and haven't for years as it's a waste of money and I don't want to have to store them. Both are available for free whenever we like from our local library system, delivered right to our small town library from the larger regional system. Additionally, free streaming makes almost everything available instantly so there's just not much point in buying content. We don't shop at Costco or other warehouse clubs as the prices are far too high, we find much better deals at grocery stores by shopping and stocking up on weekly sales and the produce tends to be better. I've been to Costco several times and I like what they're doing there but when I looked to see what people were buying and what the average receipt was, it's not something I want as it's mostly snacks and drinks for $300 and that was several years ago so I can only imagine what it is now. Years ago we had a Sam's Club membership through a family member but we'd only get a few items from there as the deals where better elsewhere and for our 2 person household the quantities were a little much. I've got a lot of different interests and I keep costs low by sticking with just the basic gear, buying used when it makes sense to and often I end up with better equipment because things were made better in the past. I also focus on finding lower cost or better yet free alternatives that are also better...never settle for less than both. I can give many examples but one of my favorites is mattresses. Instead of paying far too much for something that isn't going to last I order a zippered bamboo fabric mattress case and layers of high quality/high density foam for a mattress that no one is willing to manufacture because they're focused on maximizing profits rather than making the best product and it only costs a few hundred dollars for a king size. We also love to cook at home from scratch for every meal and everything is better at home. We rarely eat out, only for family gatherings and we don't even want to do that other than to see everyone. During the pandemic I came up with several theme nights such as "Friday Pizza and Movie Nights" with my made from scratch pizza that's better than the best pizzeria. We start with 80's music videos while I make the pizza followed by a cartoon short from the 30's and the main feature with an intermission about halfway through where it's back to the music videos while I make popcorn or kettlecorn on the stove top to munch on while we finish the movie. Then there's "Supper Club Dining at Home" where I hit the kitchen at 4pm to make a relish tray that can't be beat by any restaurant and salads with a made from scratch dressing. I found a great video that features classical music with a slide show of European art, architecture and nature to play on a low volume while we start with the relish tray and salads as we relax and chat. I head back into the kitchen to make the main course and sides which we then leisurely enjoy. A small dessert like a home baked brownie with a scoop of ice cream if we've still got room which often we don't. I alternate between NY strip steaks and bone-in pork chops both from our local butcher. I make a sauteed mushroom and onion pan sauce and a side like popovers, biscuits, twice baked potatoes, hash browns, etc. By the time we're done it's better than even the finest supper club/steakhouse/fine dining restaurant and no drive home. We do this twice a month which is as often as we care to have a meal like this. Originally the plan was once a week but it was too often and I was already making the steaks and chops once a month each so it was a natural to simply expand those dinners into something more. Unlike an over-priced restaurant, everything is perfectly done exactly as we like it...this is really the only draw back of cooking at home, very quickly you become addicted to having everything as you prefer. Other dinners like "Burgers and fries" are far better than any restaurant with fresh ground beef from our local butcher seasoned perfectly with salt, freshly ground black pepper, garlic powder and onion powder with cheddar cheese, buns baked on site at our small town grocery store, lettuce, tomato slices, thinly sliced onions, pickles with a little mayo. Even "Soda Shop Dessert Nights" with made from scratch sauces/syrups for sundaes, shakes and floats in vintage glassware. Last night it was raspberry sundaes which I don't even know where you could get such a thing much less topped with a pitted fresh cherry and certainly not for such a low price as 75 cents. I can go on and on from repurposing electronics that are free from friends and relatives upgrades to using the free revolving credit of our credit cards to handle large unexpected expenses to avoid pulling money from savings or investments. My record is when we replaced our HVAC system a few years ago when I got 4 months before I had to lay out actual cash between the contractors lead time, 30 day bill term and waiting for my credit card cycle to restart before I paid the contractor's bill and all without a penny of interest. I was able to save up the entire amount from our regular monthly spending in that time by tightening our belt a little more. Cheers!
Hey Tom! Some incredible information. I truly appreciate you sharing. We try the same thing around Pizza & Movie Night. We of course make it on home on a Charcoal Grill and as a native to NY Pizza, I'll take my pizza 10 out of 10 times over NY Style Pizza. As far as the movies go, I go the Buy route because I love having access and dont believe in censorship. Its also a bit of hobby collecting too. So, I actually like to have the physical copy, but I also back up ever movie into a media server and now have more movies available than Netflix has... Most of which was purchased 2nd hand. Thanks again for sharing and commenting... Keep crushing it
It is totally possible. I have lived off 50% of my income for the past decade plus and it allowed me to put 2 kids through college debt free, my wife to be a SAHM (toughest job in the world) and retire at 55. Play the long game
Play the long game!! I really like that. Thanks for watching and sharing and keep up the great work. Agreed on the SAHM, My wife's job is 100X more difficult than mine.
True. Half of Minimum wage is pretty much impossible. Its a long term plan and generally most people increase their spending at the same rate if not more than their earning increases. Thanks for watching and sharing, you are correct
All good! It takes 90 days to end and start a new habit. People would be amazed at what they’re capable of if they could just hang in there for 90 days!
I don't do as well as you, but i do live below my means. I'm in a wheelchair and on a fixed income, but I'm doing just fine in this economy. I don't use credit cards, i have a 25 year old, $800 car, i have a mortgage but bought the house as a foreclosure for 60k. 20 year loan. My payments are less than what most pay for a new car. I don't do Costco but i buy what i need usually from Walmart. Despite making less than minimum wage on disability, i still have money left over at the end of the month. I set that aside for things that might come up, car repairs, vet bills, home repairs. My credit score sucks. I suddenly ended up in a wheelchair and just couldn't pay the credit cards, so i didn't pay them. I don't care. I will never use credit again. I cook for my dogs. I make a soup that i pour over dry food which makes it soft for my elderly dogs. $5 pot of soup they can eat off of for 10 days. I put it in containers and freeze it. I do movies on Amazon Prime. Maybe 2 a month. I paint as a hobby, and I'll spend some money on art supplies, but i also sell some of my artwork and recoup some of that. I'll buy myself a new t-shirt every now and then, bought new sneakers this month (walmart $20). Not investing but doing ok in this economy. Another thing is i buy everything in bulk wherever possible. Meats i always buy in bulk. I spent $700 filling 3 freezers up with meat and that will last me at least 6 months. So monthly for the next 6 months my staples will be less than $200 a month. You would not believe how much meat i got. I found ground turkey marked down to $2 a lb. Bought all they had, 13 lbs. Saved $36. That's just one item. I did save up and buy myself a new stereo last Christmas. I love my music, so i spent $1500 on a Denon receiver and Polk speakers. It sounds fantastic!!! This year I'm getting a larger living room tv. I do, do nice things for myself. Within reason and i save up to buy something. Thanks for the video.
My dad bought a used car every 2 years and each time he traded it in for a better car. In 1961 he bought a Ford Anglia for £49 for cash, drove it for 2 years whilst banking a monthly sum for the next 2 years to save and trade in for his next better car. He did this all his life, never went on a payment plan or paid any interest. His last car before he passed away was a 2 year old Holden Sedan. Always paying cash he often got a discount. This is one of the lessons my father taught me. RIP my wonderful teacher, my dad. 🌻
I clothed all of my kids at clothing exchanges, second hand and they were all nice. Kids grow fast. I shop at the costco table. I use a lot of your strategies. Im older, no debt, house paid. Saving for retirement.
Hi Leslie- Kids clothes are expensive. My wife and i just said, we spend more on our daughter than us. Congrats on the house paid, very few people achieve that!
If we can spend 100s on things like shein and temu for horrible quality clothes, why can't people get behind second hand shopping?? I just don't get it, the quality is better and costs the same or less. No one is going to have what you have. I love thrifting!
We embrace DIY. We had an above ground pool that was leaking and put it on market place. Someone came, bought it and dismantled it. We then proceeded to do our own flagstone patio…. (Which I would never do again) but it is beautiful and I, like yourself am very, very proud of it. Amazing what you can learn to do from UA-cam.
This is the best video ever! And I only stumbled across it while looking for something to watch, man everything you're talking about sounds like what I'm doing i am frugality on steroids, I'm debt free and love my life retired and able to breathe the free air good to know someone else is out here living life right.
Well I am so happy you found me. Thanks for finding me, you are not alone. Thanks for the kind words, its odd making videos and wondering, I'm not sure what people think. So, your encouragement means alot.
@@brianfarrell924 Yup. Great insight. A few adds if I may? I am 60. Earn more, if one can. Part time gig too (did mine 12 years). Spend less. Every dollar saved, is $1.20+, you didn't need to earn. Earn some more, and keep cable TV. I don't mind a new car but realistic type and keep 15-20+ years. Plenty of good used cars though. For investing, look at past 6 months performance in picking fund. And review at least once a quarter and learn how. Info out there. And probably not a broker, unless they make you 10-20% per annum. Doesn't have to be perfect effort - just better....
Having a stocked bank account takes so much stress off of you. When you have money small ‘ disasters’ are just a blip on the radar. To me being frugal means choosing to make your money go farther .
Hi Becky- you just put so perfectly in 3 sentences. I love the phrase you used "stocked" but, thats what it is. If you dont want to run out of food, stock your fridge. If you dont want to run out of money, stock your bank account. Bravo!! You just inspired me. :)
Thank you for this great video. This was very inspiring. I agree with you have have been able to do so much living on a budget. No one looking in can tell because I am very frugal. But I am creating a different type of life for me and my kids that is truly debt free. Videos like your keep me going on my path to financial freedom. All the best to you and your family. Keep doing what you are doing!
Bought house 2+ years ago, 4.25%. Less than 90% of my gross income. 30 year loan, but paying on it like if it was a 15 year loan. Gives me some flexibility for those "oh crap" life moments. No car loans. 1 zero percent loan to replace windows (had cash, but put it to better use).
Around $250,000 was made when I sold my flat in Rochester. That's why I was upset when my standard savings account yielded only $171 in interest. It was suggested to me to buy stocks after I conducted some study. Which stocks would be a good place to start?
Thats awesome! congrats. I don't do individual stocks, too much work and risk in my opinion and experience. 1st check a High Yield Savings account if you can or applicable in your area. (some rough math on a 4.3% yield -standard in the states now) you are roughly look at $10.7K a year in interest!!! I only invest in Index Funds. If you like reading or listening, I highly recommend EVERYONE read the "simple path to wealth" by JL Collins. BY FAR the easiest, simplest way to get comfortable with investing. Perhaps my favorite book of all time.
Although the stock market is exciting and can yield a healthy return on investment, professional advice is necessary for efficient portfolio management to prevent market burnout due to its extreme volatility.
The 15 year mortgage strategy of saving on interest can also be managed alternatively by getting the 30 by paying extra on your principal each month. You have to go in and check the box to ensure you put it on your principal. I also decided to make sure our lifestyle is built off of one income rather than both incomes to ensure we can easily manage risks (ie like you said about buying the cheaper house instead of what you can “afford”). The buy quality, people can look up cost per wear or cost per use. I learned that lesson a long time ago with purses.
My daughter has a Costco’s membership. I have a Sam’s Club membership, but I will say is the meat is actually cheaper at Sam’s Club than it is at Costco at least in my area. But I love the Costco chickens at $4.99 because they’re twice the size of the chickens at Sam’s Club so I definitely get my chicken at six Costco’s and I also get cheese at Costco because it seems to be a lot cheaper I pick and choose between the two clubs because like I said I have a Sam’s Club membership my daughter has a Costco membership and that’s how we do things absolutely love the food because I can buy all of my teenage children hotdog combos for only $1.50 each that is totally a big for going to eat out, it’s gonna be Costco’s or Sam’s Club food court.
I didnt know that about Sams, We have one but, its a bit out of the way. Thanks for sharing :) If you had to pick between Sams or Costco, which would you pick if you only had one ?
Being upset on people that don’t want to go out and drink is exactly the same behaviour I saw during my childhood in Eastern Europe and it ended in a lot of human tragedy.
Hitting 50% rate is a big goal I have. Happy to see you breaking down the pros and cons. Currently at 40-45% rate range, up from consistently spending more than i earned as lately as 2021, it is definitely worth to have at least a frugal season in lif. I don't feel that my life quality has diminished a bit, despite the improvements in saving, but seeing the debts start to melt smaller has brought relief and joy.
that is so well said, the relief and light at the tunnel is way more enjoyable than the dopamine hit of making an impulse tattoo. Thanks for sharing and keep up the great work! I just wanted to be honest with people of my experiences.
I just woke up to financial responsibility as a way of having hope for the future and solving depression. I realized that the grim outlook for the future was making me not take action because "what's the point". But I got into stock market content, realized that I can actually compound and make enough long term to do some realstate project, and got all in. Every week I spend in the bare necessities and invest all the rest in a growth index, I enjoy life more now this way, because there is hope and I'm already building a fund for eventualities. I'm already converting friends, it's amazing how financially illiterate we all are seems as almost is done in purpose....
Hey! Thanks for sharing. Momentum is powerful and sounds like you are gaining that. I think the content you consume is ever more powerful. Keep consuming content that inspires you and keep up the great work. It gets easier and I'm glad your surrounding yourself around positive friends. You got this!
One of the most important things you said was, just because you can borrow it, doesn’t mean you should. Same as just because you can afford it doesn’t mean you should buy it. For example a loan. Just don’t do it.
Keep control of the big cost items - house, car, holidays and then the rest you can monitor less. Hoping to escape the 9 to 5 so that is a big driving force with keeping costs low and maximising income. Cheers Sue 😊
Being frugal and being cheap are two different concepts that get confused all the time. For example if you home furnace breaks down beyond repair, you do not want to cheap out and buy something that will break in 2 years.. however you can be frugal getting quote to find the best deal on a new, refurbished or used furnace that will last.
Great Example! We are doing that with a split mini unit in our home. We have the funds, but trying to figure out the best approach through not be reactionary. We held onto a portable AC as a back up thats getting the job right now. But, you are spot on two often confused approaches. Thanks for watching :)
Brian I’m 45, with 5k saved towards retirement. It’s really hit me over last 6 months. I got 11k for my emergency fund. But now I’m all in on 401k, Roth, etc..thanks for the content. Americans just waste there money, everything is expensive..now is the time to save the money. Thanks
45-55 is actually when people earn the most so, the way I view it. Perfect time to get started for you. To your point, we are at all times for savings accounts, banks are paying people to not spend write now.
I lucked out did a rent to own when prices were affordable. Paid off home at 32 as a single female with a minimum wage job (worked overtime often) and rented out a spare bedroom. I do not drink (sobriety is good for the wallet) or get my hair, nails, lashes done no coffee or tattoo addiction. I joined army national guard it has perks that have saved me $ at every turn like healthcare and drill weekends put a little extra cash in my pocket. My fun purchase was a four wheeler and a jet ski which was significantly cheaper than a SxS or boat yet just as fulfilling. I also avoid retail shopping like the plague and all my bills are on autopay. I am now married (#DINK) and don’t have to work I choose to work which is good for my peace of mind my life is stress free bcs I live well below my means and continue to save save save!
Oh man. Everyone needs to hear these things. We are on the same page on all your points. We pay ourselves first. We are investing 35% of our income. Healthy savings. Buy bulk. Cook in and grill all the time. I just looked at last years budget and we spent 350 all year on eating out. Used cars payed for in cash and run then for 12 to 15 years. Bought a smaller more affordable house and payed it off in 17 years. Raised a daughter, sent her to school debt free all while living on about 50% of our income. When we first started out we didn't have much income but we saved some money and as we got raises or changed jobs and income went up, we didn't increase our lifestyle to it but invested more. It doesn't mean you cannot have fun. We have lots of fun with family and friends. We take multiple trips a year because we don't waste our money on all the consumerist crap that is advertised to us all constantly. Ditto on the look poor point. It can be a game changer in a group. Most of our extended family ( aunts, uncles, cousins ) do not know where we are with finances and I want to keep it that way.
For me the key to saving money and still having the things i wanted came down to effort. If you can do something, or learn to do something, dont hire someone else to do it. If you can collect food dont get it delivered. If you can walk or cycle somewhere dont get a taxi. Shop around, dont buy from the first website/store/brand you come across. Buy in bulk and put things in storage. Its so easy to waste a lot of money on convenience, and the best thing is that going the extra mile so often pays off in other ways. Cycling to work has been great for my health, and learning to build/upcycle things myself has been an absolute joy! Ive never got a sense of satisfaction from being lazy, but i get heaps of satisfaction when my efforts pay off.
I got pulled over several years ago (pre cov) and when the officer came back to my truck window (a 25yr old "work" truck") he said "I know times are tough right now, so choosing not to write you a ticket. If you were one of those guys driving around inan brand new lifted diesel doingbwhat you did, you wouldn't be getting off so easy. Hang in there." And walked away. So yes, looking broke certainly has its unexpected advantages.
lol I drive a 1999 Chevy suburban and I don’t even lock the doors. No one is robbing a 25 year old beater. People laugh at me for driving it but hey it still works so why buy something else?
Great videos! Great tone and message. The only unsolicited advice I have is that if you were able to not look like you're reading something you would have 10x the subscribers since your message is powerful and you can tell it's from the heart.
Much depends on income. Yes - I know most folks have expenses that grow to match income, but belt tightening is more realistic when you're not starving to begin with. I can't afford Costco, for example, but it makes sense for people with more money or big families.
@@brianfarrell924 i would probably go with Costco because Sams is part of Walmart and i don’t like what Walmart did building outside small towns and decimating the downtowns. Even though those are now coming back. There are some products like members mark toilet paper that are better than Kirkland toilet paper. Yesterday we went to both ( in St. Louis) Sams will let someone be on your account which is am on my bf’s, so i can go in and take advantage of sales without him, but with Costco i always have to be with him. It really is a toss up in my bf’s eyes. He has said he would get rid of one of them but has not been able to choose🤔
hi love the vid. i used the frog in boiling water theory too...i paid tiny extra amounts into my savings first in the month meaning i had to find creative ways to make the rest of the money stretch. i joined a lot of frugal chat groups and examined what we as a family loved and thats what we prioritise. We have a pretty low cost of living.
I read consumer reports on cars. I look for warranty, reliability, miles per gallon. I do not purchase add-on features. I buy a modest vehicle that suites our needs and buy it new because I have been burned with used vehicles before. Then I drive it for 10 plus years. I drove one vehicle for 21 years! I am not here to impress anyone and I just am seeking reliable and cost effective transportation long term. Plus I pay it off really early. My last car I tripled (sometimes more) my payments and it was paid off in about 14 months. The interest rate was super low so it was almost like paying cash.
I remember after getting divorced, and flying business class to south Korea. I showed up in a Diesel hoodie, converse shoes and shorts. One of the south korean women behind me said: He is probably in debt because of that seat. He is definitely poor, just look at his clothes. Another older guy told her: Well, maybe he can afford it cause he's not a slave to consumerism? How did you pay for that seat? Her reply: I'm still paying for it! I have 6 more downpayments. How I paid for it?? I stacked cash for 3 months, used my cash points and flew ecconomy one way.
I must be such a weirdo. My one and only car is now 18 years old with 165K miles on it and still looks and runs great (always garaged). It was two years old when I purchased it and I paid extra every month on it so had it paid off in four years instead of the loan duration of five years. I don't feel this car has kept me broke in any way, shape or form.
I had a neighbor who built a new house and she needed furniture. She went in dressed really poor to look for furniture and looked to see who waited on her. She made note of their name. Came in later dressed nicely and asked for that person to make the sale😊
I love all of this. I've been doing all of these habits for the last year and have saved more money than I ever have in my life. Will take the jump and start investing before the year is over. Thank you ❤🙏🌏🏡
Hi @thisgirlkarenn- PLEASE Check out this book "the simple path to wealth by JL Collins" This book changed my investing life. Hes got a great audio voice as well if you prefer to listen to it. BY FAR the easiest to understand how to simplify investing.
I wish we had known these concepts earlier, but we got it together about 10 years ago and hope to retire “early” in less than five years. Living in New England is terribly expensive. Love it here but we will be moving to a more affordable place at retirement.
About investing. We started using a Ramsey endorsed "Smart vestor" 10 years ago. We were in our mid to late 40s and kept our risk low (making 7-8% annual.) In the meantime, our 401K with my husband's work grew and our real estate appreciated. Now we're in our late 50s and, believe it or not, we feel like we can be more risky with a portion of our portfolio, because we can stand to lose it. We're going to go "aggressive risk" with 5% of our total networth. I didn't expect to have a peace about something like this. Btw... we've always been debt free in 30 years if marriage. We even built our house "cash 'n carry" while living in a travel trailer. But I know that that kind of craziness isn't for everyone.
We are doing so many things right- paid off mortgage, investing a good amount, putting money away for kids' college, buying 10 or 20 year old cars for cash. I am proud of us. But we are still such big spenders in many ways. We love spending on our landscaping and farm animals (not cheap at all), we love great quality ingredients (aka fine cheese, wine and chocolate). I really wish we could pare down on our flexible spending more but it just hasn't happened. In the big picture though, we're doing pretty well.
When looking for books, check the local library. Borrow to read it for free. If you want to purchase, the library sells books also, usually less than $2, many for 50 cents. On home purchasing, the realtor will want to show you only houses that are at the price that you are pre-approved for. The realtor's salary is directly tied to the price of the home you buy, so there will be a bias to only show you those homes. On the mortgage, I had a 30 year loan, but I could see each month how much was interest and how little was principal. Each month I paid an additional amount equal to the principal, which the bank let me do online easily. This doubled the pay-down amount each month, which also reduced the interest charged. The first step to getting control of finances is tracking every penny spent. Once I did that for a couple of months I saw how much money I was wasting, and realized what I could be doing with the same money that would bring me happiness.
That’s wonderful! Thank you for this information and encouragement. We are able to live on 60 percent of our income it’s nice to be able to invest and be obedient to God through tithe and alms to the poor. I appreciate your perspective and wisdom. God bless! 🙏
What i learned about 15 yr vs 30 mortgages is you can always get a 30 yesr and pay extra towards principle to decrease your interest. This is a benefit to those that want to invest in real estate but dont want the higher monthly payment of a 15 yr mortgage to disqualify their debt to income ratio. If that makes sense. With a 30 yr your monthly payment is less, which will qualify you for another mortgage in an investment property, AND you can always add extra to the principle.
Alot of people go that route. I wanted to own my house outright with out being overextended. I Took a 15 yr loan which was a full % lower and only $400 more a month than the 30 year loan and end it up paying off 7 years. Im all set.
at 12:41 one small addition though, 8% growth takes 9 years on average to double your money, not 6 years. I wish it were 6 years that'd make things even more amazing :)
@@Boxsalesman you are correct, good catch. Think I originally I was looking at 8-11% range and after talking for 30 minutes confused myself. I’ll see if I can go back into the video and make a notion. Thanks for the heads up and watching.
13:35 I live in Oz. I usually buy used cars. Last year i did some sums and for me buying a 25k used petrol car versus a new 50k electric car came out very close. I went with the ev, solar panels & 30 TSLA stocks (all up 70k). And in regional area, the tyranny of distance has been reduced. Been able to access health care weeks earlier by being able to travel.
You could take the 30 year mortgage and make extra payments towards principal. Can do that with a 15 as well. A 200k house with a 80% loan was something like 300k of interest at 30 years at 7%.
Crazy how the interest adds up. You can do it with a 15 yr off faster too. I wasn't success with a 30 yr. Basically, when I needed to cut back my extra payments were the 1st thing to get cut. My 15 yr was only around an extra $500 a month and I put down more each month. Many people have been succesful with a 30yr though. I wanted it done in 5-7 Years though.
If people live where they can, check local farmers for meat. We have local farmers we get a quarter beef from about once every year and a half for way cheaper than any store. I know that means having a deep freeze to store it but if ya have the space then it’s worth it. We also still have the half hog we bought over a year ago. It has helped us save money as well as time by trying to find sale prices.
I'm living on 40% of my wage, tax efficient investing the rest I wish I'd started way way sooner!, no car and no real need for one, house paid, don't smoke, stopped drinking, don't eat out, and cut clothes shopping way down as I realised I wasn't buying to have something on my back but more for the thoughts of others. Stopped buying tech even though its oooh so tempting. My only guilt is take away delivery but aiming to cut that down as well. I think in real terms I could get it down to 35 to 30%, perhaps lower if I really concentrate on it. I don't begrudge folks living a consumerism life as those are the people that will fuel the stock market and ultimately my retirement.
YOU SAVED ME! I bought it clearance off course and like it, but had no idea what it was. I just read all about it, thanks for letting me know :) Very Cool
I’m actually working down some debt that I owe but it’s not as much as it seems like it just is a big number from a distance. I think we’re under 10,000 now but it’s super simple to pay down the debt that I have because it’s basically my credit cards that are still active and that I use and also my Affirm account which I use a lot!I use my firm account for Walmart and Amazon orders but it’s really hard to try to cut my income in half due to the fact I have three teenagers in the house and not only eat me at a house and home but they’re constantly changing sizes still pretty much clothing, at least my son is who is 13 and almost 6 feet tall already. But that given and said you’re absolutely right. Pay yourself first and increase as you can!
Great work! Three Teens, god bless you :) keep up the great work, your almost there. The air will taste a little different the next day after that final bill is paid.
The amortization tables are quite fascinating. The amount you can save in interest by paying whichever loan you take out early is quite staggering. If you can afford the repayments, you'd be insane not to do a 15 year mortgage v.s. a thirty year one. I wish they had them where I live.
Hi John- you’re spot on. It’s almost criminal how much interest is being paid on those longs. We’ve normalized paying more than double for the home. When we asked for the 15yr, the bank acted like we invented it. We had rhetorical manager come over and they just weee confused why we’d want a higher monthly payment. Thanks for watching
The "looking poor" comment is interesting. A few weeks ago, I walked to a gas station about a mile from my house wearing an old pair of shorts that have a rip in them and probably should be replaced but are still functional. It was a pretty normal day for me, but I guess the combination of walking not being common in my area (if you are out walking around here, people tend to assume it's because you don't have other means of transportation) and my kind of raggedy shorts, but I remember that on my way back home, someone stopped and offered me a plastic container of some baked goods from a grocery store and reminded me that there was a food bank not far away. I guess I looked really poor that day.
I also wanted to point out where you live is just as important as how much you spend and make. If you live in a cheaper part of the country / world, you may make less, but then you may need less. If you live in a high cost of living area you'll make more for sure, but then you'll NEED a lot more to live. I live in CA for instance, and cost of living is insane. Average incomes here need to be higher because the cost of living is also a lot higher. You can live cheaply, but it becomes a lot harder. I have thought about moving, if I can find a job out of area. My employer keeps me here for now. But moving to a cheaper COL area means you also need to make less and save less money. Much less stress.
I can’t recall if I said in the video (they blend in at times) but, we left California and that was a big reason why! My current home is 3 times the size of our Nor Cal home and a quarter the price when we moved! Great point
This year I cut off daily energy drinks, instead I drink free coffee at work. $2.50 a day x 365 days a year = $912.50 saved a year! Also Iv been buy clothes second hand from goodwill and eBay compared to when I’d only buy retail. Picked up a second side hustle to knock out my consumer debt. Soon I will be debt free baby
I've had 2 or 3 Costco memberships and never found enough things there that I needed to make it worth my while. Also, I never liked the idea of paying a store for the privilege of shopping there (also known as paying them for the privilege of paying them). As for inexpensive clothing and housewares, I highly recommend thrift stores.
What you are saying is great, and makes sense. However, my observation is that it’s a lot easier to live on 50% of your family income if you’re earning 100k or more. Much less so if you’re on 50k.
Great video! For our family, investing in low cost index funds has been the best. MER (Management expense ratio) around 0.6% will ensure you are not giving your money away and will see growth! Second is cars. We had no car for the last 20 years. Finally got one and it is an old Toyota. Third: we buy almost everything secondhand, or borrow. Massive savings!
Thats great! We do the low cost index funds for everything (Brokerage, 401k, IRA, HSA investments. Set it and forget it. Thanks for watching and sharing 😀😀
We always buy our cars used. We keep up with our routine maintenance and take care of them, they stay nice for a very long time. We have 4 cars and they are all nearly 200k miles and run just fine. Even our daughter’s 97 Ranger!
Love it.. I actually live fairly luxury on about 25% of my income. Im not sure my spending makes any sense any more. I probably have 5 $6 t-shirts 3 pairs of shorts and 1 pair of pants in a cardboard box in my wardrobe. Its super simple and stress free. I drive a $100 bicycle I picked up on facebook marketplace. Then have a cheep moving van worth maybe 15k that I dont even bother insuring. I also have a few mill in the bank and and 2 properties with no debt in different major cities around the world and usually spend a couple of months a year on the beach or at the skate park.
Mom managed her stocks , I manage mine. At least if mistakes are made , they’re mine . I Also reduced my cell phone bill by switching to Mint. Save over 800 a year. Lots of ways to save money if you dive into it and shop around.
The older you get, the less you care what people think of you. True friends will accept you for you. I love bragging that my car is paid for because I'm hoping others will catch on and have the lightbulb moment
Ive educated myself on debt and investing. Whats cool is i manage my dads IRA, my wife's, and my daughter's investment account. Its been a fun and pretty cool skill. In another year or less ill be beating my wife's 403b returns. I was held hostage for like 15 years on debt, once i realiz d borrower is slave to the lender it was a game changer
Thanks for watching! let me know your best advice for living below your means or what your biggest learning was... Ready,😀 Go....
1) Going from owning a new car on payments to owning a fully paid used car to going car free and renting when i need was the single biggest step in cutting costs.
2) Being involved and motivated in my job, overdelivering the results and THEN negotiating pay raises over the few years when there was something to show,
Cassorols
Part (2) Please !! The message hits home. 🙂
@@voz2voz thanks for watching. I actually did a part 2 & 3 since making this video. 😃
When I bought my previous home, I was 'approved' for @250k. Instead I had my house built for 150k. It was basic no frills but with a big yard in a nice subdivision. I paid it off in 9 years. I learned from that experience that I have to be my own 'finance' guru and not follow the crowd.
Hi Annie! Very wise point of view and approach. Be your own Finance Guru is really the key to winning just like you have. Thanks for watching and sharing ? What state are you located in the purchase a home at the price !
A new concept I've discovered is "Loud Budgeting". That is where people are not afraid of saying "that's not in my budget". I think it's great, and I've starting saying that when I know my budget won't allow me to do something. AND, I'm not afraid of saying it.
How Being LOUD About My BUDGET Changed My Life & Wealth
ua-cam.com/video/gwMSNoVPIBg/v-deo.html
Hi Mary. I actually made a video about that movement above. I think it’s great, it really hasn’t drawn quite the interest on UA-cam so, haven’t done much more around it. Keep up the great work!!
No need to be loud, some kids are using loud budgeting as a bragging tool; we are much more mature than that.
@@tdgdbs1 😂
I say it all the time
Bought first house on 15 years, paid off in 10. No debt since then. Maximized ALL employer savings plans plus more. We retired very comfortably at 52. No regrets.
You are officially my hero! Congrats on dominating your working years 😀
Congratulations but try it now..
I made the mistake of telling a close relative what my net worth was and he said, "Well, you were always frugal." My answer to myself was that, no, dear relative, when you were making the big money you were busy buying the expensive toys, like the boat, the share in an airplane, the big house, the luxury car, etc. I was happier watching my retirement accounts grow and paying off my average size house in 11 years. I told my kids that I worked the extra hours because I did not want to be a bag lady when I was old. It worked. Now I'm old and I don't have money worries. I'm still not extravagant because I might need assisted living when I'm in my 90's, etc.
Not good advice, how many people tried what you did and by the team they managed to amase a good net worth, they just died.
What is the point of saving so much money for old age if you are barely able to change your own diapers by then?
We are past this point of saving 50%. We are FI. It took 25 years to get here. And the number one thing that helped us was Learning how to cook and grocery shop. I can feed us for almost nothing if I have to. So all of the noise about grocery prices and how they are going up I do not understand. Cook more. Quit buying all of the convince items. Rice, beans, produce and a little meat is all one really needs. Add a few spices and all is good. Make it fancy by making some flat bread. We eat damn nice. But it takes time in the kitchen.
Congrats on Financial Independence. Great perspective on Cooking, I didnt mention but, we have our food staples as well that are go to meals. Thanks for sharing
I agree! I cook ALL my meals and snacks. I bought my meat in bulk once I bought my freezer. I only grocery shop for small stuff I need. And that’s maybe once a month. I don’t eat junk food AT ALL. Too Expensive and they use the cheapest meat and oils in that stuff. No thanks. I unfortunately didn’t learn this overnight. But better late than never, right?
You don't even need the meat.
@@princessdumbarton9877Perhaps, but since I have gone full-on carnivore I‘ve never felt better. I buy locally produced, grass-fed beef; no more Wal-mart meat for me after two bad bouts with food poisoning, likely due to poor sanitary practices at the processing plant. Yes, eating carnivore is more expensive than rice and beans. But, after having a kidney stone removed I researched and found out that beans, along with spinach and almonds, are high in stone-causing oxalates, so they are now gone from my diet, along with carbs and processed foods (chocolate, cakes, pies, etc.). In the past I was never able to conquer my cravings for processed foods for very long, but since going carnivore the cravings have disappeared.
To anyone steeped in the USDA’s food pyramid, carnivore sounds crazy. I am, however, a living testament to its health-conferring utility. I am 64 so I’m old enough to remember when seeing a morbidly obese person was a rarity, not an everyday occurrence. As people went on low-saturated fat diets, people have ballooned because they are replacing good fats that satisfy hunger for carbohydrates that never really satisfy their bodies at the cellular level.
Finally, YMMV, but I doubt it. If someone wants to trust the USDA’s pyramid, have at it. But I am highly suspect of anything the government puts out, mainly because of the revolving door between government bureaucrats and corporations. Anyone remember the see-nineteen (sic) hysteria and the safe and effective vakx (sic) trope?
I agree with you cooking helps saving go as planned. Even during inflation I can still stretch my budget to meet my monthly food need.
I used to be super frugal, and still am pretty frugal. You really can live 80% of life on 20% of the cost
But one thing I learned was the difference between value and cost
Don’t make purchases based on cost. Make purchases based on value
One example. I used to dress like a bum. Everyone treated me like a bum. A one time investment of $3K on nice clothes that fit well might sound like a lot, but it has transformed my social/dating life. My quality of life is 2x-3X better for a seemingly frivolous clothing expense
Another example: Eating out at Mid-level restaurants might seem like a waste of money, but for me it’s an inexpensive form of entertainment and luxury. I don’t eat out for everyday meals. But a couple times a week I spend $20 on a sit down meal. At 100X per year this adds like $1500 to my expenses, but I get a lot of enjoyment from it
Spending money isn’t the enemy. Just be value focused
@@seanmiller8151 I really like your spending money isn’t the enemy just be valued focus. I say something similar that I call the “frugal bliss point” it’s finding the balance of cost vs value.
Thanks a lot for watching! It sounds like the clothes investment was an incredible investment:)
Genuine question, what kind of restaurants are you getting a $20 sit down meal at?
@@mojojojo560 I live in Columbus/Salt Lake… so maybe this doesn’t work on the coasts… but If you get water, no appetizers, no desserts, you don’t get steak/expensive items, and you’re intentional about the restaurant you go to, you can definitely get mid level sit down for $20-$25 per person (tax/tip included)
I’m talking real mid-level, not just chains like applebys and Chiliz… though I will say Texas Roadhouse is amazing. Only chain I go to
Even a handful of lower mid level options at $15
@@seanmiller8151 Ah okay, thank you! Best wishes on your journey to financial freedom.
@@seanmiller8151not to mention taking advantage of happy hour and early bird specials!! My husband and I do this on date nights or we split a meal. We also do free activities like hiking or exploring local areas via walking.
Saving is a must, you never know what is around the corner. Saving gives me peace of mind.
So true. Thanks for watching and sharing 😀
Hubby and I started off (1990 lol) living off half our income, we paid off our student loans (only about 30k), bought a car (no loan), maxed both 401ks and socked away money in mutual funds. We couldn’t keep it up when we first had kids (had to have a nanny - expensive!, then I went stay at home which dropped our income by more than 50%). But we were accustomed to living on 50%, so it was doable. As hubbys income increased we eventually got back to saving 50%. Retired in our 50s, after fully paying kids undergrad and grad schools. Compounding returns (when you start early) are like magic.
Look at you! Thats incredible. I'm so glad you are sharing your story to show others it can be done. Couldnt agree more, its like Magic and makes you think differently on spending when you realize your money can make money and that money earned also makes money. 😀
Fantastic story Dharma. Your combined early work is paying dividends now, very well done! Ours is sort of the opposite (we enjoyed life before kids, lots of holidays, then with kids only one income for almost 10 years) but as my wife is now working almost full time again we can really save enormous amounts and that should fix things very quick, well on the way to retirement, hopefully around 50 if we want to.
I’m grateful for the fact that I never developed a taste or care for high end things. I don’t own a nicer outfit than a pair of jeans and a flannel, and I probably haven’t bought any new clothes in about a year. I drive a 1998 F150 single cab that I bought in 2012 for $4,000 and have no desire to upgrade. I actually prefer driving cheap, beaters. If someone offered to trade a Beamer or something straight up for my truck I wouldn’t even be interested. I still live in a 2 bedroom apartment and don’t really have a desire to move into anything bigger. I don’t notice a difference between expensive fancy restaurants and cheap ones, so I never go to expensive ones. I just genuinely have no interest in upgrading any of these things, I don’t envision a nicer car or expensive clothes making my life any better. None of its even a little bit appealing to me, and I feel like I lucked out in that sense because it makes living below my means really easy and I don’t really even feel like I’m making any sacrifices. I only make about $70k/ year and that’s more than enough to never stress about money
I've been at this a bit longer than most and I've got a few tweaks. I don't buy movies or books and haven't for years as it's a waste of money and I don't want to have to store them. Both are available for free whenever we like from our local library system, delivered right to our small town library from the larger regional system. Additionally, free streaming makes almost everything available instantly so there's just not much point in buying content.
We don't shop at Costco or other warehouse clubs as the prices are far too high, we find much better deals at grocery stores by shopping and stocking up on weekly sales and the produce tends to be better. I've been to Costco several times and I like what they're doing there but when I looked to see what people were buying and what the average receipt was, it's not something I want as it's mostly snacks and drinks for $300 and that was several years ago so I can only imagine what it is now. Years ago we had a Sam's Club membership through a family member but we'd only get a few items from there as the deals where better elsewhere and for our 2 person household the quantities were a little much.
I've got a lot of different interests and I keep costs low by sticking with just the basic gear, buying used when it makes sense to and often I end up with better equipment because things were made better in the past. I also focus on finding lower cost or better yet free alternatives that are also better...never settle for less than both. I can give many examples but one of my favorites is mattresses. Instead of paying far too much for something that isn't going to last I order a zippered bamboo fabric mattress case and layers of high quality/high density foam for a mattress that no one is willing to manufacture because they're focused on maximizing profits rather than making the best product and it only costs a few hundred dollars for a king size.
We also love to cook at home from scratch for every meal and everything is better at home. We rarely eat out, only for family gatherings and we don't even want to do that other than to see everyone. During the pandemic I came up with several theme nights such as "Friday Pizza and Movie Nights" with my made from scratch pizza that's better than the best pizzeria. We start with 80's music videos while I make the pizza followed by a cartoon short from the 30's and the main feature with an intermission about halfway through where it's back to the music videos while I make popcorn or kettlecorn on the stove top to munch on while we finish the movie. Then there's "Supper Club Dining at Home" where I hit the kitchen at 4pm to make a relish tray that can't be beat by any restaurant and salads with a made from scratch dressing. I found a great video that features classical music with a slide show of European art, architecture and nature to play on a low volume while we start with the relish tray and salads as we relax and chat. I head back into the kitchen to make the main course and sides which we then leisurely enjoy. A small dessert like a home baked brownie with a scoop of ice cream if we've still got room which often we don't. I alternate between NY strip steaks and bone-in pork chops both from our local butcher. I make a sauteed mushroom and onion pan sauce and a side like popovers, biscuits, twice baked potatoes, hash browns, etc. By the time we're done it's better than even the finest supper club/steakhouse/fine dining restaurant and no drive home. We do this twice a month which is as often as we care to have a meal like this. Originally the plan was once a week but it was too often and I was already making the steaks and chops once a month each so it was a natural to simply expand those dinners into something more. Unlike an over-priced restaurant, everything is perfectly done exactly as we like it...this is really the only draw back of cooking at home, very quickly you become addicted to having everything as you prefer. Other dinners like "Burgers and fries" are far better than any restaurant with fresh ground beef from our local butcher seasoned perfectly with salt, freshly ground black pepper, garlic powder and onion powder with cheddar cheese, buns baked on site at our small town grocery store, lettuce, tomato slices, thinly sliced onions, pickles with a little mayo. Even "Soda Shop Dessert Nights" with made from scratch sauces/syrups for sundaes, shakes and floats in vintage glassware. Last night it was raspberry sundaes which I don't even know where you could get such a thing much less topped with a pitted fresh cherry and certainly not for such a low price as 75 cents.
I can go on and on from repurposing electronics that are free from friends and relatives upgrades to using the free revolving credit of our credit cards to handle large unexpected expenses to avoid pulling money from savings or investments. My record is when we replaced our HVAC system a few years ago when I got 4 months before I had to lay out actual cash between the contractors lead time, 30 day bill term and waiting for my credit card cycle to restart before I paid the contractor's bill and all without a penny of interest. I was able to save up the entire amount from our regular monthly spending in that time by tightening our belt a little more.
Cheers!
Hey Tom! Some incredible information. I truly appreciate you sharing. We try the same thing around Pizza & Movie Night. We of course make it on home on a Charcoal Grill and as a native to NY Pizza, I'll take my pizza 10 out of 10 times over NY Style Pizza. As far as the movies go, I go the Buy route because I love having access and dont believe in censorship. Its also a bit of hobby collecting too. So, I actually like to have the physical copy, but I also back up ever movie into a media server and now have more movies available than Netflix has... Most of which was purchased 2nd hand. Thanks again for sharing and commenting... Keep crushing it
It is totally possible. I have lived off 50% of my income for the past decade plus and it allowed me to put 2 kids through college debt free, my wife to be a SAHM (toughest job in the world) and retire at 55.
Play the long game
Play the long game!! I really like that. Thanks for watching and sharing and keep up the great work. Agreed on the SAHM, My wife's job is 100X more difficult than mine.
The statement "half my income" is obviously relative. Living of half of 40k is much different than $240k.
True. Half of Minimum wage is pretty much impossible. Its a long term plan and generally most people increase their spending at the same rate if not more than their earning increases. Thanks for watching and sharing, you are correct
All good! It takes 90 days to end and start a new habit. People would be amazed at what they’re capable of if they could just hang in there for 90 days!
WELL SAID!!!!
I don't do as well as you, but i do live below my means. I'm in a wheelchair and on a fixed income, but I'm doing just fine in this economy. I don't use credit cards, i have a 25 year old, $800 car, i have a mortgage but bought the house as a foreclosure for 60k. 20 year loan. My payments are less than what most pay for a new car. I don't do Costco but i buy what i need usually from Walmart. Despite making less than minimum wage on disability, i still have money left over at the end of the month. I set that aside for things that might come up, car repairs, vet bills, home repairs. My credit score sucks. I suddenly ended up in a wheelchair and just couldn't pay the credit cards, so i didn't pay them. I don't care. I will never use credit again.
I cook for my dogs. I make a soup that i pour over dry food which makes it soft for my elderly dogs. $5 pot of soup they can eat off of for 10 days. I put it in containers and freeze it.
I do movies on Amazon Prime. Maybe 2 a month. I paint as a hobby, and I'll spend some money on art supplies, but i also sell some of my artwork and recoup some of that. I'll buy myself a new t-shirt every now and then, bought new sneakers this month (walmart $20). Not investing but doing ok in this economy. Another thing is i buy everything in bulk wherever possible. Meats i always buy in bulk. I spent $700 filling 3 freezers up with meat and that will last me at least 6 months. So monthly for the next 6 months my staples will be less than $200 a month. You would not believe how much meat i got. I found ground turkey marked down to $2 a lb. Bought all they had, 13 lbs. Saved $36. That's just one item.
I did save up and buy myself a new stereo last Christmas. I love my music, so i spent $1500 on a Denon receiver and Polk speakers. It sounds fantastic!!! This year I'm getting a larger living room tv. I do, do nice things for myself. Within reason and i save up to buy something.
Thanks for the video.
One of my favorite things to do is roam through a Goodwill to see what I can find. I have no shame
No shame at all. Thanks for watching
My dad bought a used car every 2 years and each time he traded it in for a better car. In 1961 he bought a Ford Anglia for £49 for cash, drove it for 2 years whilst banking a monthly sum for the next 2 years to save and trade in for his next better car. He did this all his life, never went on a payment plan or paid any interest. His last car before he passed away was a 2 year old Holden Sedan. Always paying cash he often got a discount. This is one of the lessons my father taught me. RIP my wonderful teacher, my dad. 🌻
Love this story thanka for sharing. Rip to your dad
Lol!! The empty Burberry wallet reminds me of a Texas saying I love about showy people with no means which is, "Big hat, no cattle".
Thats really good too "big hat, no cattle" 😂
I got a fake Burberry scarf for $5. Beats spending $300 for a real one and it looks the same.
'Fur coat, no knickers' is another one. (Spent all their money on a fur coat for show, and can't afford underwear)
in uk we have ...fur coat no knickers
credit score..the i love debt score!
I clothed all of my kids at clothing exchanges, second hand and they were all nice. Kids grow fast. I shop at the costco table. I use a lot of your strategies. Im older, no debt, house paid. Saving for retirement.
Hi Leslie- Kids clothes are expensive. My wife and i just said, we spend more on our daughter than us. Congrats on the house paid, very few people achieve that!
If we can spend 100s on things like shein and temu for horrible quality clothes, why can't people get behind second hand shopping?? I just don't get it, the quality is better and costs the same or less. No one is going to have what you have. I love thrifting!
We embrace DIY. We had an above ground pool that was leaking and put it on market place. Someone came, bought it and dismantled it. We then proceeded to do our own flagstone patio…. (Which I would never do again) but it is beautiful and I, like yourself am very, very proud of it. Amazing what you can learn to do from UA-cam.
That is awesome! UA-cam is really incredible. Thanks for sharing
This is the best video ever! And I only stumbled across it while looking for something to watch, man everything you're talking about sounds like what I'm doing i am frugality on steroids, I'm debt free and love my life retired and able to breathe the free air good to know someone else is out here living life right.
Well I am so happy you found me. Thanks for finding me, you are not alone. Thanks for the kind words, its odd making videos and wondering, I'm not sure what people think. So, your encouragement means alot.
Living on half of $225,000 isn't all that hard :-)
I'm going to try it because I will soon have a car and insurance so I calculated i would have $300 or $200 left
Okay, I am so angry right now. This video was such a waste of my time.
Why?
Agree 100 percent. If you can afford it, go with the 15 year. You won't regret it.
Thanks for sharing! I like your style
I have no problem with learning to reduce your cost of living 50%, but learning to earn 50% more than you do now will pay bigger benefits.
Hi Greg! Great point, also i'd say an even more challenging skill 😀 Thanks for watching and sharing
@@brianfarrell924 Yup. Great insight. A few adds if I may? I am 60. Earn more, if one can. Part time gig too (did mine 12 years). Spend less. Every dollar saved, is $1.20+, you didn't need to earn. Earn some more, and keep cable TV. I don't mind a new car but realistic type and keep 15-20+ years. Plenty of good used cars though. For investing, look at past 6 months performance in picking fund. And review at least once a quarter and learn how. Info out there. And probably not a broker, unless they make you 10-20% per annum. Doesn't have to be perfect effort - just better....
I have mostly always lived off half my income: it just always made the most sense to me.
I wish I had your common sense. Thanks for watching and great work to you !
Having a stocked bank account takes so much stress off of you. When you have money small ‘ disasters’ are just a blip on the radar. To me being frugal means choosing to make your money go farther .
Hi Becky- you just put so perfectly in 3 sentences. I love the phrase you used "stocked" but, thats what it is. If you dont want to run out of food, stock your fridge. If you dont want to run out of money, stock your bank account. Bravo!! You just inspired me. :)
Thank you for this great video. This was very inspiring. I agree with you have have been able to do so much living on a budget. No one looking in can tell because I am very frugal. But I am creating a different type of life for me and my kids that is truly debt free. Videos like your keep me going on my path to financial freedom. All the best to you and your family. Keep doing what you are doing!
Bought house 2+ years ago, 4.25%. Less than 90% of my gross income. 30 year loan, but paying on it like if it was a 15 year loan. Gives me some flexibility for those "oh crap" life moments. No car loans. 1 zero percent loan to replace windows (had cash, but put it to better use).
Now thats a smart loan!!
Around $250,000 was made when I sold my flat in Rochester. That's why I was upset when my standard savings account yielded only $171 in interest. It was suggested to me to buy stocks after I conducted some study. Which stocks would be a good place to start?
Thats awesome! congrats. I don't do individual stocks, too much work and risk in my opinion and experience. 1st check a High Yield Savings account if you can or applicable in your area. (some rough math on a 4.3% yield -standard in the states now) you are roughly look at $10.7K a year in interest!!! I only invest in Index Funds. If you like reading or listening, I highly recommend EVERYONE read the "simple path to wealth" by JL Collins. BY FAR the easiest, simplest way to get comfortable with investing. Perhaps my favorite book of all time.
Although the stock market is exciting and can yield a healthy return on investment, professional advice is necessary for efficient portfolio management to prevent market burnout due to its extreme volatility.
The 15 year mortgage strategy of saving on interest can also be managed alternatively by getting the 30 by paying extra on your principal each month. You have to go in and check the box to ensure you put it on your principal.
I also decided to make sure our lifestyle is built off of one income rather than both incomes to ensure we can easily manage risks (ie like you said about buying the cheaper house instead of what you can “afford”).
The buy quality, people can look up cost per wear or cost per use. I learned that lesson a long time ago with purses.
Thank you for all the good advice.
My daughter has a Costco’s membership. I have a Sam’s Club membership, but I will say is the meat is actually cheaper at Sam’s Club than it is at Costco at least in my area. But I love the Costco chickens at $4.99 because they’re twice the size of the chickens at Sam’s Club so I definitely get my chicken at six Costco’s and I also get cheese at Costco because it seems to be a lot cheaper I pick and choose between the two clubs because like I said I have a Sam’s Club membership my daughter has a Costco membership and that’s how we do things absolutely love the food because I can buy all of my teenage children hotdog combos for only $1.50 each that is totally a big for going to eat out, it’s gonna be Costco’s or Sam’s Club food court.
I didnt know that about Sams, We have one but, its a bit out of the way. Thanks for sharing :) If you had to pick between Sams or Costco, which would you pick if you only had one ?
Being upset on people that don’t want to go out and drink is exactly the same behaviour I saw during my childhood in Eastern Europe and it ended in a lot of human tragedy.
Love this Brian, congrats mate it’s good to hear + learn from vids like this 👌
Thanks so Much!!
Hitting 50% rate is a big goal I have. Happy to see you breaking down the pros and cons. Currently at 40-45% rate range, up from consistently spending more than i earned as lately as 2021, it is definitely worth to have at least a frugal season in lif. I don't feel that my life quality has diminished a bit, despite the improvements in saving, but seeing the debts start to melt smaller has brought relief and joy.
that is so well said, the relief and light at the tunnel is way more enjoyable than the dopamine hit of making an impulse tattoo. Thanks for sharing and keep up the great work! I just wanted to be honest with people of my experiences.
I just woke up to financial responsibility as a way of having hope for the future and solving depression. I realized that the grim outlook for the future was making me not take action because "what's the point".
But I got into stock market content, realized that I can actually compound and make enough long term to do some realstate project, and got all in. Every week I spend in the bare necessities and invest all the rest in a growth index, I enjoy life more now this way, because there is hope and I'm already building a fund for eventualities.
I'm already converting friends, it's amazing how financially illiterate we all are seems as almost is done in purpose....
Hey! Thanks for sharing. Momentum is powerful and sounds like you are gaining that. I think the content you consume is ever more powerful. Keep consuming content that inspires you and keep up the great work. It gets easier and I'm glad your surrounding yourself around positive friends. You got this!
@@brianfarrell924 Thanks!!🙏🏻
You bet.
One of the most important things you said was, just because you can borrow it, doesn’t mean you should. Same as just because you can afford it doesn’t mean you should buy it. For example a loan. Just don’t do it.
Very Very true!!! I had to learn the hard way in my 20's
Sensible, reasonable advice. I appreciate it.
Thanks for watching!! I appreciate you.
Discipline is the key🙏❤
amen.
Remembering that God has provided all I need daily!
🙏
Keep control of the big cost items - house, car, holidays and then the rest you can monitor less. Hoping to escape the 9 to 5 so that is a big driving force with keeping costs low and maximising income. Cheers Sue 😊
Hey Sue 👋 good to hear from you as always. Keep up the great work!!! Thanks for all the support as always
Love the end . just like the advice, just do what you need, don't be fancy
Thanks Jim Bob
Being frugal and being cheap are two different concepts that get confused all the time. For example if you home furnace breaks down beyond repair, you do not want to cheap out and buy something that will break in 2 years.. however you can be frugal getting quote to find the best deal on a new, refurbished or used furnace that will last.
Great Example! We are doing that with a split mini unit in our home. We have the funds, but trying to figure out the best approach through not be reactionary. We held onto a portable AC as a back up thats getting the job right now. But, you are spot on two often confused approaches. Thanks for watching :)
Brian I’m 45, with 5k saved towards retirement. It’s really hit me over last 6 months. I got 11k for my emergency fund. But now I’m all in on 401k, Roth, etc..thanks for the content. Americans just waste there money, everything is expensive..now is the time to save the money. Thanks
45-55 is actually when people earn the most so, the way I view it. Perfect time to get started for you. To your point, we are at all times for savings accounts, banks are paying people to not spend write now.
I lucked out did a rent to own when prices were affordable. Paid off home at 32 as a single female with a minimum wage job (worked overtime often) and rented out a spare bedroom. I do not drink (sobriety is good for the wallet) or get my hair, nails, lashes done no coffee or tattoo addiction. I joined army national guard it has perks that have saved me $ at every turn like healthcare and drill weekends put a little extra cash in my pocket. My fun purchase was a four wheeler and a jet ski which was significantly cheaper than a SxS or boat yet just as fulfilling. I also avoid retail shopping like the plague and all my bills are on autopay. I am now married (#DINK) and don’t have to work I choose to work which is good for my peace of mind my life is stress free bcs I live well below my means and continue to save save save!
32 on minimum wage! Wow, thats incredible. You are a true inspiration :)
Oh man. Everyone needs to hear these things. We are on the same page on all your points. We pay ourselves first. We are investing 35% of our income. Healthy savings. Buy bulk. Cook in and grill all the time. I just looked at last years budget and we spent 350 all year on eating out. Used cars payed for in cash and run then for 12 to 15 years. Bought a smaller more affordable house and payed it off in 17 years. Raised a daughter, sent her to school debt free all while living on about 50% of our income. When we first started out we didn't have much income but we saved some money and as we got raises or changed jobs and income went up, we didn't increase our lifestyle to it but invested more. It doesn't mean you cannot have fun. We have lots of fun with family and friends. We take multiple trips a year because we don't waste our money on all the consumerist crap that is advertised to us all constantly. Ditto on the look poor point. It can be a game changer in a group. Most of our extended family ( aunts, uncles, cousins ) do not know where we are with finances and I want to keep it that way.
Thanks for the very kind words :) Just wanted to keep it real on what it really looks like to live below your means.
For me the key to saving money and still having the things i wanted came down to effort. If you can do something, or learn to do something, dont hire someone else to do it. If you can collect food dont get it delivered. If you can walk or cycle somewhere dont get a taxi. Shop around, dont buy from the first website/store/brand you come across. Buy in bulk and put things in storage.
Its so easy to waste a lot of money on convenience, and the best thing is that going the extra mile so often pays off in other ways. Cycling to work has been great for my health, and learning to build/upcycle things myself has been an absolute joy! Ive never got a sense of satisfaction from being lazy, but i get heaps of satisfaction when my efforts pay off.
I got pulled over several years ago (pre cov) and when the officer came back to my truck window (a 25yr old "work" truck") he said "I know times are tough right now, so choosing not to write you a ticket. If you were one of those guys driving around inan brand new lifted diesel doingbwhat you did, you wouldn't be getting off so easy. Hang in there." And walked away.
So yes, looking broke certainly has its unexpected advantages.
😂 that’s too funny 😂
lol I drive a 1999 Chevy suburban and I don’t even lock the doors. No one is robbing a 25 year old beater. People laugh at me for driving it but hey it still works so why buy something else?
I love using credit card for points!! Cash, Amazon and airline 🙌🏽
Great videos! Great tone and message. The only unsolicited advice I have is that if you were able to not look like you're reading something you would have 10x the subscribers since your message is powerful and you can tell it's from the heart.
Much depends on income. Yes - I know most folks have expenses that grow to match income, but belt tightening is more realistic when you're not starving to begin with. I can't afford Costco, for example, but it makes sense for people with more money or big families.
Love Costco and Sams. Buying in bulk is so smart!
If you had to choose to only stay at one? Which one would you pick... I know its hard.... I dont have a Sams Club too close to me
@@brianfarrell924 i would probably go with Costco because Sams is part of Walmart and i don’t like what Walmart did building outside small towns and decimating the downtowns. Even though those are now coming back. There are some products like members mark toilet paper that are better than Kirkland toilet paper. Yesterday we went to both ( in St. Louis) Sams will let someone be on your account which is am on my bf’s, so i can go in and take advantage of sales without him, but with Costco i always have to be with him. It really is a toss up in my bf’s eyes. He has said he would get rid of one of them but has not been able to choose🤔
Costco wins this round 😂
Love The Costco store!
Me too!!
Just stumbled into your channel great video topic just subbed 👍
I'm so glad you found me and subscribed. Thank you!
Great tips! Your are the man Brian! Jonas from Sweden.😊
You are very kind and that’s awesome to see more viewers from all over the world 🌎 . Thanks for watching and sharing! Brian from America 😊
hi love the vid. i used the frog in boiling water theory too...i paid tiny extra amounts into my savings first in the month meaning i had to find creative ways to make the rest of the money stretch. i joined a lot of frugal chat groups and examined what we as a family loved and thats what we prioritise. We have a pretty low cost of living.
Thanks for the kind words. I looked up the theory, really like. Thanks for sharing.
I read consumer reports on cars. I look for warranty, reliability, miles per gallon. I do not purchase add-on features. I buy a modest vehicle that suites our needs and buy it new because I have been burned with used vehicles before. Then I drive it for 10 plus years. I drove one vehicle for 21 years! I am not here to impress anyone and I just am seeking reliable and cost effective transportation long term. Plus I pay it off really early. My last car I tripled (sometimes more) my payments and it was paid off in about 14 months. The interest rate was super low so it was almost like paying cash.
I remember after getting divorced, and flying business class to south Korea. I showed up in a Diesel hoodie, converse shoes and shorts. One of the south korean women behind me said: He is probably in debt because of that seat. He is definitely poor, just look at his clothes. Another older guy told her: Well, maybe he can afford it cause he's not a slave to consumerism? How did you pay for that seat? Her reply: I'm still paying for it! I have 6 more downpayments. How I paid for it?? I stacked cash for 3 months, used my cash points and flew ecconomy one way.
What an eye opening story. I think in the social media era we all just believe perception and forget real wealth is stealth. thanks for sharing!!
And Converse are not cheap !!!
Ordering out like an asshole, lol!!! Good talk.
😂
I must be such a weirdo. My one and only car is now 18 years old with 165K miles on it and still looks and runs great (always garaged). It was two years old when I purchased it and I paid extra every month on it so had it paid off in four years instead of the loan duration of five years. I don't feel this car has kept me broke in any way, shape or form.
😂 You are. However, we are all weirdos according to the "American dream" I appreciate you sharing. Thats great mileage what kind of car ?
@@brianfarrell924 Well, you probably won't be surprised: a Honda Accord.
Not a bit. 😀
I love buying second hand books and movies from our library. Great way to save money
this video resonates with me......thanks for the video
Thanks for watching!
I had a neighbor who built a new house and she needed furniture. She went in dressed really poor to look for furniture and looked to see who waited on her. She made note of their name. Came in later dressed nicely and asked for that person to make the sale😊
Thats Great!!! Use frugal people keep an eye out 😏 Thanks for watching and sharing 😀
I love all of this. I've been doing all of these habits for the last year and have saved more money than I ever have in my life. Will take the jump and start investing before the year is over. Thank you ❤🙏🌏🏡
Hi @thisgirlkarenn- PLEASE Check out this book "the simple path to wealth by JL Collins" This book changed my investing life. Hes got a great audio voice as well if you prefer to listen to it. BY FAR the easiest to understand how to simplify investing.
oh and keep up the great work!! You're building momentum. I'm proud of you :)
@@brianfarrell924 I will order it. Thank you for the extra reference. 📚🙏
My pleasure. Hope it helps!
I wish we had known these concepts earlier, but we got it together about 10 years ago and hope to retire “early” in less than five years. Living in New England is terribly expensive. Love it here but we will be moving to a more affordable place at retirement.
About investing.
We started using a Ramsey endorsed "Smart vestor" 10 years ago. We were in our mid to late 40s and kept our risk low (making 7-8% annual.)
In the meantime, our 401K with my husband's work grew and our real estate appreciated. Now we're in our late 50s and, believe it or not, we feel like we can be more risky with a portion of our portfolio, because we can stand to lose it. We're going to go "aggressive risk" with 5% of our total networth.
I didn't expect to have a peace about something like this.
Btw... we've always been debt free in 30 years if marriage. We even built our house "cash 'n carry" while living in a travel trailer. But I know that that kind of craziness isn't for everyone.
We are doing so many things right- paid off mortgage, investing a good amount, putting money away for kids' college, buying 10 or 20 year old cars for cash. I am proud of us. But we are still such big spenders in many ways. We love spending on our landscaping and farm animals (not cheap at all), we love great quality ingredients (aka fine cheese, wine and chocolate). I really wish we could pare down on our flexible spending more but it just hasn't happened. In the big picture though, we're doing pretty well.
When looking for books, check the local library. Borrow to read it for free. If you want to purchase, the library sells books also, usually less than $2, many for 50 cents.
On home purchasing, the realtor will want to show you only houses that are at the price that you are pre-approved for. The realtor's salary is directly tied to the price of the home you buy, so there will be a bias to only show you those homes.
On the mortgage, I had a 30 year loan, but I could see each month how much was interest and how little was principal. Each month I paid an additional amount equal to the principal, which the bank let me do online easily. This doubled the pay-down amount each month, which also reduced the interest charged.
The first step to getting control of finances is tracking every penny spent. Once I did that for a couple of months I saw how much money I was wasting, and realized what I could be doing with the same money that would bring me happiness.
That’s wonderful! Thank you for this information and encouragement. We are able to live on 60 percent of our income it’s nice to be able to invest and be obedient to God through tithe and alms to the poor. I appreciate your perspective and wisdom. God bless! 🙏
Thanks for kind words. It’s means a lot. You’re doing great yourself. Thanks for watching and leaving me a message 🙏
What i learned about 15 yr vs 30 mortgages is you can always get a 30 yesr and pay extra towards principle to decrease your interest. This is a benefit to those that want to invest in real estate but dont want the higher monthly payment of a 15 yr mortgage to disqualify their debt to income ratio. If that makes sense. With a 30 yr your monthly payment is less, which will qualify you for another mortgage in an investment property, AND you can always add extra to the principle.
Alot of people go that route. I wanted to own my house outright with out being overextended. I Took a 15 yr loan which was a full % lower and only $400 more a month than the 30 year loan and end it up paying off 7 years. Im all set.
at 12:41 one small addition though, 8% growth takes 9 years on average to double your money, not 6 years. I wish it were 6 years that'd make things even more amazing :)
@@Boxsalesman you are correct, good catch. Think I originally I was looking at 8-11% range and after talking for 30 minutes confused myself. I’ll see if I can go back into the video and make a notion. Thanks for the heads up and watching.
Rule of 72
13:35 I live in Oz. I usually buy used cars. Last year i did some sums and for me buying a 25k used petrol car versus a new 50k electric car came out very close. I went with the ev, solar panels & 30 TSLA stocks (all up 70k). And in regional area, the tyranny of distance has been reduced. Been able to access health care weeks earlier by being able to travel.
Oh and no loans - bought car outright.
That’s great! I actually never bought one outright, I’m excited to negotiate someday. That’s a flex 💪
You could take the 30 year mortgage and make extra payments towards principal. Can do that with a 15 as well.
A 200k house with a 80% loan was something like 300k of interest at 30 years at 7%.
Crazy how the interest adds up. You can do it with a 15 yr off faster too. I wasn't success with a 30 yr. Basically, when I needed to cut back my extra payments were the 1st thing to get cut. My 15 yr was only around an extra $500 a month and I put down more each month. Many people have been succesful with a 30yr though. I wanted it done in 5-7 Years though.
If you are not in debt you are safe from any foreclosure crisis. Eating out is for a big treat. First look at Thrift stores for what you need.
If people live where they can, check local farmers for meat. We have local farmers we get a quarter beef from about once every year and a half for way cheaper than any store. I know that means having a deep freeze to store it but if ya have the space then it’s worth it. We also still have the half hog we bought over a year ago. It has helped us save money as well as time by trying to find sale prices.
I do the same and it is totally worth it.
I like your style
I'm living on 40% of my wage, tax efficient investing the rest I wish I'd started way way sooner!, no car and no real need for one, house paid, don't smoke, stopped drinking, don't eat out, and cut clothes shopping way down as I realised I wasn't buying to have something on my back but more for the thoughts of others. Stopped buying tech even though its oooh so tempting. My only guilt is take away delivery but aiming to cut that down as well. I think in real terms I could get it down to 35 to 30%, perhaps lower if I really concentrate on it. I don't begrudge folks living a consumerism life as those are the people that will fuel the stock market and ultimately my retirement.
That’s a nice picture of ‘The dark hedges.’
YOU SAVED ME! I bought it clearance off course and like it, but had no idea what it was. I just read all about it, thanks for letting me know :) Very Cool
I have the same picture, with me in it lol
I bought a 2009 Honda civic for ~ £4K ($5KUSD) in 2015. 9 years later it is still going strong.
I’m actually working down some debt that I owe but it’s not as much as it seems like it just is a big number from a distance. I think we’re under 10,000 now but it’s super simple to pay down the debt that I have because it’s basically my credit cards that are still active and that I use and also my Affirm account which I use a lot!I use my firm account for Walmart and Amazon orders but it’s really hard to try to cut my income in half due to the fact I have three teenagers in the house and not only eat me at a house and home but they’re constantly changing sizes still pretty much clothing, at least my son is who is 13 and almost 6 feet tall already. But that given and said you’re absolutely right. Pay yourself first and increase as you can!
Great work! Three Teens, god bless you :) keep up the great work, your almost there. The air will taste a little different the next day after that final bill is paid.
The amortization tables are quite fascinating. The amount you can save in interest by paying whichever loan you take out early is quite staggering. If you can afford the repayments, you'd be insane not to do a 15 year mortgage v.s. a thirty year one. I wish they had them where I live.
Hi John- you’re spot on. It’s almost criminal how much interest is being paid on those longs. We’ve normalized paying more than double for the home. When we asked for the 15yr, the bank acted like we invented it. We had rhetorical manager come over and they just weee confused why we’d want a higher monthly payment. Thanks for watching
The "looking poor" comment is interesting.
A few weeks ago, I walked to a gas station about a mile from my house wearing an old pair of shorts that have a rip in them and probably should be replaced but are still functional.
It was a pretty normal day for me, but I guess the combination of walking not being common in my area (if you are out walking around here, people tend to assume it's because you don't have other means of transportation) and my kind of raggedy shorts, but I remember that on my way back home, someone stopped and offered me a plastic container of some baked goods from a grocery store and reminded me that there was a food bank not far away.
I guess I looked really poor that day.
Love hunting for secondhand DVDs, books and CDs in charity, junk shops (UK).
NICE! Is there alot of choices in the UK still? It can be tough at times finding stores that still carry Movies.
I found Conan Doyle vintage "Story in Scarlet" in a junk shop.
I had to look that up 😂, but great find!
I’m giddy just thinking about the cash back if mortgage could be paid on a cc. Man, wouldn’t that be friggin’ awesome?!?!?
Life changing + the security that comes with it! Game changer
I also wanted to point out where you live is just as important as how much you spend and make. If you live in a cheaper part of the country / world, you may make less, but then you may need less. If you live in a high cost of living area you'll make more for sure, but then you'll NEED a lot more to live. I live in CA for instance, and cost of living is insane. Average incomes here need to be higher because the cost of living is also a lot higher. You can live cheaply, but it becomes a lot harder. I have thought about moving, if I can find a job out of area. My employer keeps me here for now. But moving to a cheaper COL area means you also need to make less and save less money. Much less stress.
I can’t recall if I said in the video (they blend in at times) but, we left California and that was a big reason why! My current home is 3 times the size of our Nor Cal home and a quarter the price when we moved! Great point
This year I cut off daily energy drinks, instead I drink free coffee at work. $2.50 a day x 365 days a year = $912.50 saved a year! Also Iv been buy clothes second hand from goodwill and eBay compared to when I’d only buy retail. Picked up a second side hustle to knock out my consumer debt. Soon I will be debt free baby
Yes!!! Love Costco and only for a 1 person household but i make it work!!! 😊
Love it!! ❤️
Over 50% of household income….that’s awesome
Thanks so are you :)
I've had 2 or 3 Costco memberships and never found enough things there that I needed to make it worth my while. Also, I never liked the idea of paying a store for the privilege of shopping there (also known as paying them for the privilege of paying them). As for inexpensive clothing and housewares, I highly recommend thrift stores.
Thanks for sharing!!
What you are saying is great, and makes sense. However, my observation is that it’s a lot easier to live on 50% of your family income if you’re earning 100k or more. Much less so if you’re on 50k.
Very True. No debate from me there. 1 Million is alot easier than 100K so, its all relative.
".. like, just an a-hole" man I felt that
😎
Great video! For our family, investing in low cost index funds has been the best. MER (Management expense ratio) around 0.6% will ensure you are not giving your money away and will see growth!
Second is cars. We had no car for the last 20 years. Finally got one and it is an old Toyota.
Third: we buy almost everything secondhand, or borrow. Massive savings!
Thats great! We do the low cost index funds for everything (Brokerage, 401k, IRA, HSA investments. Set it and forget it. Thanks for watching and sharing 😀😀
Yes to Costco
We always buy our cars used. We keep up with our routine maintenance and take care of them, they stay nice for a very long time. We have 4 cars and they are all nearly 200k miles and run just fine. Even our daughter’s 97 Ranger!
Nice! What car have you put the most miles on ?
Love it.. I actually live fairly luxury on about 25% of my income. Im not sure my spending makes any sense any more. I probably have 5 $6 t-shirts 3 pairs of shorts and 1 pair of pants in a cardboard box in my wardrobe. Its super simple and stress free. I drive a $100 bicycle I picked up on facebook marketplace. Then have a cheep moving van worth maybe 15k that I dont even bother insuring. I also have a few mill in the bank and and 2 properties with no debt in different major cities around the world and usually spend a couple of months a year on the beach or at the skate park.
Don’t bother to insure the van? What happens if you have an accident…. and you hurt someone. They could seize your properties.
Mom managed her stocks , I manage mine. At least if mistakes are made , they’re mine . I Also reduced my cell phone bill by switching to Mint. Save over 800 a year. Lots of ways to save money if you dive into it and shop around.
Hey thanks for watching and nice work! How do you like Mint ? I’ve haven’t taken that jump… yet
The older you get, the less you care what people think of you. True friends will accept you for you. I love bragging that my car is paid for because I'm hoping others will catch on and have the lightbulb moment
It’s crazy that car loans are now 7 years! Back in the day, our car loans were no more than 4 years - tops.
I know, It should be criminal!
Ive educated myself on debt and investing. Whats cool is i manage my dads IRA, my wife's, and my daughter's investment account. Its been a fun and pretty cool skill. In another year or less ill be beating my wife's 403b returns.
I was held hostage for like 15 years on debt, once i realiz d borrower is slave to the lender it was a game changer
Pretty Easy, Right ? I was really scared and then realized my ignorance was holding me back.
If you are paying more than $500 per month to upkeep three different paid off vehicles, at what point do you sell one of the lemons?