Do you have luxuries?

[tinapbeana]

Re: Do you have luxuries?

i guess that's the nice part about being poor until almost 30: i didn't have any money during my 'get stuff' years! maybe that's why DH wants to buy more stuff than me, he is a year younger *g*

[ren]

Re: Do you have luxuries?

In order of spendiness...
1. Macbook. I could have bought a Windows system with similar specs for less, but I enjoy Mac OS X and know that I'll have this one at least four years, just like the iBook which preceeded it (which I would probably still have if it hadn't been stolen).
2. iPod. I love my music. Some days 80s dance music or Bhangra on the iPod is the only thing that gets me through required tasks at my job (processing mail, sorting files, that sort of thing).
3. Comics. I've cut my pull list way down, but I've loved them since before I had money of my own to spend on them.
4. One no worries night out (or day, sometimes) a month. It might be brunch with friends or going to see a band. If I want something expensive to eat, I get it. If I want a couple beers, I have them. No beating myself up afterward for 'wasting' money.

I'm a fan of silly luxuries, I can admit this.

[bjl584]

Re: Do you have luxuries?

I have plenty of luxuries. My goal in life really isn't frugality as much as it is building wealth to achieve financial idependence. I figure that as I might as well enjoy the finer things that this world has to offer. Often, wealthy people do not live meager frugal lives. They live lavish expensive lives, but they always seem to have money in spite of this fact. It's not because they have mastered the art of pinching pennies, it's because they have mastered the art of generating wealth. Frugality has it's place, and I am all for living within my means, but taken too far, living too cheaply can be just as destructive as living beyond one's means and being in debt. Take a look at some wealthy people that you know of. Do you ever hear them talking about buying clothes at garage sales, turning down their thermostats 5 degrees, keeping their car for 15 years, etc.....? Probably not. It's because they don't have to. They're more concerned with operating their businesses, managing their investments, making deals, etc. I guess that my basic goal in life is to enjoy myself while always knowing my limits and constantly learning, investing, and generating wealth to eventually achieve personal financial independence. It's going to take a long time and it will be a lot of hard work, but I am confident that I will one day get there.

[tinapbeana]

Re: Do you have luxuries?

Take a look at some wealthy people that you know of. Do you ever hear them talking about buying clothes at garage sales, turning down their thermostats 5 degrees, keeping their car for 15 years, etc.....? Probably not. It's because they don't have to. They're more concerned with operating their businesses, managing their investments, making deals, etc.

i would have to say this isn't really that good of a comparison. the truly wealthy can live 'excessively' and still be within their means because they are in fact truly wealthy. if i were rich i might not buy a used car, or go to garage sales, either. i could shop new and still easily be within my means.

fact of the matter is, though, that the bulk of the american populus does not now nor will they ever fit into the classification of 'truly wealthy'. this is not a problem if one acknowledges the fact that one is not truly wealthy and therefore cannot live like you are.

i freely admit that i am not wealthy, so i don't live like i'm wealthy. by being frugal, buying used, having an older car, etc i am hoping to save money that i can use to then operate a business/make investments/make deals, etc, which according to your post is what rich people concern themselves with. i won't have started out rich, but by your logic i will end up rich. i've got no problems with ending up rich later by living frugally now.

the problem comes when 'not rich' america tries to live the lifestyle they see from 'rich' america. new house, new car, new clothes, new appliances, newest gadgets, etc. instead of freely admitting "Hey, I'm not rich and it's silly to live like I am", the bulk of america goes horribly into debt and digs themself a pit they cannot get out of.

if i chose to avoid that trap by being frugal and living within my current means now, so that i may be rich later, kudos to me.

[bjl584]

Re: Do you have luxuries?

I'm not excessively wealthy either, nor do I live beyond my means. I know my limits and I stay within them. True, most wealthy people didn't start out that way. Maybe they did live a meager lifestyle. Maybe they didn't. I know a few wealthy people, and a common theme that I see is that they are all willing to take a chance or a risk, and that they don't sweat the small stuff. The whole "Dollar wise penny foolish" thing. You can spend countless time and effort into figuring out ways to trim back a few dollars here or a few dollars there in your daily life. Or, you can spend that time and effort into sitting down and figuring out how to make some real money through business ventures, investments, real estate, etc...... I'd say that done correctly, option number two will put you exponentially farther ahead financially than option one ever will.

[tinapbeana]

Re: Do you have luxuries?

I'm not excessively wealthy either, nor do I live beyond my means. I know my limits and I stay within them. True, most wealthy people didn't start out that way. Maybe they did live a meager lifestyle. Maybe they didn't. I know a few wealthy people, and a common theme that I see is that they are all willing to take a chance or a risk, and that they don't sweat the small stuff. The whole "Dollar wise penny foolish" thing. You can spend countless time and effort into figuring out ways to trim back a few dollars here or a few dollars there in your daily life. Or, you can spend that time and effort into sitting down and figuring out how to make some real money through business ventures, investments, real estate, etc...... I'd say that done correctly, option number two will put you exponentially farther ahead financially than option one ever will.

well, the original saying is "penny wise pound foolish" which i think is a phenomenon you might see in some frugal folks but not many that have been in here. being able to move to the concept of "pound wise penny foolish" (or dollars and cents as you put it) carries the expectation that the pennies are meaningless. when one nets 5k a month, cutting back $50 a month is only 1% of your income and is agreeably pretty meaningless. when one nets 1k a month, that same $50 is 5% and therefore meaningful.

and while it is true that your second option of how to make 'real' money (deals/investing) is more likely to make you larger quantities of money than the first option (frugality and watchfulness), i would argue that deals/investing cannot succeed by themselves without a dose of frugality or at least some experience in frugality. it's like exepcting someone to be adept at managing the finances of a business when they've had no experience managing their own personal finances: you're inviting failure.

i'm not saying that 'experience in frugality' means you have to have kept your heat at 60 degrees and washed baggies to succeed in making 'big' money. frugality is a mindset and a way of looking at the value of money, not a set of actions that are or aren't empirically 'frugal'

[shengmei]

Re: Do you have luxuries?

Ann Taylor Loft corduroy pants

Any cosmetic "gift with purchase" events. I can never resist one.

My five kitty cats.

My green tea and sushi.

My brooches.

Basically anything I do is a luxury, considering that I am from Taiwan.

[PrincessPerky]

Re: Do you have luxuries?

Interesting line of thought.

Although I have severely cut back, I am also glad that I did. Before, luxuries were more or less the norm, and not only was I bleeding money, but you kind of get used to it, and I kind of took it for granted that it's there.

Now that it is severely restricted, I have found that I enjoy what little I have a lot more... because they were carefully chosen after much scrutiny and budgeting. No longer becoming the norm, they also become much more distinctive and special in my eyes.

That and it helps me save money of course.

Ditto that, not the norm they return to relished treats..and enjoyed soo much more.

a looong hot shower is my main luxury, I tried for a time to cut back on the water the kids used ... I decided having the money to let them play in it, in a contianed area, while I cleaned was a luxury I was willing to pay for.

and while I don't often have the time to take a long shower, when I do, I make it as hot as I want, and I spend as long as I can steal away to enjoy it .

I also eat chocolate by the bagfull..semisweet BJS sized bag full

[Ima saver]

Re: Do you have luxuries?

I buy the expensive sugar free candy. Regular candy is much cheaper. I feel that saving small sums here and there really adds up. Take the $20 challenge. I have already made more money on the challenge than I have ever earned in my life in one year.

[BCHGRL]

Re: Do you have luxuries?

When it comes to my home, I am willing to splurge on luxury. I feel that if I make my home comfortable and enjoyable, I will spend less time away from my home (time away from home, work, or family translates into money spent for me). Same for hubby. I have made it so comfortable here that he is content to stay home.

I have cable, internet, a big-screen tv with HD, new flooring (including hardwoods), a HUGE sectional, a new sink, surround sound.

One luxury that I would like to have is a jet ski. My husband had one for a few years and it was so much fun, especially where we live.

Our cars are paid off so we don't spend much on them, other than just regular maintenance. Just a few days ago, I calculated that we have saved close to $10,000 so far driving vehicles that are paid for. Mine was paid off June of 05 and his was May of 06. I don't spend much on clothes, beauty items, dining out, etc.

[Ima saver]

Re: Do you have luxuries?

I will splurge on my house also. When we built this house, I splurged for all new furniture and I love the way my house looks! If we build a new one, I will probably buy all new furniture again.

[MonkeyMama]

Re: Do you have luxuries?

I live in an upscale neighborhood and I was surprised how frugal some of my neighbors are. A lot of them have gorgeous houses but buy everything secondhand, etc. We were just discussiong why toddler beds were a waste - a mattress on the floor will do. They have more but seem less concerned with appearances overall. I think they are more concerned with their portfolios. Like someone said the poor will measure wealth by "things" and the rich by "portfolios." I see that being around more well-off people.

I have many rich clients of all walks of life. Most of them are quite frugal and would enjoy this message board. It also amazes me how penny-wise and pound-foolish some of them are. My god - I had a doctor want to fire us because he couldn't see why HE couldn't do our job. We are all sitting around smacking our heads - because he makes 100s of dollars an hour focusing on his work and not worrying about the complexities of the tax code - duh. He is so frustrating to deal with you hope he will give it a try - be our guest - LOL. I Can think of a handful of our clients that live in excess, but most of them are of the "Millionaire next Door" variety. Sure they might have fancy cars and houses and such, but they have more money than they know what to do with at this point. I guess the point is they are pretty obsessed with retaining wealth and micro-manage their money. I agree overall taking a risk and such will put you exponentially ahead, but combine that with frugalness and many people realize you can get that much more ahead.

[Aleta]

Re: Do you have luxuries?

Until most of us get to the point of where we want to own our lives again, we have done some of the same things. When I look back, I can see when I went to sales parties and put everything on my credit card because that was what everyone else was doing. I think we just don't want to look like we can't afford it. At least this is the way my husband used to think. I look around now and watch how friends and family that I know spend money if there's no tomorrow and I just feel bad for them. Some make very good and above salaries but they are caught up in that world. I can see where they are and I know from experience what it will take for them to climb out of it.

[Daylily]

Re: Do you have luxuries?

I buy sushi rolls at the grocery store every week.
Delicious treat but absolutely not necessary.

[Ima saver]

Re: Do you have luxuries?

Oh, I just got my self some new crystal glasses. My "good" glasses were a gift to me for pet sitting, about 35 years ago, the color was all gone from being washed so much. Now I can have people over and offer matching glasses! That will be my christmas present!