Money Saving Habits

[dawnwes]

Ok, that makes sense then. No reason to rush into a new car purchase. It's different when buying used.

As for keeping cars long, that's a good point for this thread.

I bought my last car used in 1998 and kept it for 14 years. In 2012 I bought my current car used and hopefully will have that one for at least 6-7 more years.
I'd much rather buy a couple of years old and keep it long term.

We found that with research, we could find brand new cars at 2 year old car prices, at least in our area. Our SUV we got $5K off the top. We couldn't even find 2 year old Toyota Sequoias for that price (back when they were more popular and before gas prices hit the roof.)

Our Toyota Camry, we got $4K off. We researched online and found the car we wanted advertised for about dealer price. We called 3 dealerships in the area before we found one that would match that price. We couldn't find 2 year old ones for that price.

We keep our cars for about 16 years. Our 1996 Saturn we got rid of 3 years ago. We still have a 2002 Saturn. And then a 2004 Sequoia. And a 2014 Camry.

It just depends on what you can find I guess.

But we are looking for a different car for my 16 year old, which we will get used, probably around 5 years old, maybe a Honda Accord or something. We don't want to spend more than $10K. We aren't sure we feel good about him driving the 2002 VUE as the safety features aren't up to what we feel comfortable with for a new driver. But the VUE is a stick shift, so we want him to learn on it.

[dawnwes]

For me, the best way to handle finances is to have a budget/plan and stick to it.

AND, finding those things I enjoy/want and finding cheaper ways to do it.

For example, we could give up our yearly vacations, but we enjoy them, so I have a budget and find the most frugal way to do it. I have actually shocked people with my budget for Disney trips, beach vacations, etc.....with how little I spend.

Cell phones are something I am not wiling to give up. For years we had prepaid plans, but once the teens started needing phones, it was just as cheap to add them to a phone plan. Dh's work pays for quite a bit of it.

Eating out is something I enjoy dong. I find ways to get gift cards for less, use coupons, etc.....

Clothing? We hit the thrift stores first, clearance racks second.

But that budget needs to remain consistent.....the same amount of savings needs to go into the savings account.

[tripods68]

For me, the best way to handle finances is to have a budget/plan and stick to it.

100% agree. Have a budget and stick to it.

Restaurant budget $100 a month.

We budget for vacations, b-days, and x-mas.

We bring our lunch to work 5 days a week

We stop going to starbucks weekly (only go maybe 2 every 3-4 months)

We don't use our dish washer - hand wash our dishes

We both drive 11 year and 14 year old vehicle (low maintenance vehicle)

We don't use credit card anyone (no interest cost)

We maximized our 401ks & 457 + pension contributions that we won't have to pay taxes on roughly $50K year of income for 2016 tax year. We saved $12,500 in federal taxes @ 25% bracket or $7500 at 15% bracket. That's prepaying our next year's monthly expenses.


I can't think of anything else right now...

[Nutria]

We don't use credit card anyone (no interest cost)

At all, or just not as revolving credit?

[sv2007]

We don't use credit card anyone (no interest cost)

Why? It is free money + protection too. If you pay within the grace period, there's no interest/fees.

Used to not be the case as cash discounts were common, but not these days. It's like cash users are subsidizing CC users, picking the CC fees.

The rewards add up over time too.

[Drake3287]

Although I'm financially secure, I do try to save money when ever I can which some people might think is odd. Maybe that's why I'm financially secure.

As talked about often on the site, we charge EVERYTHING on our Visa reward card for cash back. We easily make $1,500. a year in cash from charging. And when I mean charging everything I really mean everything. Mortgage payment is/was about the only thing I couldn't charge. We pay off the bill every month and have never paid a penny in finance charges.

Plastic CRV bottles is another one that my family laughs at. Although I only save the one's we use, instead of putting them out on the curb for recycling I save them up and go to the recycling center a few times a year and get cash. Make's me an easy $100. which I use for a nice dinner out when on vacation.

[tripods68]

At all, or just not as revolving credit?

Our Lives don't revolve around credit. We pay cash for everything.

[tripods68]

Why? It is free money + protection too. If you pay within the grace period, there's no interest/fees.

Used to not be the case as cash discounts were common, but not these days. It's like cash users are subsidizing CC users, picking the CC fees.

The rewards add up over time too.

If building points works for some, great for them. We live far simple life.

I don't think building wealth can be associated with building rewards points. We're trying to build wealth.

[corn18]

If building points works for some, great for them. We live far simple life.

I don't think building wealth can be associated with building rewards points. We're trying to build wealth.

I make $200 cash a month from one card (2% cash back). I also earn 160,000 - 200,000 airline points a year on my other card (work Amex). My whole family is flying to Rome for free later this month. Didn't require a lot of work to earn that wealth.

[Nutria]

If building points works for some, great for them. We live far simple life.

I don't think building wealth can be associated with building rewards points. We're trying to build wealth.

Since none/few of us carry CC balances, it's Free Money, a (typically) 1% to 1.5% reduction in the cost of goods purchased with a card. Leaving that on the table just isn't wise.

[disneysteve]

Since none/few of us carry CC balances, it's Free Money, a (typically) 1% to 1.5% reduction in the cost of goods purchased with a card. Leaving that on the table just isn't wise.

Yep. And two of our cards have rotating 5% bonus categories. Right now, one is 5% on groceries and the other is 5% on restaurants. So we got 5% off the dinner we ate out tonight and we'll get 5% off our weekly food shopping trip tomorrow. It's all money we're going to spend anyway so why pass up a 5% discount?

[tripods68]

I make $200 cash a month from one card (2% cash back). I also earn 160,000 - 200,000 airline points a year on my other card (work Amex). My whole family is flying to Rome for free later this month. Didn't require a lot of work to earn that wealth.

That's great Tom hope you and your family have a great time.

If we can't afford to go to Rome to pay cash (plane + plus hotel) we cannot go.

[tripods68]

Since none/few of us carry CC balances, it's Free Money, a (typically) 1% to 1.5% reduction in the cost of goods purchased with a card. Leaving that on the table just isn't wise.

Nothing wrong with what you are doing. We call living as smart.

We know 70% of consumer who chooses to pay with credit cards don't pay their balance every month. That's the problem. It becomes a debt cycle.
We just avoid those potential problem. I don't lose sleep because I failed to get my 2% bonus reward for my gas. With no debt hanging over our heads we sleep well at night.

[tripods68]

Yep. And two of our cards have rotating 5% bonus categories. Right now, one is 5% on groceries and the other is 5% on restaurants. So we got 5% off the dinner we ate out tonight and we'll get 5% off our weekly food shopping trip tomorrow. It's all money we're going to spend anyway so why pass up a 5% discount?

It's about developing a smart habit that is sustainable.

When we use cash we know the pain letting go those cash. So we remain in budget all the time. As suppose to cc is so easy charge it whenever you please and what end up happening people end with huge bill that often time most are unable able to pay in full (thus interest start accruing). We completely avoid the trapping of cc debt.

[disneysteve]

If we can't afford to go to Rome to pay cash (plane + plus hotel) we cannot go.

Absolutely. We would never pay for anything with a credit card if we didn't already have the cash in our account to cover the bill. We don't use credit cards to buy things we can't afford. We only use them as an alternate form of payment so that we aren't walking around with a pile of cash or writing dozens of checks. It's just another form of currency in my mind.

I totally understand and agree that the majority of people don't think that way and probably shouldn't be anywhere near a credit card. For the 30% who do pay their balance in full each month, I see nothing at all wrong with taking full advantage of the system.

Right now, we are sitting on over 250,000 Marriott Reward points. Free nights start at 7,500 points, and every 5th night is free. That means that theoretically we could spend about 40 free nights at a category 1 Marriott. In reality, we won't get that many nights out of the points because we won't stay at category 1 hotels but we'll still get more like 15-18 free nights. And those points cost us absolutely nothing. Nobody is ever going to convince me that that is a bad thing. Sorry Dave Ramsey.