The backlash against frugality

[cptacek]

I don't want to say "One good thing about debt" because that irks me. But, if I have to, then ok. One good thing about being able to borrow money at non-astronomical interest is that you won't miss out on opportunities to MAKE money because you couldn't buy the necessary equipment at the right time.

Say you have a screen printing business. And let's say that a new screen printer comes out one the market that will cost $15,000 (including interest over the life of the loan), including all the set up, all the initial costs, all the learning time for your employees, etc (I'm pulling the numbers out of my, well, you know, but follow along ) You do the math and can show that if you bought that piece of equipment you would increase efficiency and could make an additional $5000 every year AND depreciate the cost of the equipment on your taxes. Let's say that that piece of equipment will last for at least 20 years. So, after 3 years, you will have paid for the equipment and the next 17 years you are making pure profit from buying that machine...that's $85,000 in profit you made because you borrowed money.

Some might say that this business owner should have saved up the money to buy the equipment, but sometimes that is just not feasible. A business is less likely to have a "latte factor" that they can just cut, and specialized business equipment like this is often VERY expensive.

[honestfinancialwork]

Hi, This is honestfinancialwork. Irma, I think you find this"positive thing to debt" to be interesting. I think I did not give a clear enough example of my money management style. Firstly, I think energy and money are very similar. We either have healthy or unhealthy energy and attitudes. It is the same with money. In no way do my hubby and I live in a serious frugal manner.It was interesting that someone shared that as a friend just said to me"You probably can live so frugally as your family had no money when you were growing up" Well my father was a hard working Wisconsin farmer with a trucking business. He had a sixth grade education but earned the income of a high pd. professional.Too bad he passes at 51 but my mother never had to worry about money or working. My hubby and I(I am teaching him) just shift our energy/money to the areas that meet our true value system. I know I described thrift shopping and a rusty car but I forgot to share the following--------------We live in a brand new beautiful home. It is located on a dead end road. Totally isolated on 40 acres of beautiful land. No neighbors. One can get the mail with their robe on.This land alone is valued in the millions. I have an acre of wildflowers(that is a site of beauty with all purple flowers now) a huge garden and a wooded area. I can walk in nature for hours. My husband can hunt. We have bonfires. Having land in todays world is the greatest investment ever. I also do not work outside the home.About one year ago I left my professional job. I cannot begin to tell you how wonderful it feels to finally"live my dreams" I am home and just starting designing sea glass jewelry to sell in the future. Most mornings I pinch myself and thank God I can be in my dreams all day. My hubby does not earn a great deal but that is where all those sacrifices I described are so very, very minimal. What is the reward to sacrifice?? Being home, having land and very little debt. I was a single mom for years and worked back to back jobs so this is like heaven. If we wanted to add to our family my tiny, tiny sacrifices would allow me to be at home instead of working. Now maybe I make more sense about sacrificing. My students asked me to show them our expenses and income. They all want to work less and are pretty stresses but struggle with sacrifice. See I love myself in the outfit I purchsed today(my frugal tip for the day) It is a new Banana Republic sweater and New York & compnay jeans. The entire outfit was 17 cents. It was bag day at church rummage sale. Fill an entire bag for $2 After that I came home and am now designing sea glass jewelry. I cannot think of a smaller sacrifice. My hubby also has a nice truck but doesn't care about driving a rusty car. We just don't care. We also travel a great deal and are going to Mexico soon. We just need time to save . Yes missing a family wedding/vacation is sad but that sacrifice allows us a vacation home each and every single day. The family members who used credit cards did have fun but they are also now working 13 hour days and weekends to pay them off. I hope that makes more sense. I guess I try to teach my class that it is possible if your able to make sacrifices. They seem to want to get out of the major debt that is killing them but we are working on $2.00 outfits. I really liked the tip about just having drinks at a nice restaurant and moving on. We could do that. Besides I need a reason to wear my new 17 cent outfit. I hope I cleared things up. Great feedback from people on this site. I think giving back also provides a sense of prosperity. We financially give quite a bit to our church and I can volunteer during the days. I just read on the church sign"Get out of debt. Act your wage" It took me years to learn that but since I have "lived it" in the past five yrs. my life is better.

[Ima saver]

Honest, I think you have hit the nail on the head. I have been frugal all my life and neither me or my husband has ever earned a great deal of mony.
I too live in a very large house in the mountains on a large creek. I was able to quit work almost 15 years ago so I can be home with my husband every night, not working like I was.
My house is paid for and I have no debt. Being frugal has paid off for me too!! (and I am sure my husband is glad that he does not have a "high maintence" wife)

[Hanuka]

nice article I enjoyed very much reading it xD