Among Friends

[ccassaday]

If you are smart with your retiremrnt nest egg a bad economy isnt going to blow it up. Yes a loss of a job might put a hault in what you put in. Bur what is already put in isnt going anywhere..

The enron emplyees who lost everything was their fault. You dont put all your retirement into your company you wotk tor stock. That is why they lost it. Diversify and a bad economy isnt going to make your money thats ready invested go away. You should never solely rely on your pension  as your retirement.

This thread wasnt directed at people making millions. This thread was about how the average Joe becomes wealthy by being frugal.

[libbyannE]

I agree with the reply raising questions about how one defines "frugal." We have always saved and invested and spent wisely, but we also have happily chosen the quality things that mattered to us. In terms of consumables, buy quality and it lasts--and makes you feel good, too. I was raised with that philosophy.  I wouldn't call that frugal. I would simply call it smart. For example, I have years-old Chanel flats, Ferragamo pumps, gold jewelry (including bracelets given to me in my teen years), Hermes silk scarves, etc.  that I still wear and which just don't go out of style. 

[ccassaday]

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@Mominohio wrote:

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@bikerbabe wrote:
Please keep in mind that one lost job, one major recession, one real estate collapse, can blow that nice retirement nest egg out of the water. Don’t assume that someone doesn’t have a substantial retirement fund because they were not frugal.

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Good point!

And I think many people don't realize that some hard working people never do make enough to get too far ahead of the 8 ball. They save, they plan, but live so close to the wire because of low wages, that something is always cropping up to take the savings. 

Many have no retirement plans at work, and even when they fund their own, have things happen that prevent them from contributing for periods of time and/or dipping in for health issues or to keep their heads above water during job losses etc. 

It is really easy to say that we should 'live below our means', but it really is dependent on what your means actually are. 

For a good part of my young adult life, I lived paycheck to paycheck to 'invest' in things for my future like affording to buy a very modest first home (it was considerably less than renting), have a good life insurance policy, continue my education etc. For many who never get financial assistance from their parents past high school, who never inherit money or property or businesses, who never work in fields that pay well (but love what they do), living 'below their means' would mean not living at all sometimes. 

I like the idea of living below my means as a smart financial decision. But the reality of people being able to do it and still have a quality of life in decent housing, decent health care, decent food etc. makes the idea unachievable for many.

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I think this is a big reason your stoll sieeing young adults living at home even well after college.

[tansy]

When my sons were growing up, I was frugal out of necessity.  When our salaries increased, I became interested in paying off a car loan we had and that was so fun — lol — I then zeroed in on paying off our mortgage so I remained frugal until that goal was accomplished.

As far as new vs used cars, I prefer buying new so we know the car’s maintenance and then driving it into the ground.  However, I’m going to break that rule this year because I want safety features like backup cameras, lane change warning and automatically braking.  

FWIW, I’m not a big fan of Dave Ramsey.

[Trinity11]

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@ccassaday wrote:

If you are smart with your retiremrnt nest egg a bad economy isnt going to blow it up. Yes a loss of a job might put a hault in what you put in. Bur what is already put in isnt going anywhere..

The enron emplyees who lost everything was their fault. You dont put all your retirement into your company you wotk tor stock. That is why they lost it. Diversify and a bad economy isnt going to make your money thats ready invested go away. You should never solely rely on your pension  as your retirement.

This thread wasnt directed at people making millions. This thread was about how the average Joe becomes wealthy by being frugal.

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 I saw no one here talking about people who make millions a year. And what income defines "wealthy" and what defines the "average Joe."

Dave Ramsey can sit in his ivory tower dispensing advice but he is worth 55 million talking to people about being frugal? LOL

[tansy]

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@ccassaday wrote:

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@Mominohio wrote:

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@bikerbabe wrote:
Please keep in mind that one lost job, one major recession, one real estate collapse, can blow that nice retirement nest egg out of the water. Don’t assume that someone doesn’t have a substantial retirement fund because they were not frugal.

---

Good point!

And I think many people don't realize that some hard working people never do make enough to get too far ahead of the 8 ball. They save, they plan, but live so close to the wire because of low wages, that something is always cropping up to take the savings. 

Many have no retirement plans at work, and even when they fund their own, have things happen that prevent them from contributing for periods of time and/or dipping in for health issues or to keep their heads above water during job losses etc. 

It is really easy to say that we should 'live below our means', but it really is dependent on what your means actually are. 

For a good part of my young adult life, I lived paycheck to paycheck to 'invest' in things for my future like affording to buy a very modest first home (it was considerably less than renting), have a good life insurance policy, continue my education etc. For many who never get financial assistance from their parents past high school, who never inherit money or property or businesses, who never work in fields that pay well (but love what they do), living 'below their means' would mean not living at all sometimes. 

I like the idea of living below my means as a smart financial decision. But the reality of people being able to do it and still have a quality of life in decent housing, decent health care, decent food etc. makes the idea unachievable for many.

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I think this is a big reason your stoll sieeing young adults living at home even well after college.

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You see young adults living at home because of student loans and high rents mainly.  When my younger son graduated with an EE degree, there were hiring freezes:/

[cherry]

Well  ,I think weathy is defined in a lot of ways ,that have nothing at all to do with money

When people have enough to meet their needs, and a bit more to enjoy their life with, having more money ,doesn't make you any happie,r at all

In fact ,many people of great weath, have rather miserable lives

I'll settle for less money ,and more happiness ,any day of the week

[cherry]

Plus ,if my mother were still alive, her underpants would be safe

[tansy]

@cherry???  

[cherry]

It's a remark I make to Sooner on this thread @tansy it  back a ways