I suck at saving

[1995zj]

I have 15% of every paycheck deposited directly into 2 different mutual funds. One is a higher risk/return that I put 10% in that I plan to use as a down-payment in 1-2 years when I purchase a house, and the other 5% goes into my long-term mutual fund that I've had for about 10 years now. Once I do purchase a house, I'll probably drop the higher risk fund and get into another milder one and see if I can do 10% into each or at least 5%. 10% total at the minimum though.

I set the "automatic withdrawals" up earlier this year and to be honest I haven't even noticed a difference not having that money. It's awesome.

 

[Cody]

I was starting to be 'OK' at saving, and admittedly could have done much better now that I look back at what I was making and how long my savings lasted into my current fiscal nightmare. I now find myself with 50-60% less income and a mortgage on a home that I no longer can afford and can't sell. Had I not had any CC's, I would have gone into foreclosure for sure. So what is worse, foreclosing on a home and ruining my credit or racking up expenses on a CC that I will likely spend the next 2-3 years paying off? I didn't overspend on my home (was approved for much more than I spent), but it's hard to predict precipitous income loss.

There is also the devil's advocate on the subject. There is no guarantee for tomorrow, so in a lot of ways I like to spend my extra money to enjoy it now, rather than tucking it away for a day that may or may not ever come. I learned that from my father...who died years before he could ever use his savings or retirement and had a difficult time justifying a conservative life of spending, now that the "one day I'll do this" blank checks he had written to himself for the previous 40 years of his adult life were all void.

Everyone needs to find a balance that works for them between saving and living, and while I need to save more than I have in the past (once I actually have a positive monthly net income again), I’ll never be the guy that saves every sent, eats leftovers 5 days per week, and drives a 15 year old Hyundai so that I can live comfortably in 30 more years. I’ll also never be the guy that drives a $50k BWM either

 

[Caleb]

Being an outsider, I don't understand it, nor will I ever. We have some friends who give their 10% every month. The only thing I see that they get from it 10% more poverty that they are already in. Bottom line, and we know these people really well, they CAN'T afford it.

It's sad.


Pay yourself first!!!

The reason they can't afford it is not because of the 10%. It may just be another obligation but no matter what, if your budget is giving you less than 10% to live on, then you need to re-evaluate.

Like Jason said, that 10% is a way of life to some. I know personally I give to many charities, including my 10% to my church, and charities generally come first...however, I do make sure that I can always afford it.

I will be the first to say that my wife and I are very fortunate being in the financial position we are in being as young as we are, but we have gotten to this position 100% on our own. I grew up being poor, my wife's family wasn't too much better off. We knew where we wanted to be and did what we needed to do to get there.

 

[mesha]

I am good at saving receipts from stuff I bought.

 

[TRNDRVR]

I learned that from my father...who died years before he could ever use his savings or retirement and had a difficult time justifying a conservative life of spending, now that the "one day I'll do this" blank checks he had written to himself for the previous 40 years of his adult life were all void.

I'm right now trying to buy an Alaskan fishing cabin. If my back gives out again, I'll retire in 8 years. If my back holds out, (which I doubt) I'll retire in 15 years.

I'm definitely not going to wait until I retire to enjoy the fruits of my labor. My "one day I'll do this" blank checks are being used.

Besides, for some reason, railroaders don't have a very long retirement/life expectancy.

 

[Amy]

I’ll never be the guy that saves every sent, eats leftovers 5 days per week, and drives a 15 year old Hyundai so that I can live comfortably in 30 more years. I’ll also never be the guy that drives a $50k BWM either

haha! This is exactly what my parents did. We went out to eat maybe once a month...maybe. My mom always cooked to save money and we had left overs every other day. My parents still own their 91' saturn that doesn't even have a tape deck in it (well technically its on loan to my cousin in michigan).

Now, both retired at 42 years old, my dad is 56 now and are well set in the 7 figures they saved, invested and resaved during my childhood. haha. Problem is that they got so used to being such minimalists they get jobs at bed bath and beyond or pizza hut to fix broken motor home parts or any extra large payments that come about. HAHA

Did I learn to do this myself? F*** no. haha but they are happy as hell.

 

[Herzog]

I have a knack for investing in liabilities...

 

[mesha]

I have a knack for investing in liabilities...

I see a book tour in your future.

 

[Rot Box]

Then why are we bailing out GMAC and Chrysler Financial? Why was there a Cash for Clunkers program?
I had a car payment once. I had a 1998 Jetta VR6, sweet car. I paid $10k for it and got a loan to do so. Not so bad, but jeese what a hassle to have to carry comprehensive insurance and make that payment each month. Bleh, never again!
There are a million (literally) good used cars out there. And if people weren't so gullible to believe that you you should be getting a new car every three years, I bet more people would actually pay off the cars that they buy!
When was the last time you saw a car ad that actually listed the price of the vehicle? I can't remember because all I ever hear or see is, "Lease for the low low payment of $199/Month!"
New cars are nice and all. And I ogle over them as much as the next guy. But I'll like that Mazadaspeed6 just as much as I do now in 10 years when its a quarter of the price and I can buy it in cash!

I totally agree For a daily driver I just can't imagine needing ANY brand new car out there. I know of only a handful of people that picked a car they wanted (used or new)-took out a loan-and paid it off and still drive that same vehicle. If I trade it in my payments will be the same!!! I hear it all the time

 

[sixb]

Pay yourself first!!

Bingo!!

 

[benjy]

I have a knack for investing in liabilities...

You usually get extra protection (not benefits mind you, the benefits aren't really benefits) by using certain cards.

Care to expound? Are you implying they aren't benefits because the retailer has to mark up prices due to processing fees, and everyone gets screwed in the end?

When I go to the grocery store, I can either use my debit card or my amex, if I use my debit card, no benefit. If I use amex, I get a set of BFGs and an Optima at the end of the year...

We charge all living expenses on our amex and pay it off every month. We've been doing it for about 3 years now, and have never made an interest payment on it. Our reasoning has always been twofold, the protection and the "benefits."

I know of only a handful of people that picked a car they wanted (used or new)-took out a loan-and paid it off and still drive that same vehicle. If I trade it in my payments will be the same!!! I hear it all the time

Done it twice now We paid off our jeep in 9 months (ok, at this point it's a recreation only vehicle, but for quite some time it was transportation). And our Honda, we paid that off in 10 months, and I will own that thing until we take it to the junk yard.

The d-max isn't paid off yet... but I plan on keeping it long after it is paid off as well

Oh, and Kami and I are really good at saving... for coilovers :greg:

 

[I Lean]

We charge all living expenses on our amex and pay it off every month. We've been doing it for about 3 years now, and have never made an interest payment on it. Our reasoning has always been twofold, the protection and the "benefits."

I do exactly that, (with Chase instead of Amex). Never paid any interest, but I get 1% or 3% back on anything I charge. It's all stuff I have to pay for anyway, so I see it as a tiny discount.