Could you live this cheaply...and save this much?

[mjbaby]

I believe in balance and the lifestyle of that couple in no way, shape or form represents healthy balance.

I agree. And, the author describes himself as having been a juvenile delinquant with addictive behaviors (to alcohol). What he describes in the article seems to me to be nothing more than addictive behavior transferred from one area to another. Now, the outcome was happier than with most addictions but I don't know if it's something I'd want to emulate as a lifestyle.

 

[EthansMom]

Interesting article.

My first intinct was, "We couldn't get down to living THAT frugally!" (Meaning, put away 80% of our income.) But then I read later in this thread that house payments and other long-term savings counted towards that 80% figure. I did some quick calculations and we're currently putting roughly 50% of after-tax income toward "asset building" (retirement savings, college savings, saving cash for our next car, mortgage payments, and repayment of debt) Include DH's pre-tax 401k contributions and investments/savings made with "found" money and we're putting 60-70% toward increasing our net worth.

However, like other posters, we would not consider working long hours for weeks on end to be a life worth living. In fact, DH has been putting aside offers for career advancement for the last couple of years -- the higher pay isn't worth the higher stress and longer hours. DH would rather spend his time at home with the kids. Likewise, I put aside a well-paying professional career to stay at home with our kids full-time. If money was more of a priority than our family, we could be making twice as much money.

I think the thing that we can all take away from this article is that there is always some way to spend less money and if you spend less, you'll have more money to put away for later.

 

[fakereadhed]

http://ca.pfinance.yahoo.com/ca_finance_loans/11/how-we-paid-off-our-house-in-three-years

For all those who think they couldn't possibly save anymore and there is no way to get ahead, here's a good story. These folks lived on the bare minimum and saved 80% of their pay. They bought and paid off a home in 3 years. Granted, they earned a substantial income, but they also worked their tails off to do so. Not everyone could be as extreme as this couple, but I think there are some good lessons there.

There was also an article in MONEY this month about a family (with kids) who vowed to not buy anything new (with a couple of exceptions) for an entire year. Everything would have to come from thrift shops, flea markets, trash picking, hand-me-downs or borrowed. Again, an extreme route to go but evidence that living on a lot less than most of us currently do is very possible if you really set your mind to it.

If we worked all the time, and were never home, and never had time to go to the store or run errands, we could save a bunch too. Definitely not the healthy way to go, though.

As far as the other family goes, it is definitely possible to reuse and recycle to save. It is hard on the kids if you go to extremes, though. For example DH has weird money issues because his dad did construction work and they were constantly being super frugal because they never knew if they would get a paycheck from week to week. As a little kid he got the message that money=happiness(security) and freaks out as an adult when he has to make any purchase over $10. I am frugal, but try to impress on the kids that it is a choice, not a cash crisis.

 

[MrsPete]

I believe in balance and the lifestyle of that couple in no way, shape or form represents healthy balance. As another poster said, the time spent looking for bargains can put severe strain on family relationships.

I agree that everyone needs balance in their lives; however, I don't think these people intend to live this way FOREVER. I think they did it for a couple years to get themselves into a secure financial position, then they will become more moderate in their spending. I think it's a wise choice.

 

[gina2000]

I agree that everyone needs balance in their lives; however, I don't think these people intend to live this way FOREVER. I think they did it for a couple years to get themselves into a secure financial position, then they will become more moderate in their spending. I think it's a wise choice.

I will never think that their choice was wise unless it was also necessary. As mjbaby suggests, it's addictive behavior and any addiction can be problematic no matter how short or long the duration.