Tips on becoming a saver?

[angierae]

Its also easy to judge people and have them have a much higher income than you know about.

I know a guy with a few million dollars worth of trust fund. He and his wife both work - but neither has a great job, both part time - yet they travel and live comfortably - if not extravagantly. If you didn't understand that his family was wealthy, you wouldn't understand how they make their small income stretch.

And he isn't the only one I know who has a family source of income. A former coworker gets another complete income from oil being pumped off his wife's father's land. A friend of my ex-husband has his widowed mother giving them thirty thousand dollars every year to avoid inheritance tax. A friend inherited $100,000 when her biological father died. Another former coworker has a multi-millionaire grandfather in law who is spending down his money by bringing the whole family on an expensive trip each year - 30 people on safari in South Africa.

So you start to think "well, THEY can manage to go to Europe and she's a Stay at Home Mom and he teaches high school Math, we HAVE to make more money than they do" - without realizing that Europe is a gift from Grandpa.

My aunt and uncle often wondered how their neighbors - a sales guy at a car dealership and a SAHM of three - managed to live the way they did. Come to find out the dad's father had won the lottery years ago, and gave them 40k a year (or whatever the limit is - he gave the husband and the wife each the max, and mom gave the husband and the wife the max) every January. So they were basically getting $40k a year tax-free.

As for "how do they know", well, they were neighbors. It came up in conversation over a friendly dinner one night.

 

[Happyinwonerland]

the $300 gift is one big thing- A power wheels- and some dress up clothes ( Disney store princess dresses and shoes I got on sale), and some books. She loves to dress up and loves to read.

 

[Happyinwonerland]

Thanks for all the suggestions, I have a lot to think about. This has been very helpful.

 

[eliza61]

I always wonder how people are able to afford things that seem out of our reach. When we went to S Dakota, we hit during Sturgis week. We have a $10k truck and an even cheaper travel trailer. Bonus: they are paid for...lol. Anyhow, we saw a lot of new $50k trucks pulling newer $50k trailers that were hauling $30k bikes (I actually have no clue what the bikes cost, just that there were usually 2 very shiny Harley's in the trailer). What the heck?? And obviously the people at the bike rally do not look like your suit and tie folk.

I find that so interesting. I have never wondered how folks afford stuff. My circle of friends is pretty small (3 good lifelong friends and my sister) so i know all about their finances and they have a good indication of mine. One girlfriend is an attorney so she is also the executor of my estate and the boys guardian so she definitely has an inside track. if some thing were to happen to me she needs this information.

Anyhoo, I have never wondered how my neighbors or coworkers buy stuff, I just can't understand the fascination with it? If I saw someone with a new truck I pretty much assume they brought it like everyone else.

 

[morgan98]

I find that so interesting. I have never wondered how folks afford stuff. My circle of friends is pretty small (3 good lifelong friends and my sister) so i know all about their finances and they have a good indication of mine. One girlfriend is an attorney so she is also the executor of my estate and the boys guardian so she definitely has an inside track. if some thing were to happen to me she needs this information.

Anyhoo, I have never wondered how my neighbors or coworkers buy stuff, I just can't understand the fascination with it? If I saw someone with a new truck I pretty much assume they brought it like everyone else.

I am not going to say I have never wondered, but I do have a good grip on the fact that many people make less than we do and many make more. I am an experienced CPA and throughout my career have seen very large numbers on financial statements and tax returns, so I really have separated myself from quite a few of the more "emotional" reactions to money that I have seen on these boards. I worry about my money and my goals and spend as I see fit. I do not place expectations of what I should have or not have on what others may perceive my economic status to be.

I also know that it is impossible to really know someone's complete financial picture, so unless you do it is useless to wonder.