Are You Frugal, Cheap, or a Spender?!?!

[Marionnette]

Since this is the budget board, I thought I would ask this question. I used to be a spender. Not an over spender, no credit card debt, but, I spent happily until my check was gone.

I am now, very late in life unfortunately, trying to become frugal. I am actually having fun saving money.

How about you all? Do you have a budget, retirement savings, savings account, credit cards with balances?

Do you charge your Disney vacations, or pay for them before you go?

I'm looking forward to your answers, as I have learned so much, from so many here!

Yes we have a budget. It is loosely written and has a lot of wiggle room in it.

We've been saving for retirement since we were in our twenties (we're now in our 50's). There is no pension nor any 401K matching funds for the self employed. I'm sure that we could be saving more but there are two kids in college right now and the cost of higher education is not cheap. At least our kids will graduate with no debt.

There are always charges on our credit cards. We pay the balance off in full each month but I can guarantee that the monthly bill will be in the range of $2K for all of our personal charges. We put everything that we can on the credit cards in order to get the rewards points and to reduce the number of bills (and due dates) that we need to keep track of.

Am I cheap? No. A cheap person would not pay for the things that I spend my money on...ipods, 3 iphones, HD cable TV, concierge level vacations and balacony stateroom cruises.

Am I frugal? Sometimes. But not with everything. I rarely use the clothes dryer. Partly to save money on the electric bill and partly to save the environment. OTOH, I will spend more for a fruit platter for a party just so that I can save time over cutting up melons and pineapples. We don't have a cleaning lady but we do pay someone to cut our lawn every week in the summer. We have our priorities.

I don't consider myself to be a spender. My former sister in law is a spender. She buys luxuries but leaves the light bill unpaid. She racks up credit card debt and thinks she's doing well if she can pay the minimum each month. She sees something that she wants and she buys it without consideration as to how to pay for it.

I refuse to be a slave to my money. It's a means to an end. I save because I want life to be comfortable in our retirement. I save because I want to continue taking nice vacations and to have nice things. I save so that I have the means to help my family when they fall on tough times. I don't save just to see how high the balance can go. I don't save so that I can brag about how big our safety net is. And while I may gloat over an awesome deal that I found, I will not deny myself something I can afford just because it hasn't been marked down or discounted in some way.

 

[LoveBWVVBR]

I'd call myself frugal, DH would (and does) call me cheap We don't live by a strict budget anymore, but I know what we can and can't spend. We have good retirement savings, no debt, etc. We don't charge anything that won't be able to be paid off in full when the bill comes.

 

[mhsjax]

Yes we have a budget. It is loosely written and has a lot of wiggle room in it.

We've been saving for retirement since we were in our twenties (we're now in our 50's). There is no pension nor any 401K matching funds for the self employed. I'm sure that we could be saving more but there are two kids in college right now and the cost of higher education is not cheap. At least our kids will graduate with no debt.

There are always charges on our credit cards. We pay the balance off in full each month but I can guarantee that the monthly bill will be in the range of $2K for all of our personal charges. We put everything that we can on the credit cards in order to get the rewards points and to reduce the number of bills (and due dates) that we need to keep track of.

Am I cheap? No. A cheap person would not pay for the things that I spend my money on...ipods, 3 iphones, HD cable TV, concierge level vacations and balacony stateroom cruises.

Am I frugal? Sometimes. But not with everything. I rarely use the clothes dryer. Partly to save money on the electric bill and partly to save the environment. OTOH, I will spend more for a fruit platter for a party just so that I can save time over cutting up melons and pineapples. We don't have a cleaning lady but we do pay someone to cut our lawn every week in the summer. We have our priorities.

I don't consider myself to be a spender. My former sister in law is a spender. She buys luxuries but leaves the light bill unpaid. She racks up credit card debt and thinks she's doing well if she can pay the minimum each month. She sees something that she wants and she buys it without consideration as to how to pay for it.

I refuse to be a slave to my money. It's a means to an end. I save because I want life to be comfortable in our retirement. I save because I want to continue taking nice vacations and to have nice things. I save so that I have the means to help my family when they fall on tough times. I don't save just to see how high the balance can go. I don't save so that I can brag about how big our safety net is. And while I may gloat over an awesome deal that I found, I will not deny myself something I can afford just because it hasn't been marked down or discounted in some way.

THis is us, exactly. So instead of writing a bunch, I will just 2nd this attitude.

 

[MUFFYCAT]

Yes we have a budget. It is loosely written and has a lot of wiggle room in it.

We've been saving for retirement since we were in our twenties (we're now in our 50's). There is no pension nor any 401K matching funds for the self employed. I'm sure that we could be saving more but there are two kids in college right now and the cost of higher education is not cheap. At least our kids will graduate with no debt.

There are always charges on our credit cards. We pay the balance off in full each month but I can guarantee that the monthly bill will be in the range of $2K for all of our personal charges. We put everything that we can on the credit cards in order to get the rewards points and to reduce the number of bills (and due dates) that we need to keep track of.

Am I cheap? No. A cheap person would not pay for the things that I spend my money on...ipods, 3 iphones, HD cable TV, concierge level vacations and balacony stateroom cruises.

Am I frugal? Sometimes. But not with everything. I rarely use the clothes dryer. Partly to save money on the electric bill and partly to save the environment. OTOH, I will spend more for a fruit platter for a party just so that I can save time over cutting up melons and pineapples. We don't have a cleaning lady but we do pay someone to cut our lawn every week in the summer. We have our priorities.

I don't consider myself to be a spender. My former sister in law is a spender. She buys luxuries but leaves the light bill unpaid. She racks up credit card debt and thinks she's doing well if she can pay the minimum each month. She sees something that she wants and she buys it without consideration as to how to pay for it.

I refuse to be a slave to my money. It's a means to an end. I save because I want life to be comfortable in our retirement. I save because I want to continue taking nice vacations and to have nice things. I save so that I have the means to help my family when they fall on tough times. I don't save just to see how high the balance can go. I don't save so that I can brag about how big our safety net is. And while I may gloat over an awesome deal that I found, I will not deny myself something I can afford just because it hasn't been marked down or discounted in some way.

THis is us, exactly. So instead of writing a bunch, I will just 2nd this attitude.

I somewhat fall into this category so I will 3rd this attude.

For example I'll pay for vacations but will drive our cars to the ground.

 

[DawnM]

All of the above!

We believe in being debt free other than the mortgage. DR says to continue to live very frugally and pay off the house in as few years as possible. We stopped at paying off everything and having a min. of 6 months in an emergency fund. We actually have a little more than 6 months.

We have been paying over 15% towards retirement since we were 22 years old and got our first jobs out of college, so that money we have simply never seen, so we continue to contribute.

Now we have categories for our money. I use YNAB.com (You Need A Budget). I have money saved for a new computer, Vacations, Kid's schooling funds (curriculum for homeschooling), college funds, etc......

So, we DO track ALL of our spending, but we do spend. We just save up for it first and try to buy wisely and plan for it rather than just go shopping and buy what looks interesting.

We WILL pay more for some things just for the quality of the product and knowing it will last. Appliances come to mind in that category. Other things include computers, a quality built home, cars that will last, that sort of thing.

What do I spend next to nothing on? Clothing for the boys (and I get near new stuff!), my dogs get food and one toy (kong balls) and they don't need fancy anything else. I make most food from scratch, I get quality used furniture from friends if possible, and there are other things in that category as well. I have a very low budget for vacation and can do Disney for quite cheap, but most people don't want to do Disney our way!

Sorry for the ramble, but I feel very strongly about getting out of debt (other than the house) and it is so freeing to finally be there.

Dawn

 

[marie1203]

How about you all? Do you have a budget, retirement savings, savings account, credit cards with balances?


Do you charge your Disney vacations, or pay for them before you go?

I'm looking forward to your answers, as I have learned so much, from so many here!

I think I am frugal. We still do everything we want and get what we want but we make sure we get it as cheap as we can, and sometimes that means we have to wait a few months to get it. We have a budget, we have 2 different retirement savings accounts (we are only 24,25). We have 2 savings account (one for the pets and an emergency savings) and an extra account for our fun money. We do not carry credit card balances.

For our disney vacations it really depends what is the best deal. Sometimes it is not booking through disney, but if it is we put it on our disney Visa because 6 month interest free is great deal we just leave that money in the fun account collecting interest.

 

[eliza61]

As usual I'm some where in between. so I guess I'm all of the above!!

We have a mortgage and no burning desire to pay it off early. We brought a house within our means.

As a general rule we pay off credit card debit quickly (as in when the billcomes in) but we use our credit cards.

We both have 401K's for retirement and have an emergency spending account.

Kids have small college tuition funds, not much so we're paying out a lot in tuition.

some things I'm frugal on, some I am not. I refuse to pay more than 40 bucks for a pair of jeans but have no problem paying $800 bucks for a pocket book. go figure.
I'm as cheap as one can get when grocery shopping but have no problem shelling out $600 a night for a hotel room so I can see the eiffel tower out my window.

We both have made some ridiculous money mistakes so I like to think I don't criticize others.

We thought our boat purchase was a huge mistake and a black hole for money but love our DVC. once again, go figure.

 

[JandJ]

Do you have a budget Yes - we use Quicken - I should say we don't just use Quicken - we live by Quicken! We make a new budget every year and we base it on just DH's salary. I work for a non-profit and don't make much at all. We've agreed this year to stick to the budget 100% like we did when we were first married. With me working, even as little as it is, we've used my income to make up for "shortfalls" in the budget and will end up eating out more often or buying something for the house that's not in the budget. In 2011 we're going back to watching the budget very closely.

retirement savings Yes - 401K, 403B, and IRAs

savings account Yes - we have a general savings and we have money set aside for different types of savings - i.e. new car savings, home repair savings, vacation savings.

credit cards with balances? No - I was the queen of CC debt before we got married but DH does not believe in paying interest. We use our cards for every single purchase (we get cash back rewards) but pay them off in full. We treat CCs like cash - if we don't have the money in the account to pay the bill in full we don't buy the item.

Do you charge your Disney vacations, or pay for them before you go? It will get charged, but paid for in full before the trip, or for any big purchase.

I would say we're frugal. We have nice things because quality things last longer, but we save up for them and DH will not pay full price for anything. We live in a smaller house and just refinanced to a very reasonable 15-year fixed mortgage, which is our only debt. Friends and family either think we're very cheap because we don't spend on things like fancy cars, fancy clothes, cable TV, expensive haircuts or manicures, lunches out, lawn service, and stuff like that. Or they see we have nice things, like Ethan Allen furniture, a new Toyota SUV (base model because it had all we needed), fabulous vacations, etc. and they think we're spenders. All I know is, we're happy. Our budget works for us, it wouldn't work for everyone, but it definitely works for us.

 

[kimkoz]

I'm not sure who I am - I spend but I watch it now, so I guess Frugal.

We're a budget family as we are still working off CC debt. Young out of college kids, with low paying jobs we lived on CC for some time. Dumb, we know but we're 14 months away from being debt free on the CC end. We still have a mortgage, 1 small car payment, and student loan. We're hitting our 30's this year.. It's actually exciting.. many things are being paid off in the next year and so on.. its like a celebration each year that something is paid off.

We are no longer living paycheck by paycheck. We're able to spend and save when needed.

Savings - Yes, not tons but enough to cover if a problem comes up - Just started college for the kids. We will not be able to cover it all for them but enough to help with living and books. Thats what our parents did for us, mine alittle more but I still had to take out loans.

Retirements - Sure, we both have match programs at work.

Insurances - Have them in case something happens and our family needs the support.

Trips - I put money into a christmas club at work every paycheck. I've always done it so I never really noticed the change in paycheck. Come November we have a good chuck of cash. This year it covered airfare, tickets and housing. We've saved our spending money and car. Thats why we plan a year in advance. Extra money goes to the kids college funds. We do not use CC so everything is done but a bank card so cash really.

 

[Pakey]

I'm in the middle.

We have no debt; we live in a small home that is paid for. So in that way, I am frugal. It killed me last month to replace our 25 year old mattress--who knew prices on beds had gotten so high.

I do put the max into my 401k every year and I get a match. My husband is self employed so no match. We have always contributed but only started maxing it out about 8 years ago (huge mistake). We are in our mid 50's and do not have enough to retire, at least not at the level I'm comfortable.

We have savings although it got depleted 2 years ago when we bought a rental property but I'm building it back up again. I direct deposit into the savings every payday to make sure it goes in there.

Kids are grown and out on their own now so college expenses are done. Only one more wedding to get through, lol.

I don't spend much on clothing or "things" but we do eat out weekly. We rarely go to the movies or do any other form of entertainment.

The big hole in my budget, where a huge chunk of our money goes, is on vacations. We do big vacations. Part of me tells myself that I shouldn't; I should be putting it all away for retirement. The other part of me worries that my health will not be there for me. I may not live long enough to retire (can't retire early due to my medical insurance needs) or I may not be in good physical shape when I do retire so we are trying to do our adventurous travel now.

 

[hmack]

I guess you could say that I'm all over the map. I like to say "frugal" but with a little streak of "splurge". And yes...I know that doesn't make sense.

Budget - not really, but I do have a monthly plan.

Debts - one truck payment (hope to have it paid off by the end of the year), one student loan, a mortgage

Retirement - yes, both of us have matching plans at our place of employment.

C.C. - (take a deep breath) yes. We are both carrying a balance on our cards. Not a huge - gasp worthy balance - but an annoying seemingly always present balance. DH - is applying his upcoming bonus to pay off his card and then we'll start chipping away at mine. I also have picked up an adjunct teaching job and am applying most of that income to paying off our cc. So I can say with confidence, that we're working on it.

Spending Habits - I used to love to take my girls into our local small city and shop every weekend or so. Not extravagant shopping trips - maybe spend a total of $100 or less and a lunch out. But that has stopped. I've gone into - "do we need it" mode. As in, "do you really need another cute tee-shirt to line your closet?". I save money now by planning out meals at home.

I find that the more goals I have - ie - "pay off DH's truck by October" (2 months early), the more frugal i become. But I tend to get in trouble when I take my eyes of the goal.

That being said, I do enjoy (guilt-free) a date night every now and then. And I like to run, so I spend money on sneakers and race fees. Most 5K races are about $15 to enter, and I do one Half Marathon a year, race fee - $50. But that's something I like to do for myself.

As someone said, it really is all about priorities.

As you can tell from my countdown - we are pretty far from our next Disney trip, that is because we are trying to save responsibly for it and have it totally paid for before we go. By choice, would I wait so long? No - but in looking at our financial plan it is the most responsible for us right now with every thing else we want to do.

 

[SunnieRN]

I have so enjoyed reading all of your responses! I have also found that I am more frugal than I thought I was!

I have two credit cards with small limits. Enough to do a birthday, buy a water heater, or other small things. I rarely carry a balance and if I do, it is paid off the next month.

Vacations are cash only. I use my debit card with the Visa logo, so no problems for deposits, etc.

Furniture, I believe in spending more on the onset, so hopefully it will last longer on the outset. All in all, I am not very good at decorating, interior design, so I save money this way. lol

Cars, I do have a car loan right now. I am starting to put away extra to pay on the principal. The car is well taken care of, we got a good price, as we bought a less than 1 year old, previous rental car. Not a lot of whistles, bells and buzzers, but it takes alternative fuel if we wish and brought us comfortably to WDW last November.

My weakness is birthdays and Christmas. I am starting birthday funds and in a couple of months will start a Christmas fund. It will get heavily funded as that is something I love to do, spoil my grandmunchkins at Christmas!

I have two retirement accounts, which I should fund more. I also need to combine them. I will not be vested at work for two more years, then it will boost my balance quite nicely!

So, I am frugal with groceries, curbed my eating out WAY down, to about 15% of what it used to be, cut back and don't buy the kidlets a bunch of stuff each time I go to the store, which I used to do every trip, am saving money, building up emergency funds and tracking the money I spend. So, in a much better place Than I was.

 

[threeblessings]

I would say we're frugal. We have nice things because quality things last longer, but we save up for them and DH will not pay full price for anything. We live in a smaller house and just refinanced to a very reasonable 15-year fixed mortgage, which is our only debt. Friends and family either think we're very cheap because we don't spend on things like fancy cars, fancy clothes, cable TV, expensive haircuts or manicures, lunches out, lawn service, and stuff like that. Or they see we have nice things, like Ethan Allen furniture, a new Toyota SUV (base model because it had all we needed), fabulous vacations, etc. and they think we're spenders. All I know is, we're happy. Our budget works for us, it wouldn't work for everyone, but it definitely works for us.

This is us too. Some may think we are cheap because we don't have cable or brand new cars, but others think, "wow, I can't believe they are spending XYZ, that is SO much money" (vacations, built a high quality home, kids are decked out in brand name clothes because I get them for next to nothing)

I am another one of those, "need to get a deal", people. Which can be a bad thing. I can easily overspend because I can't pass up a good deal, but overall, I am able to keep it in check.

Budget: We do not have a budget, just a basic spend less than you make deal.

Retirement: 401K, Roth IRA, traditional IRA

Savings: general "emergency fund", vacation account, christmas club, house savings account (to finish the basement).

Debts: mortgage and $5K left on student loan

CC: Never carry any balance, except on occasion for large purchases where you get 0% interest (looking to buy furniture and will be doing this in the next month or so)

Spending habits: see above!

Charge Disney or pay before: This is our first trip. We have a good chuck of money saved for it, but it turned out to be a extended family gathering (parents are paying for offsite lodging, so we will have plenty to cover the rest, still I am trying to find the best prices (tickets) and values for restaurants. We will go all out on some things, but save in other ways.

 

[MEM]

Both DH and I are frugal - I define "cheap" as when your penny-pinching makes OTHER people uncomfortable.

We have a budget, we live in a High COLA West of Boston and DH paid off the mortgage on our house back in his bachelor days. Our car is a 1998 that we paid cash for when it was new. We own 3 DVC contracts that we paid cash for - we consider it paying for vacations in advance. We do charge our Disney vacations - airfare goes on our Southwest credit card and park tickets and food goes on our Disney visa.