Thrifty People: Well Off or Out of Necessity?

[BadgerGirl84]

In your life, would you say that the thrifty people you know tend to be rather "well-off" or tend to be people who need to be thrifty out of necessity?

To get more specific, would you say that the people you know who "count every penny and stretch every dollar" tend to be people who are doing okay in the income-department and just like getting the most bang for the buck....or people who need to do so for their family to pay all their bills?

In my experience, the people who I know who are the biggest "penny pinchers" (myself included) are people who are doing well financially (good income, nice home, etc.) and some of the biggest money wasters are those who don't have a lot of money to spend.

I understand that we do not always know the ins and outs of the finances of everyone that we know, just wondering if anyone else has noticed similar (or opposite) generalizations.

I tend to think that those who are "well off" at least in part got to that point by being very budget-conscious.

 

[Granny square]

Well off. Maybe it is the area we live in but there aren't a whole lot of people who flaunt their things and shopping. Unless they have something to prove, the person living in an old trailer with a brand new pickup truck, etc.

 

[Robbi]

My parents are very thrifty. Dad is a retired attorney and he inherited a few million $$$$ when my thrifty grandparents died. I wish they would spend some money to travel or take up hobbies or something. As thrifty as my grandparents were, they traveled. When they were my parent's age-74-, they took a cruise to China and Hong Kong. My dad is gloom and doom because he spends so much time on the doom internet sites. He's afraid of economic collapse and losing all his money. Granted it could happen but him not spending money to enjoy life won't prevent it. He has a couple of million dollars of gold and silver so even if the dollar crashes, he'd get by ok.
I know it's their business and not mine- heck, I'd get more $$$$ in the end but I'd really rather see them enjoying their golden years.

 

[lizabu]

The cheapest person I know is my BIL and he's a millionaire

 

[Happiest mommy]

well off

 

[bumbershoot]

Of the people I actually *know*, the thriftiest have good incomes. And on the other side, for a LONG time I was among the lowest income in my group, and I wasted money like crazy.

So what you noticed, OP, works for my group, too.

 

[MomToOne]

I know many thrifty people - including myself - that are not hard up, although I wouldn't call us well-to-do either. And our thriftiness was usually started as the result of a financial struggle at some point in life. We might not be there now, but we were at one time.

But most multi-millionaires didn't get to be that way by being thrifty, they usually get there by taking risks. Being thrifty can actually keep you from achieving more in life. I've never been particularly lucky and risk taking really isn't my thing, so I am thrifty. Hopefully it will get me to where I can be comfortable in my old age. But I could potentially be much more comfortable if I wasn't such a tightwad LOL.

 

[BadgerGirl84]

I know many thrifty people - including myself - that are not hard up, although I wouldn't call us well-to-do either. And our thriftiness was usually started as the result of a financial struggle at some point in life. We might not be there now, but we were at one time.

But most multi-millionaires didn't get to be that way by being thrifty, they usually get there by taking risks. Being thrifty can actually keep you from achieving more in life. I've never been particularly lucky and risk taking really isn't my thing, so I am thrifty. Hopefully it will get me to where I can be comfortable in my old age. But I could potentially be much more comfortable if I wasn't such a tightwad LOL.

I agree with everything you said and this is a frequent debate between me and my DH! I am the saver and he is the spender. Neither one of us is way extreme (I like to save, but I do buy things now and then...esp for Disney!...and he likes to buy things, but also has done very well putting lots of our money in Money Markets and investment funds). I like to say that I would like to sleep with 20K cash under the bed because it makes me feel safe and he likes to remind me that we will never get rich just holding on to our money--we need to invest and take some risks.

 

[BadgerGirl84]

Here is my scenario that prompted me to write this thread:

I needed some new work clothes for winter (I have always traveled for work and had previously been traveling to warm climates...now I travel to work in Northern MN).

I figured I needed some new sweaters and dress pants, plus some dress shoes that will do well in the snow.

Where did I go shopping? Goodwill. I could not even think of going to the mall or buying clothes full price until I had checked out the Goodwill to see what used clothes I could buy. I got 4-5 new-to-me tops/sweaters but they did not have any pants in my size in a modern style. So...I wrung my hands and bought a single pair of pants at Kohls with a coupon I had. Still haven't found shoes. I tried on some pairs that I think will do well at the shoe store, and I'm currently scouting eBay to see if I can get them at a bargain price.

Driving home, I thought about it and I figured that most people I would know head to Limited, Express, or one of those stores if they needed new clothes and wouldn't think twice about it.

DH and I are currently in top 10% of income earners (so very blessed to be in our current job industry) and could afford having cable TV, buying all our clothes at the mall, etc. but don't.

Not making a judgement...just an observation.

 

[Granny square]

Most of the people I know that I would call well off got there by saving and making good financial choices. Not necessarily risky choices though.

 

[pigletto]

I'd say both. I know people with average to good incomes who do well and have security by pinching every penny. I know millionaires who spend what they want ..because they can.
It's all relative.

 

[swilshire]

I think a lot of it comes from the way you were raised. My parents were older and went through the depression. Neither worked very well paying jobs. I learned to pinch a penny until it hurts and you never really get over that. Sometimes I realize I'm being silly skippy something I want that is only a few dollars, but it's hard to break old habits.

Sheila

 

[jennyjinx3]

I think the thriftiest are comfortable / well off, in my opinion. But it does matter if you were raised that way too.

 

[ceecee]

My aunt was really thrifty, although she had plenty of $. She lived through the depression and that I think caused her to be that way.

 

[OLT2004]

First Story - We live prudently, Middle Class, Not wealthy, Not Poor.
I was grocery shopping - After going through the local stores circular
to "Cherry Pick" the bargains...They had some brand of Pasta @ 2/$1
(remember 2/$1 pasta)?
So...I was kinda hungry for Rigatoni - but it was not on sale...It was .68cents a LB. Box-The other Pasta shapes were only .50cents...Hmmm...Hmmm

I paused and pondered over that .18cents...
I got the 2/$1 Pasta....

That night after dinner, without hesitation, I went online and made some ADR's @ The Rose & Crown Pub for Illuminations($200 Check) - The Coral Reef Lunch($100 Check) and Sci Fi Dine In($100 Check)

Moral Of The Story...We were able to do this because we lived day to day prudently. We lived & Still live under our income.

2nd Story to follow...

 

[Colleen27]

Necessity, but that's probably because of the area we live in and the field DH works in. The median income in my town is under 40K and you can live pretty well on that if you're careful but it certainly isn't lap-of-luxury - being thrifty when it comes to buying jeans at the resale instead of the mall and not indulging a Starbucks habit is how folks I know afford vacations and fees for kids' activities and other little extras in life.

 

[luvthemouse71]

I think it varies. I think some people are frugal by nature, some don't care, and some are downright cheap. I've seen people who are poor waste money and others who are poor watch their pennies. Ditto for those who are well off.

I would like to think that working hard and being smart with money would affect how much money you bring in/ your financial stability but life doesn't always work like that.

 

[disykat]

I think it's "cultural." I read an excerpt from a book somewhere, don't remember what the book was and am not sure I'm acurate, but I'll take a shot.

In the culture of poverty, the thought is "wow, I've got some money, I'd better spend it before it disappears."

In the middle class, the thought is "I need to make my money meet my needs and some of my wants, I'll try to make it work for me through budgeting etc.

In the upper class, the thought is "I will invest the money I have and build wealth."

Obviously not everyone falls within these cultural "norms" but I see quite a bit of truth in them. If you think about it, the first group needs to think like the second group to gain wealth and the second group needs to think like the third group to gain wealth.

 

[crisi]

The other thing is that the anticipation of having something is often most of the fun. What you can't have is always more coveted, so that if suddenly you can have it, you get it.

When you can afford a lot of what you want, for some people, you quickly start to want less because of this.

Diskat, I've heard the same thing a little differently.

In poverty, you are getting through day by day, week by week. You think a week ahead.

In the middle class, you are putting away for college and retirement. You think to the end of your life.

The wealthy think of wealth generationally.


They are thought patterns, but they are also practical reality.

 

[eliza61]

Here is my scenario that prompted me to write this thread:

I needed some new work clothes for winter (I have always traveled for work and had previously been traveling to warm climates...now I travel to work in Northern MN).

I figured I needed some new sweaters and dress pants, plus some dress shoes that will do well in the snow.

Where did I go shopping? Goodwill. I could not even think of going to the mall or buying clothes full price until I had checked out the Goodwill to see what used clothes I could buy. I got 4-5 new-to-me tops/sweaters but they did not have any pants in my size in a modern style. So...I wrung my hands and bought a single pair of pants at Kohls with a coupon I had. Still haven't found shoes. I tried on some pairs that I think will do well at the shoe store, and I'm currently scouting eBay to see if I can get them at a bargain price.

Driving home, I thought about it and I figured that most people I would know head to Limited, Express, or one of those stores if they needed new clothes and wouldn't think twice about it.

DH and I are currently in top 10% of income earners (so very blessed to be in our current job industry) and could afford having cable TV, buying all our clothes at the mall, etc. but don't.

Not making a judgement...just an observation.

Also I think there is a concept of "worth".

See for me since I tend to buy more "classic" styles that never go out of fashion I tend to spend a lot on my clothes. I hate kohls because imo every thime i buy some thing out of there it shrinks or fades within 2 washings.
I'd rather pay 150 dollars for a nice pair of well made lined black pants than a pair of 29.00 slacks from kohls that are thin, cheaply made (seams showing) etc. Now what's interesting for me is that, some things I'm thrifty about. Like jeans. Jeans and sneakers are really not worth much to me so I won't spend much on them.

Same thing with cable (or actually any thing). I use to have a full package but simply got tired of paying for lousy tv, so now I have the basic package to get internet service and I use redbox when I want to rent a movie.

Remember also we are on a board that is specifically for a luxury item. Disney. I know a lot of folks who think Disney is a huge, gigantic rip off. they are millionaires and wouldn't dream of dumping the money we spend at the mouse world. I also know folks who are squarely upper middle class that watch their pennies and are very thrifty during the year and when they go on vacation, it's first class all the way. so what category do they fall into?

There are just a lot of "factors" that go into how and what I spend money on.