Finance Thread - Ideas to save money

[HookMeUpII]

I work in finance and the discretionary spending is what gets most people. What's worse is discretionary debt, especially in this rate environment.

 

[odonata]

I probably don't have any profound insights or extraordinary advice to give to anyone. I'm definitely not some kind of enlightened financial paragon. But over the years, I have managed to settle into some patterns that have worked well for me personally.

1. Pay yourself first. Before you spend money on bills or other necessities, put some tax-deferred money away in the stock market for your retirement years (e.g. 401k, 457b, etc.). Compounded interest is a wonderful thing. It will hurt at first but if you make it a habit, eventually you won't miss it.

2. I'm too poor to buy cheap. Buy once, cry once. I always try to buy quality that will last me for years. Preferably for the rest of my life. I try to never squander money by overspending. It's a balancing act that takes a bit of research & intuition. A simple way of putting this is I always try to prioritize value for my money. Buying quality used cars, motorcycles, rifles, computers, smart phones, etc. has saved me a lot of money.

3. Pay for everything with a money-back credit card. Pay the balance in full each month. Roll the money-back credits into bill payments. Being debt-free is a wonderful thing if you can do it.

4. KISS...Keep It Simple Stupid. Don't let your physical possessions overwhelm you so much that it takes up all your time & money maintaining the stuff you've acquired. Learn to simplify & minimize whenever you can. Prioritize acquiring experiences over acquiring things.

5. Skimping to save money is a finite endeavor. Working to make extra money can be more rewarding. There is a limit to how frugal you can be so don't expend excessive time & effort trying to save a trivial amount. If you have a skill that can be monetized (I'm a computer programmer that did freelance work in addition to my regular job), focus on making larger sums of cash in a side hustle if that option is available to you. It's a better usage of your time.

6. Be kind & generous. Having good karma produces unexpected benefits.

My close PH friend told me about a client couple who saved money for their safari by neutering their own cat rather than going to the vet. I’m told it involved a pillow case.

And it's post like this that make surfing these forums worth the effort every day! Thanks for the laugh.

 

[ftrovato]

I think this one is simple.

Spend less than we make. (easier said then done if you like to go hunting! ;-)

 

[odonata]

Spend less than we make.

A lot of times the difference between people who are doing okay & people who are struggling is as small as a single-digit percentage: For example, people who are struggling will consistently spend 103% of what they make & people who are doing okay spend 97% of what they make. That 3% difference in opposite directions changes everything. One is always growing balances on credit cards. The other is always growing a savings account. Compounded interest can either be a wonderful or a terrible thing depending on if you're receiving it or paying it.

 

[ftrovato]

A lot of times the difference between people who are doing okay & people who are struggling is as small as a single-digit percentage: For example, people who are struggling will consistently spend 103% of what they make & people who are doing okay spend 97% of what they make. That 3% difference in opposite directions changes everything. One is always growing balances on credit cards. The other is always growing a savings account. Compounded interest can either be a wonderful or a terrible thing depending on if you're receiving it or paying it.

All worthy points. But I thought this is a safari saving drill meant to be light at heart.

 

[SStomcat]

Does anyone here mow their own lawn?
I’ve been vacillating about taking it back up myself, but my wife keeps reminding me that the brutal Texas summers probably aren’t worth it.

 

[Green Chile]

Does anyone here mow their own lawn?
I’ve been vacillating about taking it back up myself, but my wife keeps reminding me that the brutal Texas summers probably aren’t worth it.

Yes until this summer after moving into a new house build. It’s worth it to have it weekly maintained, edged, etc. by others but before that I did it for decades and wore out a few mowers along the way.

 

[steve white]

Does anyone here mow their own lawn?
I’ve been vacillating about taking it back up myself, but my wife keeps reminding me that the brutal Texas summers probably aren’t worth it.

Well, you could just let it dry up and go dormant until you feel like getting out there...hard to do if you have worked to get it well established.

 

[Cucuy]

Not recommended and certainly not condoned, but I know a guy.

 

[ftrovato]

Not recommended and certainly not condoned, but I know a guy.

Once Africa gets in one's blood, most will do whatever it takes to go back!!! ;-)

 

[rookhawk]

@odonata your points are all great and I think we're fellow travelers, particularly the last point about being in a position of power and wealth to be kind and generous. Victims of finance are takers, whether they want to be or not. People that have a plan and live wisely have the liberty to let their true character shine when it comes to using capital to make the world better.

1.) Investing first is 100% a given. But if you have debt, you ought not to invest because you're saving at 10% and paying a CC at 30%. Kill all debt as fast as possible (other than mortgage) and then invest 15% into retirement and 15% into brokerage/assets. Nature abhors a vacuum and if these things aren't tended to first, lifestyle expands beyond what one can afford.

2.) I total agree on being too poor to buy often, buy once and cry once. I've never owned a casio or citizen because I'm too cheap to waste $40. My rolex is worth $10k more than I paid, so I'm only borrowing it from my estate.

3.) The money-back credit cards are largely dangerous scams. The one standout I recommend to everyone is the Fidelity Visa. It gives unlimited, unconditional, 2% cash back into your brokerage account. I auto-sweep money it puts into that account into the S&P 500 as a force multiplier. Airline points and selective cash back on things like groceries or gas are too complex for people to actual "beat the system" and that's exactly why they design those cards in that manner. I'm sitting on a million airline points and they are totally worthless to me because of what I have to overpay for a ticket to use them.

4.) I agree with the simple possessions thing. Anytime I trip over something we don't need, it goes on eBay or FB marketplace. All proceeds go into investment-quality possessions. "Collectors" typically accumulate hundreds of worthless turds whether we're talking about baseball cards, comics, or rifles. I try to focus on <20 of something and make sure its the very, very best of its kind because even in a depression, they still have a lot of value compared to the "pretty good" stuff that becomes unsaleable. I will not leave my estate anything that results in them getting screwed by a dealer paying ten cents on the dollar, they can unwind my estate in a couple well placed auctions because I will not own hoards of "boomer shit" as its now called.

5.) Is essential. Everyone needs a side hustle. 1099 income and being able to itemize, taking losses and deductions against the blend of w2 and 1099 income is key. Being able to hire your kids for real work they can invest in a ROTH is free money for the adult (tax deduction) and it forces children to budget and plan. I pay them, they can buy their own food and school clothes. Having a 9-10 year old kid figure this out is hugely important so they realize the value and effort of money.

6.) Yes, be kind and generous, not a drain on the system. I've been incredibly blessed and therefore I'm obligated to incredibly bless others that have demonstrated need.

I probably don't have any profound insights or extraordinary advice to give to anyone. I'm definitely not some kind of enlightened financial paragon. But over the years, I have managed to settle into some patterns that have worked well for me personally.

1. Pay yourself first. Before you spend money on bills or other necessities, put some tax-deferred money away in the stock market for your retirement years (e.g. 401k, 457b, etc.). Compounded interest is a wonderful thing. It will hurt at first but if you make it a habit, eventually you won't miss it.

2. I'm too poor to buy cheap. Buy once, cry once. I always try to buy quality that will last me for years. Preferably for the rest of my life. I try to never squander money by overspending. It's a balancing act that takes a bit of research & intuition. A simple way of putting this is I always try to prioritize value for my money. Buying quality used cars, motorcycles, rifles, computers, smart phones, etc. has saved me a lot of money.

3. Pay for everything with a money-back credit card. Pay the balance in full each month. Roll the money-back credits into bill payments. Being debt-free is a wonderful thing if you can do it.

4. KISS...Keep It Simple Stupid. Don't let your physical possessions overwhelm you so much that it takes up all your time & money maintaining the stuff you've acquired. Learn to simplify & minimize whenever you can. Prioritize acquiring experiences over acquiring things.

5. Skimping to save money is a finite endeavor. Working to make extra money can be more rewarding. There is a limit to how frugal you can be so don't expend excessive time & effort trying to save a trivial amount. If you have a skill that can be monetized (I'm a computer programmer that did freelance work in addition to my regular job), focus on making larger sums of cash in a side hustle if that option is available to you. It's a better usage of your time.

6. Be kind & generous. Having good karma produces unexpected benefits.



And it's post like this that make surfing these forums worth the effort every day! Thanks for the laugh.

 

[rookhawk]

Yes until this summer after moving into a new house build. It’s worth it to have it weekly maintained, edged, etc. by others but before that I did it for decades and wore out a few mowers along the way.

At my old place we lived in a very nice, very established neighborhood with tall trees. It was just a half acre, but I was socially obligated by the area to ensure beds were mulched, trees were pruned, shrubs were replaced when they died, new trees were planted, etc. I hated doing the upkeep and even using a very reasonably priced landscaper, I figure I wasted on average $5000-$10000 per year on all the services required.

Today, I live on 40 acres and I do not own a lawnmower. If I do maintenance with my wife, its tree trimming, planting orchard trees, or managing perennial plants. My costs are lower than my prior life, and every dollar I spend is a "forever" expense, at least for the life of a tree or plant that will outlive me. I hate grass.

As to whether someone should do their own mowing, its gotta be a time value of labor calculation. Can your day job or side hustle pay more per hour than garden care? If yes, sub contract it out. If not, get your butt on the tractor!

 

[SStomcat]

At my old place we lived in a very nice, very established neighborhood with tall trees. It was just a half acre, but I was socially obligated by the area to ensure beds were mulched, trees were pruned, shrubs were replaced when they died, new trees were planted, etc. I hated doing the upkeep and even using a very reasonably priced landscaper, I figure I wasted on average $5000-$10000 per year on all the services required.

I live in a similar area, many of my old neigbours do their own yard, hell I had a Hispanic neighbour who was out in the yard in 100 plus deg with humidity. I use to wonder how can one do that, One day I ended up asking him, he said it does not matter, I grew up doing this, all I need a chilled beer after the job is done.
I used to mow when we lived in Indiana, was not much of an issue except to clean the mess.
Houston area there are many reasonable grass cutters and the 4-5 months of brutal heat May-Sept could well be a killer. My wife told me you choose between a heat stroke and mowing to save few dollars. I think she swung the pendulum the other right way...

 

[Josh P]

Here in SW Indiana it can be brutal to mow, but I mow a small number of properties for local government as a side job. Think cemeteries and a ball field type stuff. Yes, it’s hot, but my first year it nearly paid the mortgage, and as mentioned above, also opened up new deductions.

Still learning the tax strategies, but the side work is worth more than just the pay stub. It took speculation about the possibilities of 1099 benefits and turned it into a fire under my rear to implement it in reality.

 

[JPbowhunter]

1.) Investing first is 100% a given. But if you have debt, you ought not to invest because you're saving at 10% and paying a CC at 30%. Kill all debt as fast as possible (other than mortgage) and then invest 15% into retirement and 15% into brokerage/assets. Nature abhors a vacuum and if these things aren't tended to first, lifestyle expands beyond what one can afford.

My wife and I are in this conundrum at the moment. Mid 30’s on avergae wages with small kids and a mortgage. We’re trying to pay down the mortgage as fast as we can as it’s our only debt but have contemplated paying it down slower and investing the difference. Problem is, we use the extra we’re paying down as emergency funds for when shit hits the fan e.g. car breakdown, problems with the house, big bills etc.
Work has acknowledged I’m overdue for a pay rise and when it comes I plan on flowing anything on top of current into investments, no intention of living larger than I do now. Although a first safari would be nice!