Living Beyond Their Means...

My aforementioned uncle, who is just a couple years younger than my mom, pays cash for almost everything. He grew up in the same house as my mom, yet turned out near the complete opposite in terms of managing finances. He's frugal, but not cheap. He'll often pay for everyone's meal at our get togethers, float money his kids' way, and have no qualms about helping a family member out in times of financial need. Regardless, he's still got considerably more money than my mom or any of their sisters, despite having a job that pays well, but not great.

He's managed to do all of this and put two kids through college because he has never fallen victim to plastic retail therapy.

Originally Posted by willpower

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Irrational belief that you'll somehow have the money in the future to easily cover the expense you are creating now.
+100. This diagnosis certainly applies to me, it's only in light of this recession I've started to realize the well I thought would never be empty could run dry and I've actually made a concerted effort to start saving. Trying to keep up with the jones on a site like this is also a step in the wrong direction. Coming out of university, I figured as long as I'm willing to work for it, bespoke suits, IWC watches and german cars would be a given in my life.

I live beyond my means now. I make nearly nothing, but spend like crazy. But I know the implications of this and when it comes time to be financially independent this will all subside. I have proven restraint and the ability to save. Before I ever had a job, I would save my birthday and lunch money until it would reach in the thousands (all cash btw, no bank account until I was 18 lol).

A place like this doesn't help me, either. I've learned a lot and gained more appreciation for better clothes. At the same time, I'm not really in a position where I should be even considering having a closet full of shirts north of $100 or denim north of $200. Even when going with a mindset that things will even out because you won't buy as many clothes, just better ones, it doesn't always keep you out of trouble. There's always something new coming out and few of us are able to resist at least sampling those new options.

Originally Posted by oneeightyseven

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...I would save my birthday and lunch money until it would reach in the thousands...

Really???
Thousands?

...

This thread reeks of saving-worship. This isn't some magical thing that you have to do. Basically you look at the money you get and possibly will have, assess risk and decide if you'd rather spend money now or it's "worth" more to you to save and have it fructify for later enjoyment. There is no good/bad answer about that.

Originally Posted by Fuuma

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This thread reeks of saving-worship. This isn't some magical thing that you have to do. Basically you look at the money you get and possibly will have, assess risk and decide if you'd rather spend money now or it's "worth" more to you to save and have it fructify for later enjoyment. There is no good/bad answer about that.
Good point.

Originally Posted by Fuuma

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This thread reeks of saving-worship. This isn't some magical thing that you have to do. Basically you look at the money you get and possibly will have, assess risk and decide if you'd rather spend money now or it's "worth" more to you to save and have it fructify for later enjoyment. There is no good/bad answer about that.

So how did you get to the rather comfortable financial position you (apparently) enjoy? By spending all your money as soon as you got it? That only works if you are in fact guaranteed more money. It's not a matter of savings worship, it's a matter of being realistic about what you need and what you can actually afford. Far too many Americans are absolutely drowning in debt because they make terrible choices about what they can afford or what they need.

Judging by your WAYWT you spend some fair coin on clothes. Do you buy all that on credit?

Originally Posted by Warren G.

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Yup, I'm Asian and that's true lol.

The only thing my parents ever finance was a house...they paid that off when I was in grade school. My parents don't drive fancy cars, but they bought their cars with cash. My dad drive his company van most of the time, so he gave me his truck. So I'm pretty grateful for that. They're pretty conservative with money. Good thing I wasn't a spoil child, I don't remember having much when I was a kid.

The only thing my dad ever splurge was his boat and this big screen TV he bought nearly 15 years ago...still in perfect working condition. Every time something would come up, my parents are ready. My parents use to get **** for this...

Hmmm.....Asian, boat, big screen TV.........is your dad Tom Vu?

i never want to be in debt in my life. my family is far far far from the type who go into debt. nothing to do with how much they make they just never buy things they cant afford. my mom especially is the cheapest person on earth. i think it says a lot about a person if they are constantly in debt etc. like my ex's best friend and her bf are always in debt. lets go buy this and that. oh we have no money but when we go out we have to take cabs and buy bottles. its kind of pathetic.

and who ever was talking about the asians only spending money they have.....maybe when they first got here, but where i work i see tons of asians who i know half of them cant even afford anything they are buying. in certain asian communities its all about the car you drive and the LV belt you have. granted i dont hang around with many asians, but when i was with a few who were CBC, canadian born chinese, i had never heard more conversations about people obsessed with money. EVERYTHING was about how baller this guy was, his car, etc. they talked about a guy who lost money at a casino, and people thought he was upset because he lost money. so they were at hotpot and hes like "i dont give a **** how much i lost, thats not why im mad" and he throws 1000 dollars into the hot pot. they thought this was so baller and amazing. meanwhile im looking at my ex like who are these marsupials.

Originally Posted by West24

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i never want to be in debt in my life. my family is far far far from the type who go into debt. nothing to do with how much they make they just never buy things they cant afford. my mom especially is the cheapest person on earth. i think it says a lot about a person if they are constantly in debt etc. like my ex's best friend and her bf are always in debt. lets go buy this and that. oh we have no money but when we go out we have to take cabs and buy bottles. its kind of pathetic.
Joos.

Originally Posted by kwilkinson

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Joos.

its better then being black.

Originally Posted by NorCal

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So how did you get to the rather comfortable financial position you (apparently) enjoy? By spending all your money as soon as you got it? That only works if you are in fact guaranteed more money. It's not a matter of savings worship, it's a matter of being realistic about what you need and what you can actually afford. Far too many Americans are absolutely drowning in debt because they make terrible choices about what they can afford or what they need.

Judging by your WAYWT you spend some fair coin on clothes. Do you buy all that on credit?

I don't think I have any debts. Sometimes I am broke, sometimes I have money but I am not anguished about it either way. I like to have books, artbooks, nice clothes and cool furniture. In the end I guess I don't have that expensive a taste as I don't like boats, planes, cars, houses, luxury spas etc So If I want a $600 bottle of Champagne for breakfast while traveling or a nice leather jacket I just buy it. If I have no money, no biggie as I got plenty of books and clothes and don't really need more.

Originally Posted by thekunk07

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many people don't even know what their means are. if you owe 500k on a 500k house it isn't an asset. if you have 20k in savings but 20k in debt, you have no savings.

Yes. But, 20K in mortgage debt is a hell of a lot different than 20K in credit card debt. Most people below 60 still have some mortgage debt. While it technically negates an equal amount of savings, I don't think of it as a result of "living beyond your means." Mortgage debt (at least traditionally, before the current clusterfuck) is obtained responsibly and with legitimate reason. Credit card debt is almost never done responsibly or with reason.