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Originally Posted by Severian
My PROBLEM is that I've really only known two ways of living: 1.) making slightly more than I need, and 2.) making much, much less (e.g. 2014 unemployment, grad school).
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if you're just making slightly more than you need then you have no room for fun and savings and that's both boring and terrifying, just chained to a wheel of obligation with no security.
the thing about fixed expenses though is they can usually be cut down with some determination and intelligence though. she'll explain it in detail in the book.
if by "need" you meant "spend" then the book will help you reframe that word so you're conscious of what is essential and what is optional-- in a technical sense not a philosophical one.
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Originally Posted by Severian
Now I'm making less than I was in 2012 by a pretty wide margin, and can no longer afford to, say, buy iPads just because I fancy an iPad, or travel.
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well you can probably still afford the ipad but you might have to give up other things like restaurants or various "wants." it's want vs. want. it's a lot less stressful than wants vs. survival.
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Originally Posted by Severian
As I said, I'm usually OK, but I need to learn how to deal with suspense expenses -- like a new furnace plus paying nearly a grand in taxes plus getting my car fixed all in one terrible 4-week period -- without absolutely fucking losing my motherfucking mind.
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yeah, that's #1 reason why savings are necessary. as a cushion for such emergencies. most people deal with this by going deeper into debt, which is... terrible. but understand that if you don't have savings to ride out such pitfalls you're not doing okay
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Originally Posted by Severian
To be honest, I'm usually OK money-wise even though I don't make what I once did. Part of the reason for that is that I moved from the city to the relative boonies, and inherited a house. I can't believe how much cheaper it is to live in nowhere's asshole than it ever was to live in the heart of everywhere. It's depressing at times, but good for the finances.
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sees to me that your situation is giving you a great opportunity to really really really get your shit together, so you could eventually GTFO of there if you wanted, and with a little nest egg to boot. provided you get your shit in order first. i mean, if your house is already paid off (don't care who paid it) you're already on the way to early retirement.
most people spend a good chunk of their income in rent or mortgage, and take the longest-ass mortgages they can handle like 30 years... can you imagine paying for anything for 30 years? well...
on top of that it's recommended that housing payments take no more than 30% of your income.
if you could save that 30% plus add the 20% from the balanced money formula, that would be 50% of your money getting invested every month.
at that clip, could "retire" in something like... 16 years i think?
see:
http://www.mrmoneymustache.com/2012/...ly-retirement/
BUT ANYWAY. i'm not saying "do this". just showing you the possibilities. the boonies and low expenses give you more than a chance to survive. they can be your financial ghetto gym like... rocky 3 was it? rocky 4? i forget which one, they're all a blur, ha ha ha. eye of the tiger! you know the one i mean. lol.
ok-- gtg work buddy. there's a sports game at lunchtime and i need a clear schedule.