"Have you changed your financial behavior

[jld]

because of what you've seen others go through?" This question is shamelessly lifted from getrichslowly.org (thank you, Organic Ann, for telling me about it:)).

 

My parents were in their late 40s when I was born, and didn't have any retirement savings in their 60s. I knew it was important not to end up that way if at all possible. Dh and I purposely bought a house that was less expensive than we could afford, have mostly had just one vehicle, accepted job assignments wherever they were available, that sort of thing, as a way to be able to at least save something. I also try to avoid expensive entertainment, and would rather invite people over than eating at restaurants. Sometimes just being an example lessens the pressure on people to try to keep up with mainstream expectations.

 

How about you?

[Dayle in Guatemala]

Interesting question!

 

When I was growing up, I didn't at all realize how tight things were financially for my family. We lived frugally, but, we still were able to take family vacations camping in Canada (only a couple of hours away) every summer. My parents didn't discuss money much in front of us except to say, "No, we can't do that right now, but, we can do this..." and we just accepted that.

 

That's the way dh and I are. We are frugal. Our lifestyle as missionaries is such that sometimes we have enough money, and sometimes we have no money, rarely do we have extra! We just make due with what we have. We don't have credit cards and we pay cash for everything. It's what works for us. It's how we've always lived! Anyway, I don't think my decisions have changed much because of our chosen lifestyle.

[delaney]

Yes because we have had to. I am paring things down and removing some of the "extras" in our lives. We have to...we need to. I am still on the fence about whether to do CC this year b/c I have had to trade competitive dance out to cover the tuition. I think the girls would rather do the dance but the time commitment..ugh. We buy less clothes, eat out less, and run to the store for "stuff" less. We long to be a cash only family and free from credit card debt.

[FaithManor]

I've learned from my parents mistakes. Dad was never a saver. He has owned his own business since he was a young man and always considered the business to be his retirement, as in, i.e. it would be big enough eventually that it would be public stock company and he would own enough stock that when he handed the reigns over to someone else, he would live off the interest or, that he would sell it for primo money.

 

Well, that didn't exactly work out. Dad's business has been good. It hasn't been great. It never got big enough to offer stock and now he really needs to retire because of his health. The economy is in the toilet so the assets of the business are worth far less than they were five years ago. He has a buyer for the business and will spend the next two years on salary as a consultant. But, he is having to accept so much less than he ever thought he would; he will not have nearly enough in the bank after closing. However, he does have his social security (for as long as that stays solvent and he isn't holding his breath on that) and he is banking that as well as mom's part-time income. Still, they are going to need supplementary income. I think they will do a one acre garden next year and sell loads of produce. Dad grows organically so he should be able to make a few thousand at that but my boys are going to have to help because I don't know if he can handle that many hours per day outside in the heat. It will be good for the boys to help, but I have watched this situation transpire and know that I don't want our kids to have to worry about us.

 

We'll be debt free in 40 months. We definitely have better plans in place than my parents.

 

Dh's father spent every single dime he ever made and would have been virtually penniless when his health got bad if it had not been for mil. She was a nurse and a nursing professor her entire life. Unbeknownst to fil, she had put money in her state teacher's retirement as well as hospital retirement funds. She was also a saver just in general. Since he was such a spender, she never told him about the accounts and kept his name off them. This was a very good move for her. After fil died and she retired, she had a nice retirement set aside and is living comfortably.

 

I hope my children will become savers. The youngest ds is already good with his money. But, the middle two burn through every dollar they get!

 

Faith

[hsmom2girls]

My hubby is lucky I don't buy anything extravagant (no jewelry, clothing, shoes, etc. that I don't need).

 

However I have one major flaw. I can't stop ordering take out. I forget to take something out to cook and then when it's around dinner time I have no choice but to buy out.

 

If I can lick that habit I think I could save a bundle.

 

I know I have to start planning meals, etc. but after HSing all day, and kissing boo boos, etc., I am wore out. The twins want 24/7 attention and I being a loner I sometimes need my space. By 4:00pm I am done and don't want to do anything but go to my room and rest.

 

Guess I need more vitamins. :)

 

But you are right people do need to save more. I am very much aware of it and I am trying to work on my bad habit. :001_huh:

[Nibo]

Yes! My parents have zero retirement in the bank, my Dad still works (travels every single week) and he is 66. It makes me sad to see how hard he has to work in order to pay their bills.

 

I am even more motivated because we watched them blow a major investment pay off in less than a year. They sold their house in CA 6 years ago and were able to "retire" on the profit. So they bought their house in full here in Texas and then spent the rest of their retirement in 11 months. They ended up having to take a 2nd out on the house. *sigh*

 

My husband and I just look at each other in shock. We have quietly been setting aside money to cover any expenses they might have when my Dad eventually will not be able to work.

 

I have sworn to not live like that and to not be that type of burden to our son! No way Jose!

 

Nicole

[OrganicAnn]

Hey! You're welcome. Glad to share.

 

My parents especially my mother was/is fiscally sensible. Not too conservative and not too liberal with their financial resources. They retired and are in very good shape. I like to think that my DH and I are too. But we live in a different time and we wouldn't know until closer to the end of our lives if we made the right choices.

 

My MIL who was not so lucky asked me once about this very issue. She has lots of financial worries mainly due to her health and lack of any retirement savings. She and FIL always lived paycheck to paycheck, never saving a dime. We put at least 10% into retirement and also save some for our DD college fund. There are a million choices that you make every year that will affect your financial status. From buy a coffee at Starbucks to the house you buy.

[jld]

I hear you, hsmom. Food is my indulgence, too, whether restaurants or fresh produce, or organic food in general. We may not have a habit of meeting other couples at restaurants, but I have certainly taken my own tribe out plenty.

 

It's probably a good thing that we live in India, because the restaurants here, the native Indian ones, are not expensive. My lunch every day, including a tip and dessert, is around $3. It's enough that I don't need breakfast, except for some fruit, and often eat a light dinner (like a bowl of oatmeal). The kids don't usually like to eat Indian, so they often stay home and have pasta (when they aren't successful in talking me into taking them to Subway -- still cheaper than Subway in America -- about 40% cheaper).

 

In America, it is a different story, and I spend tons on food, way more than what I regularly see spoken of on this board. We all have something to work on, I guess . . .

[jenL]

Yes... we've vowed we will not be burdensome to our children, and we're doing the best we can right now to make that happen. After making some credit card mistakes early on in our marriage, we've taken care of those, and all we have left is to pay off my BA & M.Ed degrees. We'll be debt-free except for our home in 18 months. I cannot wait. We will then work on a huge emergency fund and then our house (the DR plan :)). We are on a strict budget, and we work very hard to not stray from it.

 

My parents are both spenders, racking up tens of thousands in debt before their divorce. It bankrupted my father, and my mother has barely pulled through 15 years later. Her terrible spending habits are to blame as well since she is an impulse buyer. She will be working for a long time to support herself, her disabled hubby, and pay off debt. It saddens me that she won't be retiring anytime soon because she has so little. My sisters and I often worry about what we're going to need to do to take care of her. Sometimes I become irate just thinking about it because she just.does.not.save. I don't want to put my family in jeopardy because of her ignorant choices... BUT, I'll cross that bridge when we get to it, I guess...