Living within your means

[Rotayjay]

Just as there is a sliding scale of income, there is a sliding scale of frugality. There are well-off people who drive ordinary cars, and people of modest means who spend those modest means on holidays. We all know all the types.

I was always taught to save at least 10% of my take-home pay. I've sometimes lived up to that and sometimes haven't, at various stages of my life, but it has generally served me well. Of course, the higher your income gets, the easier it is to save - the basics are covered and everything else is cream.

The cost of living has taken a heavy toll on Australians. But at the same time, you see a lot of people driving around in brand-new cars, many of them giant pickup trucks much larger than what is neccessary. There seems to be growth in big, extravagant weddings (and 'destination weddings'), 'gender reveals' (which didn't even exist 15 years ago), extravagant buck shows and hens nights, feeling you're entitled to have a gap year and do a world tour, and the list goes on.

I blame social media. The pressure to keep up with the Joneses is more intense and more public. At risk of sounding like an old campaigner, I think living within your means and not buying unneccessary crap has gone out of fashion.

 

[Rotayjay]

How were you brought up with regard to being frugal? Did you ever have a significant other or spouse who was too stingy or too spendthrift?

 

[Dogs_R_Us]

I was brought up to detest waste. I hate throwing out food so am careful to buy only what I need, mostly. We’ve only ever had secondhand cars, which we maintain and get the most out of. We don’t like paying for services we can do ourselves, eg painting rooms, tiling, fixing things that get broken or malfunction, as far as possible.

We have good holidays, in Australia and OS, eat and dress well, keep track of where our money goes. Both of us have had short periods of un- or under-employment but we’ve got through. We expect retirement to be comfortable if not wealthy.

How much do you really need? Many young, and older, people feel they must keep up with peers, not be left out, so they spend for appearances and can get into trouble that way. If you’re mindful you can control spending and make your money work for you.

 

[Plugger35]

First credit card I got when I was young I spent it up thinking this is great, free money until I got hit with a big interest rate bill.

Learned my lesson, I stick to a budget now and never spend more than I get or go into debt and save my savings for a rainy day.

 

[revo333]

The cost of living has taken a heavy toll on Australians. But at the same time, you see a lot of people driving around in brand-new cars, many of them giant pickup trucks much larger than what is neccessary. There seems to be growth in big, extravagant weddings (and 'destination weddings'), 'gender reveals' (which didn't even exist 15 years ago), extravagant buck shows and hens nights, feeling you're entitled to have a gap year and do a world tour, and the list goes on.

I actually think the worse spenders with people under 30 are those earning over 100k who should be able to save money but they don't and complain more then those that are doing tougher.

My parents were pretty tight and we didn't get much luxuries. I remember a few times going to primary school without any food at all.

I lived well within my means for 10-15 years for a house deposit and by the time I got close I needed double the money I had saved as I was single. I wasn't enjoying life and probably lost a few friendships and some of my youth.

Life is to be enjoyed and I don't begrudge any young person going on a holiday or buying a nice car if they have worked and saved up their own money for it.