It Took Me Well Over a Year of Being Frugal to Come to this Realization

QM · 03-06-2010, 10:09 AM

I started my frugal journey in October 2008. Since then there have been ups and down on my frugal path. At times I feel that I'm extremely careful with my money (washing ziploc baggies, making as much as I can from scratch and so on), and other times I'm not as careful as I'd like to be (forgetting to turn lights off behind me to save electricity).

Just recently (as tax season is approaching), I've come to a realization (and yes, to a lot of you this is common sense) that it doesn't matter how much money you make or not...what is important is what you do with it. You could be a millionaire and end up with nothing in no time due to spendthrift ways, or you could make a much lower income and end up with a lot of savings and be debt-free.

My friend was over a couple weeks ago and told me that her now-single mother makes $35,000 per year working full time. In 9 years, she has saved $100,000 into retirement savings due to careful planning. To me, this is amazing!

Because I have just recently started to think this way, it has changed my perspective on 'how much income people make a year'. Just because someone I know's hubby is a doctor, doesn't mean 'they're rich!'.

Who else thinks this way, and when did this 'realization' dawn on you.

**Sara Noel** · 03-06-2010, 11:22 AM

I said this exact thing in my last radio interview.
Another thing to think about. And I'm quoting a study, but the research concludes that above 60k a year, people's "experienced happiness" flatlines. So there's increased happiness up to 60k, but whether you make 70k or more, you don't get any happier in your daily life.

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http://articles.moneycentral.msn.com...Happiness.aspx

**daughter of pearl** · 03-06-2010, 12:05 PM

I believe this a million fold!!

My happy, that might come from watching a library DVD while knitting a scarf for a friend, doesn't actually feel any different from some rich dude hanging out on his yacht. Happy is happy.

And once you start making the really big bucks, it causes a lot of "when will it be taken away?" or "what if people find out that I really hate/am not so great at my job?"

And a great deal of the people who you think of as well off, are people who are putting a brave face on a mountain of debt and waking up in the middle of the night wondering when it will all fall apart.

**lisaflex** · 03-06-2010, 01:11 PM

And once you start making the really big bucks, it causes a lot of "when will it be taken away?" or "what if people find out that I really hate/am not so great at my job?"

i dont buy that comment for one minute. if you are good and do make good money, then so be it. on the other hand, if you lied or whatever to get a good pay8ing job, thatn that is a different story.

my dh is great at what he does. some yrs we only make 175K others we make close to 400K. just depends....and, no, we do not worry when will it be taken away. we just try to plan and save for the slower yrs.

**lisaflex** · 03-06-2010, 01:15 PM

Another thing to think about. And I'm quoting a study, but the research concludes that above 60k a year, people's "experienced happiness" flatlines. So there's increased happiness up to 60k, but whether you make 70k or more, you don't get any happier in your daily life.

dont buy that one either. sounds ridiculous! we couldnt even live on 70K per year! we are happy. money makes things easier. for us at least! i am frugal, but, there is plenty of $$$ to go around! your life is happier w/ less stress in it.

i guess it just depends on your personal situations. i have friends who live on 60K w/ three kids. could we do it? no way! but they are very happy. but dont know any different.

have another friend w/ 3 kids...they live on about 125K. they are always scrambling for money and are NOT happy at all in daily life or in their marriage.

the number one cause of divorce is money.

if i had never known life w/ this kind of income, it would be a different story for us too. but, we know this lifestyle. and live it and like it! and couldnt be happier!

we just work hard and there you have it

**daughter of pearl** · 03-06-2010, 01:57 PM

Um...good for you?

Wasn't referring to anyone specifically, just a thought about how the feeling of happiness is a universal feeling, and doesn't depend on making a huge income.

That'll all.

QM · 03-06-2010, 02:07 PM

Originally Posted by daughter of pearl

...just a thought about how the feeling of happiness is a universal feeling, and doesn't depend on making a huge income...

I agree, daughter of pearl. Happiness doesn't come from 'having things'. The reason for this is that things are temporary. We weren't born into the world with them, and we certainly won't be leaving the world with them.

**Sara Noel** · 03-06-2010, 03:07 PM

Originally Posted by lisaflex

Another thing to think about. And I'm quoting a study, but the research concludes that above 60k a year, people's "experienced happiness" flatlines. So there's increased happiness up to 60k, but whether you make 70k or more, you don't get any happier in your daily life.

dont buy that one either. sounds ridiculous! we couldnt even live on 70K per year! we are happy. money makes things easier. for us at least! i am frugal, but, there is plenty of $$$ to go around! your life is happier w/ less stress in it.

i guess it just depends on your personal situations. i have friends who live on 60K w/ three kids. could we do it? no way! but they are very happy. but dont know any different.

have another friend w/ 3 kids...they live on about 125K. they are always scrambling for money and are NOT happy at all in daily life or in their marriage.

the number one cause of divorce is money.

if i had never known life w/ this kind of income, it would be a different story for us too. but, we know this lifestyle. and live it and like it! and couldnt be happier!

we just work hard and there you have it

What do you do for employment?

**pollypurebred39** · 03-06-2010, 03:27 PM

I do agree happiness is relative, however not having enough to afford to pay for medical needs without aquiring debt has made us very unhappy indeed.

I see both sides of this coin

QM · 03-06-2010, 03:35 PM

Originally Posted by pollypurebred39

I do agree happiness is relative, however not having enough to afford to pay for medical needs without aquiring debt has made us very unhappy indeed...

I never thought of that, Polly. That's something I've never had to struggle with since Ontario's OHIP covers all medical costs. I can't imagine having to pay every time I or anyone in my family has to see the doctor or get medical attention. ((HUGS))

**Sara Noel** · 03-06-2010, 03:59 PM

I have been there Polly. And you are right, having medical bills is a huge burden to carry.

**Palooka** · 03-06-2010, 04:22 PM

Originally Posted by QM

I never thought of that, Polly. That's something I've never had to struggle with since Ontario's OHIP covers all medical costs. I can't imagine having to pay every time I or anyone in my family has to see the doctor or get medical attention. ((HUGS))

Well, it sucks. lol. It causes a lot of people to go bankrupt.

I guess it is all relative and what people are used to. We make under 70k(this year with dh's bonuses we might hit over that this year!!) and have some big debt, but if a lot of our debt was gone...I would feel really rich with our income! I mean being able to save more (for those emergencies) and still being frugal, I'm sure we could experience way more in life.

**daughter of pearl** · 03-06-2010, 04:32 PM

Hey, Polly, you make a very good point about medical bills. Like QM, I live in Ontario and am fortunate (knock on wood!) to be relatively healthy.

Growing up here, where basic medical expenses have always been covered, and are thought of in the same vein as food and shelter (basic necessities) we are extremely lucky.

So I totally get your point.

QM · 03-06-2010, 04:46 PM

Originally Posted by daughter of pearl

Growing up here, where basic medical expenses have always been covered, and are thought of in the same vein as food and shelter (basic necessities) we are extremely lucky...

Daughter of Pearl...If we talk to highly of Canada, everyone from FV is going to want to move here. lol