The Millionaire Next Door is a great book. My dh had me read it when we first got married. He was a super frugal guy from a frugal family. I grew up poor but had worked my way up to making 6 figures and saving hardly anything because I wasn't used to having money and felt like I "deserved" to spend a little because of living in such hardship as a kid. When we got married I didn't understand why we had to live so frugally when we had plenty of money in the bank. But eventually I saw how much saving was important and how living simply was easier. Now, even though we are able to continue to save money and don't fear an emergency, we still live on as little as possible. At first it didn't make sense to me why I would cut and use a 50 cent coupon when we had $5k in the checking account but now I can't imagine spending all the money that people do. Its become sort of a personal challenge for me to see how much I can save by doing things myself (like cutting the kids hair) or buying used or whatever. We live as if we have very little money but we're happy and have money put away in case of an emergency. We also want the kids to grow up with a heart for living simply and saving rather than spending. HSing has been a blessing in this area as our kids are not made fun of for cheap or hand-me-down clothes which happens in our local elem school.

As many others have said, life happens and you can't always cover it financially. But I see a lot of people in my area who are blessed with decent finances now and blow it on stuff without thinking that those days of financial drought could be right around the corner.

I figured if I was gonna have any time to respond I had better stop reading responses! Hehe! My appologies to the last two ladies.

I understand your post completely and I have to agree many times people are just too materialistic, and that is what gets them into trouble. Here is an example of the opposite:

We have always been frugal....it was never a choice. The only new piece of furniture we own is a glider rocker I got for a Christmas gift about 10 years ago. Everything else has been handmedowns or bought used. The only new appliances we have ever owned are the fridge and stove that came with the trailer. The stove is on its last leg and when it goes down for the count I will have to drag out the two burner hot plate. That won't work for canning so we will have to search for a used stove as soon as we can.

I agree with those who brought up the $1000 in the bank being funny. What a blessing you have there.

Miss Mayberry made a great point. Sure there are people that are just like us that have never had the break that some have in life...but most are just not willing to do without. They feel they must have a new car, and new truck, a new 4 wheeler, a swimming pool, shop at Dillard's, and on and on.

We are like what PottersClay described. We have only ever had income for day to day basic needs and when something comes up (the stove dies, etc) we are in a pickle. Even buying second hand is hard.

Then there is my dd. You probably remember about her health issues. And as a Mom I know you would move heaven and earth to the best of your ability to get your child the help she needs. I have seen the love you have for your kiddos. :) Well, when I run across something else that *may* be the cure for her if we have cash ..good...but if not I do break out the cc.

So our cc only gets used for absolute needs, like the above and things like we are out of money and it will cost my dh $70 a week to go to work. So out comes the cc. Or he needs some lumber for the job so he buys it with the cc. The owner pays him for the lumber, but once payday gets here we are out of food and dip into some of the lumber money so it doesn't all get paid back to the cc like it should. Dh needs pain meds to be able to work, but we don't have the money. Things like that.

If we were *normal* (what is that, right) my dh could work 40 hr weeks, but his health won't allow that. He gets 20 hrs on good weeks. If we ever had more income than what it takes for basic needs we would have a savings, but it has never been that way. Even before we had kids. I worked two jobs in addition to my dh's and it was all we could do to pay the lot rent and utilities back then. Oh we did have a truck note back then too.

In this area if you don't own chicken houses or work off shore then you live in poverty for the most part. Most are high level poverty though, so it is not too bad. Not talking cardboard boxes or anything.

We have two clonkers and I am very thankful for my dh's mechanical abilities. He has saved us thousands in repair bills. We always buy our vehicles used and for cash if possible. We have not owed a real car note in about 20 years. Only this last car did we borrow from our kids.

I think Dave Ramsey or these other budget type of programs are great for those who actually have income worth anything, and can be the answer for many. But for those who can just make ends meat with the bare bones necessary income, no amt of budgeting will ever result in a savings.

Right now our debt is nothing compared to others, but for us it is a mountain. We owe the kids about $500 (for the car) and the cc about $1700 (just from basic needs). But we consider ourselves blessed cus the bills are getting paid and we are able to eat. Plus we are slowly buying Christmas gifts. :)

HTH

The most we have ever made annually, even when we were both working full time, was about $25,000.00. Now I don't work but 8 hours a week. When we were first married I had bought a house, only $18,000.00. Cheap, I know, 2 br fixer and we lived there and had a car payment as well. With what little we made we made the payments on the house and car paid insurance, groceries, utilities, etc. but it used just about everything we had. We had a credit card and when the car broke down, or we didn't have anything left for groceries, we put it on the credit card.It almost ruined us. Now we have NO credit cards and refuse to get them. We barely make our bills, but our house and cars are paid for (different house and cars than before). If we have to eat rice everyday with green beans, then thats what we eat. Not that bad yet, but has gotten very close here lately.

A previous poster said something about people buying houses they couldn't affort. I have a statement that is sad, but true, and it amuses my husband when I say it until you realize how true it is. We drive through these communities with these 3 and 4 hundred thousand dollar houses and see for sale by owner signs everywhere. I would always say "I saw it, I wanted it, I bought it, now I can't afford it, and I have to sell it."

People are not taught how to live within their means, they are taught if you want it then buy it on credit. Even being raised as I was that if you can't afford to pay cash for it then don't buy it, I still fell into the credit card thing, fortunately not too hard before reality set in. People are told you have to have this or that to live. Hello, people lived for thousands of years without indoor plumbing, electricity, telephones, cable, etc. You can live without many, many things. But then general public has been brainwashed into believing that they cannot live without things.

A girl at my sisters office is always complaining that she doesn't have money for this or that (wants). When my sister tries to tell her that she could get rid of her gym membership, her satellite radio and other worldly things that aren't necessary, then she could pay for more necessary things like groceries and rent, she acts like she can't live without these things. American's priorities are really, really, screwed up.

Some people never understand the difference between NEEDS and WANTS.

I need..............cherry jellybeans and Starbuck Vanilla lattes. I need chocolate. Do I have my priorities in order??? LOL

No, you do not have your priorities in order...chocolate ALWAYS comes first!

LOL!
I agree...chocolate first!

I think so many young people try to live like their parents. (who have worked many, many years to have what they have!) Therefore, the credit cycle begins.