I Believe in spending less then you earn, never buy anything unless you have the cash in hand to pay for it fully (this includes trucks and cars, excludes houses). I have a credit card, but I never use it (it's for emergencies). All of my vehicles are paid off. My mortgage will be done with well ahead of the schedule 30 year mark. My wife and I are very frugal people, we are both what you would consider White collar people and make good money. We don't spoil our children (1 yr old and 3 yr old). We save about twice as much money each month as we spend on bills. We don't have Cable TV or satellite TV. Don't watch enough TV to justify the expense. We have the basic $10 a month dial up internet. Our home is nice and we spend money on the improvement of it. But that is about it. I have been married for ten years and that is how we have lived the whole time. We are careful to invest our savings with much research and consideration of risk. I work to hard for my money throw it about foolishly. At the same time we diversify our investments religiously to minimize unexpected loss. After ten years, which is a relatively short time, we are bordering on what I would consider wealthy. We take very nice family vacations now with the kids and have learned that it doesn't take alot of money to have a good time.
On the other hand my Boss at work makes alot more then I do, but his family spends as much money as they bring in if not more. Fancy cars on lease, extravegant vacations, expensive concerts and out to eat 5 times a week. Sounds like they are having a great time, but He is stressed out now because the debts are piling up and he doesn't want to see his family compromise their lifestyle. Something will eventually give and it will come back to haunt him. Life is pretty simple for me. His on the other hand gets more hairy with every bill that comes in.

 

Another way of looking at life is the question, are rich people any happier than the average working Joe? Many rich people are extremely happy but the people I know personally that are rich worry much more about their money than I ever worry about my modest wealth. Many of these people can never spend or enjoy their money. I can.I have a wife and two kids that are healthy. I myself am fully recovering from a serious health issue. That is rich. That is what really matters. Read the quote under my sig. Health is wealth and peace of mind is happiness. Take care and good health to all of you.

 

Lotta good posts here...many warnings to be heeded and lessons to be learned.
Thanks!

Scott

 

Another warning. Do not take advise on how to get rich from someone who is not rich.
Dono

 

i started investing when i was around 22. took my little military bonus i got and put it into investments, savings and life insurance. most guys that age blow it on a new car or some other toy, then its worthless in 5 yrs. i dont live paycheck to paycheck, my family and i get what we want when we want, dont ask me how im doing it, i think im just tight ohhh well. at the rate im going ill be well over the million mark by the time im around 60, the kids college will be paid off and my retirement home wherever that is will be paid off. one thing to remember START SAVING AND INVESTING EARLY.

 

I thought my dad had the best attitude about money. He always said- "Never get confused over this- money doesn't buy you happiness. But it sure helps you sleep at night. " This from a guy that immigrated from Germany with $12 in his pockets and retired at 42 yrs old.

 

Rich in the way of money is not everything, remember the old saying:

Money can't buy you happiness!!!











Although it does make it easier to choose how you are going to be miserable!!!!

 

I once heard a man described as "So tight that he squeaks", but he had a fine house in Granite Hills, with a native stone pool that he got built by swinging a deal with a construction company for fleet services on their trucks.

A man I knew in the military was worth over a million in the late eighties because he invested after checking out the growth rates of local companies on the ground floor - he would approach places as if he was looking for a job, or considering working there anyway. Asked about the general satisfaction of workers, what was coming up in the company as far as expansion, and so on. He was THAT cheap, that he would read stock quotes from the wallstreet journal by going to the local library and looking at their current copy. (Direct quote) "You don't buy something you can get for free"

In elsewhere - we should perhaps define the various definitions of "RICH"

MONEY rich

HEART rich

SOUL rich

CONNECTION (or INFLUENCE) rich

Etc...

I'm thinking in terms of not having to make things stretch until something has to give or bust, that makes a bit of difference in the long run.

I suppose we need to think hard about what it is we really want to achieve in our lives as the basis of what we want to do.



~Wolf

 

Personally, when I hear the word "rich", money is the first thing that pops in my mind...

I would say "rich" (as far as financial wealth is concerned) would be having enough money to never have to worry about money...if that makes sense. But then, I suppose if you have that much money, you'd worry about how to keep it!

Scott

 

Excellent post Cowboy !! I wish every young person that was just starting out in high school , could read this post and burn it in to their brain and use this advice. The academic educational system I went to in the 60's had NO mention of this type of advice, and I doubt that the HS do now either. I fit in to the dead investor "50's" category now , and all I can do is look back and WISH I had only done what is posted here. Everyday of life for young people, is a opportunity to assure tommorrow will be better for them, but somehow as we grow up, we lose the vision of that, and just live for the moment and not preparing for the later years of living.

 

Good thread. It's not hard to make good money, I once did then lost my job got divorced from my wife who got to keep my house. I tell you all this and it's 100% true. Making money isnt hard, you need to know how to have people make your money for you. You need to take full advantage of everything possible to make money, yes that includes people. Hard work isnt the answer butt kissing and incerting yourself into the right situation is. Keeping your money is a whole other topic.

 

Most of whats been posted here is good advice but there are many ways to get rich.

Debt is not really bad if you understand it relationship to your cash flow. For instance you can have a 15 year fixed mortage for about 5.5%. It is fairly easy to get an investment for 7.5% that is relitively safe.

So say you have 200K in the bank and you want to buy a 200k dollar house. It would be better to finance it, get the tax break and let the investment pay for the monthly payments and still make 2% plus on your money. Its all about having a positive cash flow. Taking in more than you spend and investing that extra. There is nothing mysterous about it it just takes will power.

I use this method now to buy my cars. I wish someone would of explained this to me years ago. When done correctly the principle of the investment is never touched.

Credit cards can also be good if you are smart in there use and in fact you can make money using them. The cards I'm taking about a the 12% type and have cash back or airmiles rewards for there use. We treat them like debit cards. For ever use of them we subtract that amount out of the check book. We buy everything we can with them. At the end of the month we write a check and pay it off. I get the rewards and not the interest. But using them to live above your means is a very bad thing, trust me on this one.

In the end its all about positive cash flow. IMO it is really something that should be taught in school.

 

Said it before, and here it comes again:

"Never give up on your dreams"

Get a picture, and begin to paint it as soon as possible...

 

Perhaps I should explain a little about my paticular situation.


I am Blue collar wealthy. I never had a dime giving to me. I quit school at the age of 16 & never looked back.

I work my but off, but I don't sacrafice living life to the fullest either. I currently gross 65K a year which isn't a drop in the bucket for some & a hell of alot for others.
2 years ago I quit a job that paid me 117K a year so I could focus better of my childrens lives and be home more.
If there is something we want or need we have it. All the bills and credit cards get pay in full 100% just as soon as the bill arrives. I have a nice little bit of change in the bank & I'm currently dumping around 20K into a 15 year old car that I love so dearly (why buy new when you can rebuild with better quality).

Now a High School Drop Out should not be living the way I am. According to statistics I should be sitting in the trailer park drinking a beer, yelling at my 15 kids (only have 2 by the way), watching the bug zapper, and waiting for the welfare check to arrive while listening to Larry the Cable Guy on cassette.


I feel like I have accomplished a awful lot in my life. I let things roll as they go & never passed up a opportunity that happened to show up on my door step.
Everything in life depends on how you exert yourself. If your lazy, people see that & you won't get nothing & if you work your but off, people see that & are willing to give you a chance to prove yourself to them.

Lary The Cable Guy Is My Idol

 

SPELLING - minus one

Parks?
Whatever you're doing, you're doing it right!
- And that's the way it is supposed to be...

*thumbs up*