View Full Version : MMM: "A Millionaire is Made $10 at a Time"
catherine
10-12-18, 10:55am
We were talking about concepts in YMOYL that really hit home. Here's one that was alluded to in a recent blog post by MMM (talking about the Suze Orman reaction to FIRE).. A while back I read his whole post on this thoughtt: the idea that many people fritter $10, but those meaningless $10s all add up to real money.
http://www.mrmoneymustache.com/2011/08/01/a-millionaire-is-made-ten-bucks-at-a-time/
It hit me, because I'm guilty. What's $10? A glass of wine in a restaurant. A magazine. Any number of superfluous decorating things: a pillow from HomeGoods, a plant.
But it only takes 10 $10 bills to make $100, and I'm not so quick to blow $100.
Do you spend $10 mindlessly? If so, on what?
iris lilies
10-12-18, 11:11am
I am so habituated to thinking $9 for a glass of wine* is huge that I now pause, feel the pit of my stomach drop, but spend it anyway. Because now I am spending the stash.
Prior to retirement I woild have skipped it. I woild have spent $9 on a glass of wine only at an occasional social get-togehter, and then I,would have had two glasses but no more.
*Just last week I ordered a glass of wine for $9 while I was waiting for a take out order. It was a completely unnecessary purchase because it wasnt a social event. But the wine was good, I really enjoyed it!
Iris lilies, I am at the same point, now, trying to enjoy spending on things that used to make me balk. Convenience to make my life easier is a bigger priority now...it's only money.
iris lilies
10-12-18, 11:53am
Iris lilies, I am at the same point, now, trying to enjoy spending on things that used to make me balk. Convenience to make my life easier is a bigger priority now...it's only money.
Oh god yes! Convenience! Items that actually work! Not buying The Cheapest or trying to cobble something together or Doing Withoit because we have always Done Without.
DH is having a harder time moving up in spending than I am. Probably he doesnt quite agree with my path of spending the stash, but in some areas he is ok with it.
Teacher Terry
10-12-18, 12:36pm
We also are in spending mode after years of doing without and convenience. We always throw 2 big outdoor parties during the summer. I usually make all the food but the one we had last Saturday I bought the food. A few weeks before the party we saw this fabulous street singer downtown. He is a teacher also. I hired him to sing for 2 hours so it cost 200. He sang a extra hour for free. We have 2 patios so put him on the farthest one and people danced in the yard. Everyone had such a great time.
Funny but I am now using my electric clothes dryer a little more as it is more convenient at times than the outside washline. I am buying smaller packages rather than looking for the most thrifty but little else has changed. Creeping along in my spending has been so long a part of my life that I really don't wish to change much.
I have always spent, albeit saving carefully for it first, when the value to me has been really high.
I don't think I'll ever be a "free" spender, spending without thought, but I am a spender now for the things that help in ways I used to think weren't necessary. As an example, I will have a limo take me to the airport now, rather than drive the 2 hours myself and just figure the cost into the trip. My lessened anxiety it worth the money. We have a window washer now because I hate doing them and need a ladder. I'm not going to fall for clean windows. Getting central air this summer has been marvelous! I don't think the electricity bill is much more, either. Probably should have done it 20 years ago, but the heat didn't bother me so much then. All the thrifty years have gotten us here.
I don't think twice about a cocktail when I'm out. worth every penny of enjoyment. however, my retirement is fully funded and I'm still working. I didn't start doing this freely until the last 5 years. If I counted them up, some months I may very well have 10-15 of them.
I am hopelessly frugal but will spend the $10 here and there if I believe I am getting good value and/or good feelings from the purchase. At this point in life, I am loosening up a bit and find myself saying "what the heck" when before I would have felt remorse or guilt. Also, after a lifetime of looking for deals when I did spend money, it just doesn't make sense sometimes to devote precious time anymore to saving a few bucks here and there. But I still don't order wine at a restaurant since I can by a bottle for what they charge for a glass:)
But I still don't order wine at a restaurant since I can by a bottle for what they charge for a glass:)
True. My preferred nice vodka bottle is 2.5 cocktails out. don't care anymore:~)
We also are in spending mode after years of doing without and convenience. We always throw 2 big outdoor parties during the summer. I usually make all the food but the one we had last Saturday I bought the food. A few weeks before the party we saw this fabulous street singer downtown. He is a teacher also. I hired him to sing for 2 hours so it cost 200. He sang a extra hour for free. We have 2 patios so put him on the farthest one and people danced in the yard. Everyone had such a great time.
How wonderful! I want to be your neighbor and come to all your parties. I'd be happy to bring booze. :D
We also are in spending mode after years of doing without and convenience. We always throw 2 big outdoor parties during the summer. I usually make all the food but the one we had last Saturday I bought the food. A few weeks before the party we saw this fabulous street singer downtown. He is a teacher also. I hired him to sing for 2 hours so it cost 200. He sang a extra hour for free. We have 2 patios so put him on the farthest one and people danced in the yard. Everyone had such a great time.
FUN!!!!!!!!!!!! I think my invitation got lost in the mail:~)
Teacher Terry
10-12-18, 10:18pm
Okay you guys I will make sure you are invited to the next party ��
I buy ebooks. Don’t even blink at the cost. It’s my favorite hobby. I’ve been reading books since before I was 10 yrs old and have probably been in the middle of at least one book 95% of the time 1970.
I buy ebooks. Don’t even blink at the cost. It’s my favorite hobby. I’ve been reading books since before I was 10 yrs old and have probably been in the middle of at least one book 95% of the time 1970.
This caught my eye because....doing the exercises in YMOYL, I discovered I was spending $1100/year on books, being a voracious reader. Mind you, this was the year 2000....when we had a mortgage and 2 car payments with an E/D factor of 1.82. I became an avid library user to this day. On rare occasion I will purchase a book, but very rare. I have gotten rid of 75% of the books I had back then and each year I continue to comb the shelves for "will I really read this ever again"....and the shelves continue to empty a bit each year.
happystuff
10-13-18, 8:31am
Wow-feel like I'm definitely in the wrong place. I watch every penny as pennies turn into $1 and ten of those $1 make $10, etc. If I'm going to buy wine at all, it's my little *treat* bottle of $4.99 from the liquor store. I like it and, like I said, it's a treat. Have been and will continue to be frugal mainly due to necessity, but such is life. Glad most here are more comfortably well off. Enjoy!
My gazingus pins change. Last year with the start of a new job with a different dress code it was clothes, this year it has been travel. Each year I just try to rein myself in and be aware.
Alcohol is no temptation not just because of the cost but the calories. And some days I think if I start drinking I won't want to stop.
catherine
10-13-18, 9:59am
I buy ebooks. Don’t even blink at the cost. It’s my favorite hobby. I’ve been reading books since before I was 10 yrs old and have probably been in the middle of at least one book 95% of the time 1970.
Yes, Amazon one-click is the death of me. And those purchases do average, or exceed, $10. I'm trying to be more mindful of my trigger finger. I recently bought a subscription to Kindle Unlimited, which is $10/month and I get "free" books that way. I probably save $30 a month going that route. But it's still $10 a month. And I'm trying to also be mindful of the fact that subscriptions are not usually money-savers.
SteveinMN
10-13-18, 10:42am
Wow-feel like I'm definitely in the wrong place. I watch every penny as pennies turn into $1 and ten of those $1 make $10, etc. If I'm going to buy wine at all, it's my little *treat* bottle of $4.99 from the liquor store. I like it and, like I said, it's a treat. Have been and will continue to be frugal mainly due to necessity, but such is life. Glad most here are more comfortably well off. Enjoy!
So much of it is a matter of where you are in life. Many of those posting now are retired and assume their savings/income streams are sufficient for their expected lifespans; many (at least some?) of us are not yet retired (or even close). Being in a committed relationship makes a big difference financially. And, not to take away anything from the abiity of those who have gotten to this financial level, many have had the advantage of stable locations and/or employment and/or relationships (moving, job loss, and divorce often are significant financial setbacks) and no chronic health conditions.
So much of it is a matter of perspective. As DW and I get older and our energy levels diminish, the "time-for-money" equation changes. When I was single I had no problem haunting thrift stores after work a couple of days a week for clothes or household goods; now, I'm out of "acquisition mode" and it seems what's in the stores frequently is not of good quality or we're looking for something specific (specific size, color, etc.) and spending hours each week cruising through stores is less compelling than spending time with each other, visiting with the kids/grandkids, etc. It's easier -- but costs more money -- to buy those items (sometimes even used) in a store or on-line or through craigslist/Facebook Marketplace/NextDoor and be done with it. We're more aware that we have only so many years before it will be harder to drive at night and such, so it seems reasonable to us (even before a fully-funded retirement) to enjoy some experiences now rather than bank on a continued ability to enjoy them in 10 or 20 years. So we spend more money now on things we didn't earlier in our lives.
It's hard and misleading to compare your insides to other peoples' outsides. And that rarely ends well.
I have multiple allergies which act up when I borrow library books.
I tried borrowing ebooks but I hate the deadline - it feels like a school assignment instead of reading for fun.
So I spend the money. And I don’t care. 😄
I should say this:
I pay 15 for haircuts and never color it etc
I hate shopping and have minimum clothes needed for all parts of life
I own 4 pairs of shoes
My husband and I share one car
He bikes to work
We live in about 800 sq ft in “bad” part of town
Everything is paid for except mortgage
I’m retiring with a full lifetime pension
I’m earning in the low 6 figures
I can afford my books
😄
It’s a matter of knowing what you want to spend your life energy on. Books are worth it to me.
Teacher Terry
10-13-18, 12:54pm
Happy, we were frugal most of our lives by necessity. A divorce after 22 years devastated me financially although I wanted it. My husband had the same thing happen to him so we were basically starting over in our mid 40’s. Luckily we both got government jobs with small pensions and we were able to save money. I have had 3 friends die between 59-67 so you can bet at 64 I am enjoying my money. We are on a 5 day RV trip and in the past I would have cooked all our meals. Now we eat cereal for breakfast and eat out the rest of the time. We found a great restaurant up here a year ago that with tip costs 120. We eat there once a year. We have also stepped up our travel. 2 big trips a year. I also still make money teaching and consulting. We are no longer saving money but spending. My dad had a big stroke at 59 and never got to do a thing in retirement. As Steve said most of us are older and in spending mode now. However, I still wash the doggie pads instead of buying disposables. Mainly for environmental reasons.
My lush spending right now is on a personal trainer. Never thought I'd spend that way but as a middle age woman I need some strength and I have none:-)
I don't imagine I will ever go into a spend the stash stage as I have three adult children who I would like to leave money. I imagine as when I retire I will spend some portion of the stash on travel, etc. and keep the rest to pass on.
Teacher Terry
10-13-18, 1:32pm
We helped all the kids when they were young and needed it. I don’t care about leaving any money behind. We encouraged my parents to enjoy their money which they did. By the time my mom died at 89 she had pre-paid all her funeral costs. Told us to sell her car and buy everyone that came to the funeral lunch at a restaurant she picked. Had she lived she could have lived on her monthly income. We were happy that she got to travel and enjoy her money. My kids feel the same way. On ER.org people seem to have a lot more money and fly first or business class, etc. I find that hard to relate to because of the cost . But they can afford it.
We helped all the kids when they were young and needed it. I don’t care about leaving any money behind. We encouraged my parents to enjoy their money which they did. By the time my mom died at 89 she had pre-paid all her funeral costs. Told us to sell her car and buy everyone that came to the funeral lunch at a restaurant she picked. Had she lived she could have lived on her monthly income. We were happy that she got to travel and enjoy her money. My kids feel the same way. On ER.org people seem to have a lot more money and fly first or business class, etc. I find that hard to relate to because of the cost . But they can afford it.
What is ER.org?
Teacher Terry
10-13-18, 2:21pm
Early retirement site. A nice group of people with no political discussions allowed. Many have more money but some have retired pretty frugally. The age group is mainly older between 50-80.
When I type it in I get Employment Research Institute - "take a look at our collection of companies".
Teacher Terry
10-13-18, 2:55pm
Sorry you must type early retirement.org
With earlyretirement.org I get links companies like Morgan Stanley selling financial planning services.
Teacher Terry
10-13-18, 3:06pm
It works for me and I checked the address. Maybe try adding forums to the end because it works both ways for me
With earlyretirement.org I get links companies like Morgan Stanley selling financial planning services.
Put a dash between the words. www.early-retirement.org
Teacher Terry
10-13-18, 4:05pm
We still do a lot of potlucks etc with our friends. Usually when we go out it’s alone. We find with a group it’s easier st a house for great conversation and we can stay as long as we want.
So much of it is a matter of where you are in life. Many of those posting now are retired and assume their savings/income streams are sufficient for their expected lifespans; many (at least some?) of us are not yet retired (or even close). Being in a committed relationship makes a big difference financially. And, not to take away anything from the abiity of those who have gotten to this financial level, many have had the advantage of stable locations and/or employment and/or relationships (moving, job loss, and divorce often are significant financial setbacks) and no chronic health conditions.
It's hard and misleading to compare your insides to other peoples' outsides. And that rarely ends well.
Well said Stevie. Married 38y. Same town for 39y. No children. Both college graduates working in our fields. DH with same employer since 1993 and me only my 3rd since 1980 (current 17y). Same home since 1991. No debt. Good health X2. DH has high BP but treating it. My knee replacement was d/t injury not osteoarthritis. We live on 35% of our income because we have minimal expenses. Hence $10 cocktails don't bother me in the least.
Our expenses this year are running right at our 2012 expenses and that includes my knee replacement out-of-pocket costs so this year has been good to us!
So yes, comparing to others is like fruit salad. I know people who make far more than us and can't afford what we do. And others who are so dang frugal they do far more than we do. And many who do far more on far less and have debt up the wazoo!
I can afford my books. It’s a matter of knowing what you want to spend your life energy on. Books are worth it to me.
Yup! This is why the exercises in YMOYL are so valuable. Learning about how we value our expenditures and making these mindful choices:)
happystuff
10-14-18, 8:13am
It's hard and misleading to compare your insides to other peoples' outsides. And that rarely ends well.
I agree with your post. While it's hard NOT to compare, I usually find that most peoples' outsides are not for me to begin with. But *sometimes* I find these types of conversations so pointedly emphasize the growing economic and thus social gaps that exist within my own neighborhood as well as across the country... it's not surprising the current attitudes and emotions that are being seen. I just think it's sad. (sorry, know I'm not stating this well, but... only my first cup of coffee. LOL)
I agree with your post. While it's hard NOT to compare, I usually find that most peoples' outsides are not for me to begin with. But *sometimes* I find these types of conversations so pointedly emphasize the growing economic and thus social gaps that exist within my own neighborhood as well as across the country... it's not surprising the current attitudes and emotions that are being seen. I just think it's sad. (sorry, know I'm not stating this well, but... only my first cup of coffee. LOL)
I actually avoid MMM for exactly this reason, Happystuff. I am really turned off by the typical posts there, which seem aggressive and entitled, 40-50 year old's with "megastaches" or whatever they call it, really make me feel rather hopeless. They also seem to be lucky, and not to have gone through a lot of what I went through, and I can't read them without feeling bad about my future, and poor.
Who the hell needs that? I am looking forward to trying the early retirement board that Terry recommends.
(I try to stay positive; can't do it on some boards or places.)
catherine
10-14-18, 10:32am
I actually avoid MMM for exactly this reason, Happystuff. I am really turned off by the typical posts there, which seem aggressive and entitled, 40-50 year old's with "megastaches" or whatever they call it, really make me feel rather hopeless. They also seem to be lucky, and not to have gone through a lot of what I went through, and I can't read them without feeling bad about my future, and poor.
Who the hell needs that? I am looking forward to trying the early retirement board that Terry recommends.
(I try to stay positive; can't do it on some boards or places.)
I agree with a lot of what you said, Tybee. It is a different type of personality on that board.
Another good early retirement blog is Jacob Lund Fisker's: http://earlyretirementextreme.com
There's no discussion board on it but a lot of food for thought.
SteveinMN
10-14-18, 10:33am
I actually avoid MMM for exactly this reason, Happystuff. I am really turned off by the typical posts there, which seem aggressive and entitled, 40-50 year old's with "megastaches" or whatever they call it, really make me feel rather hopeless.
The "megastache" posts don't bother me so much as the general level of aggressiveness, humblebragging, and (dare I say it?) coarseness on that site. Despite the amount of good advice there, I just didn't cotton to it. This site and Bogleheads are much more accepting and genteel; lots of FIRE and frugal people present without the language and facepunches. Haven't yet looked at the ER site that was mentioned.
Yes - it’s the lack of regard for other humans and the general bullying and making fun of others that annoys me. Very immature.
Teacher Terry
10-14-18, 12:36pm
If people get too annoying or rude they shut the thread down. Some people have been banned. A pretty civil group in general. A older group that saved for years and now are enjoying. Big variety of threads with many having nothing to do with money. More active forum than here.
I agree with a lot of what you said, Tybee. It is a different type of personality on that board.
Another good early retirement blog is Jacob Lund Fisker's: http://earlyretirementextreme.com
There's no discussion board on it but a lot of food for thought.
Thanks, Catherine, I will check this one out too!
Gardenarian
10-16-18, 11:20pm
My lush spending right now is on a personal trainer. Never thought I'd spend that way but as a middle age woman I need some strength and I have none:-)
I did the same for a while. It was money well spent!
I've been listening to the new edition of YMOYL and am enjoying revisiting the plan and ideas towards FI. I love reading/listening to new ideas about what "simple" living means. Vicki Robins does discuss in the new book that the idea of "simple" is not just one thing, but it is more about the feeling of "enough". It sounds like those who are retired or not have found their "enough" and some of us are still seeking that idea. I have to say I love the quest! My quest for enough keeps me grounded and makes me really enjoy the "treats" like a glass of wine while out etc. I am pretty lucky because I've always felt like I had enough and really never wanted much. I'm not sure how I developed that way. It could of been coming from a large family and not really ever getting or expecting the latest and greatest "thing". I do think there were multiple books and life experiences that drove me towards a quest for simplicity. YMOYL was definitely one of those books.
I am keeping the heat lower. Two years ago at 68, last year 67, this year 66.
I am keeping the heat lower. Two years ago at 68, last year 67, this year 66.
Ha! My hormones have the heat at 67 and nighttime sleep at 62. I still wake up hot! Hubby is not warm enough:~) poor guy!
It was 28 when we woke up. I just turned our down from 66 to 65. Of course wearing flannel helps. We will work in the garden today and will come in and it will feel HOT! So I will probably turn it down again. I also find drinking tea or coffee makes me turn the heat down.
This thread reminded me that I needed to check my thermostat. It did need turning down a little from 68F or 20C to 64.4F or 18C which is what I have on throughout the winter. I have a gas fi
replace that is my luxury on cold mornings when I get up.
happystuff
10-19-18, 4:49pm
Mine is usually at 62 for the duration. If it's REALLY, REALLY, REALLY cold, maybe it goes up to 65.
catherine
10-19-18, 5:44pm
It's getting cold up here, but we don't have a thermostat. We have 3 baseboard heaters just stuck to the wall with an on/off switch and the wood-burning stove. We are trying use the stove as much as possible, but sometimes we rely on the electric heat just to take the edge off the cold before the stove heats up. When we go back to NJ at the end of next week were going to feel like royalty being able to adjust the thermostat!
Teacher Terry
10-19-18, 6:37pm
We have baseboard electric heat with a thermostat for each one. When we go to bed I turn them all down to 55 except the one in our bedroom and I close the door. When we get up and go in the rest of the house it is chilly. Otherwise we keep the heat at 68 or our 3 little doggies are too cold even with sweaters on.
catherine
10-19-18, 6:39pm
We have baseboard electric heat with a thermostat for each one. When we go to bed I turn them all down to 55 except the one in our bedroom and I close the door. When we get up and go in the rest of the house it is chilly. Otherwise we keep the heat at 68 or our 3 little doggies are too cold even with sweaters on.
TT, can I ask what your electric bill is? I think you said your house is not much bigger than mine. Every time I turn one of those heaters on I see dollar signs float in front of my eyes... what do you think I should expect if I use ours like you use yours?
Teacher Terry
10-19-18, 6:44pm
It doesn't get nearly as cold here as by you. One winter we had a 400 bill in January. We also only have heaters in the LR, DR, and our bedroom. If someone stays in our guest room we use a space heater. Right now we are dipping into the 30's at night but our high this week is 70. So we keep the bedroom one on all the time and turn off the others as soon as the house warms up. Come winter it will be different. Yes it is expensive. Our house is 1400 sq ft.
Teacher Terry
10-19-18, 6:46pm
Starting in Nov our bill will be about 200/month. Also our clothes dryer is electric. The only gas we have is in the stove. It also depends on how insulated your house is. Plus I know when I lived out East it was damp and we don;t have that so typically you have to keep it warmer because of that.
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