To what do you owe your ability to forego spending now and save for your future?

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FI4LIFE
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To what do you owe your ability to forego spending now and save for your future?

Post by FI4LIFE »

I will make an assumption that most on this forum save a sizable percentage of their income. Is there anything you can point to which lead you down this path? A situation that you overcame to get to this point? Feel free to pay yourself on the back.
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ResearchMed
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by ResearchMed »

FI4LIFE wrote: Tue Dec 31, 2019 1:24 pm I will make an assumption that most on this forum save a sizable percentage of their income. Is there anything you can point to which lead you down this path? A situation that you overcame to get to this point? Feel free to pay yourself on the back.
Hmmm... if we pay ourselves on the back, then we can't see or touch the money.
Great way to save!
:D

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jebmke
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by jebmke »

Parents as example. They were raised during the depression.
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fposte
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by fposte »

LCOL area and slow-moving Joneses. I can keep up easily and still have money for later.
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cheese_breath
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by cheese_breath »

Parental upbringing. From my first 25 cents per week allowance I learned if I wanted something that cost more they weren't going to make up the difference. I had to save up for it.
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FrontRangeShane
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by FrontRangeShane »

I started working at age 15 and bought most of what I own(ed) then and now. I started saving for retirement at age 26 and I'm 52 now. Live below your means and save, save, save. Pay off your debt. I've always had a ton of fun and saved 20% of my income into my 401K as it is so friggin' easy to do.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by livesoft »

Be totally broke and living off of discarded food craps while I was college student. But now that I am living my future, I have upgraded to sleeping in tent.
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earningaverage
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by earningaverage »

For me, a few things:

1.) Growing up with thrifty parents who saved a lot, and encouraged me to do so. When I started working as a teenager, my parents opened a Roth for me and put a little into it, which helped pave the way for me to contribute later. My dad also had a lot of unsteady employment, and I think that made me appreciate the need for having a financial cushion.

2.) Inheriting a small but respectable amount of money from my Grandmother. She was a modest woman who never made a lot of money in her life, and yet was still able to leave a lot of money to kids and grandkids because she saved early, and often. That was eye opening.

3.) My final reason is probably from a few years back where I had some minor but still stressful financial issues, and after I came out of it I didn't want to live like that ever again. I discovered a few websites including this one, and I've been saving ever since.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by JoeRetire »

FI4LIFE wrote: Tue Dec 31, 2019 1:24 pm I will make an assumption that most on this forum save a sizable percentage of their income. Is there anything you can point to which lead you down this path? A situation that you overcame to get to this point? Feel free to pay yourself on the back.
As with everyone else, my entire life's experience led me to be the way I am. My parents, my upbringing, my education, my general IQ, my spouse, my locale, the time period in which I have lived, etc, etc - all have an effect.

There's no magic. And in reality there's seldom a single event that changes people.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by meowcat »

Fear.
I've saved in a 401(k) since I was 23 years old, jut not enough. In 2000 we moved to Florida and I needed to get a new Social Security card. If you want a crystal clear picture of what it's like being old and broke, you owe it to yourself to go visit a Social Security office. For me, it was a wake up call. I did not want to be part of that statistic.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by HomeStretch »

Grew up with LBYM parents who used the cash envelope system. Saw how times got tight in my late teens when major family breadwinner was unemployed for two years (not for lack of trying). Instilled a strong desire in me to save for a rainy day. But, in response to parents’ extreme frugalness at times, I spend enough to enjoy today too.
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FIREchief
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by FIREchief »

I can't believe that nobody has mentioned that absolute #1 answer. Choose your spouse/partner very carefully! :beer

ETA: upon searching the thread, I see that JoeRetire has already mentioned spouse.
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mancich
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by mancich »

My mother. She was a shining example of thrift in action, born out of necessity. I can't imagine a better example of sound money management.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by flaccidsteele »

FI4LIFE wrote: Tue Dec 31, 2019 1:24 pm I will make an assumption that most on this forum save a sizable percentage of their income. Is there anything you can point to which lead you down this path? A situation that you overcame to get to this point? Feel free to pay yourself on the back.
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international001
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by international001 »

I always think on what Hume would say.

I thought it was parent situation.. They grew after a war with lots of hunger. But then, again, I don't see many of people my age doing the same
I thought it was IQ. But then, again, my father passed up not enjoying money and in anger when not saving an extra penny.
I see many people in my extended family saving more than the average. So it must be the saving gene. But then, again, I cannot control for other variables.

So I would like to see any study trying to figure out the statistics out of it.
EnjoyIt
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by EnjoyIt »

When I was a teen I realized that you need money to make money. The more you have, the more it makes for you. Because of that I have always been a saver. My parents when I was growing up lived at their means. Maybe slightly below as they were saving a very small amount.

I do remember visiting the home of a retired business man who was a CEO of some company. The home was gorgeous and while chatting he told us that compound interest is the 8th wonder in the world. That stuck with me.

Over 20 years ago I met someone who FIRED. He pretty much raised enough cash so that his stock trades provided enough income so that he did not have to work. He was a stock picker and what got me into picking stocks as well.

It took a CPA to try and sell me whole life insurance to really start learning about personal finance and finding Bogleheads. I did not buy the life insurance and fired the CPA.
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KlangFool
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by KlangFool »

OP,

Coming from a country/culture with an average gross saving rate of 30+%, I just need to behave like a normal person. It is our default behavior in our culture.

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Re: To what do you owe your ability to forego spending now and save for your future?

Post by jebmke »

FIREchief wrote: Tue Dec 31, 2019 1:48 pm I can't believe that nobody has mentioned that absolute #1 answer. Choose your spouse/partner very carefully! :beer

ETA: upon searching the thread, I see that JoeRetire has already mentioned spouse.
I started saving as a child. Didn't meet my spouse until I was 30.
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Wricha
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by Wricha »

I received an inheritance of $17k in 1986 my first reaction was Yesssss and go buy a new car. I had an auto loan, college loan, and a house morgage at the time. For some reason ( being debt free became very appealing to me) I decided to keep my car and pay off my existing car loan. Then take that money for the car payment and double down on school loans. Then move to house morgage. In eight years I was debt free.
After I was debt free I bought individual muni bonds to cover utilities, food and living expenses with the interest, over time I had over 100 bonds that covered basic living expenses.
Being debt free and having basic living expenses covered I was able to take substantial risk with all earned money moving forward, quit my job, started a few business and invest heavily in commercial real estate.
In 2010 I was introduced to Mr Bogle and invested in stocks via SPY. So my 3 fund portfolio is muni bonds, SPY, real estate.
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Svensk Anga
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by Svensk Anga »

For me, the largest factor was seeing my dad laid off in his mid 50’s and the aftermath. He was out of work for a year, then finally took a job out of state and two steps below his former position. Had to sell their home into a depressed market to boot. I was very early into my career at that point and I decided that I would set myself up so that if I were laid off in my 50’s, I could just call it quits. Thought about retiring when I was 55, but stuck around for various reasons until 57.

I think it is true that if one keeps housing and car costs down, it is much easier to save. We had a somewhat modest home, something we could afford on one income though both were working. We paid cash for bottom trim grade, non-luxury brand cars, and tried to keep them a good long time. Paying cash for cars really brings needs versus wants into focus versus the monthly payment mentality. We have loosened up on spending lately as we have gotten wealthier. So we did delayed gratification rather than foregone. I invented auto-escalation of 401k contributions long before that was a thing.

A well-funded retirement when you want it is the ultimate luxury.
Hillview
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by Hillview »

Honestly it has been hard. I am not as good at it as I would like to be and should be given our income. I was raised by parents who saved nothing, had significant debt and we were always up and down financially growing up (a month before I went to college my dad told me to not go to college since he couldn’t pay for it but then my grandparents paid for it so I went). So on the one hand this was a great lesson on what I didn’t want to be like. On the other hand I had NO skills or knowledge of financials and it has taken a (too) long time to figure all this out. I still have to manage through the impulse buy/instant gratification urges but overall I am pretty happy with the results.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by mbasherp »

I graduated college and was greeted by the Great Recession. Lots of debt, adding more on credit cards, not enough income and a bleak (at the time) future made me feel like there was almost no hope.

I clawed my way out of the hole and will never forget the emotional terror of being in that position. I vowed never to return.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by Broken Man 1999 »

We paid ourselves first, then were free to spend the rest. If we spent all before the next paycheck, we waited.

Our savings were not easily available. So, no fear of removing them.

Frankly, it was very easy to forego spending, wife was paid each week, I was paid every two weeks. When the stars aligned and she was paid 5 times a month, and I was paid 3 times a month, we were in high-cotton. Rich, even! :moneybag

Broken Man 1999
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by Broken Man 1999 »

Duplicate!
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by stoptothink »

I grew up in abject poverty: single mom (who did not graduate high school) who was a medical assistant, raising 5 kids in a 1,000sq. ft. 2bdr/1bath home in one of the most gang-infested neighborhoods in the country. A $45k/yr lifestyle (for family of 4) is luxury compared to what I experienced growing up. Being somewhat successful as a young adult then losing most of it (real estate crash, divorce), thankfully early enough in life to recover, was also a massive lesson I'll never forget.
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dm200
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by dm200 »

FI4LIFE wrote: Tue Dec 31, 2019 1:24 pm I will make an assumption that most on this forum save a sizable percentage of their income. Is there anything you can point to which lead you down this path? A situation that you overcame to get to this point? Feel free to pay yourself on the back.
I believe there are, or may be, many factors going on:

1. I believe there is a genetic component that causes some of us to be more easily influenced towards saving and others of us to be more easily influenced to be spenders. My wife and I lean towards saving, but our adopted son has always leaned heavily towards spending.

2. Family influence (behavioral) to save - whether it be a piggy bank or savings account at a credit union.

3. Specific incidents or experiences when young. My father invested in the stock market and, even back in the 1950's, conducted most of his stock market transactions by phone with his broker. The major brokerage house office was in a city about 35 miles from home, and on occasion, he would go in person to see the broker. I liked to go with him (probably about ten - twelve years old) and I was fascinated by watching the board show stock trades, a teletype chugging along, and a very large chalk blackboard where lots of things were written (cannot remember details). When my father died (in his late 80's) his stock broker made the one way 35 mile trip to attend his funeral - something a "Boglehead" would not get from Vanguard.`

4. Influences of friends, associates and locality.

5. Knowledge, availability, and ease of use - for savings, such as payroll deduction, etc.

6. Some religious denominations and groups have "saving" and "financial responsibility" as a "key value" of that religion or denomination. While this is not true of my religious affiliation, I am aware of groups that are - and their justifications/reasons are quite varied.

Today, we are all (all ages - from toddlers to senior citizens) bombarded with just about everything against saving and for spending - even if you have to borrow to spend.
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dm200
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by dm200 »

stoptothink wrote: Tue Dec 31, 2019 2:25 pm I grew up in abject poverty: single mom (who did not graduate high school) who was a medical assistant, raising 5 kids in a 1,000sq. ft. 2bdr/1bath home in one of the most gang-infested neighborhoods in the country. A $45k/yr lifestyle (for family of 4) is luxury compared to what I experienced growing up. Being somewhat successful as a young adult then losing most of it (real estate crash, divorce), thankfully early enough in life to recover, was also a massive lesson I'll never forget.
Growing up in poverty, as I have observed over the years, can seem to have widely different results. While not in "abject poverty", both sides of my family grew up in the great depression and became, or were, frugal as a result. Many folks, though, that I see growing up in poverty, though, seem to have a propensity to spend and not save. Their "logic" seems to be "spend it while you have it".

I hate to sound unfairly critical of some low income or poor people/families, but some of this not saving and spending everything seems to be passing on from one generation to the next.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by Maven »

I owe it to having my amazing 5.5 year old and almost 4 year old daughters enter my world. I was doing a lot of things right before they came along but no where near to the level that we're at today. Having a child is a gamechanger for sure.

Also have to give credit to my mother. She was and still is very conservative and responsible with her money. Yet she has always had a great balance between being conservative and living life to the max. She set an excellent example for me and I intend to do the same for my children.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by schakrava »

Working through college and then a few years afterwards to pay off tuition debt made me realize the importance of saving and frugality
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FI4LIFE
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by FI4LIFE »

I have experiences similar to what most have mentioned. I am also blessed to have a career where I earn enough to have a nice life with some $$$ leftover.

I once read that teachers are among the most disciplined retirement savers. I am not an educator but have a similar job in that there is a known ceiling to how much I can earn and my career path is basically set in stone. This makes it very easy to plan and helps me avoid the impulse to spend now with the dream of "hitting it big" in the future.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by Doom&Gloom »

JoeRetire wrote: Tue Dec 31, 2019 1:41 pm
FI4LIFE wrote: Tue Dec 31, 2019 1:24 pm I will make an assumption that most on this forum save a sizable percentage of their income. Is there anything you can point to which lead you down this path? A situation that you overcame to get to this point? Feel free to pay yourself on the back.
As with everyone else, my entire life's experience led me to be the way I am. My parents, my upbringing, my education, my general IQ, my spouse, my locale, the time period in which I have lived, etc, etc - all have an effect.

There's no magic. And in reality there's seldom a single event that changes people.
+1

Upon reflection the two biggest influences for me were (1) my parents' habits--responsibility and saving, and (2) the families of practically all of my friends growing up had very little, if any, disposable income.

The ultimate effect of (2) was that even if I had a bit of pocket money I learned that I really couldn't spend it because my friends didn't have the money to do the same. For example, if I wanted to go to a movie (15c at the time), I couldn't go until at least one of my friends had 15c and also wanted to go to the same movie. Until then we found other things to do. Those circumstances made it very easy to learn to delay gratification at an early age.
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dm200
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by dm200 »

FI4LIFE wrote: Tue Dec 31, 2019 2:45 pm I have experiences similar to what most have mentioned. I am also blessed to have a career where I earn enough to have a nice life with some $$$ leftover.
I once read that teachers are among the most disciplined retirement savers. I am not an educator but have a similar job in that there is a known ceiling to how much I can earn and my career path is basically set in stone. This makes it very easy to plan and helps me avoid the impulse to spend now with the dream of "hitting it big" in the future.
For retirement, most teachers/school employees still have a "defined benefit" pension/retirement plan - although perhaps somewhat less generous as in a prior generation. Such "defined benefit" plans have nearly completely disappeared from the private sector. So, I tend to think that teachers/school employees may regard qualifying for such a pension or for a larger pension as a big part of their "savings".
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by getthatmarshmallow »

My dad was self-employed, and struggled -- very little income during my childhood and teenage years. I got a job when I was thirteen. I lost any taste for being my own boss, and I don't have much of a taste for chasing down money over all, but developed a good ability to plan for a rainy day, because I've seen what happens when you don't.
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FI4LIFE
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by FI4LIFE »

dm200 wrote: Tue Dec 31, 2019 2:36 pm
stoptothink wrote: Tue Dec 31, 2019 2:25 pm I grew up in abject poverty: single mom (who did not graduate high school) who was a medical assistant, raising 5 kids in a 1,000sq. ft. 2bdr/1bath home in one of the most gang-infested neighborhoods in the country. A $45k/yr lifestyle (for family of 4) is luxury compared to what I experienced growing up. Being somewhat successful as a young adult then losing most of it (real estate crash, divorce), thankfully early enough in life to recover, was also a massive lesson I'll never forget.
Growing up in poverty, as I have observed over the years, can seem to have widely different results. While not in "abject poverty", both sides of my family grew up in the great depression and became, or were, frugal as a result. Many folks, though, that I see growing up in poverty, though, seem to have a propensity to spend and not save. Their "logic" seems to be "spend it while you have it".

I hate to sound unfairly critical of some low income or poor people/families, but some of this not saving and spending everything seems to be passing on from one generation to the next.
While there is some obvious truth to this, I think there are a number of influences that truly make a large percentage of those who grow up in poverty victims of their surroundings. Some of these include a lack of access to the knowledge needed to save and invest, lack of positive influences to show them the path to prosperity, a culture that discourages self improvement and a large number of friends and family who are in constant need of financial help from those who are able to provide it.

I am lucky to have grown up in an area with true economic and cultural diversity. As much as I believe in personal responsibility, I have seen first hand that if one kid grows up around poverty, drugs, alcohol, and criminal activity and another around success, doctors, accountants, stock market investors and extracurricular activities, one has an obvious leg up in life that cannot be discounted.
Last edited by FI4LIFE on Tue Dec 31, 2019 3:17 pm, edited 1 time in total.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by Smawink »

I was not always a saver. 2 things changed that.

First was finishing school around the time of the Great Recession with health issues, student loans, and no health insurance.

Second, more recently, I’ve spent several years partnered to a high earning single father 16 years my senior. I sacrificed my career to help out. I used my vacation time to help with his elderly parents or help get houses ready for him to sell. I skipped lunch every day and literally ran home from the bus so I could be home to cook dinner. I helped with his gravely ill son. Then one day, after contemplating his parents’ struggle to pay for long term care, he asked whether I would help him in his old age. I readily agreed. My mother was a nurse. I knew what it involved and thought I would be good at it. I asked whether he would help me and he said yes and that my best chance was to someday qualify for Medicaid. He also said he thought he would outlive me and that the help he was offering was direct care should I become ill, not financial help.

When I fully grasped the position of unmarried women approaching retirement age, the likelihood that I would have to leave the workforce early for caregiving or my own health problems, and the possibility of outliving savings, I started to put the energy I had previously put into my relationship into saving and investing for myself. I hope someday to help other unmarried women gain financial security.
Last edited by Smawink on Tue Dec 31, 2019 3:40 pm, edited 2 times in total.
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dm200
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by dm200 »

getthatmarshmallow wrote: Tue Dec 31, 2019 3:04 pm My dad was self-employed, and struggled -- very little income during my childhood and teenage years. I got a job when I was thirteen. I lost any taste for being my own boss, and I don't have much of a taste for chasing down money over all, but developed a good ability to plan for a rainy day, because I've seen what happens when you don't.
While I was a "saver", I did not have or develop a taste and ability for finding various kinds of jobs. I thought that by graduating from college, I would and could easily find and keep a good job and career. While I have done OK, and still am, I wish that I had developed the motivation and drive to have done better.
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by getthatmarshmallow »

dm200 wrote: Tue Dec 31, 2019 3:08 pm
getthatmarshmallow wrote: Tue Dec 31, 2019 3:04 pm My dad was self-employed, and struggled -- very little income during my childhood and teenage years. I got a job when I was thirteen. I lost any taste for being my own boss, and I don't have much of a taste for chasing down money over all, but developed a good ability to plan for a rainy day, because I've seen what happens when you don't.
While I was a "saver", I did not have or develop a taste and ability for finding various kinds of jobs. I thought that by graduating from college, I would and could easily find and keep a good job and career. While I have done OK, and still am, I wish that I had developed the motivation and drive to have done better.
I can't really complain. I like my career, I have a lot of autonomy over my time, and I get a lot of time with my children, spouse, and hobbies. It's hard to put a price tag on that, but I figured I'd need a six-figure raise to have the equivalent hedons. :sharebeer
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by pmr2017 »

My wife. I grew up with parents who didn't really teach any financial literacy to me and my siblings growing up. My mom also has a spending problem, so she wasn't exactly the best role model.

My wife came from a family that stresses financial stability, planning and puts an emphasis on saving as much as possible. When I first met my wife my finances were a mess - maxed out credit cards, no retirement savings, almost no personal savings etc. Slowly but surly she pushed me to clean my act up and also forums like this and a couple of others have given me the guidance and advice to put myself on a path to financial stability.
sycamore
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by sycamore »

Mostly I owe it to my parents who are Children of the Depression, making me a Grandchild of the Depression. They were never poor but they and their families worked hard, and it was considered the responsible thing to "save for a rainy day." It just became the expected behavior for me.

Also owe a bit to my liking money in its various coin and paper forms (numismatics was a hobby). I remember having a hard time parting with money - sometimes it really felt like losing more than just its monetary worth.
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willthrill81
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by willthrill81 »

FI4LIFE wrote: Tue Dec 31, 2019 1:24 pm I will make an assumption that most on this forum save a sizable percentage of their income. Is there anything you can point to which lead you down this path? A situation that you overcame to get to this point? Feel free to pay yourself on the back.
The realization that I will very likely not be able and/or not want to continue working to produce an income for my entire life.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
JBTX
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by JBTX »

Partly parents example. We generally lived well below our means.

Also as a child got allowance. I saved up for "king ding a long" robot. Bought it. Brought it home and realized it didn't really do anything. Other instances purchasing things I anticipated and ended up being a letdown.

My sibling as a child would spend money faster than I would but now is even more frugal than I.
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dm200
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by dm200 »

I also "save" vacation and PTO days.

I consider PTO days just like money - since I get paid if I am out on vacation or sick.

In addition, when I leave this employer, I will be paid for all PTO hours accrued at a rate of 1/2 my hourly rate of pay. Additionally, in a year or two, when I reach the maximum carry over, at the end of the year, I can cash in hours - also at 1/2 my hourly rate of pay.
mptfan
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by mptfan »

I think some people are born frugal and others are not, it's a simple as that. Yes, nurture can have an impact, but I think nature predominates.

I know people who were raised in the same house with the same parents and yet they handle money differently. Someone who is naturally frugal and is raised with frugal parents will say "I got it from my parents," whereas someone who is naturally frugal who was raised with spendthrift parents will say "I saw how my parents spent too much and struggled with not having enough money and I vowed never to be that way."
BlueCable
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by BlueCable »

High enough incomes now that that we can splurge quite a bit and still have a lot.

Disliking work enough that I don't want to do it into my late 50s. Any big purchase gets the question: "Is this worth delaying retirement by X months?"
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FI4LIFE
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by FI4LIFE »

mptfan wrote: Tue Dec 31, 2019 3:39 pm I think some people are born frugal and others are not, it's a simple as that. Yes, nurture can have an impact, but I think nature predominates.

I know people who were raised in the same house with the same parents and yet they handle money differently. Someone who is naturally frugal and is raised with frugal parents will say "I got it from my parents," whereas someone who is naturally frugal who was raised with spendthrift parents will say "I saw how my parents spent too much and struggled with not having enough money and I vowed never to be that way."
My brother and I were raised in the same home and earn similar incomes. He can't rub two nickels together while I am a saver. I've tried to explain the importance of investing to him but he couldn't understand why he would "risk" $10000 a year just to earn $1000 at the end of the year. The compounding effects were lost in him. He is impulsive by nature, mostly to his detriment.
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vitaflo
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by vitaflo »

1. My hobby turned into a career I could make a lot of money in. IE, dumb luck.

2. I was perfectly happy growing up without much, it forced me to be creative to have fun, which eventually led to #1. So I've never felt the need for extra "stuff". IE, I've never really known any different.

3. Math. I was good at it, so I understood the power of compound interest at an early age. I guess I can thank my dad for that one, he had the math brain.
SQRT
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by SQRT »

Incentive comp awards. Didn’t cash any until I had to. Never even remotely “frugal”. Basically lucky. Still am.
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AerialWombat
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by AerialWombat »

Getting divorced, going bankrupt, and spending over a year homeless. That totally recalibrated my financial setpoint.
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FIREchief
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Re: To what do you owe your ability to forego spending now and save for your future?

Post by FIREchief »

jebmke wrote: Tue Dec 31, 2019 2:04 pm
FIREchief wrote: Tue Dec 31, 2019 1:48 pm I can't believe that nobody has mentioned that absolute #1 answer. Choose your spouse/partner very carefully! :beer

ETA: upon searching the thread, I see that JoeRetire has already mentioned spouse.
I started saving as a child. Didn't meet my spouse until I was 30.
Yeah, me too. But the thread title is present tense (i.e. ability to forego spending NOW and save for your future). I don't care how frugal/responsible a person is, if they get married to somebody who spends well beyond the last dime, there won't be any saving for the future. And divorces are VERY expensive, from what I understand (which fortunately isn't much....).
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.
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