Paid In Full

[Patriotic Stabilist]

I cut back on expenses over the last 7 years. We wanted to be ready for retirement so we could live a good life, and I've been working on it. We are doing without nothing. We made the house totally energy efficient and its 30 years old. When the furnace goes I'm looking into one of the new ones they are making. We have lived here 17 years and ours is 15 years old. The AC is about 3. One new furnace they have out is 95% efficient, it is supposed to keep recirculating the heat in some manner to keep extracting heat from it. I read that it is so efficient that you can even make a chimney from PVC pipe, can you imagine that? Up north that would really pay off and no I don't know what they cost. The government keeps mandating more and more efficient so that's good in a lot of ways.

I have our basic expenses down low but we still enjoy life, even moreso because they are so low.

Electric $1320 last full 12 month period. I attribute that low amount to the Tech Shield on the new decking, the new energy efficient AC unit, and additional insulation I put in and the new dual pane argon filled windows. Also the new lightbulbs everwhere, and over the years upgraded appliances as they went out. The frontloader W/D is awesome. We also have 2 ft overhangs on the house, helps with this hot Texas sun. I have screen doors and screens in windows, don't use AC till about June and done around Sept. When the humidity gets to high is when it comes on and those super hot months.

Heat, and we heat water, and cook with propane too, $1040 this last year
I reduced the thermostat at night to 69 and use an electric blanket as does DD

Phone, went to a special service its called Lifeline, I was going to cancel our landline, it was running $70 a month and I rarely use it and AT&T offered it to me, apparently they have to do so, so that you have 911 access, would have done it sooner if I had known. They do not advertise it. They offered me a rate so we could keep 911 and have 25 free incoming and outgoing calls $12 a month, so $144 a year

We use Skype, pay $25 a couple times a year. Hubby calls me everyday from Qatar computer to computer for free. We can call anyplace in the USA for 2 cents a minute, to a phone or computer to computer for free. Same with our son in Korea, free computer to computer, what a deal!! And the service is excellent. It's a free download on your computer.

Cells, hubby and I went with T Mobile $100 prepaid each a year, dropped the $50 to $60 a month we paid, so big savings

A high bill is cable, cable internet about $125 a month, yeah I know high, but we have 3 computers and we all use them, also we like the cable channels and especially the music channels. This is a luxury, not a necessity but going to keep it. But we all like to read so we could if we had too.

Car ins full coveage on both $1100, we drive for pleasure only and limited miles plus we are both 62 and 63 respectively, no driver under 50 is covered.

Property taxes are only $900 a year on our house. We live in the country, have lucked out, never been reassessed out here in the 17 years we have lived here. Added onto the house before building permits were required. In a couple more years will be frozen at that amount. This is the main reason we did not buy a new house. Zillow had valued our house about $170k, but its down to about $125k now, we paid next to nothing for it as a foreclosure and fixer upper way back when.

House insurance $1000 a year, flood insurance $200, we are in zone C, but this is Houston area so you never know. We figure that is good money spent.

Ok, about $60 a week for gas, $100 week for groceries, $50 a week for dinner and movies or whatever, DD and I like to party.

Trash pickup $104 a quarter and I got the service to include our tenants trash as he only has a can. I burn some papers and stuff and once a year go to the dump if need be. We have no city water or sewer bill. And we have no bills to pay.

Now of course this is basics. But I also don't spend much on clothes anymore, I make most of DD's and my clothes and have even gotten good at cutting her hair. Do my own nails, don't color my hair. But when I do buy clothes they are good, LandsEnd or Ralph Lauren, just on sale. We are also spendie on glasses for all of us and good shoes.

I also have a garden and can. I will raise chickens again and dress out and freeze quite a few. Also shop sales and stockup when they are on. And bake bread in the warmer weather.

Hubby does all his own work he can.

So we can live and enjoy life on $20k a year, but of course we don't as we spend for lots of extras, but this allows us to do that. Life is good!

And what do DD and I hope to do this year by saving? Hopefully go on a 22 day trip to China, if not that somewhere, prices are really good this year.

 

[riptides]

It's hard for me to not get into any political implications after doing what you did. I sacrificed for many years, and my five kids didn't always get what they wanted, to become completely debt free. A neighbor, who happens to be an in-law, hasn't sacrificed anything and has lived high on the hog. They are one of those who refinanced every single time they could so they could take more vacations or buy more toys. Just last week they told me that their house isn't going to be foreclosed on and $50k of their debt is going to go away on their mortgage so they can make the payments in a reorganization of their mortgage. Although I'm happy to be in the position I'm in, it does bother me that apparently I could have burned all my money and still be bailed out. Oh well, I do have this thing called pride which it's apparent you also possess. Congratulations!

Well, the other side of the coin is also staring us in the face. People need to realize that entire communities have seen wealth evaporate in housing, bank funds, penisons, jobs, you name it.

These bail outs are not money in the publics hands. No one is giving money to someone who has lost a job, or whose home is in foreclosure. More likely it is funny money, debt restructuring or just enough to get by on another day of unemployment.

I played by the rules too. Still do. At one point in time was a few million in the hole, but I need credit and low interest to keep going. Pride ain't gonna get that done. I need the bailouts to help the community so I can keep going.

The best thing that can happen now is to make money more affordable so those of us who play by the rules can get it and grow.

 

[Dargo]

Obviously I look at things differently. Thirteen years ago I lost my job to 'downsizing'. I went down to the unemployment office, but after 1/2 hour in line listening to the people around me I left and never returned. I went from a white collar job with a company car (to no car), great pay, great benefits and a huge expense account to nothing. My wife was pregnant with our 4th child and she too lost her job at a large pharmaceutical company to boot.

Rather than accept unemployment, free lunches for my kids, free books for my kids and food stamps, I got up every morning and worked my rear off literally digging ditches, cleaning basements, mowing lawns and about anything else legal that anyone would pay me to do. As long as I was willing to work hard and do a good job I had more work than I could handle. I parlayed that into two businesses; a landscaping business and a mowing business. I've since sold those businesses and 11 years ago began my business I run now.

I have no problem giving people a hand up, but no hand outs unless the people are physically unable to work due to some legitimate reason. Each and every person in the unemployment line talked about how to 'beat' the system and stay on unemployment as long as possible. None of them had any desire to work for their money! I vowed to never be one of those people and I never have. Part of making sure that never happened was to be fiscally responsible. I feel that companies as well as governments need to be fiscally responsible. Handing out money like candy is not being responsible. Giving mortgages to people who didn't qualify for the loans they got is a big part of what got us in trouble.

These are the reasons I say "congratulations" to the original poster and why I have lived the way I have. For a long time I had a note from my late grandfather taped to the dash of my vehicle. It simply read "No Excuses". I thought about that each and every time I got in my truck to head out for work.

 

[chh]

Last year the cash price from Montana on a T7074 was $2000 different than the financed price. It was about $2500 on the MF 596 I got before that. Both prices where check at other dealers and that was the best price on the same models from the lowest priced dealers.

 

[jinman]

Hey Mark, if a brownshoe can do it, anybody can.

Don't forget that in addition to a nice retirement check, Tricare medical is a huge benefit. I know a lot of folks who cannot retire because they have to have insurance. Tricare ain't perfect, but it's pretty darn good.

Congratulations from this ol' blackshoe.

 

[Dargo]

When the dealerships tell you "no interest" or "low interest" this is just another sales tactic and they just raise the price of the vehicle to make up for the loss on interest. In most cases they offer rebates to cash buyers and lower interest rates to others but they don't get as large of a rebate, if any.

Very true. The only thing I would add is that it is usually the manufacturer making those offers and the dealers only relay those offers to us, the customers. There is almost always a 'rebate' or cash discount in lieu of the discounted rate. The low, or no, interest rate is what is known as a 'buy down' rate. The manufacturer buys down the interest rate with the money they would have given as a discount. There is no such thing as 'free' money.

You are paying for that lower rate by paying more for the item you are purchasing. Good dealers will work with you to see which way saves you the most money. For example; if it looks like you'll save more by taking the low financing but will likely pay it off earlier than the scheduled term, the cash discount may be better for you. The buy down is always based on an average sale. If you finance everything with nothing down and know you will not trade it off or pay it off early, the low rate may be more beneficial for you. Each case is different.

 

[Patriotic Stabilist]

Yes, health insurance is an issue for us. Hubbies project was to end in October but it may be July instead, they like everywhere are looking for places to cut people and expenses. Now that really bites, paying COBRA for he and I. We doubt that he will be eligible for the reduced rates in the stimulus package. They are reducing the premiums 65% for 9 months to help folks out, but being employed overseas we are doubting he will qualify for that benefit. We never qualify for anything, so that's life. It's a $1000 a month premium, a big chunk of money but we won't go without insurance so we will just bite the bullet and pay for it. Also working overseas the company does not pay on unemployment, so you go from quite a lot of dollars to zero real quick. Another reason we save, feast and famine in the construction industry. We both grew up that way, my dad was a boilermaker and his was a heavy equipment operator, so they drilled into both of us, don't buy it unless you can pay for it, and save too.

Now they are postponing projects or in some cases cancelling them in the oil and gas industry. He has 3 more years to retire at age 66 our full retirement ages and 2 before we can get medicare. We are hearing now the project he was planning to go on may not start till the middle of next year. He can go back to work as a highway superintendent or project manager in this country, but that may not even be here at home, he may have to go back north to do that. Here in Texas its been pretty much taken over by folks from south of the border, only the managers are American, that was one of the reasons he ended up working overseas. The division he worked for closed their highway section, couldn't compete any longer. Hopefully there really will be stimulus money as they said there was for infrastruture projects. Wonder how they are going to make sure citizens get a chance at those projects? I hope this doesn't cause this thread to be closed. This is just fact and I can't change that, but it sure has effected us and many many people we know. If the moderators don't like my comments, please just delete my posting and don't close the discussion to others, I don't want to cause that.

I'm not complaining, just stating facts. We will make it, but if these projects are curtailed our saving for our retirement will not have much if anything added in the next 3 years.

 

[riptides]

I had an interesting visit to a junk yard - a "U-pick" variety.

Interesting that it was raining,
interesting that they had a line of people waiting to get out, parts in hand,
interesting that a lot of people were pulling parts, in the mud,
interesting that a lot of "cars" were missing parts,
interesting that the lot was expanding......

Sign of the times.
And I only got a headlight assembly. I was "shopping for three related parts".

The guy behind me, emptied his glove of bulbs and nick knack items!

Frugle and smart!! Interesting.

 

[Patriotic Stabilist]

Honestly I think its going to get much worse. People are trying to fix it, but really wonder if it can be, that's why we tightened expenses up seriously over the last few years. We are fortunate I know, and it will be ok for us, but I feel very very sorry for so many that saw only prosperity forever and spent accordingly.

I hear that some seed companies are facing unprecedented demand and don't have some seeds available. I was going to order chicks, not available till June, maybe its always that way as I buy local but don't know.

Also see a lot of things you can't buy especially parts and have to order them, so inventories are way down.

 

[tallyho8]

The best thing that can happen now is to make money more affordable so those of us who play by the rules can get it and grow.

Either I don't understand what you mean or I disagree with you. Interest rates are so low now that those of us who have scraped and saved our entire lives and wish to retire with our savings nest egg can only get about 2% interest on our savings. This is the lowest rate on cds in my lifetime and does not even keep up with inflation.

When I purchased my first home in 1973 interest rates were 7.5% and my first shop was 8% and my second shop was 8.5%. This seemed like a good deal to me and I paid off these loans way ahead of time. You can get mortgages on a home now for only 4.5%. This is a historic low level and your notes aren't much higher than they would be if you had a no-interest loan. How low can you go?

I've lost 2/3 of my retirement savings income in the last few years as interest rates have dropped from 6% to 2% since dropping interest rates has been our leaders answers for everything that happens in the economy and now that we have historically low interest rates, it has been proven that the lower rates haven't helped at all.