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Loose with spending versus tight fisted
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amother
Pink


 

Post Fri, Mar 23 2018, 3:13 pm
I've noticed among myself, my family, my friends that regarding smaller expenditures, some of us are very tight with our money while some of us spend more liberally. For example, bringing soda cans along on a family trip to the zoo versus paying 2-3x as much at the zoo soda machine. Adding a chocolate bar to the conveyor belt at the grocery because it catches your eye versus avoiding impulse purchases. Assuming all are in similar middle class income brackets, do you think this type of spending (or not) ultimately impacts long term wealth? Curious as to whether these types of attitudes toward money makes a difference in the long run.
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amother
Fuchsia


 

Post Fri, Mar 23 2018, 3:20 pm
Those of us who bring the sodas will say that it does impact long term wealth. Also, for some of us, it's hard to enjoy a $2 can of soda/bottle of water multiplied by however many members of the family when you can stick them in for about $.10 to $.25 per drink with the kosher lunches that you are bringing along anyway.
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amother
Seafoam


 

Post Fri, Mar 23 2018, 3:27 pm
IT DOES NOT!! I strongly feel those that are more careful, are out of habit. Obviously there is a range. I bring drinks along to trips but dont stress if I forgot. I will never go to sales but choose the food/clothing store generally cheapest and shop there only. I believe stress and time of trying to save, costs you more in the long run. Definitely when you have young children and may not have the extra time...
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amother
Fuchsia


 

Post Fri, Mar 23 2018, 3:32 pm
The op was not talking about stress and running to a bunch of stores for deals. She was talking about avoiding impulse candy purchases and bringing drinks to the zoo. These are not highly stressful activities. It is stressful to run to several stores if you have to shlep kids with you or if your day is so jam packed that every second counts.
Only anonymous now because I started out anonymously.
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tichellady




 
 
    
 

Post Fri, Mar 23 2018, 3:46 pm
I’m not sure but not everyone’s goal is long term wealth. Some people just feel like feeling like they can be on vacation mode and splurge sometimes. Other people find it more stressful to splurge and don’t enjoy it.

My husband loves buying cold drinks on vacation. It doesn’t do anything for me, but if it makes him happy it’s certainly worth the extra few dollars.
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amother
Bronze


 

Post Fri, Mar 23 2018, 3:53 pm
I think these attitudes definitely have a long term impact. The poster above thinks that comes along with stress and time, and therefore isn’t worth it. I personally don’t think it comes with stress, or extra time at all (and time is money in my opinion). I don’t drop a few dollars here there and everywhere. I keep a careful budget to ensure I’m getting maximum mileage and benefit from my money. The Millionaire Next Door and David Ramsey talk about this all the time.
Now, if you budget $50. A month on going out to eat, and you choose to spend that on soda cans for your family, then no, it doesn’t make a difference. But that’s because you budgeted for it (or you budgeted for impulse purchases)
- I personally have about $20. A month budgeted for impulse purchases.
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amother
Bronze


 

Post Fri, Mar 23 2018, 3:56 pm
tichellady wrote:
I’m not sure but not everyone’s goal is long term wealth. Some people just feel like feeling like they can be on vacation mode and splurge sometimes. Other people find it more stressful to splurge and don’t enjoy it.

My husband loves buying cold drinks on vacation. It doesn’t do anything for me, but if it makes him happy it’s certainly worth the extra few dollars.
same. My dh has a thing with buying sodas at gas stations. The first few times it really bothered me, then, I realized in total he probably spends max $50. A year on this, and it’s not worth making an issue about $50. If it makes him happy.
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shoshanim999




 
 
    
 

Post Fri, Mar 23 2018, 4:09 pm
Nope, wasting a couple hundred dollars a year, or even more, does not effect long term wealth.
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amother
Yellow


 

Post Fri, Mar 23 2018, 4:35 pm
I'm definitely the more frugal one due to my upbringing, even though I grew up in a fairly wealthy family and always had money for anything we needed, and even though I now make B"H a very nice salary.

My biggest pet peeve for years was when DH would take the Battery Tunnel for $4-5 instead of the free Brooklyn Bridge, to which he argued that the 15 minutes he was saving was well worth it, especially since it's only a question of about once a month.

Also, it started when we were dating, and at that point, it was his money and his prerogative. Now, I've learned not to let it bother me. I do still have to bite my lip when he buys the kids a cold drink in the park on a hot summer day.
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Bnei Berak 10




 
 
    
 

Post Sat, Mar 24 2018, 2:25 pm
Question: if you know you are going to an outing and will need cold drinks, what is the big deal of pack drinks in a special chiller box or with ice blocks and take them with you? A lot of this is a matter of planning ahead.
If you do buy once a year expensive drinks in a park it's one thing. If you do it a little it more frequently you will surprised that it does add up and becomes a substantial amount.
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amother
Mauve


 

Post Sat, Mar 24 2018, 2:26 pm
The actual purchases probably won't affect the bottom line if you're talking about the occasional cold drink. As other posters have said, there is a value to enjoying yourself. If getting coffee or soda makes you feel indulged, go for it. It's a low cost enjoyment.

Where it becomes a problem is if you buy things whenever the mood strikes you without thinking. That kind of habit can create long-term troubles.
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amother
Blonde


 

Post Sat, Mar 24 2018, 4:39 pm
Bnei Berak 10 wrote:
Question: if you know you are going to an outing and will need cold drinks, what is the big deal of pack drinks in a special chiller box or with ice blocks and take them with you? A lot of this is a matter of planning ahead.
If you do buy once a year expensive drinks in a park it's one thing. If you do it a little it more frequently you will surprised that it does add up and becomes a substantial amount.

Not everyone wants to lug a chill box with them when they go out. It's heavy, unless you are bringing a car right next to where you are sitting.
I think there is probably a happy medium somewhere.
I also dont think anyone gets rich from saving on Starbucks. You get rich by increasing income, not by saving 30 bucks a week on extras. However, if a middle income family scrimps and saves on those extras than they can use it for other stuff.
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amother
Gray


 

Post Sat, Mar 24 2018, 5:05 pm
ok so I think prioritozing is the key. im not a millionaire but b´´H have a stable salary. so if I happen to forget to bring along snacks/drinks and the kids need them during a trip of course ill purchase them in the zoo but generally I try not to. I try to plan ahead and save that money. why? becuase b´´H we are a large family and every time 20-30 euro would be thrown out for really no reason. now if that happens lets say ones a week (buying a snack, getting an item significantly more expencive than in a different store, ordering pizza, more cleaning help etc.,) than for that money I could pay piano lessons, healthier shoes for one daughter or a membership in the chess club for the older son.
these things cost and are definitely my priority. my kids dont mind drinking water and eating snacks that we bought along / prepared at home. they dont mind hand me downs nor the lack of store bought fast food.
now after having a baby I spend more on cleaning help and order pizza etc...but generally why should I? for us other things are simply more worth to spend on. I discuss this with my children. sometimes we decide an expencive toy is well worth the cost. ok, thats a decision, not an impulse. sometimes we decide a pizza night out in the restaurant is a good thing for our family. but buying a bottle of water in the zoo imho is simply silly. yes 2 euros add up quickly. in the long run these things dont ruiun us financially but they make us loose focus.

I try keeping a list of all the money that I spend for no reason really. im not talking about grocery and im not talking about the normal items that make our life easier (like the better more pricey bin bags becuase they dont tear etc)... yes we buy organic food items and yes sometimes we overspend on certain fruit etc. but we can afford these items b´´H. but if im not careful I can easily spend 150 euro more than actually necessary on impulse purchases or purchases due to lack of planing. if I spent that money on a wellness day at the spa I think it would be wiser spent Smile

but for others who can pay for piano classes, wellness spa, chessclubs, new clothes AND impulse purchases GESINDEHAYT Smile I mean it. I just hope these people are not the ones who need foodstamps, tuition breaks etc. BUt again everyone is different. B´´H we are blessed with a more or less stable parnusse and kids who are happy with their way of life (I hope they feel they get what they need and hopefully ones they get older they will value what they get...dont wanna have them miss much but dont want to get them spoiled neither... Smile )
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amother
Plum


 

Post Sat, Mar 24 2018, 10:17 pm
I second the poster(s) who referenced budgets. its not about long term rich vs not rich - is about keeping control over whats going on month to month.

if your budget doesn't allow for saving any money, however it does allow for cold drinks at the zoo, and impulse chocolate bars... you're probably doing something wrong.

when we grew we probably could afford the soda at the zoo - but my parents were very into spending money reasonably - and it just was't reasonable to them to spend that much on drinks when we could pack frozen juice boxes. that said - we still got the occasional 'treat'.
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nicole81




 
 
    
 

Post Sat, Mar 24 2018, 10:39 pm
amother wrote:
Not everyone wants to lug a chill box with them when they go out. It's heavy, unless you are bringing a car right next to where you are sitting.
I think there is probably a happy medium somewhere.
I also dont think anyone gets rich from saving on Starbucks. You get rich by increasing income, not by saving 30 bucks a week on extras. However, if a middle income family scrimps and saves on those extras than they can use it for other stuff.


Definitely not rich, but saving $30/week and investing that money instead into a fixed retirement fund would yield about $160k over 30 years of growth. I think there are far too many frum middle income families that don't give a lot of thought to their financial survival later in life, and saving on the small things is a great start.
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amother
cornflower


 

Post Sat, Mar 24 2018, 11:16 pm
nicole81 wrote:
Definitely not rich, but saving $30/week and investing that money instead into a fixed retirement fund would yield about $160k over 30 years of growth. I think there are far too many frum middle income families that don't give a lot of thought to their financial survival later in life, and saving on the small things is a great start.


I wish I knew more about this. I actually have the ability to be putting money away but I have no idea where to start. Where would you suggest I get more info?
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perquacky




 
 
    
 

Post Sat, Mar 24 2018, 11:22 pm
amother wrote:
I wish I knew more about this. I actually have the ability to be putting money away but I have no idea where to start. Where would you suggest I get more info?

Contact one of the large investing firms. Ask for advice. I believe they'll help you for free. You should open up an IRA if you don't have one already.
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amother
Plum


 

Post Sat, Mar 24 2018, 11:27 pm
perquacky wrote:
Contact one of the large investing firms. Ask for advice. I believe they'll help you for free. You should open up an IRA if you don't have one already.


there is no free lunch. the payment comes in the form of fees on the funds they sell....

(** that may not be a bad thing **)
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amother
Mauve


 

Post Sat, Mar 24 2018, 11:32 pm
amother wrote:
I wish I knew more about this. I actually have the ability to be putting money away but I have no idea where to start. Where would you suggest I get more info?


Look into index funds. (Fidelity and Vanguard have them, as do other brokerage houses.) Have a fixed amount deducted from your checking account every month, and you will be investing automatically.
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Bnei Berak 10




 
 
    
 

Post Sun, Mar 25 2018, 2:56 am
amother wrote:
Not everyone wants to lug a chill box with them when they go out. It's heavy, unless you are bringing a car right next to where you are sitting.
I think there is probably a happy medium somewhere.
I also dont think anyone gets rich from saving on Starbucks. You get rich by increasing income, not by saving 30 bucks a week on extras. However, if a middle income family scrimps and saves on those extras than they can use it for other stuff.


An alternative is to take pre-cooled drinks in a plastic bag and those cooling/freezing elements I/o a cooling bag.
I agree that you get rich by increasing income. But with increased income you usually increase your expenses too. The trick is to increase income and to cut expenses.
30 USD a week is maybe not a lot for you - however 30 USD X 52 weeks=1560 USD yearly.
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