Do you live beneath your means?

[Gardenarian]

We're lucky that dd's grandparents created a college fund for her - so no worries there.

[kimberlyf0]

We recently decided to start an extreme early retirement savings goal. To get there, we're currently saving about 50% of take home, plus what goes into the 401K, but we'll have to back that off next January since we need to max out the 125 FSA for another kid's braces. Although really it is all the same, the 125 FSA is still a form of savings account, and if we didn't have it we'd have to hit the regular savings account for the braces. Our goal is to live on as close to half of take home pay as we can for the next 14 years; of course we'll hit the savings account for capital improvements, cars, and college.

[sweetana3]

You would really enjoy http://www.frugalqueen.co.uk/. Her frugality is famous and she is an interesting blogger. She even now does radio in Cornwall on frugal living.

[awakenedsoul]

Tammy, That's impressive! It's true that some times in life require more money, (especially if you have children.)
Lainey, I felt that way in my 30's, too, and I was single! But, I'm also able to save more now. It's such a relief.

[awakenedsoul]

Gardenarian, How nice. That makes things much easier. It puts you in the position to do the same, too.
sweetana3, I checked out the blog. Thanks for posting it. I love reading about people who live frugally and happily. (Especially in Europe!)

[Ultralight]

awakenedsoul:

Great question! Most months I do live below my means. Once in a while I will have to tap into savings (dog needs a tooth removed or something) but I try to replace it (the money, not the tooth!) soon after. Though being financially literate is something new to me. I really only got into frugality and such about two years ago. Long story; I'll spare you! haha

But something that your original post here touches on that is quite a captivating idea is this: "I was thinking about different periods of my life and why I was happier at some times than others."

I think back like this too! The answers I get from the wisdom of 20/20 hindsight really informs the future lifestyle I hope to design for myself.

In college I lived in a small apartment (330 square feet) with my girlfriend. We had friends over for potlucks. We walked almost everywhere. We went to the park for fun. I didn't have much more than a sleeping roll, a guitar, and my books for class. Those were amazingly enjoyable years! I worked part time and lived on lentils and rice, fruits and veggies from a nearby farmer's market. Times were good. My life was simple -- not without pain or hardship sometimes -- but simple and overall good.

Now I try to model many aspects of my life along those lines. While my hobbies and interests have changed I think there are some overarching lessons I can learn from this lifestyle. My only regret is all the student loan debt! lol

[Float On]

Ultralite, you mentioned in another thread how much student loan debt you had. What kind of degree, master's, doctorate? And how is your earning potential to getting that debt paid off quickly (I know you also mentioned threats of lay-offs). Was the loans used only for school expenses or also living expenses? Did you realize what you were getting into every year when you signed another loan? Is it all consolidated or are you making several payments a month? I only ask because so far both boys have money to pay what isn't covered by financial aid/scholarships. One son is going to a very expensive private college and will run out of money in 2 years. The other is going to a private college but less expensive than the first sons and should have enough for 4 years. Both will have to borrow for masters.

[Ultralight]

Float On:

I have a BS, an MA (American Culture Studies), and an MLIS (Library and Information Studies). My income is $45k at the moment before taxes and deductions of all sorts. If I work for 10 years for the government (such as the university I work for now) and I make 120 payments then the remainder of my debt will be forgiven. So I just need to do roughly ten hard ones workin' for the man! haha

And hopefully during that time the politicians don't take away the Public Service Loan Forgiveness plan. hahaha

When I was young I just did not understand the ramifications of my loan-taking. It did not seem real to me. But now it sure seems real! hahahaha

I consolidated and I am on income-based repayment. It is about $360 a month for me under this plan.

Your sons are probably more financially literate than I was. I was rather oblivious when I was younger. I did not understand money at all. Reading Your Money Or Your Life a couple years ago really helped change my perspective. Also, Jeff Yeager's Ultimate Cheapskate books were helpful too.

[Float On]

Thanks for being transparent.
We may be able to help the boys monthly with some spending money but failed at saving college funds for them. Thankful for the MIL who invested money for each grandchild. I had no idea that a $5000.00 investment could grown into $38,000 + but that is what happened so they have a good start.

adding: All the college apps were a bit sneaky about Parent plus loans (no thanks, I can't be left with a bill for their education) and were also sneaky about stating that "with your loans, you'll only be responsible for x amount"...no loans are not financial aid.

[Ultralight]

Live and learn. Ya know? I tell myself that college and grad school were a form of "pretirement." hahaha

And I did have a wild time!