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How frugal are you. Teach me thy way.

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  • #76
    Originally posted by TheDangerZone View Post

    Love of missing out? It seems like you are trying to push a false dichotomy. On a physician income, you can responsibly have your cake and eat it too.

    We saved 45% of gross this year, easily pay the mortgage on a comfortable house, eat out whenever, buy anything we really want, donated 25k to our DAF, took a 25k hit in unexpected home repairs and renovations, and paid cash for a totally unnecessary classic Porsche 911. All in a year where my income came in about 10% less due to the COVID shutdown. I don't feel deprived whatsoever and struggle to see what I'm apparently missing out on.
    I guess you're not a true American unless your buying things you don't need with money you don't have. You need to spend more than your paycheck to help the economy.

    https://youtu.be/RjlBu7wpDjk
    "We should be honest, we have no incoming income, but we have plenty of outgoing income."

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    • #77
      The description doesn't quite track, the time effects are being double/triple counted. ​​​It's really the borrowing cost that's being lowered rather than the tax rate (you increase your taxes because you keep and earn gains on more money, but get to keep more money overall l), with reinvestment of the difference.

      Say you're carrying an average amount of $100k on the 0% interest card and paying 5% interest on your other debt every year. That saves you $5k in interest each year. That is roughly equivalent to saving and investing $5k a year for 30 years with compounding gains. At a 5% real return you have an extra $330k in today's dollars after 30 years. Some of that will go to the tax man. Certainly worth doing if you are diligent about never triggering the interest during the 0% period and paying it off before the 0% rate expires. If you are not diligent you will trigger the higher credit card interest rates and increase your borrowing costs instead of lowering them.

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      • #78
        Originally posted by Shant View Post
        The description doesn't quite track, the time effects are being double/triple counted. ​​​It's really the borrowing cost that's being lowered rather than the tax rate (you increase your taxes because you keep and earn gains on more money, but get to keep more money overall l), with reinvestment of the difference.

        Say you're carrying an average amount of $100k on the 0% interest card and paying 5% interest on your other debt every year. That saves you $5k in interest each year. That is roughly equivalent to saving and investing $5k a year for 30 years with compounding gains. At a 5% real return you have an extra $330k in today's dollars after 30 years. Some of that will go to the tax man. Certainly worth doing if you are diligent about never triggering the interest during the 0% period and paying it off before the 0% rate expires. If you are not diligent you will trigger the higher credit card interest rates and increase your borrowing costs instead of lowering them.
        That stinks my math was off and it's only $330K in savings. Felt like more because I was knocking off an extra $100K every 12-18 months, but you're right it's principal reduction. I've always made last payment early so I never triggered post-introductory rate.

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        • #79
          Hey it's 3 fancy Teslas, nothing to sneeze at.

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          • #80
            free cash with lots o.f credit cards
            I got abo.ut 1500 last yr alone

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            • #81
              Originally posted by burritos View Post

              From home depot 5 years ago for about $100 I got 7 sets of colored LED lights. Two electrical 5 splitters, 2 extension cords. 1 light timer. I wrapped them around 6 pygmy date palms and one climbing up a queen palm. My family enjoys them as much as the "professional" $500 job done 7 years ago(they charged $100 to bring them down which they just ripped down and then handed me the broken bulbs). So far amortized, it's $20/year. Costs me 1 hour labor to put up and to take down, but I that's extra podcast time which I consider a bonus.
              We have string lights that we put it ourselves for Diwali once a year and leave it on till Jan 5th or so. We have some dating back to 15 + years . Every year or two we buy three or four 100 feet strings to replace some broken / non functioning old ones. We have a mishmash of white, multicolored, blue LED and multicolored LED lights. Makes for interesting lighting. We save on those $5K scams.

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              • #82
                Originally posted by Kamban View Post

                We have string lights that we put it ourselves for Diwali once a year and leave it on till Jan 5th or so. We have some dating back to 15 + years . Every year or two we buy three or four 100 feet strings to replace some broken / non functioning old ones. We have a mishmash of white, multicolored, blue LED and multicolored LED lights. Makes for interesting lighting. We save on those $5K scams.
                Updating it, since it is that time of the year for us to put up the lights.

                The old light strings now have segments that are 1/2 to 2/3 where the lights do not turn on. My spouse nixed the idea of using them.. She went to Sams to get some additional lighting and we have experienced the sticker shock of inflation. What used to be $5.99 or so for 50 feet ( and sometimes 100 foot) light strings are now $12.99 for the same cheap looking min LED light string and they even snipped the length to 40 feet. Pay more to get less is the mantra for this holiday season.

                STATscans , if you see the guy, don't be surprised if he now quotes you $10K for the same lights for lease. He will glibly rattle off supply chain logistics issues and inflation to explain the doubling of the price in just year.

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                • #83

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                  • #84
                    Why is mom standing on the porch with her phone light on?
                    Don’t ask.

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                    • #85
                      Originally posted by EntrepreneurMD View Post

                      That stinks my math was off and it's only $330K in savings. Felt like more because I was knocking off an extra $100K every 12-18 months, but you're right it's principal reduction. I've always made last payment early so I never triggered post-introductory rate.
                      As Shant noted, this approach does not reduce the effective tax rate. You might well save money but that is by reducing the interest you pay, not by cutting your tax rate. In fact, as you reduce interest, you reduce your deductions, which raises the effective tax rate. You still come out ahead but not due to taxes.

                      I view every new application for credit and every unfreezing of my credit reports as an opportunity for fraud. I do not have the need for so much borrowing, so I would never open a new credit card to get 0% interest. I would never put anything on a card that I was not going to pay off by the next statement.

                      But I concede that someone who has a business need for debt could save some money this way. It might also be worth seeing whether a private banking relationship could get lower rate deals without needing to play the credit card game

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                      • #86
                        I’m currently contemplating whether I should try to send my daughter to kindergarten a year early (she’s born in December) to save 20k on daycare. She’s very smart but also very small for her age.

                        The research seems to say that the older kids in the class end up doing better and being more “confident.” But is that worth 20k (which could compound to ~60-80k by college)?

                        Sometimes I wonder if I’m being too cheap?

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                        • #87
                          Originally posted by Dusn View Post
                          I’m currently contemplating whether I should try to send my daughter to kindergarten a year early (she’s born in December) to save 20k on daycare. She’s very smart but also very small for her age.

                          The research seems to say that the older kids in the class end up doing better and being more “confident.” But is that worth 20k (which could compound to ~60-80k by college)?

                          Sometimes I wonder if I’m being too cheap?
                          you're probably being too cheap You can't live through life thinking what $X would be in 30 years. Think about something you didn't buy this year and how much you saved compounded in stead.

                          I personally have never met a parent who held their kid back and came to regret it. They were all so glad they did. However, I'm someone who was held back and actually wish I hadn't been. Maybe you can ask for the opinions of your pediatrician, the daycare folks, and maybe any child psychologists in the district?

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                          • #88
                            Originally posted by Dusn View Post
                            I’m currently contemplating whether I should try to send my daughter to kindergarten a year early (she’s born in December) to save 20k on daycare. She’s very smart but also very small for her age.

                            The research seems to say that the older kids in the class end up doing better and being more “confident.” But is that worth 20k (which could compound to ~60-80k by college)?

                            Sometimes I wonder if I’m being too cheap?
                            I always pay for education. I have no opinion about whether starting kindergarten early is good for children in general or your child in particular. But if I could afford not to, I would not let the cost difference sway the decision.

                            Early childhood is very important.
                            Last edited by afan; 11-05-2021, 07:39 PM.

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                            • #89
                              I’m beyond frugal. Some would say I don’t play with a full deck. Maybe pathological.
                              Retired 6 years ago. Live on .5 % of assets, or less.
                              Drive Hondas- newest is 5 years old.
                              2 homes, but both are about 2000 sq ft. I do my own yard work- manual lawn mower, but I do have electric trimmer and chain saw.
                              I’m a gym rat, lifted weights for decades. My legacy membership at LA fitness is $77/year
                              My wife wears no jewelry( other than wedding ring) . She shops at target for rare new clothes.
                              I shop at REI, but wear the same t-shirts that I’ve had for 5+ years. Jeans longer than that.
                              I could easily afford a jet card, but fly commercial coach, unless I get an upgrade.
                              Im looking at my 39 inch living room Vizio that is 8 years old as I write this.
                              We buy land for the Wild Animal Sanctuary, and The Nature Conservancy, and I gift the maximum to my kids each year- that’s what makes me (us) happy

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                              • #90
                                Originally posted by Auric goldfinger View Post
                                I’m beyond frugal. Some would say I don’t play with a full deck. Maybe pathological.
                                Retired 6 years ago. Live on .5 % of assets, or less.
                                Drive Hondas- newest is 5 years old.
                                2 homes, but both are about 2000 sq ft. I do my own yard work- manual lawn mower, but I do have electric trimmer and chain saw.
                                I’m a gym rat, lifted weights for decades. My legacy membership at LA fitness is $77/year
                                My wife wears no jewelry( other than wedding ring) . She shops at target for rare new clothes.
                                I shop at REI, but wear the same t-shirts that I’ve had for 5+ years. Jeans longer than that.
                                I could easily afford a jet card, but fly commercial coach, unless I get an upgrade.
                                Im looking at my 39 inch living room Vizio that is 8 years old as I write this.
                                We buy land for the Wild Animal Sanctuary, and The Nature Conservancy, and I gift the maximum to my kids each year- that’s what makes me (us) happy
                                Dude at least upgrade the TV assuming you use it much! I usually get a bit squirrelly when pts are asking me if they're crazy..

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