OJ, I agree. I know I used to get impatient with DH for what I considered his miserliness over the years, but now I so appreciate being able to live somewhat comfortably in our later years. Not fancy, but we can pay our bills and have enough to eat. Dottie

Thanks, OJ.

As a young twenty-something, DH read a pamphlet called The Richest Man in Babylon (it's also a book). The message was that "ten percent of what you earn is yours to keep." He really took that message to heart and has always been a terrific saver. It has make our lives safe and comfortable.

If only young people could learn to SAVE first, then the rest of the money is for bills, and if any is left over, you can eat out, go to a movie or whatever. If you get used to saving, you don't miss the money. Best way is to have it automatically taken from the paycheck and put into savings.

It is so important not to spend what you don't have
ivamae

We can't relive yesterday ... except in memories

Sometimes I wish I could! And with changes!

When I was still working, I did payroll (plus a lot of other jobs) at the local school. I started strongly suggesting the new employees bring their new-employees-paperwork in for me to go over it with them. In my last few years, I added giving them a little talk about the importance of saving. Not just having money deducted for credit union and then withdrawn before the next payday type, but the 'rainy day and for the future' type. Some coworkers told me I was beating my head against a stone wall with them. My answer was if I could help one person learn to save wisely, it was worth my time talking to all of them.

Shirley

Although many don't have the option other than paycheck to paycheck, especially at certain points in their lives. I went through that. But I also like the theory of pay yourself first as long as it's not taken to the extreme. Putting money in a savings account and charging things on a credit card "to live" is a foolish financial plan. I've seen too many people, even some right here in these and other forums, who are misguided into thinking they should have a buffer, even at the expense of paying credit card interest! That credit card should be used as the emergency fund until you establish one and pay things off to cut interest costs.

I also used a different strategy than many. I took every "extra" bit of money I could comfortably take and put it toward the principle on my house mortgage. I paid it off 5-6 years early. I was very glad I did when I figured out the amount of interest saved. Granted I didn't have a huge buffer to fall back on, and yes, tough times hit. But then again, one can live much cheaper when you're not making house/rent payments! So even part time or occasional work made a livable income until I could get back on my feet.

Shirley, you'll never know if you really helped anyone, but I am just sure you did. Good for you!

Cynic, you sound like a smart money manager.

We lived paycheck to paycheck when we had 4 young kids, but we always lived "within our means" which was 4 kids, 900 sf house and 1 used car (got the 2nd used car when the 3rd kid was 2.) And we've NEVER had credit card debt (would use the card for emergencies, like the hot water tank dying, and then pay it off as soon as we could.) Now, in our late 50's with the kids grown, DH just coming off of 10 mos. unemployed, stock market tanking, etc. we've lost a chunk of our savings, BUT the house is payed off (we're in a 2000 sf house now,) the cars are payed off, we carry no credit debt & we still have plenty saved/invested. The point is, we've lived WITHIN our means. We don't have IPods, WII, 100's of DVDs, designer clothes, etc. Don't want to pay for that stuff. My 10 y/o truck was recently replaced with a 6 y/o truck (and my brother was thrilled to fly here to drive my old/his "new" truck 1300 mi. back.) It's a matter of choice, for most of us, to choose to live within our means. Or not.

Many, for whatever reason, have operated with no cushion - if they miss a couple of paycheques, they're sweating blood, as they need every dollar of every paycheque ... right then, to pay their many bills - including the ones on frequently substantial credit card balances.

Along with many others having acquired some skills at money management, I've recommended to many that they make a serious effort to work toward having three months' income on hand for use in case of emergency, layoff, plant closure, etc. ... with 6 months', 9 months' or a year's worth being even better.

If, having one's employment earnings cut off, for whatever reason, one can have enough assets on hand to cash into money to enable one to live for several months without major problems, one enjoys much more financial freedom than if one lacks such a cushion.

More than millions in our society do.

Paycheques are risky ... the worker must possess the physical, mental and emotional strength and agility to perform the assigned tasks ... or s/he can't continue to receive them.

Also, they must hope that their employer has enough work to keep them busy, or doesn't move their factory offshore, so that they don't suffer temporary or permanent layoff ... or doesn't merge with another company, who then has one's work shifted to their staff to do.

Ot go broke .. which often jeopardizes the value of any company shares which they may own, as well ... and company pension credits, should they be one of a diminishing number of employees in our countries to enjoy one, in recent years.

Those of us who are retired, on the other hand, are less at risk. As long as our pension plan(s) remain viable ...

... all that we need do to qualify is stay above the grass!

We can have fallen and have a painful shoulder ... or be confined to hospital for an extended period ... or be visiting with relatives/friends in distant places ... or on a cruise ... or visitng tourist areas, here or abroad ...

... and that beautiful pension just keeps being added to our bank account, regularly.

I value my freedom in the political and social realm: we are very fortunate to live in countries where more of such freedom is part of our life than in most parts of the world.

For years I have said I would like to see our fellow citizens enjoy a similar reasonable measure of financial freedom, as well.

We have been learning once again in recent months how fragile that financial freedom may be for far more of us than we would have estimated, had anyone asked us, a few years ago.

Many, who thought that they had been walking along a safe sidewalk at night ...

... found, when dawn broke ...

... they they were walking, figuratively speaking ...

... along a tight wire, strung over Niagara Falls. With a balancing pole, possibly - in their shaky hands!

Not a pleasant experience.

It's important that we teach our kids in school more about basic management of money.

And at home, as well.

With hands-on experience in the home being the best, I think.

Good wishes for success in your quest for financial freedom - and helping your kids (and other young ones, as well, as opportunity presents itself) to achieve some of the same ... and thirst for more.

ole joyful