quote:

ORIGINAL: CountrySong

My budget is going good. I got wiped out in 2004 when the real estate and lending colapse actually started.

When you go from an almost 10K monthly income to 0 you learn a lot of hard lessons - most of which I already knew since something like that happened to my family when I was young.

Best advice I can give is cut your spending to 50% of your NET income. Most Americans are not broke - far from it! What they are is lifestyle overspenders. Spending is a drug for us (It actually is as it affects our short term happiness hence the saying and reality of "Retail Therapy") and keeping up with the Jones is a national hobby. We buy homes that are too large for our needs (about 2.5 times what they where in the 1950's). Typically these homes have 30 year mortgages that eat 50% or our NET income (lending limits are 30 to 35% but that is based on GROSS income) We then spend money filling these homes with stuff which is often purchased on credit. Worse we decide our home has to be beautified so we spend money on improvements, upgrades, and landscaping (Wonders how much OP is dumping into his place and how it affects his budget?)

Basically most American got used to being finacial gluttons. (Like little subbies with sugar daddies who buy them everything they want.) We had our financial cake and the mantras became "More Toys" and "Charge It." We became financial fat cats. Now we are being forced to pay for that and screaming about it.

My advice - bend over, lube up, and enjoy the ride. It ain't over yet. We just spent trillions that we do not have thanks to our government. So how do you pay for that? Well one portion of the plan is called Controlled Inflation and they are planning on slowly devaluing the dollar so that todays dollar is worth 20 to 25 percent less in 5 to 10 years (this is on top of the normal inflation). Simply put - in 10 years you will need to earn 30% to 50% more than you currently earn in order to maintain your lifestyle.

Getting wiped out was actually one of the best things that happened to me personally. It hurt but having almost reached the other side - I'm much happier without all of the STUFF. I'm free to travel and hike. I almost have financial freedom. My relationships with friends and family have grown. I also now know who my real friends are - the one who hung in there with me when I lost everything.

If I had had this mindset 20 years ago I could have bought and paid for the rest of my life then. Instead of spending 20 years as a slave to my profession. I have three more years to work and then I should be free.

Best Practices Advice - Get OFF the consumer band wagon! And before you start whining like a little subbie who has been told she can not have a new pair of shoes. In every town in America we have people who live on $650 a month with free housing and medical. They have to pay for their entire lifestyle with just that. So think about it or better yet go rent a recreational lot with a travel trailer for a month and live there and think about all of the junk you really have in your life and how you coud be happy with less.

Also stop using money as a quick fix for your happiness. It works short term but in the end it leads to unhappiness.

Try to find cheap but fun things to do (even better if it produces an income or offsets an expense). For example, I found all the free days for the museums in my area. I also eat king crab and prime rid about twice a week for less than $3 a week.

Final Statement - For most of us this is not about the economy - you can't control that! This is about overspending! Which you can control. (If you can't then find a Dom/Domme who can and serve them.)
Peace

quote:

ORIGINAL: NeedToUseYou


I just started doing this, but I get hard everytime I get stuff super cheap. LOL.

quote:

ORIGINAL: StoneFox

quote:

ORIGINAL: NeedToUseYou


I just started doing this, but I get hard everytime I get stuff super cheap. LOL.

OMG, that PRICELESS! I feel the exact same way. If you're not Jewish, I hereby make you an honorary Jew