| Scuba Steve |
04-01-2010 12:26 AM |
Quote:
Originally Posted by Z-man
(Post 5269333)
Z-man's methods for saving money.
While I have my expensive hobbies (tracking the car, primarily), I have never put that or other expenses before being prudent with my money.
The mortgage has been paid off since 2007, and that's when we really started to see our savings grow significantly.
99% of the time, the credit cards are paid in full. If we don't have the $$, we don't buy the stuff.
The only payments we have left are our cars -- They are both fairly new (Me: 2007 Sport Trac, Mrs. Z-man: 2009 VW Eos). The trick with car payments is this: Keep your cars around AFTER they have been paid off. (We've done this many times in the past). Once the car is paid off, then every day you drive your car is like putting money in the bank.
...
As for big projects - We are preparing for a major kitchen / house project this summer -- will probably run over $40k when all is said and done. And right now, we are close to being able to pay for 75% of the project! How? By saving money for the past couple of years. The store where we will purchase all of the appliances has an interest-free-for-a-year credit card option. In using that, we can defer ~ $5000.00 of the kitchen costs over a year without incurring any interest. And if we have to taken out a loan, it will be a small one which we plan on paying off within a year or so.
Oh, and as for as long term savings -- we contribute to our 401k's to the maximum allowable dollar amount. It is money we 'never see' so it isn't like money we have to give up. But when we retire, it will be there for us. Too many people neglect to keep the long term savings in mind when it comes to saving money, IMHO.
-Z-man.
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I couldn't have put it any better. You're just farther along in your plan than my wife and I.
The major home improvement projects are coming at a substantial discount - I can do all the work myself (it's kind of a hobby of mine anyway). The only things being farmed out are parts that just aren't worth the time or come at such a low or already included cost that it makes no sense to DIY. Tile demo is being outsourced (existing tile is installed on a concrete slab - it took ages to demo out a small section last year in another area. The hole cutting for fixtures and sinks in the granite we'll need will be done by the supplier, as will cabinet installation if the cost is as I was told to expect.
If things go according to plan then we will likely move again in 5 years or so after we have kids, and keep the house which will be nearly paid for as a rental. Payments will be very small in the meantime, so that should help put a substantial down payment on the next place. We have no car payment, never carried a credit card balance or any other debt but a mortgage.
The way I see it, we have to ensure our own future in terms of retirement and health care someday. I put no faith in new and existing government programs to help out with this.
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