Making the move from spender to saver
It’s fun to look at all my equipment again. It’s fun to handle it, to imagine the possibilities. I’m eager to get outside and make some images. (Kris and I are going to a garden show this afternoon, and I’m taking the camera with me.)
As I sorted through my bodies and lenses, though, I had to shake my head. I bought a lot of the gear on credit. For a time, I had the photo bug, and in a bad, bad way. I craved new lenses and bigger memory cards and fancy filters. I wanted to take expensive photography courses. There was always something bigger and better to buy.
When I was in debt, when I was living paycheck-to-paycheck, it was always like this. I knew I should save or pay down debt, but I spent my money on comic books and camera gear. I spent it on books and bikes. I got a perverse thrill from spending money I knew I could not afford to spend. In some ways it made me sick — I felt guilty, it gnawed at my gut — but in others, it gave me a sense of exhilaration. If I had cash in my bank account, I spent it.
But now that I’m out of debt, now that I’m building my savings, I find I’ve lost the urge to spend. Now I could actually afford to buy a better bicycle. I could afford that wide angle lens that I used to covet. I could afford to buy all the comic books that once seemed out of my reach. I could afford all of these things and more, but I’d rather save my money.
Somewhere along the way — perhaps the moment I got out of debt — my mindset moved from spender to saver. I once viewed money as something to spend — now I see it as something to save. I still indulge myself now and then — I just picked up Mario Kart Wii, for example — but the urge to spend all of my money is gone. It’s vanished. It doesn’t give me a thrill anymore.
It wasn’t easy for me to switch from spender to saver. If you’re trying to make a similar transition, consider the following techniques:
- Open an account at ING Direct (or another high-yield savings account), and make regular contributions to it. When you develop the saving habit, it becomes second nature.
- Set a medium-term savings goal. Some goals, such as retirement, are too far away to get excited about. Short-term goals aren’t enough to build the savings habit. But consider saving for a trip to London or Hawaii next year. Or saving for a new car. I’ve found that saving for goals 18 months to five years in the future has been a great way for me to get excited about saving.
- When you receive a windfall (such as the upcoming tax rebate), don’t think about how to spend it. Think about how to save it. Windfalls used to be fun money for me — now I view them as a way to jump-start my savings.
- Avoid situations that lead you to spend. One of the best ways to move from spender to saver is to remove yourself from temptation. Since I’ve stopped going to the comic book store so often, I buy fewer comics. One reason I haven’t bought any new camera equipment is that I haven’t looked to see what’s available. Sometimes where spending is concerned, ignorance really is bliss.
- Consider alternatives to buying new stuff. If I find myself in a mood where I have to shop, I make a trip to Goodwill. For $20, I can fill a basket of books and clothes, and I don’t feel guilty. Better yet, take time to go through the things you already own.
- Don’t spend your time looking for ways to spend your money. Instead, spend your time finding ways to save and invest it. Over the past few months, I’ve learned there are all sorts of things I’d rather do with my money than spend it. I want to max out my Roth IRA. I want to learn about rental properties. What about re-investing some of my cash into Get Rich Slowly?
I haven’t shaken the urge to spend completely. After playing with my camera equipment last night, I was curious what sorts of new gear was available. I spent twenty minutes on Amazon, drooling over the Nikon D300. I’m tempted — but not much. I’d rather save that $1,800 for the future. I’m a saver now, not a spender.
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There are 55 comments to "Making the move from spender to saver".
Spending habits are just that: Habits. Once we start (sometimes painfully) developing a new way of thinking about money, it becomes easier and easier to save rather than spend. It actually feels good! I, too, have been a spender in the past—it felt so good, so satisfying to buy stuff I wanted, even when I used my credit card and had no idea how I was going to pay it back (in fact, the thought rarely entered my mind when I was standing in front of the cash register).
Now that I have a bit of savings, and I’m planning for the future, my habits have started Watching my money grow (albeit slowly) is satisfying, and although I still have my ‘fun money’ line in the budget, I haven’t had a credit card binge in months.
Another element to consider when moving from a spender to a saver is age. Most of us just (finally) grow up and realize that stuff is just that. It may take some people longer than others to grow up but it does happen. I know it took me a LONG time to grow up and I’m glad it didn’t take longer! Like you, I have thankfully just lost the urge to keep spending on things I really don’t need.
Its all about setting yourself free the first time. Once you are debt-free you will try to keep things that way. Saving is better then spending anyway, its worth more later then today.
Mario Kart Wii is awesome. It’s also a great game to play with others. Amazon has extra Wii wheels for $10. Stay in on a night save some $$ and have some fun.
Thanks so much for this post. I’m still struggling with the transition from spender to saver. We’ve opened an ING account, now shop almost exclusively at thrift stores (I find Goodwill and Salvation Army to be pricier than others), and got completely out of debt thanks to your site and Dave Ramsey books we checked out from the library. Here’s the rub, I often want to go out and buy some stuff just because I can do it without debt. It seems harder to save without that goal of removing debt. I’m doing it but its harder.
Thanks for the tips and the encouragement.
Armed Forces Advantage
http://armedforcesadvantage.com
I’m really enjoying your website. And I completely understand the temptation of a big, unplanned paycheck like a tax rebate — or in my past, a work bonus or award money.
I’m still “paying my dues” in my field, i.e. don’t make very much and can really only buy the neccessities every month. So I’ve thought a lot about what to do with these without feeling deprived. And it could help others in the “transition” to saver.
First, I pay off any lingering bills (although I rarely have credit debt). Then I put half in a high-yield savings account. Whatever is left I get to play with. That way, I still get to “reward” myself with my bonus and grow my savings.
Although I’m still in debt I am making that shift myself, although my weakness is not camera equipment but outdoor gear for camping and climbing.
The REI Anniversary sale is starting and I looked through the catalog when it arrived (stupid, I know). I was tempted for about 30 minutes to buy that GPS package that I’ve wanted (and is 30% off!), but realized that my goal of being debt free by October is more important to me.
For me, the shift from spender to saver really kicked in once I made a monthly budget that included a monthly (and yearly) savings target. Trying to exceed my monthly savings goal and yearly projections has become my new “perverse thrill”!
I also have the photo bug. I spend a lot, but I don’t feel bad about it. Its one of my few indulgences and I usually spend wisely. Here’s my $.02 on making photographic purchases:
– Most of us don’t need more than 8 Megapixels. I know pros who still use 6.
– Think about what you will shoot and then what cameras meet that need. If you shoot landscapes, don’t spend extra on a camera that shoots 6 frames per second. The latest model may not be what you need.
– Consider better lenses and lesser cameras. In a year or two, that same D300 will be yesterdays news and you will be able to buy it new for hundreds less, or used for 1/2 of that. At that point the pros and gadget geeks will have moved on to something else. Meanwhile, top quality lenses from Canon and Nikon are a lot of cash, but hold their value. This way if you lose interest, you can sell the lenses and recoup a lot of that money.
– If you can’t lay out the cash for pro quality lenses, there are a few 3rd party lenses that serious photographers and even pros tend to like. I hear good things about the sigma 10-22 and Tamron 17-50 2.8 (although I do not own either so do your own research) Sometimes the qulity control of some 3rd party manufacturers can be inconsistent, so check out the return policy where you shop. Kenrockwell.com compares a lot of cheap zoom lenses that perform well, mostly for Nikon.
– B&H and Amazon are generally considered good places to shop online. For those here in NYC, B&H has one of the biggest camera showrooms you’ll ever see and the sales people don’t work on commission. But always check return policies.
– In the digital age, you can be creative with a good point and shoot. Higher end models have manual controls, external flash and RAW format shooting. I just got a Canon G9 after reading how many pros were purcasing these for fun, yet ended up using them on the job.
Great post, and so true…well put.
Thank you for this post, JD. It is right on the money (so to speak)! I can relate to what you were saying about looking at your camera equipment and “imagining the possibilities.” I think that’s why I used to overspend too – thinking about all the shininess and fun and bling. But now that I have a savings account, I look at THAT and “imagine the possibilities.” A slight shift in perspective for sure, but so much healthier!
I hear ya, JD! When I was first learning to get a better handle on my finances, I used to get excited about all the stuff I’d be able to buy with the money I was saving. It was a big motivator for sure. Then sometime after I got used to a more modest lifestyle, my income rose sharply – and instead of going on a spree, I discovered that I didn’t really want anything. I guess frugality has taught me to be more objective about my wants and needs. (Besides, money in the bank is so much more useful than clutter!)
This post is wonderful! I’m currently making that shift myself. My boyfriend and I had this conversation recently, and I realized that he sees having money as a goal in itself, but until now, money had to be spent on something to have value for me. Now that I’m aware of that weakness, I can fight the spending urge. I’ve had an ING Direct savings account for a while, but now I’m making regular deposits. Every morning I check my account, and marvel at how much more interest I’ve made just in one day! Sure it’s pennies now, but now my mindset is “Well if I deposit my economic stimulus payment, that number will get bigger…” 🙂
The photo is fantastic. One of yours?
I struggled with exactly the same situation several years ago. I have a fairly impressive baseball card collection, and that is sort of my continued collection hobby. The way I allow myself to “indulge” in spending some of my earnings are on items that will increase in value over time.
So I kill two birds w/ one stone so to speak… quench my urge to spend and make an investment at the same time!
– Matt
when the urge to shop hits me I often give in – I go to the credit union and ‘buy’ a deposit into my savings account.
the look and feel of the experience is rather similar – I browse a bit around the brochure rack, I then proceed to the checkout counter, I hand my card to the person at the desk, they ring it up, I get a receipt.
I don’t get camera gear to bring home, but hey it’s a nice substitute to bringing home other things that I might not use as much 🙂
The above is a bit in jest, but I have remapped ‘shopping’ in my mind as something that can include a trip to the credit union which is only a few blocks away from my home. And frankly the experience is just as satisfactory – if not more! – than shopping at a favourite store.
I’ve done that with 7-11s. I used to spend $10/day for food and magazines. I changed my driving route and I saved some cash. We recently moved to North Carolina and there are no 7-11s here, so I can continue to save money.
GREAT POST JD! I paid off all of my debt (other than my mortgage) in April and the shift happened almost immediately. I was really surprised by it. Concurrent with paying off $18,000 I owed on a HELOC in only 2 years, I saved nearly $5,000 for an emergency fund. I’m hooked on saving…it is almost addictive.
Now I’m trying to decide whether I should put money into a (pretax) 457 retirement fund through work (in addition to my 401k that gets 10.5% contributed already) or to put it in a Roth IRA through my stockbroker, or to start paying down my mortgage (5.25%) in an attempt to really be debt free.
I’m not sure how to make that decision, so until it’s made, I’m just building more savings. Advice, anyone?
In my experience, it is hard to make the right choice when the question is looked at as spending vs saving. If looked at this way, spending feels more attractive because it feels like the difference between getting something and not getting something. For myself, the better way of looking at it is spending something now vs. giving myself the ability to spend more later. After all, almost every cent we save is saved so we can spend it someday. Instead of getting something vs. not getting something, it becomes getting something or getting something better. I know the difference may be semantics, but like most money issues, the psychological aspect of it is powerful.
You did it again JD! I agree 100% that focus on the mid-term savings goal. I am currently saving for our International trip next year and it feels great that for the first time I will be able to pay for the whole trip in cash! ING is great – the day I get my pay-check deposited in my checking account, part of money goes to my ING saving account.
I also agree about the transition from spender to saver. I was compulsive shopper of clothes. Since I got serious about saving, in last one year I bought 3 shirts and they were on sale. I am very proud of my new habbits!
Thanks
I’m still new at all of this, but I do find that things I wouldn’t think of buying in the past seem very unnecessary now. Why buy dvds I’ll watch once, instead of renting, or buying a book that the library has for free? Small stuff like that.
That whole “money is time” business really has opened my eyes to be a better shopper.
Now, once I break the habit of eating out, not only will I save some money, but will be healthier for it.
Great post, I really love how you relate personal experiences and tie in a money lesson. It really adds a sense of personalization to all of your posts, and keeps me coming back to read more.
Great post J.D.! I’m right there with you on the move from “Spender” to “Saver.” I’m about 8 months into my 16 month plan to become completely debt free (with significant retirement savings and an emergency fund) and I’m finding that fighting the urge to spend is becoming easier as I get closer to my goal. It’s funny, now when I want to buy (it can be anything) I find myself going online and making an extra (small) payment toward my debt. Even if it’s $20, I would rather have the money go to what I owe than to some useless “thing” I think I need.
I’m really into photography as well (and spent my fair share of time drooling over the D300), but I refuse to spend anything on it right now. I already have great equipment that I need to just actually use more (especially when freelance work = extra cash).
I agree with you about 3-5 year goals. I have a “3-year plan” that motivates me to keep on track this month so I can stay on track for this year, putting me in good position for next year, etc. and ultimately lead to accomplishing those mid-term goals.
Thanks for the great motivation here at GRS!
I’m always looking for ways to save and at the same time, fight inflation.
I recently bought (spent) for a Toyota Prius.
In the long run, it is saving me loads of dough on fuel costs.
Another good tip for fighting spending habits is to only spend half on everything. If you are overweight, half the food will do you good. If you smoke, cut you habit in two. Etc.
I hope you don’t mind I linked your blog from my blog at http://tenasillahe.wordpress.com/
g
Polly,
You can’t simply SAVE your way to wealth (assuming that’s what you want?) – it may feel great; it may be addictive; and, it may even be sensible …
… but, inflation will keep you poor (you just won’t realize it until you retire … then it will be too late).
So, you also need to BUILD wealth. Good Luck!
AJC.
Thanks AJC…
I’ve been reading your blog tonight…good food for thought. Your comment/advice about needing to build wealth is well-taken. I have a full-time job working for our local municipality, and will never get rich working there, but I love what I do. I have my home (with a mid-size mortgage), and I have a second home in the mountains owned outright. I am not involved in a business, and although I contribute to my retirement fund, and have a stock portfolio, I worry that I won’t have enough funds to retire.
I hope it’s not too late to teach this ol’ dog some new tricks!
P-
I love Seawall’s comment about “shopping” at the credit union. Like your post mentions, at some point it becomes more fun (or just less painful) to save than to spend. Like with the tax refund, we still immediately think, “What can we spend it on?” but the options are Roth accounts, DRIP accounts, CDs, bonds, and extra mortgage payments!
I will totally take all that camera stuff off your hands, JD.
Its funny you bring that up. I am generally pretty good at saving, especially lately, but the urge to buy a really nice camera keeps me up at night. My only really luxury is books, but a digital camera with a wide-angle lense makes me check my savings account endlessly.
Sigh… one day…
You absolutely hit the nail on the head.. I’ve gone from $15,000 in credit card debt to (as of receiving my Stimulus check on Friday) $10,000 saved and Debt-Free!
When I feel like I have to spend something, I’ll go to Goodwill or Salvation Army and just look for things I can sell for a higher price on eBay. I spend time SELLING now, rather than shopping! When I think about a purchase, I almost always figure out how many hours I have to work in order to buy it- If anything will make you save money, THAT will!! Saving is so addictive!
If I were you, I`d buy this camera.
Life is too short to be mean and cheap.
I agree that we should be sensible with money but get a life, too !
To me, the point of becoming debt free with a cash surplus is to be able to purchase things without going into debt. While I have curbed my impulse spending, I still buy things that I don’t *need* but want, except I do it the way it used to be done: I save for it. Surely, if you want an item, you can siphon off a few bucks here and there over the months from your main savings until you accumulate enough for the item without wrecking your savings program. We all love ING for the most part because of their sub-account feature, so just set up a *camera and accessories* sub-account and fund it slowly. Perhaps by the time you have enough saved up, the model camera you want will be a couple hundred bucks cheaper.
ING is over-rated. Several institutions have better rates, so check around. Umbrella bank is just one example that consistently offers better rates for several types of accounts.
I think one way to avoid buying stuff is to think of the long term cost: yes, this costs me $2000 today, but invested at a compounded monthly rate of 6% ends up being $16,247.10 in 35 years. I can afford to spend $2000 on a camera, especially if I wait a little while/ buy an older model/ wait for a sale/ etc, but I am not sure I can justify a fancy toy that will cost me $16,247.
hmm… I don’t think restraining yourself from buying a new camera when you have very fine camera equipment that takes magnificent photos is exactly “mean and cheap.” It’s more like “smart and thrifty.”
But sometimes I wonder how far the habit of savings can go without slipping into meanness and cheapness. A couple of weeks ago, for example, a friend who was splitting the cost of a Costco membership with me announced he would no longer do so. He said he can buy gas at the same price at a local chain (where you have to go inside, stand in line to pay upfront in cash, go back out and pump your gas, then go back inside and stand in line to collect your change!) and he buys most of his necessities at the base exchange (15 miles from where he lives). Yesterday he said he wants to borrow my Costco card next week, so he can go shopping there!
Now THAT’S mean & cheap. 😮
Jen,
I completely agree. I have made the jump from extreme shopper to saver, and was able to pay off $50,000 in cars/credit card debt in 8 months. I re-evaluated all of our expenses and was able to cut approx. $3000 from our monthly outlay by refinancing our home to a lower rate, canceling cable channels we don’t watch, changing our cell phone plan, limiting my trips to the mall, etc.
I have always kept a budget but failed to track our actual expenses. Now I keep an excel spreadsheet with our monthly expenses listed (actual vs. budgeted). Before adding an additional expense, car pmt etc, I calculate how much gross annual income I need to make to pay for it. It’s truly amazing how $200/mth can equal $3,751 in gross annual earnings. Looking at things this way prevents me from adding small expenses.
Excellent post! I really agree. Now, I try to “shop” our house when I get the urge to spend. Lots of times, we already have something I think we need, thanks to my years of spendy-ness!
I haven’t quite internalized the savings yet but I try to stay away from recreational shopping and have “consumer free” days where I buy nothing and that seems to help. I hope to get to the point where the desire is completely gone.
I realized that I was no longer a spender in December 2007 (a year into our Total Money Makeover) when I stopped by the local mall to return something. I walked through the mall, it was packed with holiday shoppers, and by the time I got to my favorite store I was so turned off by the consumption that I returned the shirt and got the heck out of the mall as fast as possible.
I also really like the cooling off period idea from no credit needed. http://adventures-of-sam.blogspot.com/2008/04/cooling-off-period.html
It’s funny you mentioned this… we went through something similar recently, (from spending to saving) and it inspired my husband to start a blog about becoming debt free… please check it out at
http://engineeradebtfreelife.blogspot.com/
I think one thing that i haven’t seen brought up in this post is about the *quality* of things purchased….
I had always been a tight-wad or “penny pincher”, while my husband spent his money on whatever floated his boat… So we had a lot to learn from each other, as I always bought the cheapest thing (which quickly becomes more expensive as you replace the item over and over!) while my hubby paid no mind to how much it cost, and only whether he wanted it…
Well, with our first year of marriage, 2004, a move to NC (from CA) and no jobs for 6 months, an apartment to completely furnish, tuition, books, etc. we quickly found ourselves $35k in debt!
fast-forward to today, and we are debt free (except Mtg.), have great jobs, and have yet to furnish our house with anything but free hand-me-downs…
BUT, what we have learned along the way the last 4 years, (and we’re still learning a lot!)is that while sometimes being frugal makes sense, so too does spending money on QUALITY items…
2004 –the $150 futon we bought at Walmart?? trashed it when we moved to a new apartment less than a year later….
2007– the $1200 set of front-loader energy efficient, water-saving washer dryer combo?? STILL saving us money every month, and we’ll use them until they die (hopefully 10+ years!)
Rather than try to have furniture in every room, or all the toys and gadgets we’d love to have, we now save up for them, research like crazy for both brand, price, promos, etc. ALL while simultaneously having strings attached to the goal…
i.e. My hubby really wants a Playstation 3 and GTA4 (he’s been drooling over the release date for months) so he had the following goals to achieve to purchase:
1) save $500 for system and game
2) research the system and find which store has the best promo deal
3) the Efund in our MMA had to be > $7k
4) get COMPLETELY caught up at work
So i have to say that he did all of these things, but left #4 until the last minute! And since (in my mind) he won’t be able to fully enjoy the system if he’s working late every night, and then comes home *very* stressed out, there’s no need to purchase the system….
Guess who got up at 6 this morning to go to work and get all his projects on schedule and his office completely organized??? That’s right!
it’s kind of interesting, but it’s always the outside factor (the # 4s) that we tie to our purchases that creates the most motivation and satisfaction…
btw– he’s 29 and i’m 28… and we are also currently *saving* to have a baby in a few years! and our #4 for that– we have to go on our Honeymoon (we couldn’t afford one after our very small, very inexpensive wedding) before any *real* talk of conceiving can begin!
I envy you for successfully converting the habits.
I am in the progress of doing so (hopefully) but so far I have always sinned at new collectibles & fancy dining. :p
Need to tighten up more!
You are still in transition, from spender to saver, but you’ll get to a point where you’ve reached your goals (the short term ones anyway) and everything becomes auto pilot (meaning long term goals are well on their way to being met – its just a matter of time). When you reach that point you’ll start spending again on the things you really love.
I’m a big baseball fan, but its expensive to go to games, collect cards, etc. I put it on hold for a few years – only going to the occasional game and collecting nothing. Now I’m on auto pilot with my money – I’ve got things where I want them and my monthly expenses are low. So now I go to a lot more games and I collect the cards I want. You’ll get that way with photography or some other habby you’ve enjoyed in the past. But right now reaching your financial goals is more important and thus taking more of your time.
The great thing about getting your financial house in order is it will help you keep your hobby in perspective and you’ll appreciate it that much more.
I really like Jenni’s “#4” idea.
(post 41)
Mick
Like most people who read this blog, I’ve made the shift from spender to saver as well. I shop at thrift stores (designer handbags at 1/4 of the price!) spend my time volunteering (great for perspective) and do my darndest to find discount codes for plays.
What I find to be difficult however, is to be around spenders, especially those who are foundering but not changing their ways. I can think of one person in particular who is drowning in debt but still spending away. I no longer have any real temptation to spend money – I just spent $120 of my “rebate” on 2 tix to a Broadway show for Mother’s Day, but the rest of it went straight into my Vanguard account. Meanwhile my friend is planning on spending the entire check on a new television and video box sets.
It’s interesting that once you make such a change in your lifestyle, it really forces you to question what you’ve taken for granted, such as your social network. I guess it’s like when an alcoholic goes sober; suddenly you have nothing in common with your old drinking buddies.
Had the same experience as Sam (#39) after turning off the consumer button: felt kinda like going to a Frat party sober LOL.
Wow! This post describes me to the tee… Although I have a weakness for eating out, I am trying to fight the urge, both for my health and my savings. My next plan is to develop a better monthly budget so I can start putting money away into a savings. ING sounds like a good idea, I will definitely check them out.
Thanks for another great post!
Polly,
I recently read that our capacity to learn NEVER diminishes in most people; reading this blog is a great way to start – and, if you can find a little extra time to keep reading my blog, as well (or, maybe even join my new ‘grand experiment’ at 7m7y.com ) all the better! 🙂
AJC.
I love your last two points. Digging through things that I’ve not touched in a while is a great source of “rediscovering great treasures” or finding a bit of extra money to invest.
And thrift stores and flea markets are great places to find books, etc. My problem is not falling into a clutter trap.
JD-Good post and reflection on your past habits.
At first living within my means was tough. My wife quit working to be with our children, and since I was in the military my pay was just above poverty level.
Over time, we found we can afford just about anything we want. Some was due to my income increasing. Most due to having no debt and a significant savings.
Financial responsibility is freedom.
Augh, a Nikon fan! And here I thought you were such an astute consumer. :p
So, if it’s not too OT, what lenses and filters do you have? Have you considered selling anything you don’t use? Many people (including myself) are always on the lookout for used glass.
I’m currently making the switch from spender to saver, and paying off debt. IT is going quite well, and thought I would share a tip that is working well for me.
The challenge with saving for me with all this debt is that I think and feel that I should be sending all the money to pay off the debt. Not saving. But, I know I should be saving. So, a year ago, I started putting $100 per month in a savings account, and when it reaches $1000, I pull it out and send that big amount to the credit card I’m paying off as a bonus payment (in addition to what I am already sending in).
It felt so good the first time, that I upped it to $125 per month and am almost to my second round of $1000. Then, I’ll up it to $150 per month.
And, when I’m out of debt (sometime middle of next year at this rate), I’ll be able to easily start saving hundreds of dollars per month, if not over a thousand bucks a month.
This is a great blog, and I’ve enjoyed many of the articles and comments. I’m relatively young (33), my wife and I recently decided to really start saving. We’ve tried to avoid credit cards for the most part, though my wife has a $5000 credit card and I have a $5000 line of credit at my credit union.
Anyway, late last year, I realized that we did not have an emergency fund at all, and so we decided to dedicate ourselves to saving 6 months of expenses, which came to about $15,000. I drastically reduced my 401k contributions and diverted them to our emergency fund, which is a money market account. My wife did the same thing and diverted her 401k contributions to the money market account. As of today, we have over $6200 saved up, and should hit the $15,000 goal in another 12 months. Once we do that, we’ll focus on knocking off the credit lines, then go back to fully contributing to our 401ks.
Reading this blog keeps me motivated (along with checking the savings balance almost daily….lol).
Cheers!
I used to be a spender. Money was easy to make during dotcom years. Gawd I miss those days! Now that gas is $4 a gallon, and I make 60% less than 2 years ago. I have been looking into all different ways to be a saver. I am also just tired of working so much! We Americans work more hours than most people in other countries. I stumbled upon this book called Work Less, Live More, The Way to Semi-Retirement in Nolo bookstore a few week ago. Wow, I never thought that there is a possibility I can retire early if I can just stick to being a saver and invest wisely. Check out the book. The author, Bob Clyatt, semi-retired at 42, and he has kids and a wife!
While I’m still not quite on my way to retirement, I’m certainly learning how to pull myself out of debt. I read a bunch of books about reducing debt and making things better, and a lot of them said a lot of the same things that you say in this post. The best book I found was one called “Solve your Money Troubles,” and that’s where I finally had someone explain the different kinds of debt and ways out of it in a way that I could really understand without being overwhelmed. Debt is some seriously scary stuff, and it’s great to know that there are books like that and sites like these out there for people looking to improve their situation!