Do you live above or below your means?

[prolesunited]

Did you buy the house/car you could afford, hope to afford or afford if you have financial setbacks?

How do your savings look? Put anything away for retirement yet?

If you lost your job, what "excesses" could you trim? How long would you last before financial disaster?

After reading about the ARMs and foreclosures, I'm just wondering how close we are dancing to the edge.


Health insurance and medical expenses are our biggest concern -- and I know we are fortunate to have insurance at all.

[mike_c]

1. I don't live beyond my means in most respects...

...but I mortgaged my future years ago to go to college and grad school. Today I have no credit debt other than student loans, and live well within my means. Unfortunately, I pay nearly $1000 monthly for the student loan payments, which keep me always one paycheck away from being broke. No savings to speak of. I have a pension plan, if it isn't raided by the time I retire.

[dysfunctional press]

2. we flucuate- sometimes above, sometimes below...

we don't have car payments or kids...we paid cash 2 years ago for a then 3-year old vw beetle.
we just paid down our mortgage to $25,000- which we plan to re-fi on a 15-year note, and we paid off the balance on our home-equity line of credit.
with most of the debt and the big mortgage nut gone, we should be able to go back to mostly living below our means, and saving some for the times when we want/have to live above.

[mrcheerful]

3. Your joking right? I'm in the hardest spot of them all, a handi capped

person trying to make $620 a month last to the end of the month. New car, nope bad credit risk, buy a house nope can't afford to pay for the up keep or land taxes plus bad credit risk, because of late payments because the due dates move around and never match my pay period. Save for such things, impossible if i want to eat, welfare will give me $10 in food stamps if I'm willing to look for work that I can't get hired doing. High health risk no one will hire me. So go ahead and tell me how great, fair and balanced this coutry is. Just pull myself up by my boot straps, never mind that my boots were taken away by insurence companies scams that only allow 1 out of a 1,000 to work.

[kineneb]

4. at bottom of hole, looking up

Saga:
Hubby laid off from WorldCom, 2002
Sell house, move to rural area, 2003
Hubby in dialysis, 2005>
Living on his SSDI ($14K/yr), 2005/6
File for Chapter 7, 2006

Savings? Retirement? Assets??

Can't earn any extra money or Hubby loses Medicaid and coverage for medicines.

Goodby gourmet, hello food pantry/free commodities. Clothing from thrift shops, "gifts" from Mom so we can buy gas. From lower middle-class to poverty. Hope the garden produces lots of vegetables this year.

[mrcheerful]

7. Welcome to the getting rich off government handout lines and get ready for

the day medicaid tells you they don't have to give you that prescription because they decided it cost to much.

[sandnsea]

8. My parents got divorced

My mother had a heart transplant and it was too difficult to try to keep their income under the Medicaid requirement for her medication. Plus, my mom knew my dad was in his key earning years for his own social security so he had to be able to work in order to collect enough to live on when she died. I know that could end up with big trouble if the state decided to do an investigation, but a lot of people have to do that. Sorry about your troubles, it really stinks.

[mrcheerful]

15. Yeah marriage causes penalties in income, often its better to live

together. That way you both get the full benefits and pay as a single person gets. Handi capped people have it worse though, unless the other person is also handi capped, the government cuts the handi capped person off and expects the spouse to support them and cover their medical coverage. I have a friend that happened to, he has cerebral palsy, got married and was cut off SSI. He was told his wife could take care of him. They ended up on welfare and are going through hardships even worse then they had before marriage.

[kineneb]

35. divorce wouldn't help us

Hubby gets $1200/mo on SSDI. Medi-Cal (Medicaid) allowence for single person is $812, for couple $1437. On his own, he would lose Medi-Cal. I would only be able to earn, on paper, $237/mo or they would kick him off. Hello, underground economy.

Nevermind that I have to deal with my own psych problems, and am sole transport and caretaker. Damned if you do, damned if you don't. I have kind of given up. My retirement plan involves moving to a Buddhist monastary and vows of poverty (shouldn't be difficult).

[Viva_La_Revolution]

5. at my means

after the bills (rent and utilities only), food.

What is left after bills dictates whether we eat decently, or dine on Mac& Cheese.

No savings. :(

[seabeyond]

6. well below, but if shit happened and costs of today

it would go fast. i certainly couldnt maintain for long. i could easily downgrade, just if it could happen fast enough

[Lady Effingbroke]

9. I have no means (currently unemployed).

If I live any lower on the food chain, I may as well find a nice cardboard box and a relatively dry bridge under which I can live.

No health insurance (obviously).

I have money enough to pay for 2 months' bills, then that's it.

Right now I am living in a travel trailer (I do have internet service - my ONLY luxury, and actually more of a necessity as I search for a job).

On the bright side, I recently graduated from school with an associate degree as a Medical Lab Tech, so hopefully I can get a job relatively quickly. :)

[prolesunited]

18. That seems to be in high demand

Good luck on your job search. Is the school helping at all? A lot of times they have some really good contacts so they can boast high placement rates for their grads.

[Lady Effingbroke]

29. The school is a good resource.

The different technical programs offered by the school are highly regarded in the community and it has a good job placement center.

Thank you for you good wishes! :hi:

[MazeRat7]

10. I manage my means so that they will "mean" more in the future.

I try to take advantage of every avenue available to me... things like refinancing a home mortgage at a lower interest rate with no equity cash out, transferring credit debt to 1.9% rates and actively working to pay them off, investing in a variety of instruments to make more than a few percentage points from my savings, etc, etc.

Of all the things I've learned in my 4+ decades on this planet is that money buys freedom. Everything I do is about increasing that "pile of money" so I can get semi-retirement status by age 50.

So I guess in answer to your question, I (we) live below our means in the sense that every decision made today is about freedom from the "pay check" tomorrow.

MZr7

[Sugar Smack]

11. Hey, you!

Good question. :hi:

I have been cut off with a year's salary. I am going to make it last if I can. :hug:

[Iowa]

12. Below our means....

When my wife and I started out we had nothing. We truly thought that we would probably never save enough to own a house. Then 30+ years went by. Now we're pretty well set. We achieved our financial goals by living significantly below our means. Plus I learned how to invest - and more importantly, how NOT to invest - like not using brokers/planners/advisers. It all worked out. But there was luck involved too - like never encountering unemployment or disability.

[prolesunited]

19. I agree that you have to take charge

and chart your course, but it's nice that you recognize that a bad break could be devastating.

I was working one full-time and one part-time job when budget cuts forced me out of my FT job. The worst part was the health insurance. I have several chronic conditions, nothing debilatating but I do need lots of meds and tend to see the doctor frequently. I had to keep my COBRA, but the premiums were huge.

If it wasn't for getting married and coverage through my new husband's plan, I would have been financially ruined. I paid about $1,000 out of pocket for meds last year, but the retail cost would have run about $6,000. We paid about $8,000 in all last year for health care -- and that was *with* insurance (and keeping it)

Something HAS to change with medical care in this country. I know our situation isn't unique and some people have it much, much worse.

[Iowa]

55. Yep, a bad break can wipe you out...

In my work I saw that every day. In fact, I saw so much of it that my view became a bit skewed to the point that I never felt secure - even though I always had steady work with decent benefits. That's why we lived so far below our means.

What some fail to fully grasp is that it really is just a matter of the luck of the draw. A bad break(s) can strike anyone - and I personally knew a lot who were hit. And almost every one of them was a hard working person who played by the rules - and some were among the cream of the crop - worked harder than me, smarter than me, and had the world by the tail. Seeing that forced me to see things very differently than most of my peers.

I agree on the health insurance. It's my number one priority. I'm a hell of a lot more worried about suffering and dying due to lack of access to decent health care than any terrorist threat. I just voted in the primary (absentee) and I have no interest in any candidate who isn't banging the drums about health care. And screw all this incremental crap (like covering kids). Strip such politicians and their families of health insurance and then let them run for office. This fiasco can be repaired if the country decides to take it on, and any politician (Dem or repuke) who pushes measly band-aids on the system can just go to hell, IMO.

[prolesunited]

57. I agree on the health insurance

And I think more and more people are waking up to the reality that we all are getting screwed and will be open to radical changes.

The problem is going to be to break through the lobbying efforts of insurance companies, bigPharma and the rest of the for-profit medical industry. There are so many saner examples to follow from abroad, but remember the scare tactics they used during the Clinton era?

Oh, you'll have to wait to see a doctor and won't be able to see the doctor of your choice. Anyone in an HMO or PPO already is facing those issues.

We are doing fine now, but I clearly remember what it was like to struggle. I wasn't poor because I was lazy or stupid or didn't try hard enough. I won't forget that and I won't turn my back on those who are there now.

[Th1onein]

13. Below my means......

I have two cars, both economy, both kept in good condition and both paid for. I travel for my job, and my company pays for my living expenses, aside from food. I'm not hurting, but I should be saving much more than I am, which is nothing. My family, though, is not in as good a position as I am and I spend almost every extra dime I make on them, and on catching up on old bills, from when I was not working for almost two years.

[Nicole]

14. Way below my means

My home & vehicle are paid off. I have no credit card debt. I do have savings & retirement funds set aside. I also invested in real estate in case the retirement funds disappear.

Right now I'm living on about 25% of my income & banking the rest. I've always lived well below my means. When I was working my first job at minimum wage I managed to save something out of every check, even if it was only $5.

We bought a house that cost far less than we were approved for. We used sweat equity to be able to buy up until we got our dream home.

I did without a lot of things over the years so I could be comfortable now. Instant gratification never seemed important to me. I prefer saving for things instead of saying "charge it".

[applegrove]

16. This year. But it is about to end.

[rucky]

17. I'm scared as hell.

my wife is out of control w/ spending. there's no stopping her. if anything happens health-wise, we're sunk.

[prolesunited]

21. What do you mean there's no stopping her?

Sounds like counseling is in order. And if she's that out of control, why let her have access to money or credit cards? Would you leave an alcoholic with a stocked liquor cabinet?

[Iniquitous Bunny]

20. At my means.

My income isn't great right now, but I'm 11 months from graduating in a well-paying, high demand field. I'll have a very small student loan and pay off my credit cards monthly. My vehicle is paid for. I have a moderate amount in savings and plan to buy a home soon after I graduate. However, I don't plan on getting a home that is at the max of what I'm told I can afford. I want breathing room. I have zero retirement now, but I'm still in my early-mid 30's. I'll start contributing in another year.

[prolesunited]

23. Start saving for retirement ASAP

It's amazing to see the charts when you compare what happens with compound interest. You can actually end up with more and put less in the earlier you start.

But, it sounds like you are definitely on the right track.

[ProfessorGAC]

22. Below Our Means (With Answers)

Did you buy the house/car you could afford, hope to afford or afford if you have financial setbacks?
Cars are bought cash. Decent used cars, and then no loan. Haven't had a car payment since 1998.

How do your savings look? Put anything away for retirement yet?
Yes and yes. Enough that at 50, i'm not nervous, although we won't be rich.

If you lost your job, what "excesses" could you trim?
Some, like the fullboat digital cable, and like that. Less steak and more burgers and dogs. More broccoli, less asparagus. That kind of thing.

How long would you last before financial disaster? Probably about 2 years, maybe 30 months. With UEI, probably more like 4 years.

All this assumes, of course, no massive medical expense of tens of thousands, but we are insured pretty well.
The Professor

[prolesunited]

28. Nice to see you pop up

Hope both you and your wife are well.

Insurance is the big thing -- and I'm sure I don't have to tell you that.

[ProfessorGAC]

32. No, You Sure Don't

She just had to have EXTENSIVE reconstructive oral surgery (implants due to a botched root canal job). Even with the insurance we paid THOUSANDS!

And, in my case, the prescription coverage means i pay $40 per month for my MS meds, instead of the list price of $1100! (Although i must say that the company that makes Betaseron has an entire system to get the meds for people who aren't insured and couldn't afford it otherwise. not every aspect of Big Pharma is bad, i guess.)

We're back out working the gardens though. So, health isn't slowing us down much. Thanks for asking.
The Professor

[Tierra_y_Libertad]

24. Below. Started planning for retirement 15 years before we did.

We figured out how much our pensions/SS were likely to pay when we retired. Then we paid off all of bills (other than the mortgage), then started living on that amount, before retirement.

Now we are retired and have more spendable income than we had when we were working.

Learned to pay cash for everything after doing the credit card dance.

Fortunately, we both worked for the government and had good retirement benefits plus relatively cheap health insurance.

Some luck, lot's of discipline.

[sendero]

25. Below...

... and of course anyone living "above" is living on borrowed time.

I have not borrowed money for anything since 1981, except for a home mortgage in 1985.

Houses are paid for now. Cars are paid for.

Want to do something revolutionary? Want to stick it to the man? Opt out of the excesses of capitalism?

Simple, DO NOT PAY OTHER PEOPLE INTEREST, LET THEM PAY YOU. Do so by, for example, saving up $3,000 and buying a used car for cash instead of taking in in the backside with an auto loan. Do so by forgetting about keeping up with the Jones'. Most people will get a lot more peace of mind knowing they could weather a financial setback than the temporary boost you get when you hop into that new $450 a month status box :)

I've been underemployed for 4 years now, I'm getting along ok thanks entirely to the fact that while I was making good money I didn't spend it all :)

Look around at our financial culture. We've reached the point to where anyone selling something has to offer "no money down", "no interest until 2010", "no payments until 2030", "4 easy payments of $39.99", "cash back", "interest only financing (pay forever)", and paying for fast food with a credit card.

Think we aren't in trouble here?

[MissB]

26. I'm not exactly dancing on the edge.

We have a mortgage on this house, but very affordable. When we bought this place a couple of years ago, we certainly didn't take out anywhere close to the amount that we could've. Based on our monthly income, we certainly qualified for way more house than we own, but that wasn't our point in moving here. We also sold our other house in a hot housing market and plunked all the proceeds down on this house - so our mortgage is higher than it was, but still incredibly affordable. What helped us was the growth in our local housing market in the years between when we bought our first house and bought this one. Our first house sold for nearly 7x what we paid for it.

We have savings, although not as much as I'd like. We do have healthy retirement investments and are on track for retirements in our 60s.

I don't work, but if my other half lost his job, we have excesses that we could trim quite easily. We do spend our disposable income on useless things like cable tv, cell phones and coffee from the coffee shops.

I don't know how long we could last before financial disaster. In theory, we have enough money available to pay off the current debts (mortgage and student loan) but if the entire country goes to hell in a handbasket all bets are off.

on edit: no ARM here. 30 year fixed, around 5%.

[prolesunited]

31. Best thing I did was a re-fi in Jan. 2003

I went from a 30-year to a 15-year at 5.25%. The payments only went up minimally, but I shaved TONS of money off of interest costs. We're also paying extra each month as we can. I am looking forward to the freedom of not having a rent or mortgage payment. I don't know why people feel the need to keep trading up.

[MissB]

43. Oh, I'd love that.

We had re-fi'd down to a 15 year at the first house and had about 10 years left.

For now, it is a balancing act between stashing money into retirement (maxing out the amount the feds let us drop into the 401k each year and funding Roths) and keeping the payment affordable so that *if* something happened, we wouldn't immediately be up shit creek. We've put retirement at the fore for now - but if dh's salary goes up or I go back to work, then all available money would go towards paying the mortgage off early. I just doubt that we'll see decent enough interest rates again in the time frame that we'd want to refi to make it (a 15 year mortgage) worthwhile. I do envy you. :)

We also drive two used cars - well, I drive occaisonally and he bikes to work. I *could* buy a Range Rover with all the bells and whistles, but why the fuck would I want to? :rofl:

I'm still working on my yard, trying to get my not-quite-a-half-acre property to produce more food. Each year, I try to add two to three new items - this year, I'm adding an apple tree in early fall and some mushroom plugs in late fall and possibly some more blueberry bushes this month.

[Wcross]

27. Below.

My mortgage payment is only 9% of my gross monthly income. It will be paid off late next year. No credit cards and I have one year left on my car payment.
I have a pension plan at work (if it doesn't get stolen) and contribute 20% to my 401k. I also contribute to a roth IRA.
If I lost my job tommorow I would be able to pay off the house and car by cashing out a small portion of my 401k.

[slackmaster]

30. Fortunate to have bought a house in late 1994

I even managed to time my divorce so assets could be split before the big housing price run-up began.

This was not intentional. I was "at sea" financially from the time I finished my BA degree in 1980, until about the seventh year of my 11-year marriage which officially ended in 2000. When the finances stabilized, the marriage relationship went in the tank. :eyes: But enough on that...

I have a good career and have enjoyed a string of steady jobs for about 12 years now. I have retirement savings, mostly 401k, slightly greater than the principal balance owed on my home. If not for the monetary hit from the divorce I'd be in excellent financial shape now. As things stand I should do OK barring radical changes in the economy that put IT workers out of business, or a major health problem that stops me from working full-time.

Health insurance and medical expenses are our biggest concern -- and I know we are fortunate to have insurance at all.

That's a big worry for me too. Group policy at work is OK but over the years the increased premiums have eaten into take-home pay. I think wer're all in the same boat.

[bigwillq]

33. I tend to live at my means (nt)

[bleedingheart]

34. We live well below our means

and we live just fine.

We have savings, 401K and Roth IRA's..

We never "upsized" into the dream house so many of our friends bought because I feared that with rising health costs it was better to remain in a home we could afford on just one income. It looks like I was right.

I have watched while friends have become more debt heavy wondering how the hell they will ever pay for all the stuff.

While I understand that there are predatory lenders, I think a lot of people just chose to put on the "rose colored glasses" and ignored common sense. Do I feel bad for them...to some degree and I think that a lot of us will pay for their mistakes...not just them.

[michreject]

36. Below my means

I have worked for GM (union) for 30 years in October 06. I am retiring in December of 06 at the age of 53. My wife has worked for the county government for 25 years. She is retiring in July. House paid for. My 401 for 15 years. Her 457 for 20 years (Gov't employees version of a 401). Both pensions with full dual health coverage from both companies.

I don't see the current generation having the luxury of doing this. Something has to change.

[prolesunited]

40. Pensions and retiree health insurance

Those things are long gone. Middle-class retirement will soon be a thing of the past.

Her set up is likely secure as governments don't declare bankruptcy and ditch their legacy costs. But what about you? How do you know you won't be a victim of the corporate bankruptcy trend?

[michreject]

41. Highly unlikely that GM will file for bankruptcy

When I move to Tennessee in January, my monthly expenses will be food and utilities. No truck or house payments.

[Nye Bevan]

37. Below

My 12 year old Toyota Camry still runs great!

But I am in a minority on this in my family. Pretty much everyone else feels the need to lease a brand new SUV every 3 years.

[ItNerd4life]

38. Way above my means, I'm a freeper!

:sarcasm:

[anarch]

39. it was comfortably within my means

but my significant other got laid off (then got a job after a long struggle, and was laid off again!), and also has had a number of medical issues, and so we went from a two-income to a one-income household, and now the credit cards are maxed out, various stuff is being shut off, collection agencies are hounding me, and we can't really afford to buy groceries. So, yeah, pretty close to the edge if you ask me.

Savings? Ha. Retirement? I just assume I will drop dead at work one day....

[trixie]

42. below

We live as if we only had 1 paycheck. We invest and save with the second. Vacations, treats etc come out of the 2nd paycheck. If one of us were to die the other could well afford to raise the family how we do now. We also feel that kids should know a little hardship and struggle to prepare them for the world of work.

[Seabiscuit]

44. Way below. Saving/investing for my childrens' future.

[Zorra]

45. Way, way below.

No responsibilities, very few expenses, and don't need much in the way of material things.

[conflictgirl]

46. Sadly, above

I can certainly point to things I've done and continue to do wrong, but my life isn't too extravagant. Both cars in this family are older (one only 4 years old, the other 8), we rarely go out to eat (and yes we're counting fast food or ordering pizza as 'going out to eat'), etc...I could go on and on about all the frugal things we do that would suggest that we're living within our means. But my husband is unemployed and going back to school this fall, I am in college myself and earning quite little as a freelance writer at the same time. At this point we're pretty far over our heads due to his job loss, and it's likely going to be this way for several years.

Also, no health insurance here either. The kids have Medicaid...I was actually really disappointed that apparently we're so poor that we can't even qualify for the state children's health plan (which is SO much better than Medicaid its not even funny).

So yes, we're living well above our means. However we have zero debt other than mortgage and student loans, which is helping us a lot. With a high debt load we'd be absolutely fucked.

[LSK]

47. i live below my means

I put 5% of my salary into 401k.

I have in savings enough that I could live on for half a year if I lost my job.

I add about 1/4 of my salary a month to savings.

My mortgage is fixed at 6%/30 yr and I put 20% down when I bought the place. I pay an extra $250 a month towards the principle of my mortage.

No credit card debt, no car payments, no debts except the mortgage.

I figure I can take a $15k - $20k paycut if I had to get another job and still get by.

Im doing everything by the book, so far so good.

[diamidue]

48. below our means

House and cars paid off. Two children almost out of college. Money invested or otherwise tucked away. But wary of the fact that the whole economy could come tumbling down at any moment and our savings be worthless. I'm not particularly optimistic about SS or pension plans surviving either. Maybe I'm just a natural worrier...but I AM worried.

[phylny]

49. Right now, we're living slightly above our means.

We are at the "paying for college" years and it has been quite a challenge to fund it. However, we are anticipating a move that will in essence allow us to have no mortgage, or a very low one, and then we will be once again living below our means. Bur right now, we are dancing on the edge because our funds aren't immediately accessible. So, dicey for now, future looks good.

With regard to retirement, health insurance, etc., thus far we are on a very good track. My husband works for a large corporation, and he has diligently been saving into his 401K. He also has stock and a retirement fund with health and dental benefits for after retirement.

[Jim Warren]

50. For us, that question never arises like a choice.

My wife is from a place where it's always been like the US in 1932, poverty is not an embarrassment.
My background though much more comfortable, having things never meant a whole lot.
Together, we live a life exposed to bare-boned facts that all is tenuous.
We have come to realize the more you know, the less you need, and traveling light is best.

[ieoeja]

51. At the moment, above.

Invested in some property to help someone get set. Opportunity came to improve property to point where I won't lose so much per month. But that means a big outlay to make that improvement.

Then the corner of my house picked this particular moment to collapse! Figures.

[kiraboo]

52. Currently living at my means.

By which I mean I have a nice house & furnishings, a cheap car, a good vacation every two years, my kids are well dressed, we eat food I prepare, and we have about $200K stashed away for retirement. Of course I am getting a divorce so that'll all be shot to shit. However I know how to live well and plan for the future on a budget and intend to do so.

[Squatch]

53. Below our means...plus I can still put away 10% of my take-home

each month.

We're a single income family, but my wife has put the Kibosh on my spending habits allowing us to save and occasionally go on fairly extravagant vacations.

[mrreowwr_kittty]

54. Above before and below now

But I'm still trying to pay off the stupid debt I racked up in the process. I should be able to in a year or so, barring any unforeseen developments like a major health problem :( . I treat credit cards like kryptonite now. I'm just fortunate I learned my lesson early enough to reverse the trend. I see far too many people who aren't though, and I really fear for them.

[prolesunited]

59. At least you have learned your lesson

And I'm sure you won't let it happen again.

There's lots of good books and solid financial sites on the Web. I know I've learned a lot in the past five or six years and make better decisions as a result.

Good luck in getting everything straightened out.

[Sammy Pepys]

56. Pretty well below....

The wife and I save about 40% of our take home pay.

[madokie]

58. I am probably the luckiest man on earth,

my wife is not the kind to go spend money for the sake of it and myself if I want to buy something that cost 50 bucks or more I have to go look at it at least 2 or 3 times first just to make sure. To answer your question, we live within our means.

[Tracer]

60. Below.

No debt. Mortgage and car paid off. Over 6 figures in savings.

I never quite feel comfortable unless I've got at least $3,000 in liquid cash in the bank.

I've made over $50,000/yr exactly twice in my life. Most often it's between 25 & 35K.

[SmokingJacket]

61. Below, always have.

I hate spending money. Plus, at the moment I don't have real insurance, so I feel like I have to save every buck just in case someone gets sick or has an accident.

(Never owned a new car, still don't have a microwave, cell phone, or dishwasher, don't have cable, have a tiny mortgage, walk to work, enjoy the library and cheap red wine.)

[earth mom]

62. Living Paycheck to Paycheck.

Our family spent 8 years living as the working poor and the bills piled up. Going on 2 years with a better income and while we have no credit cards, do not live extravagently, or take real vacations, we haven't been able to get ahead. Still playing catch up on bills and also working on getting maintence/repairs done on the house and the car which we couldn't do before. Would love to travel and also to have some money in the bank, but it will be awhile before that happens. :(

[Coventina]

63. Sadly, as a grad student, way ABOVE my means.

Last year, my income was in the 3 digits.

That's right 3 digits!!

[bikebloke]

64. Below my means

I've been able to save, but those days are ending. I have to find a new place to live and have realized that my current rent has been way below the area norm. The next place, if I can find one, will mean about a 50% increase.

I don't have a car, but bike everywhere. No cable. Dial-up internet. I like the backpackers/bike trekkers fare of two-minute noodles mixed with soup. Never used credit, which is making it hard to find a new flat. I've been having stay-at-home holidays rather than travel in anticipation of hard times - Luckily, I've seen much of the world when I could.

My savings are supposed to be for my retirement, but will probably be leached for future survival. I have a 401K at work that has gained $20 in six years. Social security will likely be robbed by the corporatists. So I'm gathering resources for raising my own food if I'm able to locate somewhere possible to do that in my old age.

[ThomWV]

65. Saved All Our Lives, Retired at 57, Don't owe a dime anywhere

And have approximately 8 years income held in savings.

I paid off my truck and bought (cash) my wife a new Audi (we need 4-wheel drive) when I retired. We cut up all the credit cards but one (zero balance) general one and a hand full of gas-company cards that have no balance.

I saved money, not a lot but some, ever since my first job at 14 years old. When we bought this house, which is our home, we took out a 5-year note rather than a 20 year mortgage, then we dam near killed ourselves paying it off.

I never had a job in my life that paid any more than a union plumber would make in any big city.

Now tell me it can't be done. Want to know how much I was putting away when I started? Two dollars a week.