Hello old thread. I really enjoyed reading through this one. And, Chaos, I'm with you 100%.
AGDee, in response to what you said about your coworkers, I too have coworkers that spend FAR beyond their means and they make quite a bit more than I do (my income and my husband's combined). I offer free budget and planning advice to friends and family and some of my coworkers have taken me up on the offer. When it comes to creating a useable budget, I have to know first off 1) what isn't negotiable (i.e. the needs), 2) how much are you
really spending and 3) what are your goals? In most cases, the goal is to pay down debt. Great goal.
So, before I get into the work of coaching them on how to structure their spending on a weekly/biweekly/monthly basis, I tell them that more often than not, people have to sacrifice in some areas to free up enough money for others. They say, yeah, I can do that. After the hours it takes me to work out the preliminary budget (my approach has multiple phases and I follow people for as long as they need - one friend still reports to me after two years), the negotiating begins. "I can't cut here because we NEED [insert ridiculous frivolity]." Are you kidding me? Let's look up the definition of sacrifice, shall we?
Meanwhile, here I am, debating on whether or not to buy a new used car while the market is ripe for this type of purchase. To be completely honest, I can afford a new car - heck, I can afford to new cars. And, people pester me about it. "If you can afford it, why not get it?" Because you don't just purchase because you can or because something's on sale.
I have to weigh the pros and cons - cons, which are most frightening, being such things as a dramatic increase in the $50 or so I pay in insurance for TWO cars quarterly (mind you, both of our cars are 12, going on 13, years old and mine currently has 260,000 miles on it). I'm still considering it. But, you know, I'm living comfortably. I'm content with what I have because I'm not defined by it. No one and nothing can make me happy. It's an overall mentality that is, ideally, separate from my circumstances.
I think I needed to get that out. I feel relieved.
