Frugality thead:work less, spend less

[Emergent]

I want to gear down now, work less, live on less. My dear departed Mom used to say "A penny saved is a penny earned ". That came from Poor Richard's Almanac she told me, Ben Franklin's collection of wisdom.

Many nurses are caught on the hamster wheel, working a lot and living high on the hog. They buy expensive cars, houses, boats, RVS on credit, go on pricy trips, and work like dogs to pay for it, one illness or accident away from financial distress.

You read on this site how many of us are burnt out. In real life I see that as well, and know more about my coworker's lives. I see a lot of expensive and wasteful habits out there.

This thread is for those interested in a simpler, less consumerist lifestyle. How can we enjoy life more, with more free time but less money? Spending less time at the nursing grindstone might relieve stress too!

[2k15NurseExtern4u, BSN, RN]

I love this thread

[joanna73, BSN, RN]

I use credit cards for everything including groceries. The balance is paid each month. I have a line of credit with a low interest rate so when I do have the odd large purchase, my card is paid and the balance transferred to the LOC.

Some debt is essential to build and maintain your credit score.

[Jules A, MSN]

I didn't say no pets. But I see people who take on more than they can afford or at the expense of their children's quality of life.

Your original made me smile because the advice to be thoughtful before having children is very important and not always done. You are right about acquiring more animals than you can afford also but in my case they are my kids and are accounted for in my budget so nothing is too extravagant if it is something they need to live a nice quality of life.

[ThePrincessBride, MSN, RN, NP]

Your original made me smile because the advice to be thoughtful before having children is very important and not always done. You are right about acquiring more animals than you can afford also but in my case they are my kids and are accounted for in my budget so nothing is too extravagant if it is something they need to live a nice quality of life.

Very true. I think the same advice is applicable to both dogs and babies to a certain degree. Don't have more than you can afford emotionally and financially.

[Barkow]

I was super cheap when I first became a nurse. I was a money hoarder, rarely ate out. But, as a result, I was able to buy a new car and save up a 25% down payment on a house.

Over time I've gotten less cheap and used my savings to travel the world, since experiences are worth more than stuff. I still save quite a bit despite the traveling, and have grown to the point where I can understand that coffee is more valuable when served in a cute setting where I can get work done. If I want to buy something extraneous, I calculate how much I'd have to work to pay for it, and will work extra shifts to justify those expenses.

I think equating how much nursing work has to be done to buy something offers great perspective and helps guide choices.

[Julius Seizure]

Start a retirement account like, yesterday. I personally have both a 401k through my employer, and a roth IRA that I personally set up. If your employer will match contributions that you make to your 401k, you are leaving money on the table to not contribute AT LEAST as much as they will match. I would suggest trying to put at least 10% of your income into retirement. Max out your contributions as much as you can. I know it always makes me feel like my savings account is dwindling when I drop $5k into my roth IRA.....but I know that I will be glad that I did when retirement comes!

And young people - pay attention to where those retirement monies are sitting. You should be in higher risk/higher return investments when you are young. Make that money work for you!!!

[Emergent, RN]

Don't keep refinancing your house to fund fancy remodels, expensive toys, enabling adult children to live beyond their means, or any other dumb stuff. Instead pay off your house.

NEVER COSIGN ON A LOAN!!!

If you do eat out, drink water instead of expensive drinks.

Thrift stores are fun!

You do not NEED granite counter tops, $50,000 cars, $20,000 boats, to be happy. Studies tell us that, once basic human needs for food and shelter are met, happiness doesn't keep going up with more stuff.

[NurseFifty]

Reduce my taxes through 401k and Traditional IRA. Pay off loans as a priority when I have extra cash to minimize the cost of interest. I don't go for fancy clothes and accessories. I don't have a fancy cell phone.

[brandy1017, ASN, RN]

I think the problem is a combination of factors, wage stagnation, combined with extreme medical and educational superinflation, plus rising housing costs, on top of that all the temptations available in the modern world to live above your means. I've read some places have dropped starting wages for new nurses, raises barely rise above inflation, many people owe huge student loans that may take decades to pay off, but the world is your oyster. If you want to spend hundreds or thousands of dollars on jewelry, designer clothes and handbags, luxury hotels, and vacations you can if you have a credit card. We are exposed to more temptations of high priced stuff than ever before that most people can't afford and weren't aware of if they weren't super rich but now thanks to the internet and mail order catalogs anyone can indulge if they want to! I can't imagine spending on stuff like that, but I have friends who don't blink about it.

So first you have to avoid the temptations or at least keep them in check. Then you need a livable budget the 50/30/20 is a good one, the goal is to get your necessities at 50%, 30% wants, 20% savings/debt repayment. As others have mentioned mint.com has a free nifty online budget tool to manage your money.

The other thing is you need a good credit score so you can get the best rates on car loans, mortgages and private student loans if you have any. Also comparison shop your homeowners and auto insurance regularly and be ready to switch to get the best rate. If you can get these big ticket expenses down than you don't need to worry so much about small expenses like a cup of coffee.

Good books I recommend include Deal with Your Debt, and Your Credit Score by Liz Weston and Personal Finance for Dummies by Eric Tyson. Also David Bach's books like Smart Women Finish Rich, or Start Late, Finish Rich or Smart Couples Finish Rich have interesting ideas on savings and ways to generate more income. All Your Worth by Elizabeth Warren goes into more detail about the 50/30/20 budget and gives real life examples. I've read some of Dave Ramsey's but he is a little too gun ho for me, doesn't believe in any credit and these days I think it is a good idea to have access to credit cards, and home owners line of credit to maintain maximum flexibility as the economy is uncertain and even nurses can find themselves laid off. I like Liz Weston's approach of using debt as a tool more than Dave Ramsey's pay everything off and live just on cash. Hope these suggestions are helpful!

[aeris99]

Living in rural New England, my vehicle is necessary. It's 8 years old and paid off though.

The biggest impact for us was to budget our heating fuel and Christmas. We put that money away, along with a safety cushion, from our tax return in April. I had our tank filled when oil prices bottomed out and signed up for price-lock.

We live on one income right now which can be a little tight but once I graduate and get a job, my income will go to retirement and savings.

We keep a close eye on our finances. I feel like we're right in the middle, we still go out and have fun but not excessively. We're saving for our wedding/honeymoon next year

[cracklingkraken, ASN, RN]

NEVER COSIGN ON A LOAN!!!

You do not NEED granite counter tops, $50,000 cars, $20,000 boats, to be happy. Studies tell us that, once basic human needs for food and shelter are met, happiness doesn't keep going up with more stuff.

Don't you mean consign?

I don't know... a $30,000 boat would keep me pretty happy the one time a year I would use it. I'd rather spend my money on good food, though.

[Farawyn]

Don't you mean consign?

I don't know... a $30,000 boat would keep me pretty happy the one time a year I would use it. I'd rather spend my money on good food, though.

We have a boat. We didn't even put it in the water this year. It's little, and we live by the Bay, so it's almost like having a bike. But way more expensive.

We will probably sell it.