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Escaping the mindset of a poor person, help please.


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#11 Brokenbad

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Posted 19 January 2013 - 06:56 PM

If you have disposable income, you might want to start saving or investing. It is never a bad thing to live below your means.


I have been putting 10% of my checking account into savings every week, so far so good, thanks for the good advice everyone.

#12 KillerKat

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Posted 19 January 2013 - 07:10 PM

You could give me the extra money that you have with your new job until you are actually poor again. It's a win win.

#13 Delhommey

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Posted 19 January 2013 - 07:20 PM

The great thing about saving is there are so many ways to save for traumatic events and retirement.

Once you've paid off all high interest, unsecured debt, you should max out your Roth IRA and HSA if you have a health plan that qualifies.

As everyone will eventually need to spend on health, a HSA is basically getting free money.

#14 Brooklyn Bully

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Posted 19 January 2013 - 07:42 PM

Buy a new suit.

#15 KendrickPanther

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Posted 19 January 2013 - 10:34 PM

My father is the same way. He came from nothing and he does well for himself now but he still bags his lunch and eats free food out of hotel lobbies. He complains when people use too much ketchup on a cheeseburger because that costs money. I think it's a good thing though. When he retires he will have whatever he needs lest he lives to be 100. One thing my dad did when he got out of college and started banking bigger checks. He opened CDs 6 months recurring with enough money in them to cover rent. I don't know if they still do CD's or not but He eventually had 2 CDs come available every month on a 6 month cycle. They earned more interest than savings account and if was ever to lose his job he could withdraw a CD a month for 12 months.

Another thing my dad would do and I do it too is make a car fund. Put money in the fund each month so when you need a car, be it used or new you can pay cash and not pay interest. Interest payments on cars is pretty low these days but it's nice knowing there's no debt in your driveway.

#16 KSpan

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Posted 20 January 2013 - 08:56 AM

Congratulations! A lot of good advice in here so far. Personally, my wife and I like Dave Ramsey and have had a lot of success following his system when we started to overhaul our finances, and we now live debt-free and follow our own budgeting and savings models. His views on debt may be a bit extreme for some, but the overall program is one that has suggestions for your total finances and will help you control your newfound income.

http://www.daveramsey.com/home/

#17 pstall

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Posted 20 January 2013 - 12:43 PM

i do want to add something back on this. i would classify a poor mindset as it can't get better and this is just the way it is and we have to live paycheck to paycheck.
pinching pennies and saving or saying no to stuff isn't poor. its being smart and frugal.

my father in law grew up thru the depression. retired early from the pentagon in his early 50's and raised 3 kids as a single dad. my wifes mom died when she was 8.
this guy is the king of being frugal yet had more money than i will ever think about having.

he would play golf with retired col's and gen's in wilmington nc for money. a nickel a hole. 5 CENTS. i go ahh, THAT's why you have money. my buddies and i would play for 10.00 a hole and suck and wonder why we don't have money. well. there ya go.

#18 Kevin Greene

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Posted 20 January 2013 - 01:38 PM

I love my new job, it is a dream come true.

I make twice as much in one paycheck as I did in one month with my old job, PLUS I have unbeatable benefits, my rent and health care are now completely covered in addition to my increase in pay.



You could just say the unemployment checks are great.
No need for the subterfuge. ;)

#19 Brokenbad

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Posted 20 January 2013 - 01:49 PM

You could just say the unemployment checks are great.
No need for the subterfuge. ;)


Lol, I'm back on active duty with the US Army, your welcome ;)

#20 thefuzz

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Posted 20 January 2013 - 03:11 PM

Pay off the credit cards.

Pay off car loans.

Pay off student debt.

Start a rainy day fund. Start with $1,000, and build it up to a full 6 months of living expenses.

Start to save for a large down payment on a home.

Save enough to pay cash for your next car, do not touch rainy day fund for this.

Pay down mortgage as quickly as possible while saving in roth IRA's at the same time.

Start saving toward retirement as well as college for the kids.

Eat better, cheap food will put you into the dirt.


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