Comments on: Start the Decade Off Right: Cut Out Unnecessary Expenses http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Mon, 13 Feb 2012 01:22:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Flexo http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201531 Flexo Wed, 13 Jan 2010 04:38:58 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201531 Steve, I feel the same way about debt -- it's not evil, and it has its purposes. But what if the market unexpectedly dropped while you took out the HELOC? Risk should be factored in as well. You were lucky you needed the $35,000 medical procedure when the market was recovering. :-) Steve,

I feel the same way about debt — it’s not evil, and it has its purposes. But what if the market unexpectedly dropped while you took out the HELOC? Risk should be factored in as well. You were lucky you needed the $35,000 medical procedure when the market was recovering. :-)

]]> By: Flexo http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201530 Flexo Wed, 13 Jan 2010 04:35:46 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201530 Thanks, Dan. That's a good idea. Thanks, Dan. That’s a good idea.

]]> By: Candide http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201524 Candide Tue, 12 Jan 2010 22:03:36 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201524 Whether or not you should carry debt varies. If your choice is take on debt and go to Princeton versus take on no debt and go to a 2-year community college, 999 times out of 1000 you take on the debt. Whether or not you should carry debt varies. If your choice is take on debt and go to Princeton versus take on no debt and go to a 2-year community college, 999 times out of 1000 you take on the debt.

]]> By: Outlaw http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201513 Outlaw Tue, 12 Jan 2010 16:50:40 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201513 Great article. I never had a problem with large expenses, when I made them they were always necessary and beyond due, but I had a problem with small everyday purchases. So important to figure out your "latte factor" and cut it out. Really makes a difference. Great article. I never had a problem with large expenses, when I made them they were always necessary and beyond due, but I had a problem with small everyday purchases.

So important to figure out your “latte factor” and cut it out. Really makes a difference.

]]> By: Financial Samurai http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201512 Financial Samurai Tue, 12 Jan 2010 16:37:44 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201512 Good stuff Flexo! I actually think ull be able to at least double the pace of asset accumulation this decade. Momentum accelerates! Just don't buy a Ferrari. Good stuff Flexo! I actually think ull be able to at least double the pace of asset accumulation this decade.

Momentum accelerates! Just don’t buy a Ferrari.

]]> By: SteveDH http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201507 SteveDH Tue, 12 Jan 2010 15:34:30 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201507 You're way too hard on the debt issue - sometimes debt can payoff rather than burden. Case in point: $35,000 medical procedure and $34,800 held in an allocated asset fund (ETFs). The decision had to be made in June of last year as the market had just begun its recovery. Rather than sell the asset I borrowed the $35k using HELOC @ 3.25% interest. At the end of 2009 assets had grown over $3,100 but MORE IMPORTANTLY $768 had been received in dividends (real cash flow) while only $632 had been paid in interest expense. Even disregarding the unrealized gains this makes sense. The gains on the investments and equity I have to buy back from the bank are balance sheet issues, but cash flow is cash flow. Respect debt - don't fear it. As for spending I agree 100%. You’re way too hard on the debt issue – sometimes debt can payoff rather than burden. Case in point: $35,000 medical procedure and $34,800 held in an allocated asset fund (ETFs). The decision had to be made in June of last year as the market had just begun its recovery. Rather than sell the asset I borrowed the $35k using HELOC @ 3.25% interest. At the end of 2009 assets had grown over $3,100 but MORE IMPORTANTLY $768 had been received in dividends (real cash flow) while only $632 had been paid in interest expense. Even disregarding the unrealized gains this makes sense. The gains on the investments and equity I have to buy back from the bank are balance sheet issues, but cash flow is cash flow. Respect debt – don’t fear it. As for spending I agree 100%.

]]> By: John DeFlumeri Jr http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201498 John DeFlumeri Jr Tue, 12 Jan 2010 01:50:04 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201498 Certainly getting to a low fixed overhead makes sense. Several small steps together equals remarkable progress. John DeFlumeri Jr Certainly getting to a low fixed overhead makes sense. Several small steps together equals remarkable progress.

John DeFlumeri Jr

]]> By: RetirementInvestingToday http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201495 RetirementInvestingToday Mon, 11 Jan 2010 22:43:37 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201495 If you put your mind to it is possible to reduce expenses significantly. I'm looking for an early retirement (well work becoming optional) and my thought was that it was easier to reduce my expenditure than increase my earnings. In addition to this anytime I did receive a salary increase to cover inflation I tried to save this rather than spend. With time this means in a typical month I now only spend around 17% of my gross earnings on day to day expenses. If you put your mind to it is possible to reduce expenses significantly. I’m looking for an early retirement (well work becoming optional) and my thought was that it was easier to reduce my expenditure than increase my earnings. In addition to this anytime I did receive a salary increase to cover inflation I tried to save this rather than spend. With time this means in a typical month I now only spend around 17% of my gross earnings on day to day expenses.

]]> By: Credit Girl http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201493 Credit Girl Mon, 11 Jan 2010 18:31:17 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201493 Interest charges are the worst! It's a killer because before you know it, the interest really adds up and it makes that item cost more than its worth. Interest charges are the worst! It’s a killer because before you know it, the interest really adds up and it makes that item cost more than its worth.

]]> By: CB http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201485 CB Mon, 11 Jan 2010 16:39:34 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201485 8% would be wonderful. I don't know anyone whose stock investments has been so rewarding. My return has been 5.5 over my working career. 8% would be wonderful. I don’t know anyone whose stock investments has been so rewarding. My return has been 5.5 over my working career.

]]> By: ChristianPF http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201483 ChristianPF Mon, 11 Jan 2010 16:18:49 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201483 Flexo, I really agree with you about the interest - I often wonder how much wealth people are losing over the course of their lifetimes paying interest charges on their mortgage, cars, credit cards, furniture, and/or whatever else they finance... When I started seeing how much of my money was going to interest charges it was sickening - now that I have most of my debt paid off, it is amazing how much easier it is to pay the bills... Flexo,
I really agree with you about the interest – I often wonder how much wealth people are losing over the course of their lifetimes paying interest charges on their mortgage, cars, credit cards, furniture, and/or whatever else they finance… When I started seeing how much of my money was going to interest charges it was sickening – now that I have most of my debt paid off, it is amazing how much easier it is to pay the bills…

]]> By: Dan http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201482 Dan Mon, 11 Jan 2010 15:57:31 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201482 Flexo, why not introduce the concept of "Net Present Value" to your readers and show them the calculation? When you talk about cash flows over 30 years (ie your "Latte Factor" example) it gives your readers an idea of what they would really save in today's dollars. Flexo, why not introduce the concept of “Net Present Value” to your readers and show them the calculation? When you talk about cash flows over 30 years (ie your “Latte Factor” example) it gives your readers an idea of what they would really save in today’s dollars.

]]> By: Jackie http://www.consumerismcommentary.com/start-the-decade-off-right-cut-out-unnecessary-expenses/comment-page-1/#comment-201481 Jackie Mon, 11 Jan 2010 15:18:14 +0000 http://www.consumerismcommentary.com/?p=7714#comment-201481 Wow, I didn't realize that your six-figure income was on top of your day job -- very nice. And I totally agree about eliminating expenses both large and small where possible, although I had to laugh at the picture of the red Miata near the headline for the large expenses. My 20 year old red Miata is one of the expenses I choose to keep. It's all about what works for us as individuals. Wow, I didn’t realize that your six-figure income was on top of your day job — very nice.

And I totally agree about eliminating expenses both large and small where possible, although I had to laugh at the picture of the red Miata near the headline for the large expenses. My 20 year old red Miata is one of the expenses I choose to keep. It’s all about what works for us as individuals.

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