hey Ryan, I enjoyed this one, been thinking about some of the same things. Housing is the biggest and hardest expense to manage. If you love your home and where you live you may make it a goal to payoff your mortgage, that might be years away but we finally managed to pay ours off and instead of a burden it turns into a frugal freedom by basically eliminating your housing costs. I know some financial advisors may advise against this and some support it, often depending on what your mortgage interest rate is, but the peace of mind and freedom from eliminating those big checks going out the door every year is worth something. Just a way to think about long term frugality, right now it doesn’t feel frugal but someday it could, while if you switch back to renting, you’ll always be paying that monthly check forever and rents always go up too so it can eat into more and more of your monthly budget as you get older, which means you have to earn more and more. In 5-10 years your mortgage might start to feel like a bargain/cheap relative to what renters nearby will be paying.
The general idea of living frugally is not new to me.
But I felt like the end of the book helped me put more of a focus on housing (which is our largest expense) and realize that it's not effective to be "penny wise and pound foolish".
If your biggest expenses aren't where you're frugal, you can't call yourself frugal. And you can slip into living beyond your means unintentionally, like we have.
But I think we'll make it work. It's easier to envision a future where we stay in this house and earn more money than the alternative.
Great read. I think it's about getting clear what matters to you and being frugal in the areas that don't.
Great summary. Thanks!
Plus taking a second look since sometimes what people _think_ matters to them doesn't hold up under scrutiny.
So Katie and I will need to continue evaluate whether our house continues to give us enough joy. 😀
hey Ryan, I enjoyed this one, been thinking about some of the same things. Housing is the biggest and hardest expense to manage. If you love your home and where you live you may make it a goal to payoff your mortgage, that might be years away but we finally managed to pay ours off and instead of a burden it turns into a frugal freedom by basically eliminating your housing costs. I know some financial advisors may advise against this and some support it, often depending on what your mortgage interest rate is, but the peace of mind and freedom from eliminating those big checks going out the door every year is worth something. Just a way to think about long term frugality, right now it doesn’t feel frugal but someday it could, while if you switch back to renting, you’ll always be paying that monthly check forever and rents always go up too so it can eat into more and more of your monthly budget as you get older, which means you have to earn more and more. In 5-10 years your mortgage might start to feel like a bargain/cheap relative to what renters nearby will be paying.
Thanks!
Yeah "some financial advisors may advise against this and some support it" is true.
And you're right that there is an emotional benefit to owning.
It's our first house, and we're enjoying the thought that we can be here indefinitely (as long as our income is good enough) and not get kicked out.
Thanks!
Nice read!
I was a bit confused at the end. Is it thought provoking because he recommends living frugally and you feel like you’re not because of the house?
Yeah, I wasn't clear enough there.
The general idea of living frugally is not new to me.
But I felt like the end of the book helped me put more of a focus on housing (which is our largest expense) and realize that it's not effective to be "penny wise and pound foolish".
If your biggest expenses aren't where you're frugal, you can't call yourself frugal. And you can slip into living beyond your means unintentionally, like we have.
But I think we'll make it work. It's easier to envision a future where we stay in this house and earn more money than the alternative.