2013 Badassity Roundup

[acroy]

Closing off the books for 2013 – Net saving rate of +/- 65% !!

This is off a salary of about 100k. 5kids and a few clowny activities such as 3 cars (minivan, high-mpg runabout, and a toy) and a 33k gallon pool. The kids are good for $1k tax credit each, which helps a lot.

Next year will be about the same, as I fought down car insurance rates, replaced the pool pump with one way more efficient, but Health insurance up 120%.

Badassity credit largely due to Dear Wife, who is 100% (well, 95%) on board with frugal ways. Most all clothes from the thrift store, etc. She does like the heat at 65F in the winter.... wimp.

Dear Wife also got certified as a workout instructor, so instead of $350/yr gym membership, she’ll start earning around $1200/yr by working out!

Here’s to a happy 2013 and more Badassity in 2014

[meadow lark]

Good job!

[Charlotte]

Woot woot!!!

[Emerald]

Gross savings rate of 40% here.  The mortgage is down and retirement is up.

[acroy]

Hi Acroy -

I am really impressed with your ability to save so much with so many kids. I hope to have 4 kids someday and I was hoping you could share you budget with us if you ever get the chance. I think I could learn a lot from you.

Thanks,

Brian

Thanks for the interest; Kids are the BEST investment you'll ever make! Seriously, they are a friggin blast.

Honestly we don’t ‘budget’ so much as make sure we ‘watch the pennies’. Then the dollars take care of themselves! I audit the finances occasionally to identify any clowny behavior...

The monthly expenditures are something like:

House (incl property tax) $1k
Car & house insurance (very high deductibles, paid yearly to get a discount): $110
Gas: $100
‘groceries’ (food, toiletries, etc) $700
Clothes $50 or less
Pre-tax health insurance: $224
Utilities (gas, water, electric, trash) $150 winter $350 summer
Phone: $55 (2 cells, coming down)
Internet $40 (cheapest we can get)
Fast food $25 (occasional treat pizza or Sonic)

-Kids really are not all that expensive if you’re smart about it
-PB&J’s are cheap, filling, nutritious.
-We go through 5doz eggs a week.
-Ms Baird’s Bread store baby! Bread freezes & defrosts just fine
-rice, potatoes, beans are cheap & awesome when cooked up different ways with spices & veggies
-Clothes are almost 100% thrift store buys, and handed down kid-to-kid. Shoes generally don’t make it….
-we homeschool, supplies run around $300/yr. This could be less if we did not buy ‘real’ books
-We clean the house out once a quarter and truck it to Goodwill, take the tax break. Unused clothes, toys, etc get recycled at close to net zero cost

Uncle Sam gives you $1k/yr/kid, which just about pays for the little ankle-biters.

Not included are things like car tires, vacations, home improvements, clown purchases like the $1600 projector I bought on Cyber Monday (facepalm)

We have found that investing in our comfort and entertainment at home really lessens the temptation to go out & spend excess $$. Well-researched, rather large purchases which we can really enjoy for years and years. To that end we have:
-moderate size efficient house that is fairly cheap  to heat & cool to reasonable levels (80 summer/65 winter)
- big yard & big pool (awesome in the HOT summers!)
-home theatre setup ($7k total investment over 10yrs)

It’s worked well thus far!

[Maltipoomoney]

You are doing awesome!!! I agree with making your home an inviting alternative to going out or away. A 1.99 netflix movie beats a $50 trip to the cinema for a family. Even better, I try to DVR free older network movies on at odd times to watch on movie night.

[arebelspy]

When you say you invested 7K into your theater what all do you buy and or recommend? I currently have a 47inch 1080p LCD TV, a better sound bar with 12inch sub and a blu ray player. It seems to work well for us but didn't know if you have or recommend something else.

I think most here would recommend a facepunch.

;)

[reginna]

When you say you invested 7K into your theater what all do you buy and or recommend? I currently have a 47inch 1080p LCD TV, a better sound bar with 12inch sub and a blu ray player. It seems to work well for us but didn't know if you have or recommend something else.

I think most here would recommend a facepunch.

;)

Blahaha!!

[acroy]

When you say you invested 7K into your theater what all do you buy and or recommend? I currently have a 47inch 1080p LCD TV, a better sound bar with 12inch sub and a blu ray player. It seems to work well for us but didn't know if you have or recommend something else.

I think most here would recommend a facepunch.

;)

Blahaha!!

LOL - Yes I would classify this under 'clown-y' behavior

But for me it's become one of those things: Why do I work so hard & save so much? What to do with the 'Stache? This has become an investment in leisure which pays dividends every family night ;)

Source: Playstation 3. Cheap(ish), nice blu-ray player, music server, Netflix, etc
Video device: Projector. No going back once you have a screen measure in FEET. Sweet units (new) are around $800-$1k. Realistically they last about 5 yrs
Sound: ‘home theatre in a box’ or soundbar systems are quite acceptable for 90% of the population. Join an a/v forum to research sweet deals. By and large, the ‘big’ names are not the best bang-for-the-buck names. Nice deals can be found used.

In my particular case, I have an illness called Audiophilism. It is contracted at birth, usually genetic (3 generations in my case) and non-curable. Only due to that, I have around $3k in speakers, $1.5k in (custom made) subwoofer and various other symptoms.

The key to minimizing long-term adverse financial effects of Audiophilism is to do heavy research, and buy it to last a loooong time.

[Insanity]

In my particular case, I have an illness called Audiophilism. It is contracted at birth, usually genetic (3 generations in my case) and non-curable. Only due to that, I have around $3k in speakers, $1.5k in (custom made) subwoofer and various other symptoms.

BWAHAHAHAH.  I busted out laughing at that whole sentence.  Awesome. 

I'm honestly torn on the projector vs large screen wall mounted device.  Granted, the projector will allow me to get rid of the entertainment unit (or at least hide devices better). 

[arebelspy]

But for me it's become one of those things: Why do I work so hard & save so much? What to do with the 'Stache? This has become an investment in leisure which pays dividends every family night ;)

(Emphasis original.)

I'm fine with spending 7k on it.  Hell, I'm fine if you spend 100k on it, if you determine that it's worth it to you.

But it is not an investment, and don't fool yourself into thinking it is one.

Spend your money thoughtfully.  But realize that you are spending it.  Not investing it.

[Insanity]

But for me it's become one of those things: Why do I work so hard & save so much? What to do with the 'Stache? This has become an investment in leisure which pays dividends every family night ;)

(Emphasis original.)

I'm fine with spending 7k on it.  Hell, I'm fine if you spend 100k on it, if you determine that it's worth it to you.

But it is not an investment, and don't fool yourself into thinking it is one.

Spend your money thoughtfully.  But realize that you are spending it.  Not investing it.

Does an investment have to be something that returns money or just something that returns value to the individual?

[matchewed]

But for me it's become one of those things: Why do I work so hard & save so much? What to do with the 'Stache? This has become an investment in leisure which pays dividends every family night ;)

(Emphasis original.)

I'm fine with spending 7k on it.  Hell, I'm fine if you spend 100k on it, if you determine that it's worth it to you.

But it is not an investment, and don't fool yourself into thinking it is one.

Spend your money thoughtfully.  But realize that you are spending it.  Not investing it.

Does an investment have to be something that returns money or just something that returns value to the individual?

IMO an investment is definitely something that for money you earn income or it appreciates and you can sell for a higher price. It is some form of making money with "no" work (obviously there is work involved but you aren't being paid for direct labor would be a better way to put it). There is a common usage where people "invest" in a new car, or "invest" in a new toy. I generally apply this simple test, will it make you money? If no then not an investment, if yes then it is an investment (simplistic question as investments can lose money so maybe a better question would be does it have the capability of making you money).

*edit for clarity*

[DTown]

Here's some basic math on home theater 'investment' ROI:

Let's say a trip to the cinema for the 5 of you runs $50 (some transportation costs and the tickets, no food).
You could have 140 trips to the cinema for the cost of your home setup ($7000 / $50 = 140 trips). Since this $7k was spent over 10 years, these 140 trips would need to be spread out over the 10 years as well (140 trips / 10 years = 14 trips/year). This results in 14 trips per year: Slightly more than once per month.

If you would have gone to the cinema more than once per month for the past 10 years (assuming all the kids were around then...), the home setup would actually be less expensive. It might be 'creative accounting', but you could consider it an 'investment' because it would reduce living costs, much like how LED light bulbs could be considered an investment because in the long run because they are cheaper to run than incandescents.

BTW, there actually is a cure to audiophileism! If you listen to music loud enough, often enough, you'll eventually go half-deaf and won't be able to ABX anything anymore! I kid, I kid...
.
.
.
...but really, it works! :P

[arebelspy]

But for me it's become one of those things: Why do I work so hard & save so much? What to do with the 'Stache? This has become an investment in leisure which pays dividends every family night ;)

(Emphasis original.)

I'm fine with spending 7k on it.  Hell, I'm fine if you spend 100k on it, if you determine that it's worth it to you.

But it is not an investment, and don't fool yourself into thinking it is one.

Spend your money thoughtfully.  But realize that you are spending it.  Not investing it.

Does an investment have to be something that returns money or just something that returns value to the individual?

Hah, really?  If we use that definition, everything you buy ever then is an investment. 

Do you refer to your toilet paper, toothpaste, shoes, food, taxes, etc. as "investments"?

The word becomes quite meaningless under that definition.

[Insanity]

Does an investment have to be something that returns money or just something that returns value to the individual?

Hah, really?  If we use that definition, everything you buy ever then is an investment. 

Do you refer to your toilet paper, toothpaste, shoes, food, taxes, etc. as "investments"?

The word becomes quite meaningless under that definition.

I do invest in education in myself.  That provides value to me that is not necessarily financial.   I know the comment will be that it saves me money by providing a skills set (even if I don't use my skill for making money -- something like plumbing lets say..  or carpentry)..

I can invest in technology in order to better optimize my life (i.e.: computers to manage budgets, document managing, or whatever else).

So, when someone says they invest in "entertainment" - I see it as something along those lines.  They are saving money by not going out to the movies and they are investing in the relationships they spend with their family doing what their family might enjoy.

These are completely different than investing in "shoes, clothes, food"..

Even taxes is an investment in society.  I pay school taxes and as a result, the school district we are in is one of the best ones in our state.  So much so, people from the city try to sneak their kids into it since it is on the border.  I don't see a financial reward for that (unless you count property value)

[arebelspy]

Does an investment have to be something that returns money or just something that returns value to the individual?

Hah, really?  If we use that definition, everything you buy ever then is an investment. 

Do you refer to your toilet paper, toothpaste, shoes, food, taxes, etc. as "investments"?

The word becomes quite meaningless under that definition.

I do invest in education in myself.  That provides value to me that is not necessarily financial.   I know the comment will be that it saves me money by providing a skills set (even if I don't use my skill for making money -- something like plumbing lets say..  or carpentry)..

I can invest in technology in order to better optimize my life (i.e.: computers to manage budgets, document managing, or whatever else).

So, when someone says they invest in "entertainment" - I see it as something along those lines.  They are saving money by not going out to the movies and they are investing in the relationships they spend with their family doing what their family might enjoy.

These are completely different than investing in "shoes, clothes, food"..

Even taxes is an investment in society.  I pay school taxes and as a result, the school district we are in is one of the best ones in our state.  So much so, people from the city try to sneak their kids into it since it is on the border.  I don't see a financial reward for that (unless you count property value)

You could have just answered with "yes."

"Investing" in all those things is no different than saying you invest in shoes (for comfort while you walk), clothes (to keep you warm), food (for health), etc.

Anything you pay for provides value.  If your definition of "investing" is "provides value" then yes, taxes, technology, education, and entertainment are all investments (as you say they are) as are shoes, food, and clothes (though somehow you come to a conclusion that no, those aren't??  I can't see your logic on that).

But no, I don't agree that investing == provides value.

[Insanity]

You could have just answered with "yes."

"Investing" in all those things is no different than saying you invest in shoes (for comfort while you walk), clothes (to keep you warm), food (for health), etc.

Anything you pay for provides value.  If your definition of "investing" is "provides value" then yes, taxes, technology, education, and entertainment are all investments (as you say they are) as are shoes, food, and clothes (though somehow you come to a conclusion that no, those aren't??  I can't see your logic on that).

But no, I don't agree that investing == provides value.

Maybe the question is more opinionated and personal than across the board.  After all, MMM himself constantly says to "invest in oneself" through education and through "in sourcing" so you can learn. 

It's just a thought.  I was asking a sincere question based on several comments heard by a variety of people.  I don't think either is right or wrong, just bring it up for conversation.

[arebelspy]

Maybe the question is more opinionated and personal than across the board.  After all, MMM himself constantly says to "invest in oneself" through education and through "in sourcing" so you can learn. 

It's just a thought.  I was asking a sincere question based on several comments heard by a variety of people.  I don't think either is right or wrong, just bring it up for conversation.

Yes, investing in oneself is a common refrain.  The idea is that doing so will pay off, usually monetarily.

That's a huge stretch to then turn that idea into arguing that you are "investing" in a 7k entertainment system and is as absurd to me as "investing" in toilet paper.

As I said, if you want to spend your money on that because it makes you happy, great.  Do it.  But don't do it under the guise of calling it an "investment."

[oldtoyota]

Kudos to you OP. Okay, more recent posters, take a chill pill. The OP is having fun with the word invest. ;-) He knows it's silly.

[Hotstreak]

Kudos to you OP. Okay, more recent posters, take a chill pill. The OP is having fun with the word invest. ;-) He knows it's silly.

B-b-b-b-but words have meanings!  You can't invent them! :-)


Seriously though it's not an investment.  It's a high value added purchase, and you may continue to reap the benefits of that for years and years.  That's great!  Especially if it's cheaper!  But just because your Free Ting Republic phone is half the cost of Verizon for the same benefit, doesn't mean it's an investment (it's definitely not), it means it's lower cost.

The old "oh, but you know what I meant"... well, actually, we might not have :).

[arebelspy]

Kudos to you OP. Okay, more recent posters, take a chill pill. The OP is having fun with the word invest. ;-) He knows it's silly.

Yeah, I don't think so.

[happy]

Initially I thought this thread-drift was  of no interest since I don't like most things on a screen ( except blogs!) and a big screen in my living room : torture. Then I thought it was getting picky.

But then I realised justifying spending on stuff as an"investment" is one of the common but insidious mindhacks of consumerism:  it may be good value, it may be a bargain, it may be "low cost" but its spending.  Not investing.

[boy_bye]

Roller coaster year over here, too, cjottawa!

* sold unsellable house
* moved to a lovely new place
* put 600 miles on my bike between April and October
* got a promotion
* knocked out $35k of debt
* helped my grandma faithfully till the end of her life

This year's goals include getting back into an exercise routine, finishing off all our debt, and adding $50k to our next worth.

[arebelspy]

And MikeBOS, author of one of my favorite blogs Lacking Ambition, posted yesterday exactly what I was trying to say, above (re: investments):
http://lackingambition.com/?p=1451

[happy]

Nice post.

[Insanity]

And MikeBOS, author of one of my favorite blogs Lacking Ambition, posted yesterday exactly what I was trying to say, above (re: investments):
http://lackingambition.com/?p=1451

Personally, if someone wants to call any purchase an investment - let them.  Just because they call it that doesn't make it a smart or worthwhile investment.  Hell, I invested a lot of time in some exes that turned out to be really poor decisions :)

[4alpacas]

And MikeBOS, author of one of my favorite blogs Lacking Ambition, posted yesterday exactly what I was trying to say, above (re: investments):
http://lackingambition.com/?p=1451

Great post. 

I have a lot of friends that refer to clothing items as "investment pieces."  MikBOS summed up everything I want to say (instead my jaw drops thinking about how much the purse cost).