Comments on: The Advantages of Spending Less http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/ Simple, applicable personal finance advice for the modern world Fri, 10 Feb 2012 03:55:09 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Toronto Bankruptcy Trustee http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-668992 Toronto Bankruptcy Trustee Thu, 21 May 2009 16:02:19 +0000 http://www.thesimpledollar.com/?p=3621#comment-668992 This is a great article! I like how you have provided valid explanations for each argument especially the first one on how saving a dollar is more valuable than earning one. Another problem with earning more aside from it being taxed is that people often become more lavish in their expenditures. They tend to spend more because they have more disposable income in their hands. Saving is the best strategy to ensure a comfortable life in the end. This is a great article! I like how you have provided valid explanations for each argument especially the first one on how saving a dollar is more valuable than earning one. Another problem with earning more aside from it being taxed is that people often become more lavish in their expenditures. They tend to spend more because they have more disposable income in their hands. Saving is the best strategy to ensure a comfortable life in the end.

]]> By: Jenny from Cricket Wireless http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-667959 Jenny from Cricket Wireless Wed, 20 May 2009 14:43:53 +0000 http://www.thesimpledollar.com/?p=3621#comment-667959 @Angie You could switch your plan to an unlimited account that has no overages - that way there would be no surprises. Cricket Wireless is one option that may work for you. There are monthly plans that have unlimited calls, text, and mobile - so you get what you need and the price is the same month after month. @Angie You could switch your plan to an unlimited account that has no overages – that way there would be no surprises. Cricket Wireless is one option that may work for you. There are monthly plans that have unlimited calls, text, and mobile – so you get what you need and the price is the same month after month.

]]> By: heather http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-667460 heather Wed, 20 May 2009 01:42:28 +0000 http://www.thesimpledollar.com/?p=3621#comment-667460 the other problem with "earning more" is that you can always just wind up spending the extra you earn, without realizing it. if you think about trimming expenses, staying within a budget, etc. this won't happen... the other problem with “earning more” is that you can always just wind up spending the extra you earn, without realizing it. if you think about trimming expenses, staying within a budget, etc. this won’t happen…

]]> By: find a financial planner http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-667127 find a financial planner Tue, 19 May 2009 21:15:13 +0000 http://www.thesimpledollar.com/?p=3621#comment-667127 You get used to your lower spending and realize that you can live without a lot of things longer-term. This pays benefits for your whole life. You get used to your lower spending and realize that you can live without a lot of things longer-term. This pays benefits for your whole life.

]]> By: Sharon http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-667102 Sharon Tue, 19 May 2009 20:43:38 +0000 http://www.thesimpledollar.com/?p=3621#comment-667102 You also need to factor in when you earn more income and pay more Social Security and Medicare, you'll be getting more down the road. I'm not going to run any numbers here, but that is a factor. You also need to factor in when you earn more income and pay more Social Security and Medicare, you’ll be getting more down the road.

I’m not going to run any numbers here, but that is a factor.

]]> By: thedebtside http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-667043 thedebtside Tue, 19 May 2009 18:58:52 +0000 http://www.thesimpledollar.com/?p=3621#comment-667043 Angie, About the cell phone bill being $200 more than you usually pay. If it's going to be that much more EVERY month he should look into getting a different plan. The company I use has a family plan when for $189 you get unlimited minutes for 2 people. I would think other companies would have similar options. Trent, I like the idea of this post. Although I doubt I'll make my own detergent, I appreciate the fact that saving a dollar can be more valuable than earning an extra dollar. I continue to try to do both... Angie,

About the cell phone bill being $200 more than you usually pay. If it’s going to be that much more EVERY month he should look into getting a different plan. The company I use has a family plan when for $189 you get unlimited minutes for 2 people. I would think other companies would have similar options.

Trent,

I like the idea of this post. Although I doubt I’ll make my own detergent, I appreciate the fact that saving a dollar can be more valuable than earning an extra dollar. I continue to try to do both…

]]> By: paranoidasteroid http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-667026 paranoidasteroid Tue, 19 May 2009 18:44:41 +0000 http://www.thesimpledollar.com/?p=3621#comment-667026 @ Anna (comment #23) Johanna frequently has the most intelligent and insightful comments on this blog. She doesn't always agree with Trent (although there have been times when she has), but she is unfailingly polite & realizes that a disagreement in opinion doesn't mean you have to be disrespectful. Johanna, I love your comments and always want to read your responses. I hadn't even thought of the up-front costs for his detergent supplies! @ Anna (comment #23)
Johanna frequently has the most intelligent and insightful comments on this blog. She doesn’t always agree with Trent (although there have been times when she has), but she is unfailingly polite & realizes that a disagreement in opinion doesn’t mean you have to be disrespectful.

Johanna, I love your comments and always want to read your responses. I hadn’t even thought of the up-front costs for his detergent supplies!

]]> By: Doug http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666986 Doug Tue, 19 May 2009 17:51:15 +0000 http://www.thesimpledollar.com/?p=3621#comment-666986 I am surprised how many people would prefer to work harder than smarter. Even if I were to work to make more money it only makes sense to be frugal with what I make. I have made recommendations to people on how to save (just yesterday as a matter of fact,) just to have is shot down as it is coming out of my mouth. I give another recommendation for their reason my first idea will not work to be meet with more roadblocks. Some people do not want their money and only want to give it away. Such a shame, many can not afford to have such an attitude. I am surprised how many people would prefer to work harder than smarter. Even if I were to work to make more money it only makes sense to be frugal with what I make. I have made recommendations to people on how to save (just yesterday as a matter of fact,) just to have is shot down as it is coming out of my mouth. I give another recommendation for their reason my first idea will not work to be meet with more roadblocks. Some people do not want their money and only want to give it away. Such a shame, many can not afford to have such an attitude.

]]> By: Katy http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666973 Katy Tue, 19 May 2009 17:29:15 +0000 http://www.thesimpledollar.com/?p=3621#comment-666973 Good food for thought! (No nit-picking here. I'd rather spend my time on other things. HA!) Good food for thought! (No nit-picking here. I’d rather spend my time on other things. HA!)

]]> By: Corporate Barbarian http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666949 Corporate Barbarian Tue, 19 May 2009 16:43:03 +0000 http://www.thesimpledollar.com/?p=3621#comment-666949 I'm a fan of doing both, but spending less has the immediate reward of more money in you pocket, while earning more is not as immediate. If you really try, you can slash your spending rather quickly. I’m a fan of doing both, but spending less has the immediate reward of more money in you pocket, while earning more is not as immediate. If you really try, you can slash your spending rather quickly.

]]> By: PF http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666922 PF Tue, 19 May 2009 16:01:36 +0000 http://www.thesimpledollar.com/?p=3621#comment-666922 @Abbie (#24), thanks for the feedback on the HE washer. I used to make homemade soap when I had a top loading washer and I remember that it didn't suds nearly as much, so it seems like it would be better. Good to know someone who has had success. @Abbie (#24), thanks for the feedback on the HE washer. I used to make homemade soap when I had a top loading washer and I remember that it didn’t suds nearly as much, so it seems like it would be better. Good to know someone who has had success.

]]> By: Mike http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666872 Mike Tue, 19 May 2009 14:51:22 +0000 http://www.thesimpledollar.com/?p=3621#comment-666872 @ Anna, #23 lol, I was thinking the same thing when I read her comments to this article. @ Anna, #23
lol, I was thinking the same thing when I read her comments to this article.

]]> By: Insurance Guy http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666863 Insurance Guy Tue, 19 May 2009 14:39:18 +0000 http://www.thesimpledollar.com/?p=3621#comment-666863 I agree - very hard to give up the cell phone. But negotiating with you carrier can save a few dollars here and there. It's kind of like talking with the cable company. There is always some wiggle room. I agree – very hard to give up the cell phone. But negotiating with you carrier can save a few dollars here and there. It’s kind of like talking with the cable company. There is always some wiggle room.

]]> By: Nancy http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666846 Nancy Tue, 19 May 2009 14:09:41 +0000 http://www.thesimpledollar.com/?p=3621#comment-666846 Angie, I think in this economy you have to use the cell phone for work and not complain about it even though it does cost an extra $20.00 per month. Maybe you can figure out some place else to save the $20.00 like buying more things at the grocery story when they are on special or combining your errands more so you're not driving as much or finding free enertainment to replace entertainment that you're spending money on. Maybe later down the road this will help your husband get a promotion faster. Just remember that there are many people out there who would love to have the job your husband has and employers know this. Best of luck. Angie, I think in this economy you have to use the cell phone for work and not complain about it even though it does cost an extra $20.00 per month. Maybe you can figure out some place else to save the $20.00 like buying more things at the grocery story when they are on special or combining your errands more so you’re not driving as much or finding free enertainment to replace entertainment that you’re spending money on. Maybe later down the road this will help your husband get a promotion faster. Just remember that there are many people out there who would love to have the job your husband has and employers know this. Best of luck.

]]> By: DDFD at DivorcedDadFrugalDad http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666787 DDFD at DivorcedDadFrugalDad Tue, 19 May 2009 12:55:27 +0000 http://www.thesimpledollar.com/?p=3621#comment-666787 Excellent post! While all your points are valid, the "arguement" is won on the tax issue! I love doing anything that ncreases my standard of living without being taxed or charged a premium price. Excellent post!

While all your points are valid, the “arguement” is won on the tax issue! I love doing anything that ncreases my standard of living without being taxed or charged a premium price.

]]> By: tightwadfan http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666735 tightwadfan Tue, 19 May 2009 11:49:28 +0000 http://www.thesimpledollar.com/?p=3621#comment-666735 Good post, I think this is one of the most important lessons of frugality. I like to have my evenings and weekends free so I prefer to spend less rather than earn more. If you like to work and would rather earn more than cut spending I think that's fine too as long as your loved ones are okay with it. The problem is when people hate their jobs but feel that they need the money too much. If they could learn to be happy with a lower level of consumption they could spend less time at jobs they dislike. Good post, I think this is one of the most important lessons of frugality. I like to have my evenings and weekends free so I prefer to spend less rather than earn more. If you like to work and would rather earn more than cut spending I think that’s fine too as long as your loved ones are okay with it. The problem is when people hate their jobs but feel that they need the money too much. If they could learn to be happy with a lower level of consumption they could spend less time at jobs they dislike.

]]> By: tightwadfan http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666728 tightwadfan Tue, 19 May 2009 11:38:22 +0000 http://www.thesimpledollar.com/?p=3621#comment-666728 Actually Kate, if you are already in the 33% tax bracket, any additional income *will* be taxed at 33%, because every dollar over the margin threshold (which is every additional dollar you make since you are already over the threshold), is taxed at 33%. So if you are already in the 33% bracket, you *will* have to make $150 in order to match a savings of $100. Actually Kate, if you are already in the 33% tax bracket, any additional income *will* be taxed at 33%, because every dollar over the margin threshold (which is every additional dollar you make since you are already over the threshold), is taxed at 33%. So if you are already in the 33% bracket, you *will* have to make $150 in order to match a savings of $100.

]]> By: Kate@LivingTheFrugalLife http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666704 Kate@LivingTheFrugalLife Tue, 19 May 2009 10:55:51 +0000 http://www.thesimpledollar.com/?p=3621#comment-666704 Good points, Trent, and well made. But to nitpick just a little bit, someone "in the 33% tax bracket" doesn't have all their income taxed at 33%. This is a common misconception about how income tax works. The percentages are marginal or graduated, as explained recently over at My Open Wallet. (I won't link here as links put comments into moderation status that has lasted the better part of a week for me in the past.) So it's not exactly accurate to say you'd have to earn $150 to get the same gain as saving $100 if you're in that tax bracket. On the other hand, there are all sorts of other taxes to contend with, such as sales tax, as you point out. Most of us have state income tax, and local taxes to dole out as well. So overall, I completely agree that within reason it's better to save where I can than earn more. Good points, Trent, and well made. But to nitpick just a little bit, someone “in the 33% tax bracket” doesn’t have all their income taxed at 33%. This is a common misconception about how income tax works. The percentages are marginal or graduated, as explained recently over at My Open Wallet. (I won’t link here as links put comments into moderation status that has lasted the better part of a week for me in the past.)

So it’s not exactly accurate to say you’d have to earn $150 to get the same gain as saving $100 if you’re in that tax bracket. On the other hand, there are all sorts of other taxes to contend with, such as sales tax, as you point out. Most of us have state income tax, and local taxes to dole out as well. So overall, I completely agree that within reason it’s better to save where I can than earn more.

]]> By: Beth http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666466 Beth Tue, 19 May 2009 03:56:08 +0000 http://www.thesimpledollar.com/?p=3621#comment-666466 Three cheers, Trent - great post! I think that many people forget the impact taxes have on their financial lives. It is simpler, safer, and wiser to always, always spend less than you earn than to try to earn more. Additionally, it makes you and your family more self-reliant. This post brings to mind the comparison between weight loss and financial health. The best way to lose weight includes both cutting calories and increasing physical activity. Similarly, the best way to financial health is to spend less and endeavor to earn more. Three cheers, Trent – great post!

I think that many people forget the impact taxes have on their financial lives. It is simpler, safer, and wiser to always, always spend less than you earn than to try to earn more. Additionally, it makes you and your family more self-reliant.

This post brings to mind the comparison between weight loss and financial health. The best way to lose weight includes both cutting calories and increasing physical activity. Similarly, the best way to financial health is to spend less and endeavor to earn more.

]]> By: Jenni http://www.thesimpledollar.com/2009/05/18/the-advantages-of-spending-less/comment-page-1/#comment-666335 Jenni Tue, 19 May 2009 01:32:46 +0000 http://www.thesimpledollar.com/?p=3621#comment-666335 Thank you for the laundry soap idea! I just made my first batch and am excited to see what it looks like in 24 hours. Honestly, the appeal for me is not so much "saving money" but in avoiding having to purchase and then dispose of plastic bottle after plastic bottle. All the waste I have to show for this effort is a tiny piece of cardboard. Thank you for the laundry soap idea! I just made my first batch and am excited to see what it looks like in 24 hours. Honestly, the appeal for me is not so much “saving money” but in avoiding having to purchase and then dispose of plastic bottle after plastic bottle. All the waste I have to show for this effort is a tiny piece of cardboard.

]]>