Comments on: Rule #1: Spend Less Than You Earn.

By: darius

darius — Fri, 17 Sep 2010 17:50:36 +0000

i have fallen into the pit of debt. and this rule sure hit good in the face. somethin that i need t this time. after suffering a double whammy a couple of months ago (my wife & i separated then i lost my job)i am now hittin rock bottom. my wife & i then were livin above our means and everythin i read here will be valued & cherished. i now have a new job. its not much but pays the bills. marriage separation has taught me to be frugal and because of that…one step at a time i am startin to py my debts. though its still a long way for me but at least i have taken steps in solvin it. i have learned my lesson and readin trent’s rule# 1 is all but true. somethin that i will do in addition to solvin my debts and pickin up the pieces again. havin li’l money & being alone is hard. now i havetta oth get my finances back on track nd at the same time find new love – unconditional love, that is. again trent, thanks for layin out the cards on this one. you are all right bout these. thanks

By: earn and invest money

earn and invest money — Thu, 09 Sep 2010 22:14:38 +0000

This is a good post that many people forget. Most of my friends spent much money than what they earn and before the month end they are looking for someone to lend money for them.

By: Aleksandra

Aleksandra — Wed, 25 Aug 2010 11:41:57 +0000

A simple rule, but it’s still amazes me, how some people just spend more that they have.. Carry on the good work….

By: Richard

Richard — Sun, 27 Jun 2010 21:57:48 +0000

Hi Trent,

I enjoyed your post, I would love to be in a position where I could spend less than I earn. That would be a goal to work to!

By: Paul McGuinness

Paul McGuinness — Sun, 20 Jun 2010 20:44:27 +0000

Great post, very similar to the fantastic book ‘Richest man in Babylon’ recommended (or rather raved about) by the late great Jim Rhon.
This message needs to get out to our children through every educational avenue possible, then we will have a massive improvement in the world at large.

By: Joseph Librero

Joseph Librero — Sun, 20 Jun 2010 17:30:25 +0000

Great post trent. The most effective strategy I am doing so far is to automate savings. Move 10-20% of your income to a savings account electronically and automatically.

By: Anuj

Anuj — Tue, 25 May 2010 20:08:52 +0000

That’s a great post.Specially the point that you mentioned about waisting time at work.I have seen people spend hours on orkut,messengers or silly e-mail forwards.After the initial period at job I have seen people becoming inefficient at work, as they get comfortable with the office environment

By: Anon

Anon — Mon, 17 May 2010 21:17:17 +0000

I have an ING direct savings account but their checking accounts require a credit check.

This is because they don’t charge for overdrafts. Instead, they allow you to overdraft as an unsecured line of credit, like a credit card. they charge interest on the overdraft until it is paid back. This is a way better deal than an overdraft fee, which is really just a massive charge for a short term loan when you think about it.

So, I have to ask you, you must have protected your credit during your downturn or have reestablished it somehow to get approved for an ING checking account.

My credit was great before my ‘downturn,’ but is no longer. I wished I had opened an InG checking before it started. Maybe they would have let me keep it even when I tanked. I don’t know.

By: Rajul Anand

Rajul Anand — Fri, 14 May 2010 08:40:52 +0000

Hi,
I’m new here in the US and don’t have much idea about how saving’s actually work here. For me, my income is not much to actually do any big saving(I’m a PhD student, receiving moderate stipend). However, I still keep aside some money for emergency. The problem I’m having is that, right now I don’t have a car to go anywhere. I use rides from friends and colleagues for any kind of shopping outside my place. Since, I’m planning to go single living after some time, I’m considering to buy a car. However, due to various costs associated with buying and most importantly, maintaining a car. I’m having second thoughts. Moreover, since I don’t have car, I have to live near my workplace, which is very expensive(it’s downtown Detroit) compared to other places in 10 mile radius. My question is, should I consider buying a car and how much will it dent my earnings if I do ?
Money saved on rent(max 200-300 in best cases) and my current income is about 1300/month(after taxes). I pay 450+ currently for basic living(food,home) including phone.

By: Ricky Ahuja

Ricky Ahuja — Thu, 06 May 2010 12:54:56 +0000

Great post, just happened to come across this blog in a interview and thought I would check it out.

By: MGY_Bay Area

MGY_Bay Area — Thu, 07 Jan 2010 09:13:03 +0000

I do really like your posts and I am glad that I found a group of ppl who are actually like me. After my marriage I have moved to the States very recently. well, when I moved to America, I was very shocked by lifestyle, which Americans lead including my husband, eating out, spending for entertainment, buying and buying stuff which barely use. I’m an accountant, so being frugal is in every cell of my body ;-) So, basicly, I cut almost everything, well except eating out on the occasion. My husband has excellent scores now and almost debt free. but, he whines sometimes about not having what he had before and I joke “a debt?”

By: Ram

Ram — Sun, 16 Aug 2009 16:06:16 +0000

great post
what would you recommend for people who are already under control for aspects like “eating out (always pack home food), no coffee a day, no overly clothing expense, no cable tv, no netflix, no land line phone, etc” pretty much every expense in a month is fixed except for groceries (~$300/mth for a fmly of 3) and gasoline (~$150 a mth)

for past 4 months, I have started keeping track of grocery amount the Safeway store mentions on my receipt that the purchase saved for shopping there and set aside that amount under grocery category as though it was spent but kept the cash aside. I hope to make a better use of it at the end of the 1 year, seeing how far it gets in a year.

I had once blogged about this topic, and I am still figuring out…
http://ramsblog.wordpress.com/2008/07/28/about-cutting-down-monthly-personal-budget/

By: soulturtle

soulturtle — Sun, 26 Jul 2009 15:11:57 +0000

Great article, and overall, a great site! I especially like how you bold the important points in your articles, it is a HUGE HUGE help in browsing through your posts.

By: Jeanne

Jeanne — Thu, 16 Jul 2009 20:39:40 +0000

I have stashes of money in savings accounts without ATM cards attached, I’m down to 1 credit card, and I’ve haggled with various clerks at various times to keep the interest rate low. I knock the balance DOWN to $5,000 and the next thing I know there are emergencies that wipe out the cash stash and run up my balance :( It’s the saga of the single mom, my statements show wild luxurious spending on doctors, pharmacies, mechanics, and the rare grocery purchase… 3 jobs and never enough for a family of 6 to live on.

By: liz

liz — Thu, 25 Jun 2009 16:52:39 +0000

This is a great list. I’m working on my last debt, a student loan, while at the same time looking for ways to increase my income, a.k.a. side income and improving my overall skills. BTW I really enjoyed the sketches on your PF download book.

By: JoannMe

JoannMe — Tue, 23 Jun 2009 19:06:20 +0000

I wanted to make the laundry detergent found on your website. However, I cannot find the Arm & Hammer washing soda at any store in our area. There is Arm & Hammer laundry detergent. But what is the use of using that when I’m trying to save money by making my own laundry detergent. Any ideas how to go about finding it or is there something else I can use?

By: Anna

Anna — Mon, 22 Jun 2009 07:46:02 +0000

Looking forward to the series! I’ve read your blog for 2 years, and am in great financial shape, but I never get sick about hearing about the basics. :)

By: Lis

Lis — Sun, 21 Jun 2009 03:32:58 +0000

@kat (comment #1) The Dickens quote you’re thinking of is made by Wilkins Micawber in David Copperfield. :)

By: Adventure Mom Janna

Adventure Mom Janna — Sat, 20 Jun 2009 21:58:09 +0000

Great ideas. Debt gets depressing fast.

By: Quintin

Quintin — Sat, 20 Jun 2009 05:09:46 +0000

I love this post. I really like how you tie other aspects of life into money management and being frugal. A lot of people are just looking for a few tips to save money not knowing that making frugality a way of life is where the real freedom is.