Comments on: Are You Living Beyond Your Means? http://gailvazoxlade.com/blog/archives/1310 Mon, 21 May 2012 14:54:31 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Lisa B. Arkansas USA http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-26969 Lisa B. Arkansas USA Thu, 25 Feb 2010 23:13:10 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-26969 With Gail's advice I've paid of almost $10k worth of debt in less than a year! I am consumer debt free for the first time in my adult life and it feels GREAT! For the first time in years I'm saving for emergencies. Thank you gail! With Gail’s advice I’ve paid of almost $10k worth of debt in less than a year! I am consumer debt free for the first time in my adult life and it feels GREAT! For the first time in years I’m saving for emergencies.

Thank you gail!

]]> By: GA http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22179 GA Wed, 30 Dec 2009 00:59:20 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22179 Hi Since this post highlights my questions to Gail a year ago I thot an update might b interesting. Tho Gail couldn't come kick us into shape we used her show as a guide. In the past year, we have zeroed out 1 cc(yay), brought the balance of another to 1/3 of what it was ($2800.00), final paymnet on another cc will see that balance zeroed out in Jan 2010, another will zero out in Feb.2010. We hv also paid down the line of credit by approx. $2000, paid off $4000 personal loan and maintained a bit more than minimum on all other cc's through the year, all the while using only cash and maintaining a budget. Was it tough? heck yes, were we frustrated ?yes tempted to reach for cc - darn right but we resisted. This is an uphill battle but I am happy to say we have and are persevering. Christmas was 95% cash (sorry Gail) but we have slashed out budget further n extra expense at Christmas will be paid of in Jan itself. Plans for 2010 zero out 4 cc(Jan, Feb and 2 in June/July -God willing),keep current on all bills incl property taxes, utilities, etc(no cc), pay off the final $9000 personal loan which will leave us with 4 cc's and line of credit to pay off, hopefully with smaller balances as time goes on. So Gail tho the advise was difficult to swallow at times, it works and for that we are grateful. Do we stumble sometimes ? Absolutely but thank God we pullourselves and keep plugging away. Hopefully next update will be even better news. Thanks and hope 2010 is all you wish for. Luv GA Hi
Since this post highlights my questions to Gail a year ago I thot an update might b interesting. Tho Gail couldn’t come kick us into shape we used her show as a guide.
In the past year, we have zeroed out 1 cc(yay), brought the balance of another to 1/3 of what it was ($2800.00), final paymnet on another cc will see that balance zeroed out in Jan 2010, another will zero out in Feb.2010. We hv also paid down the line of credit by approx. $2000, paid off $4000 personal loan and maintained a bit more than minimum on all other cc’s through the year, all the while using only cash and maintaining a budget. Was it tough? heck yes, were we frustrated ?yes tempted to reach for cc – darn right but we resisted. This is an uphill battle but I am happy to say we have and are persevering. Christmas was 95% cash (sorry Gail) but we have slashed out budget further n extra expense at Christmas will be paid of in Jan itself.

Plans for 2010 zero out 4 cc(Jan, Feb and 2 in June/July -God willing),keep current on all bills incl property taxes, utilities, etc(no cc), pay off the final $9000 personal loan which will leave us with 4 cc’s and line of credit to pay off, hopefully with smaller balances as time goes on. So Gail tho the advise was difficult to swallow at times, it works and for that we are grateful. Do we stumble sometimes ? Absolutely but thank God we pullourselves and keep plugging away. Hopefully next update will be even better news.

Thanks and hope 2010 is all you wish for.
Luv

GA

]]> By: Marie http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22148 Marie Tue, 29 Dec 2009 15:50:56 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22148 I think an important exercise that MUST be done while doing a budget is to add one of three labels to each category: 1- a true need (the simple components of food, shelter, clothing) 2- a perceived need as in what you think one should not do without but does not belong in the above category (restaurant eating, higher end house and renos, luxury clothing, car... ok in some areas ONE car could be a true need); two hints that something does not belong in #1 but should be in #2: what would people think? OR you would not give up those categories if you were out of a job (should be in EF calculations or would use credit to buy them). 3- a want (hobbies, cable TV, ...) I think this exercise is good for people who think that they never get to buy anything they WANT (especially on a budget). #2 and #3 are 'wants' and not necessities of life. I am not saying to omit #2 and #3, just recognise that you do have things that you buy that are in the 'want' category. This can helkp prioritise your 'wants'. I think an important exercise that MUST be done while doing a budget is to add one of three labels to each category:
1- a true need (the simple components of food, shelter, clothing)
2- a perceived need as in what you think one should not do without but does not belong in the above category (restaurant eating, higher end house and renos, luxury clothing, car… ok in some areas ONE car could be a true need); two hints that something does not belong in #1 but should be in #2: what would people think? OR you would not give up those categories if you were out of a job (should be in EF calculations or would use credit to buy them).
3- a want (hobbies, cable TV, …)

I think this exercise is good for people who think that they never get to buy anything they WANT (especially on a budget). #2 and #3 are ‘wants’ and not necessities of life. I am not saying to omit #2 and #3, just recognise that you do have things that you buy that are in the ‘want’ category. This can helkp prioritise your ‘wants’.

]]> By: Stephanie H. http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22134 Stephanie H. Tue, 29 Dec 2009 10:19:43 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22134 As a single women who has a mortgage I have chosen to live as far below my means as possible. My motto in life is "Plan for the worst and hope for the best". I am such a finance geek I ask and got a filing cabinet for Christmas as I ran out of space in my filing box after I bought my house. I am planning on using the next week to review and file all of my financial paperwork along with laying out financial goals and priorities for the next year. As a single women who has a mortgage I have chosen to live as far below my means as possible. My motto in life is “Plan for the worst and hope for the best”. I am such a finance geek I ask and got a filing cabinet for Christmas as I ran out of space in my filing box after I bought my house. I am planning on using the next week to review and file all of my financial paperwork along with laying out financial goals and priorities for the next year.

]]> By: Catherine http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22129 Catherine Tue, 29 Dec 2009 03:34:53 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22129 @Jillian~you can tell your OH that the old lady of the group says that your son needs to learn the facts of life about money early. We all learn that every day here with Gail. I love that you give him $1.00 for each year. It gives him something to look forward to each birthday - a raise in allowance. I would suggest perhaps donating a small amount to a charity of his choice as well??? Just a thought. @Jillian~you can tell your OH that the old lady of the group says that your son needs to learn the facts of life about money early. We all learn that every day here with Gail.
I love that you give him $1.00 for each year. It gives him something to look forward to each birthday – a raise in allowance. I would suggest perhaps donating a small amount to a charity of his choice as well??? Just a thought.

]]> By: Selena http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22128 Selena Tue, 29 Dec 2009 03:29:20 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22128 Thanks Gail! My husband and I were on Season 3 episode "Does Daddy Know Best" As stubborn as we are, we both finally realized to live within our means. Our conversations about finances usually start or end with "What do you think Gail would say to us right now" We live on cash alone, no lines of credit, no payday advances (not anymore since the show) If we don't have any money left, then there's nothing to go over budget with. This works amazingly for us and has helped us to not incur any new debt. Our old debt is almost completely paid off (YAY!) We're looking forward to filming the follow-up in the new year (next week), and anxious to see if we have met Gails approval. We feel really good about our financial choices and attitude over the past few years, and we know that this would not have been possible without Gail's help in the beginning of this journey. She truly kicked our asses in gear! Thanks Gail!

My husband and I were on Season 3 episode “Does Daddy Know Best”

As stubborn as we are, we both finally realized to live within our means. Our conversations about finances usually start or end with “What do you think Gail would say to us right now” We live on cash alone, no lines of credit, no payday advances (not anymore since the show) If we don’t have any money left, then there’s nothing to go over budget with. This works amazingly for us and has helped us to not incur any new debt. Our old debt is almost completely paid off (YAY!)

We’re looking forward to filming the follow-up in the new year (next week), and anxious to see if we have met Gails approval. We feel really good about our financial choices and attitude over the past few years, and we know that this would not have been possible without Gail’s help in the beginning of this journey. She truly kicked our asses in gear!

]]> By: Jillian http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22125 Jillian Tue, 29 Dec 2009 02:47:29 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22125 Debbie said ^^^^^" I’d rather she make some mistakes with $11. and learn from them vs. much more costly mistakes later on." I LOVE what you've said here and think I just might steal it. haha. I am in a battle with my other half at the moment about pocket money for our son and your comment might make sense to the OH. The boy is seven and we give him seven dollars a week. One dollar of that must be saved and the rest is his to spend or save up as he likes. OH has a bit of trouble in saying 'no' .. he's coming around to the fact that Im doing this not to be a meanie mum but to instill some good habits early. Debbie said ^^^^^” I’d rather she make some mistakes with $11. and learn from them vs. much more costly mistakes later on.”

I LOVE what you’ve said here and think I just might steal it. haha.
I am in a battle with my other half at the moment about pocket money for our son and your comment might make sense to the OH. The boy is seven and we give him seven dollars a week. One dollar of that must be saved and the rest is his to spend or save up as he likes. OH has a bit of trouble in saying ‘no’ .. he’s coming around to the fact that Im doing this not to be a meanie mum but to instill some good habits early.

]]> By: Debbie http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22124 Debbie Tue, 29 Dec 2009 01:50:27 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22124 I think one of the most important life lessons we can teach our children is financial responsibility. Too bad I hadn't paid enough attention during my youth. Now in my mid-40's I finally "get it" and have been working very hard the past couple of years at prioritizing and getting the debt paid off - laying in bed at night hoping that I can play catch up quick enough. My daughter's allowance is an investment in her future and no matter how tight the budget gets paid weekly. I'd rather she make some mistakes with $11. and learn from them vs. much more costly mistakes later on. I think one of the most important life lessons we can teach our children is financial responsibility. Too bad I hadn’t paid enough attention during my youth. Now in my mid-40’s I finally “get it” and have been working very hard the past couple of years at prioritizing and getting the debt paid off – laying in bed at night hoping that I can play catch up quick enough. My daughter’s allowance is an investment in her future and no matter how tight the budget gets paid weekly. I’d rather she make some mistakes with $11. and learn from them vs. much more costly mistakes later on.

]]> By: Amber http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22080 Amber Mon, 28 Dec 2009 19:55:42 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22080 Your voice is so, so valuable in our culture right now. I live within my means because anything else makes me slightly sick to my stomach, but I am certain that many folks I know do not. We need people like you to speak up and remind us how to get ourselves out of this mess. Your voice is so, so valuable in our culture right now. I live within my means because anything else makes me slightly sick to my stomach, but I am certain that many folks I know do not. We need people like you to speak up and remind us how to get ourselves out of this mess.

]]> By: Antoine http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22079 Antoine Mon, 28 Dec 2009 19:27:42 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22079 Great information Gail. I grew up in Edmonton and now live in Maryland. I am a fee-based, fiduciary financial planner and author. I would love to advertise on your website. Please have someone contact me at (240)473.1314, or visit www.plancorr.com for more information. May 2010 be your best year ever. Great information Gail. I grew up in Edmonton and now live in Maryland. I am a fee-based, fiduciary financial planner and author. I would love to advertise on your website. Please have someone contact me at (240)473.1314, or visit http://www.plancorr.com for more information.

May 2010 be your best year ever.

]]> By: Christine http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22076 Christine Mon, 28 Dec 2009 17:34:49 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22076 Thank you Gail for all of your helpful advise. I am a recent graduate from law school and am painfully making the switch from living off a line of credit without a thought to saving and budgeting to learning how to deal with credit, debt, and savings. I have made a budget and it is generally working. I have had some hurdles though. For instance, I have learned twice that I should never carry my $10,000 limit credit card in my wallet. Further I have recently learned the important of saving in advance for Christmas when I ended up cash short and taking out a cash advance against my credit card (ugg). I also made a foolish mistake when I purchased a car as although it was used, it was still $20,000 (it's a Prius). All of these mistakes you have covered in your blog and so I often find reading your articles to be like a bucket of cold water to the face reminding me to wake-up to my financial situation and learn not to do it again. I also find it hard to both live and pay off debt, as you mention in the article. I accrued just under $75,000 dollars worth of debt from law school. As such, debt repayment makes up 35% of my net income (that includes above the minimum payments). My gross income is currently $70,000 and will be $80,000 in Jan.. My savings make up 25% of my net income. I have proudly gone from $0 in my savings account in Jan 09 to $3,620 in my RRSP and $1,200 in my TFSA. I am also have a high interest account for our up-coming wedding, emergencies, and now gifts. All I wish is that some how my debt would be paid off magically faster. But I know one of the first lessons I learned is that there is no magic when it comes to finances. Thank you Gail for all of your helpful advise.

I am a recent graduate from law school and am painfully making the switch from living off a line of credit without a thought to saving and budgeting to learning how to deal with credit, debt, and savings. I have made a budget and it is generally working. I have had some hurdles though. For instance, I have learned twice that I should never carry my $10,000 limit credit card in my wallet. Further I have recently learned the important of saving in advance for Christmas when I ended up cash short and taking out a cash advance against my credit card (ugg). I also made a foolish mistake when I purchased a car as although it was used, it was still $20,000 (it’s a Prius). All of these mistakes you have covered in your blog and so I often find reading your articles to be like a bucket of cold water to the face reminding me to wake-up to my financial situation and learn not to do it again.

I also find it hard to both live and pay off debt, as you mention in the article. I accrued just under $75,000 dollars worth of debt from law school. As such, debt repayment makes up 35% of my net income (that includes above the minimum payments). My gross income is currently $70,000 and will be $80,000 in Jan.. My savings make up 25% of my net income. I have proudly gone from $0 in my savings account in Jan 09 to $3,620 in my RRSP and $1,200 in my TFSA. I am also have a high interest account for our up-coming wedding, emergencies, and now gifts.

All I wish is that some how my debt would be paid off magically faster. But I know one of the first lessons I learned is that there is no magic when it comes to finances.

]]> By: Catherine http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22075 Catherine Mon, 28 Dec 2009 17:17:02 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22075 As usual Gail, you are right on point. I think sometimes it is hard for people to see the forest for the trees. Sadly, like teenagers who think they are indestructible, there are adults who think they have all the time in the world to get their financial life in order. I'm here to tell you it just isn't so. I do not know where the past 40 years have flown off to. So keep at us Gail. Keep telling us like it is. Maybe it will sink in for some of us, especially the difference between Need and Want. That is a tough one for so many. I know I've mentioned this before, but, for years hubby and I would talk about 'how do they have so much more than we do?' or 'look at the vacations they get to take...how come we can't?'. Since finding Gail I know the answers. They are in debt up to their eyeballs. As usual Gail, you are right on point. I think sometimes it is hard for people to see the forest for the trees. Sadly, like teenagers who think they are indestructible, there are adults who think they have all the time in the world to get their financial life in order. I’m here to tell you it just isn’t so. I do not know where the past 40 years have flown off to.
So keep at us Gail. Keep telling us like it is. Maybe it will sink in for some of us, especially the difference between Need and Want. That is a tough one for so many. I know I’ve mentioned this before, but, for years hubby and I would talk about ‘how do they have so much more than we do?’ or ‘look at the vacations they get to take…how come we can’t?’. Since finding Gail I know the answers. They are in debt up to their eyeballs.

]]> By: Amelia http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22071 Amelia Mon, 28 Dec 2009 14:52:08 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22071 It's funny how much of our lifestyle can be moved into the "want" category rather than the "need" category when you really start thinking about it. If you compare the size of a "small" house here with a small house in rural Africa you begin to see that most of the space is needed to store stuff. I don't think this is bad thing. We are lucky to live in a developed nation where we are almost guaranteed to have a comfortable life (with a little hard work). And I like all my stuff, we just need to make sure we don't get carried away with it. To put things in perspective: Here we can run a bath, be dissatisfied with the temperature of the water, drain the tub and start over. In Guinea, they don't have running water, let alone hot water in every household. To them we are rich beyond belief. It’s funny how much of our lifestyle can be moved into the “want” category rather than the “need” category when you really start thinking about it. If you compare the size of a “small” house here with a small house in rural Africa you begin to see that most of the space is needed to store stuff. I don’t think this is bad thing. We are lucky to live in a developed nation where we are almost guaranteed to have a comfortable life (with a little hard work). And I like all my stuff, we just need to make sure we don’t get carried away with it.

To put things in perspective: Here we can run a bath, be dissatisfied with the temperature of the water, drain the tub and start over. In Guinea, they don’t have running water, let alone hot water in every household. To them we are rich beyond belief.

]]> By: Ann http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22070 Ann Mon, 28 Dec 2009 14:44:55 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22070 I prefer to act half my wage. That allows me to retire early and spend my days pursuing my passions. I prefer to act half my wage. That allows me to retire early and spend my days pursuing my passions.

]]> By: Jason http://gailvazoxlade.com/blog/archives/1310/comment-page-1#comment-22069 Jason Mon, 28 Dec 2009 14:09:23 +0000 http://gailvazoxlade.com/blog/?p=1310#comment-22069 I think the Advice here is great. taking on too much debt is a huge cause of financial strife. I love the advice on bill payments. Regards, Jason I think the Advice here is great. taking on too much debt is a huge cause of financial strife. I love the advice on bill payments.

Regards,

Jason

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