I did not realized how much I had saved!

[ontheweb]

1 hour ago, SelectSys said:

That is yet another thing that makes what is happening so amazing in these days of COVID.  So many people have been saving tons and tons of money.  In the US, many of the lower income people are making more with the COVID bonus than they did working.  All my discretionary expenses have gone away.  Working from home means no gas, fewer clothes, no laundry, etc.  No movies, restaurants, bars and it just keeps on going.  My number 1 vendor of late has been the Home Depot as it is harder to make excuses about deferred home projects.

Why no laundry? Are you naked when you work at home?

[getting older slowly]

Actually if one is talking day to day costs...for us who are retired here in Australia.

 

Well we are not driving anywhere as much   so a saving...but petrol prices have gone up

 

Going to supermarket... prices have gone up and not as many specials....  so costing more    and not the choice  ... often things we use to buy are no longer available...

 

Also at home most of time... heating cost gone up......

 

Was thinking about buying a small chest freezer.... Cost has almost doubled....

 

So overall..... Cost of living is dearer..... but no holidays......

 

Cheers Don

[getting older slowly]

9 hours ago, clo said:

Ah, so no eight month emergency fund. That's too bad.

 

What is this ????   ""eight month emergency fund""

Why eight months ?

 

I know a lot of people here due to high personal debt

( mainly mortgage repayment )   ... have to live pay to pay...

[clo]

2 minutes ago, getting older slowly said:

Going to supermarket... prices have gone up and not as many specials....  so costing more    and not the choice  ... often things we use to buy are no longer available...

 

One of our favorite groceries (part of a chain) had notes posted in the meat department apologizing for the higher prices and explaining they were having to pass on to us.

 

3 minutes ago, getting older slowly said:

Also at home most of time... heating cost gone up......

 

In winter we turn our heat up to about 60F/16C in the AM and down to 50F/10C at night.

 

We have a Chase Sapphire Reserve card that's giving us 5X on fuel through September. And we're planning an RV trip in a few weeks.

[clo]

1 minute ago, getting older slowly said:

 

What is this ????   ""eight month emergency fund""

Why eight months ?

 

I know a lot of people here due to high personal debt

( mainly mortgage repayment )   ... have to live pay to pay...

I don't know if Suze Orman was on tv in Oz but we were big fans. She recommended and still does that people have that much. Of course there are those who can't. But there are also those who can or could have. Her point is what if you lose your job?

[navybankerteacher]

23 minutes ago, getting older slowly said:

 

What is this ????   ""eight month emergency fund""

Why eight months ?

 

I know a lot of people here due to high personal debt

( mainly mortgage repayment )   ... have to live pay to pay...

Eight months emergency fund might be difficult to set aside - but anyone without, say, six months or so - —- regardless of whether they have high personal debt, mortgage payments or other burdens - should not really be even thinking of cruising.

 

 

[getting older slowly]

51 minutes ago, navybankerteacher said:

Eight months emergency fund might be difficult to set aside - but anyone without, say, six months or so - —- regardless of whether they have high personal debt, mortgage payments or other burdens - should not really be even thinking of cruising.

 

 

 

I would absolutely agreed.......  I remember when one was working... there were people who would get a loan   to go on a holiday !!!!!

 

I think gone are the days ... when people saved up to get things or go on holiday.....

it is now .... get it or do it.. then figure out how to pay for it......

 

Here it is like a lot of people never pay off their mortgages... always moving into a bigger better house.......

 

There is something rather nice about knowing everything you have is in fact yours and not the bank's

 

Cheers Don

[clo]

1 hour ago, navybankerteacher said:

Eight months emergency fund might be difficult to set aside - but anyone without, say, six months or so - —- regardless of whether they have high personal debt, mortgage payments or other burdens - should not really be even thinking of cruising.

 

 

Our daughter, who was and is HIGHLY employable, and her husband quit their jobs some years ago for him to go to grad school in the South. They got back and she went back to the company she had been with. It took him 18 months to find a job.  They were living with her mom (I'm the evil stepmother) and she made plenty of money. But imagine had he been doing that on his own. Emergency fund. Yes, ya better have a big cushion any time but especially now before you start taking vacations.

[clo]

17 minutes ago, getting older slowly said:

 

I would absolutely agreed.......  I remember when one was working... there were people who would get a loan   to go on a holiday !!!!!

 

I think gone are the days ... when people saved up to get things or go on holiday.....

it is now .... get it or do it.. then figure out how to pay for it......

 

Here it is like a lot of people never pay off their mortgages... always moving into a bigger better house.......

 

There is something rather nice about knowing everything you have is in fact yours and not the bank's

 

Cheers Don

Wiser words were never written.

[lucymorgan]

On 7/1/2020 at 9:22 AM, clo said:

And where would one find a "high-interest account"?  LOL.

I feel incredibly lucky as last year we purchased a country property with a few acres - currently rented out.   We have a 100% mortgage offset account so every dollar we put in that account saves us about 3% on the interest.  Because of no cruising/travel we are putting more money in there.   Not the high interest of the 70s but still a good return compared to some other options. 

I think there will be many people seeking a 'tree change' with the virus too so I doubt the value of the property will go down and anyway we didn't buy it to make money but for the future.  Our tenants have already asked for a new lease (and we have agreed).    If I was into shares, I would be buying shares in motor home and caravan companies.  

[clo]

3 minutes ago, lucymorgan said:

100% mortgage offset account

I wasn't familiar with that so Googled (ought to be my middle name!) and they're not allowed in the US.

[lucymorgan]

17 minutes ago, clo said:

I wasn't familiar with that so Googled (ought to be my middle name!) and they're not allowed in the US.

That is interesting.  I wonder why.  They are pretty common here.  

 

edit:  I found this reference - there is a similar option called an all in one mortgage https://www.investopedia.com/articles/mortgages-real-estate/08/offset-mortgage.asp  

Edited July 7, 2020 by lucymorgan

[SelectSys]

Here is a recent link that shows just how much is being saved privately in the US:

https://www.cnbc.com/2020/05/29/us-savings-rate-hits-record-33percent-as-coronavirus-causes-americans-to-stockpile-cash-curb-spending.html

 

I am sure it is the same in other parts of the developed world as well.

 

20 hours ago, ontheweb said:

Why no laundry? Are you naked when you work at home?

 

Should have been more specific.  I have stopped going to the local dry cleaner as my attire is considerably more relaxed at home.  While not naked, my uniform has switched to mainly shorts and t-shirts rather than formal slacks, dress shirts and the occasional jacket/suit.  This has resulted in a savings to me of between $50-100/month.  Just another change from COVID.

 

While I know you were trying to be funny with your quote, I am sure a lot of these types of businesses are likely suffering due to a loss of revenue from "work at home" policies.

 

17 hours ago, lucymorgan said:

...    If I was into shares, I would be buying shares in motor home and caravan companies.  

 

Perhaps in the short run.  I talked with someone in my local area who just purchased an RV for COVID travel.  He said the dealership lot was packed with customers.  My thought is that the price of used RVs is going to plummet in 2 years time as the market is flooded with low mileage/use vehicles that were purchased on impluse.

Edited July 7, 2020 by SelectSys

[clo]

1 hour ago, SelectSys said:

Here is a recent link that shows just how much is being saved privately in the US:

https://www.cnbc.com/2020/05/29/us-savings-rate-hits-record-33percent-as-coronavirus-causes-americans-to-stockpile-cash-curb-spending.html

 

I am sure it is the same in other parts of the developed world as well.

 

 

Should have been more specific.  I have stopped going to the local dry cleaner as my attire is considerably more relaxed at home.  While not naked, my uniform has switched to mainly shorts and t-shirts rather than formal slacks, dress shirts and the occasional jacket/suit.  This has resulted in a savings to me of between $50-100/month.  Just another change from COVID.

 

While I know you were trying to be funny with your quote, I am sure a lot of these types of businesses are likely suffering due to a loss of revenue from "work at home" policies.

 

 

Perhaps in the short run.  I talked with someone in my local area who just purchased an RV for COVID travel.  He said the dealership lot was packed with customers.  My thought is that the price of used RVs is going to plummet in 2 years time as the market is flooded with low mileage/use vehicles that were purchased on impluse.

I agree with you but will mention that our 23' diesel motor home does get about 15MPH. Not too bad. And we bought it pre-COVID. Used.

[2wheelin]

1 hour ago, clo said:

I agree with you but will mention that our 23' diesel motor home does get about 15MPH. Not too bad. And we bought it pre-COVID. Used.

And you are traveling through how many states at that speed? Lol. Should take care of the fall and winter.

[clo]

1 minute ago, 2wheelin said:

And you are traveling through how many states at that speed? Lol. Should take care of the fall and winter.

LOL. I just saw that but to late to 'edit.' Two margaritas with lunch 🙂

[sverigecruiser]

8 hours ago, SelectSys said:

Here is a recent link that shows just how much is being saved privately in the US:

https://www.cnbc.com/2020/05/29/us-savings-rate-hits-record-33percent-as-coronavirus-causes-americans-to-stockpile-cash-curb-spending.html

 

I am sure it is the same in other parts of the developed world as well.

 

 

Around 30% of my disposable income is close to what I normally save. The difference is that I may now save for other things.

 

It's a good thing that people save more money but less spent money also mean that businesses depending on people spending their money get in trouble! Lots of people now shop less and eat and drink less in restaurants and bars and in the short run that's a problem for many. In the long run it may not be a problem if everything goes back to how it was before the pandemi when this is over. If many realize how much they can save and change their behavior lots of businesses will be in trouble. 

[ldubs]

8 hours ago, clo said:

I agree with you but will mention that our 23' diesel motor home does get about 15MPH. Not too bad. And we bought it pre-COVID. Used.

 

Hmmm, I think I've been behind you many times.  🙂

[bigrednole]

On 7/6/2020 at 8:55 PM, clo said:

I don't know if Suze Orman was on tv in Oz but we were big fans. She recommended and still does that people have that much. Of course there are those who can't. But there are also those who can or could have. Her point is what if you lose your job?

I was one that use to live pay check to pay check. Not that we didn't make decent money, something always came about that would impact savings. Just as we got to 6 months, a car accident happens because of someone else. Even through settlements we lost about $8,000 because of it. Braces for our daughter. Other things just happen. It was until a day of reckoning that we had to make a massive lifestyle change. I was laid off from work and it was the darkest of times for me. Luckily I was back to work in 4 months. It taught me a lesson though...never depend on  having your job. Regardless of your benefit to a company, you are nothing but an expense to them and that is how you are viewed. 3 months after starting my new job, I met with my financial adviser and mortgage broker. We reassessed my family's retirement plan. After looking at job stability, investments, mortgage, expenses, and everything, we concluded moving to a 15-year mortgage was critical. We were going to take a hit on our 401k to get rid of some debt. Built a 6-month next egg and got it up to 8-months currently as an emergency fund. Luckily for us, the money came out before CV-19 crashes, we went into a lot of cash temporarily, and the market crashed. 

 

I know that was long winded, but it was a liberating experience. An experience I wish I had done 20 years ago when we were first buying a house, getting started, etc. Learning that being a slave to debt and putting 100% loyalty to a company is the wrong thing to do. Job choices mean far more than you know. If I knew more when I was looking for a career, I would have looked to other industries when I was younger...ones that have a pension. Very few companies offer it and it is extremely difficult to get enough in company sponsored 401ks to retire. Yes the pay was great, but still offers a difficult path to retire. 

[ontheweb]

13 hours ago, clo said:

LOL. I just saw that but to late to 'edit.' Two margaritas with lunch 🙂

The cover of the popular JIMMY BUFFET song by CLO CAFETERIA has become a huge hit. Ms. Cafeteria has pledged to donate a portion of her earnings from the song to hunger relief. She has said foie gras for everyone is her goal.

 

When asked for comment Mr. O.T. Web (who just yesterday made deliveries for a food pantry that he volunteers for but is not yet open to walk ins) said, "I think I would have a huge problem with delivering foie gras. I have no problem that people are getting meat, but one must draw the line somewhere."

[2wheelin]

7 hours ago, bigrednole said:

I was one that use to live pay check to pay check. Not that we didn't make decent money, something always came about that would impact savings. Just as we got to 6 months, a car accident happens because of someone else. Even through settlements we lost about $8,000 because of it. Braces for our daughter. Other things just happen. It was until a day of reckoning that we had to make a massive lifestyle change. I was laid off from work and it was the darkest of times for me. Luckily I was back to work in 4 months. It taught me a lesson though...never depend on  having your job. Regardless of your benefit to a company, you are nothing but an expense to them and that is how you are viewed. 3 months after starting my new job, I met with my financial adviser and mortgage broker. We reassessed my family's retirement plan. After looking at job stability, investments, mortgage, expenses, and everything, we concluded moving to a 15-year mortgage was critical. We were going to take a hit on our 401k to get rid of some debt. Built a 6-month next egg and got it up to 8-months currently as an emergency fund. Luckily for us, the money came out before CV-19 crashes, we went into a lot of cash temporarily, and the market crashed. 

 

I know that was long winded, but it was a liberating experience. An experience I wish I had done 20 years ago when we were first buying a house, getting started, etc. Learning that being a slave to debt and putting 100% loyalty to a company is the wrong thing to do. Job choices mean far more than you know. If I knew more when I was looking for a career, I would have looked to other industries when I was younger...ones that have a pension. Very few companies offer it and it is extremely difficult to get enough in company sponsored 401ks to retire. Yes the pay was great, but still offers a difficult path to retire. 

Congratulations on your new plan. I love the term next egg even though it was a typo. Lol  check out Dave Ramsey for living/saving plans. My 40 year old son with a family of four and mid wage job is entirely debt free. Own their house and two kids in college. Kids are helping with jobs for their expenses.

[bigrednole]

I wish I got with these two about 15 years ago. Biggest positive change in my financial future rather than what the company paid people offered. Everything was invest, invest, invest. That came at the expense of a few vacations, some other things, and worst of all 30-year mortgage.

[SelectSys]

11 hours ago, sverigecruiser said:

 

Around 30% of my disposable income is close to what I normally save. The difference is that I may now save for other things.

 

It's a good thing that people save more money but less spent money also mean that businesses depending on people spending their money get in trouble! Lots of people now shop less and eat and drink less in restaurants and bars and in the short run that's a problem for many. In the long run it may not be a problem if everything goes back to how it was before the pandemi when this is over. If many realize how much they can save and change their behavior lots of businesses will be in trouble. 

 

 

Congratulations on your savings profile!  I guess  that's why you can afford those deluxe suites in the MSC Yacht Club!  

 

Regardless of how you or I save, the changes in consumption are creating great havoc for many businesses.  I just saw this morning that "Brooks Brothers" is going through bankruptcy in part due to the lack of demand for business attire.  I mentioned above that my external cleaning bill has been eliminated with "work at home"  and my future needs for this type of clothing has largely disappeared as well.

 

https://finance.yahoo.com/news/brooks-brothers-goes-bankrupt-formal-123854417.html

 

Lots of pain coming for many people whenever the economy goes through major shifts.   

Edited July 8, 2020 by SelectSys

[sverigecruiser]

35 minutes ago, SelectSys said:

 

 

Congratulations on your savings profile!  I guess  that's why you can afford those deluxe suites in the MSC Yacht Club!  

 

 

Yes, that is the reason.

 

I work as a teacher and my salary is lower than the average salary here.

[ilikeanswers]

48 minutes ago, SelectSys said:

Lots of pain coming for many people whenever the economy goes through major shifts.   

 

With all the waste we produce from all the stuff we buy maybe a change is needed😂. Perhaps this Pandemic might be a good time to reevalute an economy based on accumulating more things😜.