You Can Save a Bundle Without Having a Large Income

I found a post today on Truck and Barter (via Financial Rounds) about:

"CNN/Money's ongoing series about the lives and habits of 'Extreme Savers' -- people who invest wisely, spend frugally, and live like there's no today."

Truck and Barter shares a few examples from the series and also points to a Google search that lists them all.

Financial Rounds gives his own example of an extreme saver:

"I have an "extreme saver" in my own extended family - the Unknown Brother In Law. Oh, the stories I could tell: He once saved money while on unemployment, and was able to pay off a $100,000 mortgage in a little over 7 years (on a family income of about $50-60,000 (this was in addition to other savings/investments). And let's not mention the paper bag we found in his basement with about a hundred elastic waistbands from old briefs."

Ultimately, Truck and Barter concludes that people who are such extreme savers are to be pitied and scorned.  I agree -- in part.  People who are overly obsessive about saving money (to the detriment of enjoying life, wasting time, compromising relationships, etc.) are way over top and are living in an unhealthy situation.  They need to relax a bit.

However, most Americans are in the exact opposite situation when it comes to saving -- they can't save a penny, but they can spend all (and even more) than they make.  Often their rationale is that they can't do without things that are "necessities" -- things like cable TV, manicures, a fourth car, and so on.  (You may think I'm making this up, but I've coached people who said they couldn't live without a monthly manicure!)

In the end, I think these extreme savers show us that anyone at any income level can save something, if they are just creative enough.  Read over their stories and see if there are a couple that may work for you.  Wouldn't you like to have some extra money available every month?

Update: Linking to the Beltway Traffic Jam.

Comments

[~Dawn]

Why is it that what appears to be extreme saving as viewed by others is followed by the advice to enjoy life? How is it that we assume these people don't find enjoyment out of this. I would see this a better obsession than collecting over 2000 elephants for example.
my 2¢

[FDBryant3]

Without knowing the people you really can't judge (I also haven't read the cases). These extreme savers may have enjoyed their lives even though they were sacrificing what most of us consider necessary comforts. On the other it is probable that there are some extreme savers that make themselves absolutely miserable for fear of wasteful spending. Although I wouldn't put myself in the latter category (truth be told I don't save enough)....I have been know to agonize over a decision to buy a book (and it has happen with a gift card). The big thing you have to have a balance to it all and find where you are comfortable.