Month: August 2024

When I was growing up, I had a very happy life. My mother left my father when I was 3 just before my sister was born. We had no money and my grandparents took us in. My mother got a good job, her college B.A. in accounting, and I lived with my grandparents until I married.

My grandfather didn’t make much money as a shirt cutter. But he owned his home( his father was a builder), a 2 story home with two flats. Relatives always lived downstairs. Most of the money my mom made was handed over to my grandmother for rent, food, and daycare. My mom was allowed to keep enough for transportation(2 buses each way) to get to her job, food for her lunches, money so that we could all go to the lake for the summer, high school tuition( everyone in the family had graduated from this private school because it was tradition), and just a bit of spending money. My sister and I wore hand me downs from my older cousin. I got my first bike when I was 12. It was a hand me down from that same cousin. I never felt poor but I knew money was tight for the things they wanted for themselves and us. My grandmother could make a penny stretch on food like no one else that I have ever known. Every meal was portion controlled. Rarely were there snacks or soda.

This way of life got me very interested in financial things in junior high and high school. I used to take library books out of the library that today would be considered frugality books. I learned about finances in college while I studied for my accounting degree. It was the first time I ever heard about a checking account. I just soaked up everything I could learn. The two biggest things I learned was to never spend more money than you earn and to use credit the proper way. It was okay to get a mortgage for your first home but to furnish it with credit cards was a bad idea.

When I married my Hubby, he came from a different background. He lived in a very nice suburban neighborhood that was considered one of the best places to live. But as I found out over the first years of our marriage, they weren’t rich either. They did pay their home off quickly so they owned it. That was a lessen that Hubby and I loved. We paid ours off early and the last two, we paid cash.

So when we married, it was the 1960’s. Hubby owned a car with a car payment and was paying off a small student loan. I did not work the first 6-8 months of our marriage. We found an attic apartment for $ 80. a month including heat and electric. We had a cheap phone bill because Hubby worked for the telephone company. I brought not $1.00 to our marriage because I worked long hours to go to college and every penny paid my way through those 2 years. Those years before I worked, I read every thing I could find in newspapers and books on finance and frugality.. My mother in law gave me a few cookbooks from the WWII era and I made almost every recipe from them. I had exactly $25. a month grocery money. We had no more in the budget because we had to pay all the bills and we were saving for two things that were very important to us: For Hubby to get his B.A. degree in Engineering and to save for a house. Living in that hot apartment made us want to get out of it quickly. So we squeezed every penny we could and made that grocery budget work. We saved money religiously every month for our two goals. I got a job at the telephone company too but not where Hubby worked. I bussed it. I had no driver’s license. Hubby went to school nights and we saved my income and what was what left in his for a down payment for a new home.

We purchased our newly constructed home in the suburbs 1 year and 10 months after we married. We had saved enough money so that we could purchase with cash a bed, a refrigerator, a sofa, and 6 unfinished chairs to use with the used table that Hubby’s mother gave us. I had used green stamps( does anyone remember them?) to get a card table and 4 chairs so we would have a place to sit in the kitchen and eat. His mother also gave us an old dresser. Hubby purchased a door that had been damaged and made and stained 2 end tables out of it to go on either end of the sofa. They were so sturdy that we used them for 32 years. We sold them when we moved to Arizona. I wish I still had them.

We furnished the house as we saved cash to do so. We never ran out and used credit. I worked and got a ride with the man next door who actually was my boss back and forth to work.

I quit my job due to a miscarriage just before Hubby was hit by a car while walking from the parking lot near his work. He had serious damage done to his knee and was in the hospital for weeks and home recovering for weeks. He had switched jobs and hadn’t worked long enough to get full pay for long so we lived on 1/2 pay for a long time. We made it through without borrowing a dime from anyone. But it was a big wake up call. We had some money saved besides money for furniture. But we used almost all of it up while Hubby was out of work.

That wake up call was our journey towards financial independence. We set up an annual budget that paid us first every paycheck. That has been a line item in our budget to this day. We never wanted to wonder again how we were going to make ends meet! We had always been frugal but we turned it way up after that. We still had money set aside for entertainment and things to make life enjoyable every month. We have never felt like we were giving anything up.

Fast forward one year and my first son was born. Fast forward 2 more years and my 2nd son was born. Now we had 4 people in our family so we had to up the grocery budget. It went up to $80. per month. But it included all food, OTC meds, cleaning products, all soap products, cat food, and and personal care products. I only purchased Pampers to use when we went out somewhere. I washed diapers and hung them to dry for years. That saved us a fortune. Up until just before my first son was born, I went to the laundromat every week. But we had saved and set aside money for a washer and dryer. It was our first scratch and dent appliances and with babies I was so grateful for them.

As our money grew, we found places to invest it so that we could make more money. We continued to save every month and it just kept growing. The best part was all of the passive income we made every month.

Yes, we had emergencies come up but we always had the money to pay for them and we still do.

This is getting long and I need to prep our chicken parmesan that we are having for dinner, so I will continue to write more tomorrow. This is a blog post that I decided I was going to do way back when I started blogging in 2007. Now is the time!