Ugh, the Jones'

[disneysteve]

we're moving back to our "college town"

College towns are usually very popular for retirees because they tend to be walkable areas with lots of inexpensive dining and entertainment options, catering to college student budgets.

[Joan.of.the.Arch]

Where we live, we are probably "the rich people," relatively speaking. And yes, I think it makes it easier and more pleasant if you are not surrounded by conspicuous consumption. As I mentioned in a recent post, I can't even remember the last time I saw a new car on our block of about eighty homes. Our brushes with the Joneses come at places other than our neighborhood.

[disneysteve]

Where we live, we are probably "the rich people," relatively speaking. And yes, I think it makes it easier and more pleaseant if you are not surrounded by conspicuous consumption.

Good point. Even though I'm a physician and earn a comfortable income, we chose to buy a modest house in an older working class neighborhood. My one neighbor works for the electric company. My other neighbor works for a Ford agency. The guy across the street works for one of the airlines. I don't live in the swanky neighborhoods nearby with all of the doctors and lawyers. Several of my neighbors mow their own lawns, and I did too until a couple of years ago. At least 2 of my neighbors are often outside doing their own car repairs. People are appreciative of what they have. We're not much for status symbols or pricey toys or fancy cars. We chose not to surround ourselves with that type of lifestyle.

[Scanner]

Man, I knew they were expensive but... what does a normal pool cost?

Well, I think 21K is the base cost but I figure you'll need at least some extras, probably more like 10-15K to finish the room.

[cschin4]

Steve - You made some very wise choices. Most people buy up to what they can afford. By moving next door to less affluent Jones you don't have the material consumption constantly in "your face" or the in front of you children's face. You will come out way ahead and are going to indeed be the Millionaire next door.
But, as for mowing your own lawn , etc. I don't believe it is necessary to do everything "yourself". Sometimes you are further ahead to pay someone to do it than to spend so much time to save a few dollars. By paying someone else, it may actually free up your time to invest that time into your own profession. My philosophy is to pay others to do what they do which will give me more time to go do the work that I do. Or, to just spend the time with my family.

[disneysteve]

But, as for mowing your own lawn , etc. I don't believe it is necessary to do everything "yourself". Sometimes you are further ahead to pay someone to do it than to spend so much time to save a few dollars.

I agree. I think Amy Dacyzn explains in well in "The Tightwad Gazette" when she talks about calculating the value of what you are doing. For example, if doing a certain frugal activity takes you 1 hour and saves you $8, is it worth it? Well, if you earn minimum wage on your job, $8 for an hour of your time is not a bad deal. If, however, you are a well-paid professional who earns $50/hour, it isn't such a good deal and probably makes more sense to pay someone else to do that task for you (or buy something ready made instead of doing it yourself).

[lgslgs]

And yes, I think it makes it easier and more pleasant if you are not surrounded by conspicuous consumption.

I really enjoy sitting on the front porch and seeing neighbors drive past in vehicles older than ours. (Ours are 13 and 17 years old.)

Around here most of the Joneses don't have a lot - except beautiful land. I have to admit that I do occasionally look wistfully at some of their hills and forests. Then I go sit on the back porch and look at my own for a while and get over it.

Lynda

[pearlieq]

For example, if doing a certain frugal activity takes you 1 hour and saves you $8, is it worth it? Well, if you earn minimum wage on your job, $8 for an hour of your time is not a bad deal. If, however, you are a well-paid professional who earns $50/hour, it isn't such a good deal and probably makes more sense to pay someone else to do that task for you (or buy something ready made instead of doing it yourself).

Well, yes and no. Of course it would be a no-brainer if it were actually a choice between "Should I do this frugal activity and save $8 or should I go to work and make $50", but what would a person have actually been doing with that hour? If we're talking about having a lawn service or buying convenience items, the time you're usually cutting into is leisure time, not work time.

I'm definitely not saying lesiure time isn't valuable, but I think people tend to use this kind of justification to overbuy services and conveniences. They get to a point where they think, "Hey, I make $50 an hour, it's not worth my time to cut my lawn anymore". Except they're a salaried professional and they're not going to make another $50 with the hour they saved.

[My English Castle]

neighborhoods and the Joneses

I think the Joneses is particularly hard (at least for me) since we moved to a "better" neighborhood for the better schools. I work, and am surrounded by SAHMs who are continually telling me about their long vacations and everyone here seems to have a lawn service and cleaners. They all have new cars and I don't dare say anything about my favorite thrift store finds or we'd be ostracized faster than I care to imagine.

Granted they may have lots of debt they don't talk about, but I think I liked the
less affluent neighborhood better.

Knowing your way is right is one satisifaction, but peer pressure is tough, even after adolesence!

[disneysteve]

Of course it would be a no-brainer if it were actually a choice between "Should I do this frugal activity and save $8 or should I go to work and make $50", but what would a person have actually been doing with that hour?

I agree, and I didn't state my case very well. There are people who will say they need to do things themselves because they don't earn enough. What they don't think about, however, is if they weren't doing all those things, perhaps they could take on extra hours or a part-time job and earn a lot more than they are saving by the DIY stuff.

Also, I think people tend to undervalue their leisure time. Spending an hour doing something that only saves you $5, for example... is it really worth it? How much value do you put on your own time? Is there something more useful you could do with that hour, even if it doesn't involve going to work? Maybe you could use that hour to clean your garage or put a couple of items on ebay or just play with your kids or watch a movie with your spouse.

[sakigt]

In order to help with the "Jones' " problem, I like to put my situation up front in plain view. Its amazing how quickly people are willing to jump on the cheapo bandwagon when someone else speaks up.

[Aleta]

To the OP: Staying focused on what you're trying to accomplish will help tremendously. Having goals and dates puts importance on what you're doing. You're probably at the beginning and it is a transition.

I just finished reading the 2007 edition of Dave Ramsey's The Total Money Makeover and at the bottom of each page it says "IF YOU WILL LIVE LIKE NO ONE ELSE, LATER YOU CAN LIVE LIKE NO ONE ELSE. What you are doing is contrary to what the vast majority of people do. I would recommend going to the library and checking out books on finance such as the one above and there are more to choose from. The books are key and also forums like this to keep you motivated.

Steve: We also have a Pediatrician that lives a few houses away. He's just a normal person, very likable, and a good neighbor. Most people would never understand why he lives here, but I do. He is definitely saving Emergency funds, saving for his retirement and definitely not spoiling his kids. He could be the millionaire next door as well and no, he doesn't drive brand new cars either.

[DayByDay]

Also, I think people tend to undervalue their leisure time. Spending an hour doing something that only saves you $5, for example... is it really worth it? How much value do you put on your own time? Is there something more useful you could do with that hour, even if it doesn't involve going to work? Maybe you could use that hour to clean your garage or put a couple of items on ebay or just play with your kids or watch a movie with your spouse.

I think the answer to that depends on how tight or dire your financial situation is. Five bucks is five bucks.

[Aleta]

DayByDay: I know where you are coming from but, many people on this forum are at different levels. Sometimes your time spent with family is worth more than $5. that you save. On the other hand, if you are deep in debt, you are trying to find every corner that you can cut, but you must never forget about (even then) finding fun things to do with your family. There are a lot of free things to do. Many on this board have gotten out of debt, paid the price, and now have different priorities. You can then do what you feel is most important to you without looking at every penny and how spending a certain amount will impact your budget.

[disneysteve]

Steve: We also have a Pediatrician that lives a few houses away. He's just a normal person

Imagine that - a doctor who is a normal person.