Thursday, October 4, 2018

It Doesn't Compute



We are in the midst of filling out financial aid packets and preparing to apply to colleges.  My oldest has already completed one set of applications and is working on the next.  Fortunately she has a really nice and really helpful college and career counselor at her high school that is very good at her job and very much interested in helping my daughter with the whole process.  This takes a big load off of me, especially as she knows a whole lot more about this process than I do.  It has been a long time since I had to do this myself and a lot has changed.

The other day my daughter came home and asked me if we qualify for food stamps.   Huh?


I told her no. We don't.  She went on to tell me that her college counselor says that she thinks we do.  I explained to her that, actually we do not.  Although a family of three can make up to a certain amount and still be eligible, we are not.  She went on to ask about free or reduced school lunches too.  No, we do not qualify for that either.

The issue is simply this.  I make about $300 a month over the threshold, I own too many assets and I have too much money in savings.  She said she told her counselor all of this and even bragged about the fact that I only spend about $150 a month on groceries and we live in a really nice home.  Her counselor told her "it doesn't compute".  Not the first time I've heard something along these lines.  Most recently in a conversation with a friend of mine who works as a mortgage lender.  Apparently it boggles his mind too.


The truth is, I don't make a lot of money.  More than some and a lot less than most.  We are a single income family of three and by the government's standards are considered to be low income.  Yet, to the outside world, we live more like a middle income family.

But not like most middle income families because I'm not rolling in debt.  I don't have a huge mortgage, a huge home, huge monthly expenses, nor do I rely on a second wage earner to make ends meet.  I have a savings account with money in it and four retirement accounts.  I also have a retirement date.  I'm better off financially than most and because of that it is hard for a lot of people to understand how it is even possible based on my annual salary alone.


After the discussion concluded between my daughter and the college counselor this lovely woman told my daughter that I really needed  to teach a class about how I do things.  My daughter's response was to tell her about my blog and suggest she check it out.  She made me so proud.  😊

I have always maintained it isn't just about how much money you make.  It is all about what you do with it.  The choices and decisions we make with that money are truly what matters.

Mind your pennies and the dollars will take care of themselves

So at the end of the day....  it does compute.  It really computes just fine.



21 comments:

  1. You ought to be proud! Good for you!

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  2. Wonderful post. It does compute! lol. I too spend very little on food for my husband and myself. Not having debt makes our expenses so much lower than most people. Also having a paid for house and car. They may not be the best/ newest but they are good and paid for. Take care and keep up the good work. Your girls will be way ahead of the game with all you have taught and shown them.

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  3. This is so true! I often wonder how others have so much to spend but i guess they aren't saving much or are worse, have tons of debt.

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    1. I would agree, especially with people I've talked to, they spend so much, don't save and have a lot of debt. I wouldn't trade places. :)

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    1. I know people who live well, but are deeply in debt. I don't have a lot of money and manage to keep the appearances of have more. Well, except for house...lol.

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  5. What a great post!
    So many people have no clue about how to be careful with their money (and don't seem to care). I learned well from my parents and grandparents who lived through the Great Depression.

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    1. My grandmothers were all a wealth of information. They lived simply and within their means. And they didn't waste anything either, especially food.

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  6. I think more people (like your daughter's counselor) should read the book, "The Millionaire Next Door." It's typically people that buy luxury cars, clothes, and so on that are in debt. There is something called "Stealth wealth" which is more my style - no conspicuous consumption, just frugality and investment to financial freedom - and as in your case, early retirement :)

    D.

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    1. Lots of people should read that book. I also like Your Money Or Your Life. Don't loan it out though or you'll never get it back. Ha!

      I like that "stealth wealth". That's me! :)

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  7. Now how about that??? I love it!! People get so caught up in spend--spend--spend; they don't realize there is another way! Hats off to you!

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    1. Thanks! Amazing how much $$ slips through people's fingers and they don't even realize it.

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  8. Awesome post! I know a couple of people that earn six figure salaries....yet are in debt up to their ears! It truly IS what you do with your money, not how much you make.... and (sadly) those same six figure earners are strangers to their families (from having to work so many hours).... I've learned quite a bit fro reading your blog....and hope that others will too! :-)

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    1. I some of those people too and sadly they also suffer from stress and have health issues. It isn't worth it to work that hard and try to support that kind of lifestyle. In my opinion it isn't much of a life to support.

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  9. I really admire the way you live your life. You are teaching your daughters, so your thriftiness will go on for at least another generation.

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    1. Thank you Carole. I do hope I've taught them enough.

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  10. Wonderful post! You are teaching your daughters teriffic money lessons. You control your money instead of it controlling you. A colleague once asked me about our mortgage and I said "we don't have one". HOW did you do that? Well, we're 21 years into a 20year mortgage. She didn't get it. I had to explain that we had never refinanced and therefore it's gone.

    Nothing is more priceless than zero debt and you'll be there too!!!

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    1. Thank you Elle. I am very much looking forward to the day our mortgage is a thing of the past.

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  11. Your blog is great for tips on how to save money. I can always use a kick in the backside about saving money. Being thrifty is a happy way to live.

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