# Financial budgeting. Do you or dont you?



## Shrek

After our few hours of Saturday night loose change penny ante poker game as we were balancing the change in our butter dishes and repurposed lunch meat containers back to the $5 minimum table stakes we play, the conversation got around to personal budgets as those of us who won big six to nine dollars and some change were selling our change back to the guys who had lost for folding money.

The guy who ended up six and a quarter ahead remarked that at least he had a buck to put in his pocket for coffee or a soda after putting $5 in his shingle fund as the spring severe weather season draws closer.

As I looked at my $7.10 in winnings after six hours of play, I tossed the dime into my butter dish for chip use in our next game and said since I live comfortably within my budget I would just add the seven to my next monthly DCA on my investment income return account I currently use as growth as I take my quarterly allotments from the one I am not contributing DCA to as it hasn't dropped to the DCA initiation level yet as dividends are slowing the draw down more than I anticipated.

The $9 winner of the six of us said he doesn't really budget but he knew where his next blue plate breakfast was coming from.

Of the six of us two are totally retired, I am semi retired and the other three are still in the race planning their retirement , but as we restocked our change tubs for our next relaxing Saturday night game we figured out five of us budget and plan ahead and although all of us use different approaches, each of our approaches included some common steps in pretty much the same sequence .

All five of us started by first figuring our worth and goals and started a budget rooted in that worth/goal limit and then once a year we reevaluated our worth and changed our budget and occasionally goal regardless of how simple or complex our budget approach.

The one of us who claimed to not have a true budget said being married to a 34 year old wife and having three kids two of which were teenaged girls, a rubber band budget was as close as he could get.

When another asked what a "rubber band budget" was I smiled remembering my days of living on a rubber band budget as the married guy explained that was where you cashed your check , folded your money left over after depositing what was needed for check written bills in half and put a rubber band around it before the wife, kids and gas station cashiers started pulling money from the wad.

When you cash your next check if there is still some folding money inside the rubber band, your budget is working. If all you have inside the rubber band is pocket lint, it isn't.

So do you budget or not? How simple or complicated is your budget? What were your first steps in developing your budget?


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## Guest

I am an Ant. When I was single, I could tell you within about $10 where every penny of my annual income had been routed. I am a budget Queen and can easily moonscape my life to afford a necessity.

I recently married a Grasshopper. He refuses to budget. Cannot deny himself any whim. Asks his Mom for money, to which she never denies him. And when he receives any windfall, it gets immediately blown on superfluous fluff.

I pull my hair out over his lack of planning, foresight, and self control.

I never imagined that there were such "adults". And while I THOUGHT I had screened his finances prior to Marriage, it's kinda spooky how well the Grasshoppers can hide their naughtiness...


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## mzgarden

When we had children, both working and living in the suburbs with all the 'needs' we believed were truth - we budgeted. Over 30+ years of marriage and growth together, the children are adults and on their own, we live semi-rural, grow food (protein, fruits & veggies) more successfully every year and live by a new set of 'needs' as truth. We now do more tracking than budgeting.
For 30+ years, New Year's Day is big breakfast treat & planning today. We take note pads and go to breakfast (that's the treat part) and review the items on the list from the previous year, our estimated and actual costs to see how we did and start this year's list. We plan this year's $$ from the new list.
When we first sold off the 'burbs and moved 'out' we had a 5 year list that included the 1 year lists but gave a longer view.


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## Kristinemomof3

We have been married for almost 20 years & from day 1 have used some sort of money program, Quicken or similar, we don't follow a strick "budget" per say, but we know exactly where our money is going. The only thing I do try & stick to a budget with is food(groceries & eating out, also home supplies.)


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## mnn2501

Only budgeting I do is to pay bills first and I always pay any ongoing bills (mortgage, cars) off early by doubling or tripling my payment.
DW and I both still work, retirement is a couple years away yet, but we're blessed to both make decent money and do live kinda high on the hog but well within our means and still save for retirement.


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## Janis R

I have tried budgeting, everything looks great on paper but never seems to work in real life. 
Since my hubby and I have been on disability we never have enough money and we don't spend money on anything frivolous, didn't even buy each other birthday or Christmas presents.
We always say "if we could only catch up and start the month on even we would be okay" but something always happens to screw that up.


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## TxGypsy

TraciInTexas said:


> I am an Ant. When I was single, I could tell you within about $10 where every penny of my annual income had been routed. I am a budget Queen and can easily moonscape my life to afford a necessity.
> 
> I recently married a Grasshopper. He refuses to budget. Cannot deny himself any whim. Asks his Mom for money, to which she never denies him. And when he receives any windfall, it gets immediately blown on superfluous fluff.
> 
> I pull my hair out over his lack of planning, foresight, and self control.
> 
> I never imagined that there were such "adults". And while I THOUGHT I had screened his finances prior to Marriage, it's kinda spooky how well the Grasshoppers can hide their naughtiness...


That's odd.....I could swear that my ex-husband hasn't remarried!! You just described him to a T!

I've not had any budget problems since he became an ex


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## Ramblin Wreck

I developed a thorough budget before I retired, but I have not been rigorous in monitoring it. If I have a bad month financially, I just stay home the next month and things seem to even out. Some very good points noted above, especially to live within your means. It also helps to have a garden and preserve your harvest, which has benefits far beyond the budget. Another "budget helper" is finding fun hobbies and pastimes that don't cost a lot of money to enjoy, like board games, card games, Red Box movies, etc. Actually, it was Shrek's card game that partially prompted this thread. I'm reminded of a scene in the old BBC series "The Good Life" where the husband is lamenting the things lost from the family's choice to develop a more simple, sustainable life. The wife responds that "the bed's free" and off they go to end the episode...just sayin' there's a lot of fun to be had without costing money.


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## Skandi

We don't budget, I don't think we have enough money to do it lols!
No seriously the main bills go on the first of the month, and the money comes in on the same day. Neither of us smoke, we don't have holidays, only recently got a car, don't go out... so even though there's two of us on one disability payment atm, we still manage. If I can get more of this ---- language down I'm hoping to find a job, or make this land we just got provide some money!


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## Shrek

My ex could never understand that the 5 different income generation accounts I maintained during our marriage worked together to provide us with $4000 to $7000 added income per year. All she ever saw was $300k to $450k "sitting in savings" and red at the fact that while I might have given in on turning the gains income over to her many times, I never let the accounts start to cut into the meat of the nut funding.

When we divorced she was all giddy at getting her cut of our income generating investments and blew through over $150k in about a year and I used my cut to pay off the farm here and re-establish a streamlined singles income generation budget as I had 5 years after moving out on my own.


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## frogmammy

I keep telling myself I'm going to budget.

When DH died, we didn't owe much at all...we never charged much, lived well below our means so we could throw money away on things we enjoyed.

Now, everything is paid for, I only have to pay taxes and utilities, and I'm thinking of paying a year ahead on the utilities just to PO the utility companies.

I am looking for a place to move to way on the other side of the state, but the thing that counfounds me to the MAX is WHY am I looking at VERY cheap houses (and I mean less than 20K, with an acre or two) that need a "little help" (up to 15K in repairs)....when I SHOULD be looking at houses that cost maybe 50K more? Probably?

Mon


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## TheMartianChick

This is a timely topic for me. I spend a lot of time using spreadsheets and software to plan everything to the "enth" degree. I spent yesterday and today going over the retirement numbers which are projected out over the next 10 years. (I know that those far-in-the-future numbers will probably be inaccurate, but the spreadsheets help me to think things through.) My husband just counts on me to get it right and I almost have to force him to sit still for 30 minutes to go over the details.

The good thing is that he doesn't spend much money without discussing it with me. He hates to spend money because the prices of things have gone up since 1988 and he has difficulty in justifying larger expenditures. He's pretty handy, so he saves us a bundle in repair costs and we both like finding low cost or free activities. NY has a lot of great parks, free concerts and hiking trails.


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## TxGypsy

frogmammy said:


> I keep telling myself I'm going to budget.
> 
> When DH died, we didn't owe much at all...we never charged much, lived well below our means so we could throw money away on things we enjoyed.
> 
> Now, everything is paid for, I only have to pay taxes and utilities, and I'm thinking of paying a year ahead on the utilities just to PO the utility companies.
> 
> I am looking for a place to move to way on the other side of the state, but the thing that counfounds me to the MAX is WHY am I looking at VERY cheap houses (and I mean less than 20K, with an acre or two) that need a "little help" (up to 15K in repairs)....when I SHOULD be looking at houses that cost maybe 50K more? Probably?
> 
> Mon


It's the homesteader mentality. I do the same thing. 

I'm living in a tiny little cabin that is about half painted, I finally got running water(but no toilet yet) and it's only 380 sq ft. I only paid $5,000...what a deal!! Because I got such a great deal it is hard to justify building or buying something else. Yes I can afford it.....but the cabin keeps the rain off, has A/C, heat and internet. I am having trouble justifying spending more money on shelter when this works.


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## Shrek

TheMartianChick said:


> This is a timely topic for me. I spend a lot of time using spreadsheets and software to plan everything to the "enth" degree. I spent yesterday and today going over the retirement numbers which are projected out over the next 10 years. (I know that those far-in-the-future numbers will probably be inaccurate, but the spreadsheets help me to think things through.) My husband just counts on me to get it right and I almost have to force him to sit still for 30 minutes to go over the details.
> 
> The good thing is that he doesn't spend much money without discussing it with me. He hates to spend money because the prices of things have gone up since 1988 and he has difficulty in justifying larger expenditures. He's pretty handy, so he saves us a bundle in repair costs and we both like finding low cost or free activities. NY has a lot of great parks, free concerts and hiking trails.


 Once that Emmitt the fixit guy facet gets into our DNA its there to stay.

Although I am financially recovered with adequate investments to once again allow my savings to "work for me" again, JB Weld is still my first go to solution before buying a new replacement anything 



Thinking back almost 30 years and my first apartment and doing my first post move out budget, I remember the first budgeting question I had to ask myself was "Where am I at now?" as I stood in my 5 room apartment with bed, dresser and two folding lawn chairs in the bedroom , a reloading bench made of 2 by 4 lumber holding my TV and boom box stereo and folding card table and chairs in the living room / dining room, back pack of military surplus mess kit and some camp cookware in the galley kitchen and $28 left in my pocket after cashing my pay check and pulling $450 out of savings to pay my rent, security deposit and buy two weeks of staple groceries to live off of until my next pay day.

Six weeks later the apartment was furnished in dumpster and curb dive and I was rebuilding my savings and starting to budget my first investments out on my own.

During those first six weeks was when I first evaluated what I worth financially and started planning out my first asset data sheets in a composition note book.

All these years later I still prefer to line off my own worksheets and payment tracking sheets in spiral notebooks.


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## Micheal

My short answer to whether or not I budget is no; never really have. Although I've always been aware of up coming bills and the amount of money needed to cover them.

Early on in life, anything I wanted once I started working (age 14) always started out with my father asking do you have enough money to buy ____, if not come back when you do. With that ingrained I discovered much of what I thought I wanted I didn't and that "stuff" I really wanted I could check-out and not only pay cash but also buy quality....

Then the 5 year stint in the USN we discovered without living near the ocean (VA Beach) and seafood there would have been many end of month meals missed. It wasn't so much budget as survival as money was very, very, tight.

Once out of the USN we were on easy street both working living sorta high on the hog, per-say, right up to the time where I was given a choice - be part of a lay-off or take a $50 a week pay-cut. I took the pay cut. It was that time that I vowed I would never again be in a position of living on more than what I could draw on unemployment.
With that mind-set monthly bills were paid as they came in, money was saved for those oddball once, twice, a year bills and the rest of any money was swept into hard to get to places. 

Now bills are still paid as they come in, there is money in savings accts for those odd-ball bills and even an emergency fund per-say. As to the monies in those hard to get at places they generate bout $250+ a month I accredit to my "retirement". Still untouched but available if needed.

So do I or did I budget? You decide.......


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## newcolorado

I budget. . On SS now and sure do budget. I am waiting on my end of Dec bank statement. Will subtract last year end of Dec from ( I hope can subtract) this Dec and see how much I gained. Last year it went down due to buying hearing aids. This year I think the budget worked. So for 2015 I get $24 more a month and it will cover my increase in Med Ins and copays. I will live on same amount. If I did not budget and plan for things I would be in money mess.


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## Shrek

Newcolorado,

You just gave me a needlepoint type name for the initial work sheet and practice of budgeting.

Its better to budget so you have a budget and at least a small mess of money and assets put aside than to not have more than a pot and a window as you face a money mess rearing its head at you through the front door.:thumb:


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## Nevada

mnn2501 said:


> Only budgeting I do is to pay bills first


That's how I do it. I pay bills and buy things I need (groceries, meds, car service, or whatever) then decide what to do with the rest.


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## Shrek

Having early in my work life after realizing my employer and most all of them hold back one or two weeks pay, as a tweaking facet of my early budgeting efforts while I was still receiving live two week paychecks instead of direct deposit and a payroll advice stub , during a overtime heavy quarter I successfully let all of my overtime pay to pool in my checking account .

After the OT pay pooled I was able to often keep an un cashed paycheck in my desk drawer at home for two weeks until my next live check was issued while paying my bills that were mailed out the same day I received them.

After getting married and turning the household budget over to my ex wife, I discovered after our divorce that she ran our household budget more like the Executive Branch managing the national debt deficit.

As I used my portion of our divided community assets to pay off the remaining years of the mortgage on this place, I saw that both my electric bill and water bills were just days away from being final noticed and during our years together while she managed our bills she had used that approach as her norm.

I know this perspective of a budgeting facet is common among many but my parents taught me to ledger list recurring monthly expenses and pay them as soon as possible using any grace period only in the most extreme of situation and if a grace period is being used, the deficit amount either was being processed out as a short term personal loan from my local bank or savings or life insurance investments paying repentance interest back to myself as an extra monthly budget line item if the cushion pool in my checking account wasn't able to cover the unexpected expense


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## ceresone

I keep track of every penny. My budget for the next month is made the month before-and I stick to it.


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## TheMartianChick

ceresone said:


> I keep track of every penny. My budget for the next month is made the month before-and I stick to it.


The sticking to it is the hardest part! :clap:


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## Nevada

Nevada said:


> That's how I do it. I pay bills and buy things I need (groceries, meds, car service, or whatever) then decide what to do with the rest.


Just for the record, precious metals are down this morning so I bought gold & silver after paying bills. Not a lot, but it will add to my stack.


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## TxGypsy

I would like to budget but blasted unanticipated tax bills are hammering me this year!!! I have a new source of income as of this year and I was thrilled, but the tax consequences are so bad that I may have to go get a job so I can pay the taxes on it!!!

As far as things I have control over, I really don't have to budget per se. I've been frugal for so long that I have to remind myself at times that I don't have to be. It is an ingrained habit from living on dang near nothing for so long.


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## jwal10

When we were farming the livestock enterprises were the savings account. We would sell if needing money for unexpected needs. Good years I kept more sows, heifers and ewes. Big items were saved for, then bought. While farming we took a small wage to pay minimal bills. We have always lived off the land. After farming we saved 1/2 of all income, first. No real budget needed.

When we decided we wanted to retire, we looked at spending and decided we could retire, easily. I worked part time for 2 years to adjust. We spend about 1/2 our monthly income, even now. No stress, no worries....James


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## SynTech

On just about everything, except food, I use the 3 day rules, and then ask myself several questions. After 3 days, if I still have to have it, I go to see the item again. Then I ask myself...do I really need this? Will it help me with my work or family? Will my family be hurt by this purchase? Can I really afford it (if it is a big ticket item)? Why do I want it?
Usually, I would say 96% of the time...I don't need the stupid item. It would have been a whim purchase that would end up not being practical or used enough and the money would be gone. 
Bottom line...think before you buy !


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## Ramblin Wreck

SynTech said:


> Will my family be hurt by this purchase? Can I really afford it (if it is a big ticket item)?


Those questions get at the heart of a very real issue/problem. I've seen guys buy trucks that cost as much as they make in a year, and then struggle to keep the lights on and the family fed while they spend six and sometimes seven years to pay for the vehicle. (With the ladies around here, it seems to be Suburbans.) Just asking and honestly answering the question you pose would save so much pain and heartache, and probably not a few marriages/broken homes.


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## emdeengee

Do we budget? Absolutely. Personally I think it is crazy not to have a real grip on your finances. To us it is like having a fuel gauge in your car. It tells you what you have and how far you can go.

The number one reason for divorce is not adultery but finances. More fights in relationships are about this than any other subject. When you have a plan and you stick to it life is so peaceful that it comes as a surprise.

Part of my business was dealing with and advising about personal finances. Most people do not have a clue as to what their expenses actually are and where they are spending (bleeding) money. Tracking everything for a couple of months usually comes as a huge shock because you are going into details. This takes work and is a bore but it makes budgeting very easy. 

A simple percentage rule (taken from net income) also helps you to stay on track. 35% for housing 15% for transportation 10% for savings 15% for debt and 25% for everything else. If you have no debt then you can increase any other category or put it towards planned spending.


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## Ann-NWIowa

Yes, I budget and have for many years. I average each category from one year and use that for the starting point for the next year's budget. We have savings, but since we're retired we have no way to replace anything we use from savings. Therefore, we make a major effort to live on our actual income from SS. Its hard with 30% (or more) going for medical each month right off the top. If I wasn't extremely frugal, we couldn't do it.


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## Shrek

The hardest pat one of the guys retired when I was is to make his wife understand that just because the short term budget goals get impacted that does not arbitrarily permit total raiding of their mid range and long range budget facets.


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## newcolorado

In Sept I had to come up with an extra $100 for trip to doctor. and been going in on Thursdays I call for appt no more Thursdays. I had son take me and I pay gas and lunch. 180 mile round trip. Been going in on senior bus. It goes once a month in on a Thursday. So will have to make the trip again this month but I had time to plan it and $100 is there. Last time it was savings. Twice a year a year I have to see him. So that is $200 extra to budget it in one way or another. Plus the Med Ins I have will change to pay copays at time of service. In past they collected and paid the copays. Will not cost me more . Hopefully they will take checks at doctor offices or rearrange my budget plans. So there could be more budge changes for 2015. 

Things have came up this year at least for me they have.


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## where I want to

No, never have and never (hopefully) will budget in any detailed way. Once I bought my place, I simply have minimal needs and even less wants.


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## Harry Chickpea

I don't budget as much as I work to eliminate spending. Back around 2002, while we were in Florida, I saw shifts that began to be frightening to me. Food pricing was increasing, restrictions from the fallout of 911 began kicking in, there were increasing tax and insurance costs, and an increase in hurricane activity. This all started me thinking "what will this be like in five years and ten years?" At the same time, I was seeing one of my main fall-back positions of leasing/running a small movie theatre evaporate, as the area we were in had theatre after theatre close up. 

By thinking in advance, we had ample time to explore options. When I saw that the real estate market had peaked - and that taxes and insurance were STILL continuing to rise, we bailed to a situation that was sustainable, cutting expenses that most people budget for without a second thought.

By getting out of a developed suburban area, we slaughtered our tax and insurance costs (which had started out low, but continually increased), eliminated a mortgage payment, and set ourselves up to be able to financially survive hard times without commensurate hardship. With the changes that have happened since our move in 2007, we are likely saving somewhere around $10,000 to $12,000 per year compared to if we had stayed where we were (if we could have even afforded to stay).

My attitude is not to budget to accept the status quo, but to plan a course of action to ELIMINATE that budget category or at least reduce it to a minimum.

Water bill
Florida - $100/mo Here - $5/mo (power) with yearly $100 maint and repair.
Cell phone
Florida - $35/mo Here - $40/YEAR
Auto Insurance
Florida - $1500 for basic legal required Here - $400/year for full coverage

What were the main things we gave up and miss?
A local Chinese restaurant that delivered.
A local pizza place that had great pizza (but went out of business about the time we left).
A store with a wide fresh seafood selection
Two really good bookstores (one of which closed a few years back)
Access to a great healer/acupuncturist
A couple nearby restaurants frequented maybe twice a year.
A discount health food store. 

Of all those, only the healer/acupuncturist begins to add "worth" to the idea of staying in that area. However, without funds to visit, that drops off as well. We'll just continue to take the $12,000 per year saving and have fond memories of how it used to be.


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## mommabear05

I understand where you are coming from Harry. I presently live in Florida and have been looking for a more reasonable place to move to( outside of Florida). May I ask where you relocated to?


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## Harry Chickpea

Northwest AL - away from Huntsville far enough that taxation and development will be slow. There is a massive difference in culture from south Florida, and of course the local jobs wouldn't pay as well.


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## mommabear05

Thank you for responding Harry. Good to have another area to look at. Husband and I went to East Tennessee area few months ago to drive around however we don't know anyone living there to get an idea of expenses, otherwise we only know what we are able to find out online.


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## newcolorado

Harry, that is not too bad a list what you miss. I moved here just over 3 years ago. Good food one misses. Books yes. My doctor 80 miles from me. no doctors in this town to change too. Clinic /hospital here nice new one and have doctors that rotate . My kids there were doctors here and they knew I Had to doctor for my heart. I did get it fixed to use the lab here and no copay. I once again have Dr/nurse monitor for my blood tests. Older ones are moving from here. Senior apt, assisted living and long term care. Senior bus Once a month to big city for medical and shopping. Vernal couple times a month and food bank once a month. 4 days a week around town here. County bus for all seniors and come to your house or where you live. Free bus. 

Moving here was costly. Now that I have to have son take me to Doctor or change to one with Thursday hours, But I have gone to this one for over 23 years. I have extra costs. So I am budgeting in extra costs.


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## grouse789

Every dollar you earn needs an assignment. Otherwise they have a way of running away.


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## Shrek

Harry Chickpea said:


> Northwest AL - away from Huntsville far enough that taxation and development will be slow. There is a massive difference in culture from south Florida, and of course the local jobs wouldn't pay as well.


 Isn't it interesting how a Huntsville earned dollar carried just two or three counties in any direction increases in local purchasing power 200% to 400%?

Many of the folks I worked with in Huntsville carpooled 45 to 60 miles one way just to live comfortable and retire out by the time they hit 50 years old.


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## Harry Chickpea

Shrek said:


> Isn't it interesting how a Huntsville earned dollar carried just two or three counties in any direction increases in local purchasing power 200% to 400%?
> 
> Many of the folks I worked with in Huntsville carpooled 45 to 60 miles one way just to live comfortable and retire out by the time they hit 50 years old.


Even less distance can make a difference. I've shopped the Aldi in Huntsville and the one in Decatur on the same day and noticed the Huntsville store was significantly more. 

Taxes and auto insurance out here are downright reasonable. I can understand working and living in a city if the pay covers costs and then some, but spendable and savable income are the bottom lines.


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## Mike CHS

Shrek said:


> Isn't it interesting how a Huntsville earned dollar carried just two or three counties in any direction increases in local purchasing power 200% to 400%?
> 
> Many of the folks I worked with in Huntsville carpooled 45 to 60 miles one way just to live comfortable and retire out by the time they hit 50 years old.


My neighbor in Tennessee is a fireman and commutes to Huntsville (about 50 miles south). He said the house and 10 acres he has would cost 3 times what he paid for it if he bought near Huntsville.


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