Frugality: The right life choice

We don't call it being "frugal"...we call it "financial discipline". I feel that if more people had financial discipline instead of "keeping up with the Jones" this country would be better off. Whenever the economy periodically turns bad people would have a better chance of adapting & surviving hard times...rather than complaining & being on government assistance. The wife & I have lived the "financial discipline" life for 20 years now...retired in our 50's...watch our money & investments grow. When a unexpected medical bill showed up...paid cash...no worry. When the TV went out...paid cash...no worry. When we want something special or extra we save up for it.   

Justin Wilson once performed a skit that ended with the Princess in the tiger trap calling out to the passing Prince " Frugal Me! Frugal Me!". I guess that makes me old. But the concept " to save" is a good way to live. Just living within your means once was enough, but today to ensure income over a  lifetime  requires saving at a much higher rate. One of the best ways to save is not paying interest. One of the biggest lies going is mortgage interest deductibility. You never get to deduct all your mortgage interest, you only get back the amount equal to your marginal tax rate. But you still spent the money! Hum what does that mean? You bought that $200K home and financed for 30 years @ 5% interest over the term you paid about $186K interest (PI $1074). Lets say your marginal tax rate averages 13%  so you had a return of $24K over 30 years (avg $806 Annually). Actual money spent $162K. Why didn't I get a 15 year mortgage? Same  $200K mortgage finance for 15 years @ 4.5% interest over the term you paid about $75K interest (PI $1530). Same marginal tax rate of 13% returns about $9750 over 15 years (avg $650 annually).  Actual money spent $65K.  What could you do with $97000.

FRUGAL IS THE WORD that my country knows---where I was born in the 3rd world country. So when I came to this country, I don't have any family to run to -only the bank is my friend.  I apply for student loans for 4 years and when I graduated I paid it less than a 3 years.  Everytime I gotten tax refund I paid half what I am getting.  My dream was to buy a house THE AMERICAN DREAM. Got 2 jobs save every penny.  Bought a used car Honda and drove it for 10 years. After 10 years of saving being frugal and thrifty  I have enough money to have a big down payment.  I still have the house and now I'm remodeling.  What I am trying to say being frugal/thrifty or cheap sometimes was and still in me because is the way I was brought up.  So being FRUGAL is not stranged to me at all.  One thing I observed when I new in this country people waste a lot of money.  In my opinion, this country will live frugally because of our economy.