Although I haven’t conducted a scientific study, I suspect that most people of modest means who are successfully managing their money understand the importance of patience in personal finance.
Let’s face it: Most debt-free people aren’t impulsive shoppers, or insistent on instant gratification — if they want something but don’t have the cash, then they wait until they’ve saved enough.
An Unexpected Milestone
Patience has certainly played a ginormous role in allowing me to build a healthy nest egg — not to mention keeping my debt to a minimum. I was reminded of that again after the Honeybee and I bought beautiful new end- and coffee-tables to cap off one of our remodeling projects: while loading the car with our old tables to give to a local charity, it dawned on me that we originally bought that furniture second-hand many years ago.
When we first bought our new home, we bought one new furniture set to go into it: a kitchen table with six chairs. Everything else was “donated” by our parents or bought second-hand. Not that we cared. In fact, we ignored the urge to fill every room with brand new furniture because: 1) we didn’t have the money, and; 2) we weren’t willing to go into debt for five or six years to pay for it.
Why Waiting Was Worth It
Looking back, the wait was definitely worth it. The Honeybee and I could have furnished our entire house when we first moved in (minus the kitchen set we bought) for about $12,000.
If we had been impatient — and took out a 5-year loan for the full amount at an interest rate of 8% — we would have spent an additional $2599 in interest. Even today, that’s enough money to pay for a roomful of furniture all by itself.
Over the years, our patience has allowed us to avoid a lot of costly interest payments. As a result, we’ve been able to afford some things much sooner than we otherwise would have — without being beholden to any lender.
The Reality Is… Saving Money Takes Time
Anyway, that little furniture episode got me thinking about how long the Honeybee and I have had to wait to buy certain things we’ve wanted since moving into our new home in 1997. So I put together a little list of all the “big ticket” items we’ve bought since then — either for the first time, or to replace our second-hand stuff. (The numbers in parentheses note how long we waited before we could finally afford to buy each item):
- Matthew’s new bedroom set (1 year)
- Backyard patio slab (1 year)
- New mini van (2 years)
- Family room sofa set (3 years)
- Nina’s new bedroom set (4 years)
- Built-in family room entertainment center (5 years)
- Tile floors for family room, foyer, powder room and kitchen (6 years)
- Replace blinds with shutters throughout house (7 years)
- Loft remodel, including furniture, wood flooring and built-in loft office desk and cabinets (8 years)
- Wood flooring in guest bathroom (8 years)
- Upgraded carpet in living room and bedrooms (8 years)
- Dining room table, hutch and buffet table (9 years)
- Living room sofa sleeper (9 years)
- Upgrade the wood privacy fence with a block wall (10 years)
- Upgraded glass front doors (11 years)
- Upgraded iron staircase balusters (11 years)
- Upgraded cabinets in kitchen, powder room, and baths (12 years)
- Kitchen, bath and powder room remodel (13 years)
- Family room coffee table and end table (13 years)
- Backyard patio cover (15 years)
- New car (16 years)
- New master bedroom furniture and a master bath remodel (17 years)
- Computerized telescope (still waiting; unknown how far off)
People of modest means should understand two important facts:
- We can’t have it all at once.
- Saving money takes time — sometimes lots of it.
As you can see, I’m still waiting for my high-end computerized telescope. That’s okay though; I may be old, but life is a marathon and — as best as I can tell — I’ve still got more than a few miles to go. At least I hope so.
Besides, the stars and planets aren’t going away any time soon.
***
(Note: This is a repost of an article originally published on 13 November 2017.)
Photo Credit: Chris Preen
Even though me and my hubby have been married and in our house for ten years we’re still waiting for lots of things too. I can’t wait until we get our new floors throughout the house. That’s finally coming next year! Goodbye builder issued cheap carpet!! We also are still living LOTS of hand me down furniture from our parents too, although we did splurge and get a nice dining room set when we first moved in.
I love carpets. What’s wrong with them?
When my husband and I first moved into our apartment many, many years ago we went many months without any furniture. I remember his parents coming to visit a few months after moving in and they had to sit on the floor. They were very good sports, though. 😉
Unless it’s for health reasons, why should we ever buy new furniture? I find that used furniture is often more sturdy and aesthetically pleasing. I would also argue that if you’re going to go to the expense of buying new that one should consider artisanal works. I also think that having a goal of “all new” furniture is not a frugal ideal.
I LOVE and use only recycled, pre owned, antique, restored or otherwise non new furniture, EXCEPT for mattresses and most major appliances. Have had amazing good luck with practically brand new refrigerators, you know, hubby insists all she needs is a couple of new appliances, he buys them, they fight for six months and then re do entire kitchen as she wanted in the beginning and they get all brand new appliances again, and the dealer sells off the used ones cheap. We have beautiful antique solid wood furniture, great wicker, wonderful accessories, beautiful upholstered furniture, antique prints and oils, quilts, designer linens. Where we live there are hoards of rich people who redecorate and discard while things are still in brand new condition. It’ surprising, but lucrative for the astute buyer of gently used things. I needed new curtains for the bedroom. Bought some HUGE like new lined chintz drapes with the factory glaze still on material at a yard sale . The woman remarked, “Yes, that window treatment (translation, curtains but with a really HIGH price tag!) cost me over a thousand dollars but I’ve decided I don’t like the color.” I cut the drapes apart at the top, shortened them and voila, new curtains for the bedroom for $5. per window! I’m happy for those of you who want and get only new furniture, but for me, the charm of recycled (and, let’s face it, dirt cheap) pre owned is my passion. The challenge of finding great treasures for pennies on the dollar is a kick, and if I need to sell anything I generally get more than I paid for it!
This is a great post Len.
I have also had to wait for most of the big purchases in my life. I had to save for 10 years for a down-payment on our house, but it was well worth it. This year, we also bought our first new living room furniture, after living in the house for over 15 years. I’m saving right now for a small motorhome. That’s not a frugal purchase, but we camp a lot and have been sleeping in the back of my pickup for years.
Bret, Before BUYING motor home, go price renting a nice clean, practically brand new motor home from the RV place. Then figure out how many times a year (BE HONEST!) you will use it for five years, multiply uses per year by five. Divide that figure into the cost of new motor home. Bet it is cheaper to RENT! Folks rarely use the mobile homes as much as they think they will. Don’t forget to add five years of insurance, license plates / registration costs to the price of the motor home. Plus you have to store the moose on your property. Motor homes depreciate like a stone dropped into a well, they have almost no resale value, plus are poorly built and tend to fall apart quickly. Most likely you will find it is much cheaper to rent a motor home when you need it and get a brand new or almost new motor home each time.
Great post, but from the comments it sounds like you are preaching to the choir!
We too are savers. We always have saved before buying and as a result have zero debt (no mortgage, no car loans, no student debt, zero).
Over the years we have splurged on a few things, but to our surprise, we found that owning an item we desired was only satisfying for a fleeting moment in time. The item soon became old and our thoughts turned to other desired items.
By delaying gratification we spent the same money over and over in our minds for different things. Once we finally committed the funds to buy something, we no longer had the option of selecting other items.
As to our furniture, I’m sure no one loves it but us – 3rd generation hand-me-downs (aka heirlooms).
My house is filled with hand me downs. Although I spent a couple thousand restoring some of the more sentimental things, I am looking over to my TV stand. We are still using a coffee table that one of my previous roommates stole from his college dorm almost 20 years ago. Then upstairs, my husband loves to tell people who stay over how many of his relatives died in the bed in our guest room.
Yes, I’m a professional, yes, I make a good salary, yes, I could probably buy a fancy TV stand for my new TV and bedroom sets that match, but somehow that’s not as big a priority as other expenses and saving.
Kudos to you Len, although I don’t know if it’s so much patience with me as I have other things I want to spend money on first. Plus I don’t like shopping. It’s hard work.
Great post Len. When we first bought our house, we furnished it with hand me down couch, tables, etc from relatives. Our dining room furniture was a card table with four folding chairs. We also used (for a short time) some wooden orange crates for end tables. Are there still such things as wooden orange crates? Hmmm.
My parents bought and refinished a full size bed and highboy dresser for $127 dollars when they got married in 1974. When I got my first apartment in 2002, they gave it to me and bought a king size bed. I am still using it! That’s a cost of $3.53/year. Not bad. (Of course, the mattress has been replaced twice.)
Good for you, Sarah! You got one heck of a bargain! And, yeah, too bad mattresses don’t last as long as our bedroom sets.
Len, I think I’ve got you beat. Just got rid of my 50+ year old hand me down bedroom set (no, I’m not that old) that I’ve been hauling around since I left home 27 years ago. I regret waiting that long actually.
Had an old mattress for so many years (10 years or so)… finally got rid of it last year. I sleep much better though, maybe I should have done it a little before!!
I agree with you completely. Patience is must to take wiser decisions.
I have several friends that literally do not understand my requirement of saving up for something before I buy it. “You only live once” is a phrase that never should have been coined, because so many people just say it to justify their spending.
I have found I also have to be patient when paying down debt. Well, my debt is my mortgage, and I want it to just go away. It will be gone in 7 years, but tomorrow would be nice.
A great post! Unfortunately many of us have to learn the patience lesson the hard and expensive way.
Good point Len. I like the idea of hand me downs being blessings (both received and given) to friends and family (and charities). I know it’s just “stuff” but it is well loved “stuff.”
Great point Len! I think so many of us want to get out of debt NOW, want to save up enough money for whatever goal NOW but it really does take time and patience. I think I can now wait for a few things, like being a home owner, instead of taking the “easy” (read expensive) way out like unnecessary loans and buying big ticket furniture right away.
Lol. The title is hilarious. As the story illustrates, patience is truly a virtue.
OK Len, I noticed the pull-out sofa was done before the kitchen remodel.
Was that because Honeybee needs a place to send you when you have been bad, more than she needed a new kitchen?
Just askin???
We still have a ton of hand-me-downs. We bought our house 3 1/2 years ago, bought a big tv and corner unit 3 years ago, installed wood laminate downstairs 2 1/2 years ago, and spent $6000 on a bedroom set and Tempurpedic mattress 2 years ago. Everything else is hand-me-downs, lol. I’m not sure if we’re ever going to replace it all. 🙂
Len, I’m the same way. Slow and steady with the purchases, and not too much at once. I splurge every 6 months or so for something big and necessary, but I’ve still got a ways to go.
My living room couch and love seat are still hand-me downs from my brother in law from 5 years ago and our coffee table has made it through about 12 different living rooms and several dogs using it as a chew toy. But we buy the important things and upgrade when necessity speaks. Finishing my basement now which will be the first room in the house that has all new furnishings!
Good advice! Now it’s so easy to find quality pre-owned furniture for free or lowcost on Craigslist or Freecycle.
My wife and I definitely understand this! We have been in our home for a little over two years and are slowly replacing old college furniture and items. We are still using a coffee table that my father-in-law found at the dump for us! There is no need to go and get new things just because everything needs to be new. That is how people get into the debt problems they have in the first place.
I used to buy a bunch of stuff on credit cards because I “needed” to have them right away and that got me into debt trouble. Now I’m like you and save up for what I want to buy. If I don’t have that money in the bank, I don’t get it.
Good for you, Ninja!
Len, nice concept. It occurs to me that this idea could be applied on a small scale as well. Ordinarily get your haircut every 4 weeks? Stretch it out to 5 or 6 (heck 8) and halve your annual haircut bill. Start thinking big picture (as you did in this article) and small changes add up to big results over time.
I used to use that system with my contact lenses, Eli. The lenses were supposedly good for 2 weeks, but I found they lasted just fine if I stretched them out an extra week.
This leads us to the fact why older people are more patience then the younger adults, cause life has taught them that it pays to have a bit more patience.
To keep myself from buying everything I want all at once, I prioritize and choose one or two things. The hard part is waiting till I have enough money for the next thing, but it’s better than being in debt.
I see your point, but patience can be a really hard thing to learn. I am working on it, but it is an everyday effort. Great job with all the upgrades to your home and belongings. Sounds like you guys have done a great job delaying gratification.
True that. It really needs a LOT of patience and denying of one’s pleasures to achieve our savings goal. However, to many people, it’s easier said than done. With all the convenience that the world offers, from online stores to credit cards, it’s very easy to splurge on things we want.
True this. Whether for savings, debt or investment, patience is a must. It helps a lot to reach PF goals.
Len,
May I add that it’s possible to create alot of needed things oneself, using offbeat materials like old wood and offbeat tools like outdated farm machinery?
One enjoys the creative process, the end result and the money saved.
This approachcan be seen throughout the “Grandfather Says” chronicles.
We sorta non-traditionalists. Had very little money when first married (I was an E-2 army private, she worked a minimum wage job) so our first apartment was furnished with mattress/box springs we did buy new, but on the floor….couple of sturdy cardboard boxes for end tables. Couch, end tables, TV stand I built at the base craft shop out of local bought wood. Still using the maple end tables 40+ years later !
After Army life, we moved to East TN, and built our first house for 10k we’d saved over 4 years, borrowed another 10 and built the house ourselves. I built more furniture for it as well. I remember the fridge came well used from her mom….probably 12-15 year old Amana brand. Worked fine, but outside was rusting, so I sanded it down, painted and we used that one for 11 years we lived in that house, and another 5 in the next house (also built by us).
It finally died (RIP) in 1990, we bought a spanking new side-by-side which my wife never did like, the old one had freezer on the bottom.
Kept that one until kitchen remodel of 2010, sold it on CL, bought a stainless, energy star rated (bigger fridge, half the electrical use) with, yeah you guessed it, freezer on the bottom….ahahaaaa
Point is, the more you do for yourself EARLY ON, the less you pay out for stuff (+ interest if big ticket stuff), and the more you accumulate for you.
I completely agree with you that patience is a virtue, I think not just for finance, but for each and everything, patience is a must.
You did not list “the bunker,” did that come with the house or did you dig it manually?
I found that by waiting one usually makes a better purchase decision later on. One thing I would change regarding purchases, would have been to list my wants and prioritize them (which would add the most relative value to life) vs. the more random approach taken.
I oversaw construction of the bunker while the home was being built. I then took care of the construction crew to ensure it is never located; they’re buried in the walls.
I saved for years to buy the furniture I wanted. I finally had enough money saved but the furniture was no longer being made. So, I found it being sold by a reputable antique dealer. I have a place full of the furniture I wanted and now it’s antique. I am older than my furniture. My body might be a museum piece if they take abstract art. 😉
Len, keep on eating the fruitcake. It’s why you have many more years left in you.