Even if you’ve got money, live like you’re broke (2024)

Reporter Lee Jenkins writes of Leonard: “He often drives a rehabbed ’97 Chevy Tahoe, nicknamed Gas Guzzler, which he drove across Southern California’s Inland Empire as a teenager.”

And why does he drive such an old car? ‘It runs,’ Leonard tells Lee. “And it’s paid off.”

Leonard reportedly has a $90 million, five-year contract he signed last year, reported Steven Kutz for MarketWatch.com.

Contrast Leonard’s lower cost living withother athletes who live large and go broke. Contrary to what some might believe, you can go broke making millions.

Color of Money Question of the Week
Do you agree that living like you’re broke can help you prosper? Send your comments to colorofmoney@washpost.com. In the subject line put “Live Like You’re Broke.” Please include your name, city and state. As I’ve said before when people have to own up to their comments they tend to be more civil.

Live Chat Today
What financial issue is on your mind this week? Are you dealing with debt and need some advice? Are you fighting with family over money? Come talk to me. Here’s the link to join the discussion today.

Venus vs. Mars when it comes to money
March is Women’s History Month, and for the Color of Money Question of the week last week I asked: What’s the best financial advice you got from a woman you know or admire? Here’s what some of you had to say:

“Best advice from a gal I knew from work (don’t even remember her name) was to buy men’s products wherever I can,” wrote Betty Lawson of Port Townsend, Wash. “Look at all products and services for the same activity sold to men and women. Haircuts, soap, shampoo, most can be found in an unscented or neutral version and [are] cheaper or [offer] more product. Every penny not spent can be saved or used for those few specially girly items one might need.”

To Lawson’s point, Danielle Paquette of The Washington Post wrote recently about why women should buy men’s products. “The New York City Department of Consumer Affairs compared nearly 800 products with female and male versions — meaning they were practically identical except for the gender-specific packaging — and uncovered a persistent surcharge for one of the sexes,” Paquette wrote. “Controlling for quality, items marketed to girls and women cost an average 7 percent more than similar products aimed at boys and men.”

Hey, I like the smell of Old Spice on my husband, so maybe I should switch.

Jennifer Parks of Atlanta wrote: “Best financial advice from a female coworker is to know what your time is worth! She was very adamant that you should know how many hours you have to work to buy something, be it a purse or a vacation. What stuck with me was her voice saying “Is it worth 8 or 80 hours of work?” That has stopped cold in my tracks from making many purchases.”

“My aunt advised that I shouldn’t retire with any debt besides my mortgage,” wrote Iris F. Harris of New York.

“My mom (and my dad) always told us (three sisters) to live beneath our means,” wrote Ingrid Gilbert of Miami. “I pretty much always have, and credit them for being financially stable pretty much my entire life. I’ve lived comfortably, have almost paid off my first condo (in 14 years) and didn’t have to live like a perpetual pauper to do it. But I definitely don’t buy $4 coffees for breakfast every morning either!”

Fern G of Sunrise, Fla., and Highland Park, N.J., retired early, thanks to some financial wisdom from her mother: “The best financial advice I’ve ever received (as did my two sisters) was from my mother: ‘Pay yourself first.’ What she meant was to put money aside (into savings, into retirement) before even putting it into our checking account, since ‘you don’t miss money you never see.’ She also hated debt, so we always paid off any credit card debt in full every month (‘If you can’t pay for it, you can’t afford it, and can live without it’). And she believed in saving up first to purchase any luxury, rather than charge it and pay interest. My mom was the daughter of uneducated immigrants; she became a teacher after becoming a mom, and with common sense, learned everything about managing money from the radio (while my dad was an accountant, he was a child of the depression and never got over the fear of never having enough money). Mom was so right. I maxed out all my retirement options (contributing the max amount to my IRA and 401K) whenever available for all of my working years, and just a few months ago retired at 60 years old. Thanks, Mom!”

Color of Money Columns
Here are my columns for the past week:

Retirement
Did you miss Rodney Brooks’s recent column about wanting to find work in retirement but can’t?

“A friend recently called to tell me he had been laid off from a company where he worked for more than a decade. He’s 60 years old and not ready to retire, either financially or emotionally,” Brooks wrote.

The prospects may be tough for his friend, as Brooks points out that a 2012 Government Accountability Office report found that unemployed workers age 55 and older were the least likely to find another job. “The elephant in the room is age discrimination,” Brooks wrote.

Stay plugged into his column because he’ll next address planning for your second-act career.

Readers may write to Michelle Singletary at The Washington Post, 1301 K St. NW, Washington, D.C., 20071, or michelle.singletary@washpost.com. Follow her on Twitter (SingletaryM) or Facebook www.facebook.com/MichelleSingletary Personal responses may not be possible, and comments or questions may be used in a future column, with the writer’s name, unless otherwise requested. To read previous Color of Money columns, go to washingtonpost.com/business.

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