To avoid these ads, REGISTER NOW!

I have given up... We can't do it...

hosz

Well-known member
Joined
Feb 25, 2012
Messages
185
Everything comes down to your own individual circumstance. For some people, buying makes more sense. Others, it’s renting. What you should NOT DO is automatically dismiss one or the other without actually calculating the cost of each.

Whether you rent or buy, the basic point of all this is to save money. When people complain that they can never get ahead or only the rich can save money, I want to strangle them. Anyone with a modest income can get ahead.

My dad never earned more than $60k a year and always drove a 10 year-old Chevy with rattle-can paint. We lived in the cheapest house in the best school district he could afford.

When I was 14, I was crying about not having designer clothes when my friends had their Air Jordans and parents who chauffeured them around in a new Bimmer.

That’s when my dad showed me his retirement statement and how quickly money accumulates when you save and don’t spend it on unnecessary things. My dad retired about 6 years ago with almost $2 million.

In my entire working career, I never cracked $100k. My first job paid $35k and I could only put a few thousand away that first year, but every year I would save as much as I could. Most of my career, I made between $60k and $80k. It was only a few months ago that I finally landed a job that is approaching $100k (which is one of the reasons I rent, so I can easily move to areas with higher paying jobs). Maybe in a few years I will finally break $100k. But I live in NYC and $100k here is probably equivalent to $60k in most parts of the country.

It’s hard when you first start and easy to get discouraged when you want to save more than $1 million and your account only shows a few thousand. But I kept at it and one day, I got my statement and it showed I had saved my first $100k. Today, after 20 years of working and diligently putting away between $10k and $15k a year, I have now saved about $400k. My accounts double every 8-12 years and I’m 41.

Saving money and not buying a $40k car just because I want it is a life lesson my dad taught me and I hope to one day demonstrate to my kids how quickly saving and compound interest can grow an account.

When I die, I will probably be able to leave enough to my kids that if they choose to continue saving money like my dad and not blow their inheritance on a fancy new car, clothes, etc., after 10-15 years of working and saving, the income generated from their savings will be enough for them to live comfortably for the rest of their lives and they can chose to work because they want to, not because they have to.

Sorry for the long post, but people should not “give up” and think it’s okay to just buy whatever they want because they think they’ll never be able to save anything.
 
To avoid these ads, REGISTER NOW!

Aberdale

Well-known member
Joined
Mar 13, 2009
Messages
1,380
Location
Ohio
Re: I have given up... We cant do it...

I love you guys that buy NEW vehicles . You pay $40k and I buy it from you in 4 years for $15K. It wont smell like new leather after my Jack Russell farts in it any way .
I think you will find that most folks that can afford to buy new , with cash , Don't. That is one reason they can.

I will also tell you that most people that retire before the age of 60 are debt free.

I'm with you on this one, skyking.

Looking back at my life as an example, I'm sure we have all done well by saving at the right time which allowed us to leverage our income, or spent money at the right time, which allowed us to get something that we otherwise would have difficulty affording at another time. It's just being opportunistic when a situation presents itself.

On the other hand, we have all spent money and later regretted it, or saved and lost money on poor investments. In many cases it was just bad luck or bad timing. It's just part of life. The important thing about making bad decisions is to learn from them and try not to make the same mistake again.

This whole discussion about "the right thing to do", and making/saving money versus spending/losing money doesn't really matter. It's a personal situation for each of us, and what may seem right to one may seem dead wrong to someone else.

Over the years I've transformed from a spender to a saver. Was it the right thing to do? For me it was. It allowed me to retire early with no money worries. But there may be others that couldn't stand my lifestyle.

I'm just happy that there are still a lot of people that think differently than me. If it wasn't for wasteful people, people trying to impress others, people that have to have the latest fad, people that feel entitled to live in luxury, and yes, people that are just plain clueless about money, then the economy wouldn't be as robust as it is. The health of the economy is dependent on the speed of the turnover of the money supply. The more (and quicker) that money exchanges hands, the healthier the economy. And the healthier the economy, the better return I get on my investments.

I just find it interesting that so many people find that spending upwards of $30,000 on a new car, or people that think they are actually saving money by renting, or people that carry revolving debt, or people that think 0% interest loans don't actually build in the interest into the purchase price, exist. But, God bless 'em, they keep the economy going.

'dale
 

Kevin54

MEMBER EMERITUS
Joined
Jan 12, 2005
Messages
29,341
Location
Urbana, Ohio
A member above mentioned they started saving $5 bills, and now have $15,000. I don't collect bills, but I hate carrying change. I took a 5 gallon water jug and started putting change in it. That jug, just partially filled, paid to have laminate flooring put down in our 24' x 24' family room.

All in all we had collected almost $2,000 in just change in a years time.

And yes, I will pick up a penny if I see one laying in the parking lot or store.
 

Aberdale

Well-known member
Joined
Mar 13, 2009
Messages
1,380
Location
Ohio
A member above mentioned they started saving $5 bills, and now have $15,000. I don't collect bills, but I hate carrying change. I took a 5 gallon water jug and started putting change in it. That jug, just partially filled, paid to have laminate flooring put down in our 24' x 24' family room.

All in all we had collected almost $2,000 in just change in a years time.

And yes, I will pick up a penny if I see one laying in the parking lot or store.

Kevin,

Great story.

I started saving change when I was in college. I had a plastic container in the closet that I would just chuck the change in to keep from wearing out my pockets. Once the container was filled (several years after college), I put a new container next to it and just kept throwing change into it. After I got married, my wife contributed as well. Fast forward 30 years, and three moves later, I got tired of lugging these containers of change around every time we moved, and decided to deposit it in the bank. The total surprised me. Just shy of $40,000.

Many would use this windfall as an excuse to spend on a new car or a vacation. We needed neither, so we put it in mutual funds. Those funds are now worth more than $100,000. Not bad for pocket change.

'dale
 

dogdad

Well-known member
Joined
Dec 19, 2013
Messages
289
Location
Down south
I have mixed feelings about all of this...some I agree and some disagree.....I know the $40 k is a lot to some for a new auto.........but so is the thousands some spend on a tool box....one gets you from point A to point b,,,the other holds tools,,,,,go figure....
 

BJ42LX

Well-known member
Joined
Dec 29, 2010
Messages
2,811
Location
WNY
Fast forward 30 years,
...
we put it in mutual funds. Those funds are now worth more than $100,000.

Imagine what it would have been worth if you had invested it every six months over those 30 years....
 

MackMan

Well-known member
Joined
Jul 25, 2012
Messages
648
Location
Lexington, NC
Some of yall live in some weird housing markets if renting is cheaper than owning. If renting is cheaper than owning then how is the landlord making a profit, and if he's not making a profit, then that rent won't last long.

First house I got was $1500/mo including taxes and insurance. That was 2400 sqft new construction townhome. An entry level 2-bedroom apartment in the same area rented for over $1,000/mo.

When I moved to NC I had to rent for a year my fiance and I weren't getting married for over a year and she was staying in our previous state for that time and we didn't want to buy a house before she was ready to move in, and see the areas better etc. Rented a 1400 sqft house with 1/3 acre, and 1 car garage for $1,000/mo PLUS renters insurance, and the house was in some serious disrepair. When we got married we got a 3,000sqft house on 1 acre in much nicer condition with a 2 car garage and 5% down. Mortgage is $908/mo including taxes, insurance and PMI. So double the house and $100/mo back in our pocket.

I guess other markets are different, but it still is not logical that you could rent a house for less $ than buying one. The landlord has to make his profit somewhere.
 

hosz

Well-known member
Joined
Feb 25, 2012
Messages
185
Some of yall live in some weird housing markets if renting is cheaper than owning. If renting is cheaper than owning then how is the landlord making a profit, and if he's not making a profit, then that rent won't last long.....

I guess other markets are different, but it still is not logical that you could rent a house for less $ than buying one. The landlord has to make his profit somewhere.

It's because of the tax laws. The landlord makes his money from the equity he builds in his buildings. When you are a landlord, you can deduct everything spent on your rental property and depreciate it. This effectively zeros out your income and you pay no or very little income tax.

So the landlord is deducting for things like appliances, a new roof, lawn care, etc. and depreciating his property, things that a residential homeowner cannot do. This means it's much cheaper for a landlord to own a home that is rented than a home that is purchased for a personal residence.
 
Last edited:

MoparTrucks

Well-known member
Joined
Aug 21, 2009
Messages
3,218
Location
Ozarks of Missouri
This has been an interesting thread. I think what may be lost is that some purchases are worth far more than their monetary value. For me, I never had stability growing up nor for most of my adult life because I was in the military and moving every couple of years. Buying our farm has given me peace and a sense of purpose; I was able to buy it outright but from a strictly financial standpoint it doesnt wash out. Small farms are mostly money losers and I bought in an area where land is cheap and the soil is poor, the house and outbuildings were old, outdated, and needed lots of work, and the employment prospects are some of the lowest in the nation. But its mine and when I walk my land I gain far more for my physical and mental health than I ever would from any amount of medical care or fat financial portfolio.

I could rent a nice house around here for less than $300 a month and have a lot of money left for investing or play but I wouldnt get the same satisfaction or sense of stability. I also have to wonder about the criticism the OP has gotten about buying a 40K vehicle...on a site called "The Garage Journal" as if 40K was some outrageous amount to pay for a new truck.

Life is too short to spend it pinching pennies when you dont have to. Find a balance that will allow you to save OP but dont let it rule your life. You get exactly one shot at life and yours is half over..that one singular fact should be what drives you.
 

Aberdale

Well-known member
Joined
Mar 13, 2009
Messages
1,380
Location
Ohio
Imagine what it would have been worth if you had invested it every six months over those 30 years....

Yeah, you're absolutely right. First off, I didn't realize how much was there. And second, I was pretty naive about the time value of money (just as several posters here) when I was younger and throwing the coins in the jar.

For all those years that the money was in the jar it was losing value due to inflation rather than making money in dividends, interest, and capital gains.

'dale
 

EOC_Jason

Well-known member
Joined
Jun 25, 2012
Messages
11,388
Location
Bentonville, AR
Re: I have given up... We cant do it...

I love you guys that buy NEW vehicles . You pay $40k and I buy it from you in 4 years for $15K. It wont smell like new leather after my Jack Russell farts in it any way .
I think you will find that most folks that can afford to buy new , with cash , Don't. That is one reason they can.

Yep, I have to agree... You can buy a "certified used" vehicle from the dealership that still has plenty of the factory warranty time left on a vehicle with like 20,000 miles or less and save a HUGE chunk of change over buying a brand spanking new current model.
 

Daedalus

Well-known member
Joined
Sep 28, 2009
Messages
5,991
Some of yall live in some weird housing markets if renting is cheaper than owning. If renting is cheaper than owning then how is the landlord making a profit, and if he's not making a profit, then that rent won't last long.

First house I got was $1500/mo including taxes and insurance. That was 2400 sqft new construction townhome. An entry level 2-bedroom apartment in the same area rented for over $1,000/mo.

When I moved to NC I had to rent for a year my fiance and I weren't getting married for over a year and she was staying in our previous state for that time and we didn't want to buy a house before she was ready to move in, and see the areas better etc. Rented a 1400 sqft house with 1/3 acre, and 1 car garage for $1,000/mo PLUS renters insurance, and the house was in some serious disrepair. When we got married we got a 3,000sqft house on 1 acre in much nicer condition with a 2 car garage and 5% down. Mortgage is $908/mo including taxes, insurance and PMI. So double the house and $100/mo back in our pocket.

I guess other markets are different, but it still is not logical that you could rent a house for less $ than buying one. The landlord has to make his profit somewhere.

That is definitely the case where I'm at. The hotter housing markets typically have a greater distortion of rental parity. At the extreme, I have a friend who rents a place on the beach in a duplex. Nothing between her back door and the ocean except sand and volleyball nets. It's not a very nice place, but the land alone is worth at least $5m. She just moved in and pays $3500/month, and if her neighbor pays the same (probably less, since they're in the front unit), the land owner is getting $7000/month, which pays maybe a $1.2m mortgage at today's rates.
 
OP
A

Autorotica

Well-known member
Joined
Oct 21, 2012
Messages
526
Location
SE Pa
Just a couple observations ....

Check KBB for prices on a Tahoe today. I looked last week and it was $65k.

This is exactly my point... a 2007 Tahoe could be bought for $40k, but a 2014 costs $60K.

Everyone keeps saying there is no inflation and paying a small amount of interest (penalty) is baaaad.

Chris
 

larry_g

Well-known member
Joined
Apr 28, 2007
Messages
16,874
Location
oregon
That is definitely the case where I'm at. The hotter housing markets typically have a greater distortion of rental parity. At the extreme, I have a friend who rents a place on the beach in a duplex. Nothing between her back door and the ocean except sand and volleyball nets. It's not a very nice place, but the land alone is worth at least $5m. She just moved in and pays $3500/month, and if her neighbor pays the same (probably less, since they're in the front unit), the land owner is getting $7000/month, which pays maybe a $1.2m mortgage at today's rates.

Your thinking that the landlord of the house paid some huge price for the property and is carrying a big mortgage. What if the landlord is free of a mortgage and is pocketing most of the annual 84k income? The landlord may have a million in the property. So he has made 4m on his investment and 84k pocket change per year. Not to bad from the landlord view.

lg
no neat sig line
 

Daedalus

Well-known member
Joined
Sep 28, 2009
Messages
5,991
Your thinking that the landlord of the house paid some huge price for the property and is carrying a big mortgage.

No, did I say that? I did not make any statements regarding my thoughts on the landlord's investment or finances. Truth be told, I doubt there is a mortgage on the place, and I do know it has been a while since it changed hands. My point was in response to a previous statement, that it is very possible to rent for a lot less than what it costs to buy (finance). If this property owner is banking on further appreciation, that's their business (i.e. their risk to take). But I don't need an MBA in finance to know that grossing $84k on a $5m+ asset isn't exactly a successful investment.
 

workhurts

Well-known member
Joined
Mar 5, 2006
Messages
277
Location
VA
Usually GJ threads are informative and useful. Usually.

Seriously folks, I don't even understand this thread. If you can save 40k a year for a vehicle that means you are saving close to $60k a year pre-tax. If you can save that much then you must be doing something right. If you can't save that much when you don't have a debt to pay-off then what are you spending you're money on?

Heck, as long as it's not crack, strippers and booz or $1,000 multi Michelin star meals every week then what's the problem? Do whatever you want.
 
OP
A

Autorotica

Well-known member
Joined
Oct 21, 2012
Messages
526
Location
SE Pa
Heck, as long as it's not crack, strippers and booz or $1,000 multi Michelin star meals every week then what's the problem? Do whatever you want.

Well, there is the girlfriends crack and beer... Do they get a free pass?

Chris
 

ChevyEFI

Well-known member
Joined
Sep 2, 2012
Messages
8,720
Location
Phoenix, AZ
INteresting thread. As a former small town banker I found that there were people who were cash people and could not handle checking accts or CC. I also found that there were a lot of people who could not save money but if they had a debt they always found the money to pay it on time. Got a mother in law who lived that way for years. She adjusted her spending to whatever she had.
It is a mental thing, it is not about who much you make. It is about what your priorities are. People who are just getting by still manage to save some money if that is what is important to them.
An informercial ad on the radio for some investing dirtbag had a good parallel for the psychological factor of spending.

Sharks restrain their growth if they are in a small tank. Medium tank equals more growth. Large tank equals more growth yet.

Interesting thread.
 

sctattooer

Well-known member
Joined
Nov 5, 2007
Messages
466
Location
Myrtle Beach, SC
If you never bought a house, you must be paying rent ? Did you ever consider how much you have spent on rent over the years and have nothing to show for it ? :dunno:


That actually carries about as much weight in my book as having nothing to show for paying your electric bill. Our TVs, lights and heat create little more than comfort for us, yet the majority of us pay an average of above $2000.00 a year for it. I'd say simply having shelter equals having something to show for it. I own my home, have for 10 years, and have put a ton of money into repairs and upgrades over that time. When my property value took a dive in 2008, I had nothing to show for any of that money either.

Same thing for buying a new car. You're basically paying for convenience of not having to work on it or worry about it leaving you on the side of the road. Sure, it's an expensive convenience considering depreciation, but for some it makes good financial sense.Personally, I have a 66 year old car that I drive an average of 3 days a week, and a 2002 Dodge truck with 100k+ that runs great and is paid off, yet this year I feel the need to get a new truck, at whatever cost, simply because I have businesses to run, and if I'm not there it could potentially cost me more than I'd pay for the interest, especially if there is a tow and repair cost involved. I guess all I'm trying to say is that there's more than one way to look at needs vs wants, and sometimes what makes sense for one makes no sense for another.
 

Koken

Well-known member
Joined
Jan 29, 2011
Messages
360
Location
South Florida
Usually GJ threads are informative and useful. Usually.

Seriously folks, I don't even understand this thread. If you can save 40k a year for a vehicle that means you are saving close to $60k a year pre-tax. If you can save that much then you must be doing something right. If you can't save that much when you don't have a debt to pay-off then what are you spending you're money on?

Heck, as long as it's not crack, strippers and booz or $1,000 multi Michelin star meals every week then what's the problem? Do whatever you want.



Don't know, but I would assume it was an inheritance because the money ran out.
 
To avoid these ads, REGISTER NOW!
OP
A

Autorotica

Well-known member
Joined
Oct 21, 2012
Messages
526
Location
SE Pa
Don't know, but I would assume it was an inheritance because the money ran out.

I'll take that as a question. No, there was no inheritance.

I visited my 105 year old grandmother in the nursing home 2 weeks ago. If you think booze, drugs and hookers are expensive, check into elder care!

Chris
 

1507dennis

Well-known member
Joined
Nov 24, 2011
Messages
83
Location
Northern Indiana
Everything comes down to your own individual circumstance. For some people, buying makes more sense. Others, it’s renting. What you should NOT DO is automatically dismiss one or the other without actually calculating the cost of each.

Whether you rent or buy, the basic point of all this is to save money. When people complain that they can never get ahead or only the rich can save money, I want to strangle them. Anyone with a modest income can get ahead.

My dad never earned more than $60k a year and always drove a 10 year-old Chevy with rattle-can paint. We lived in the cheapest house in the best school district he could afford.

When I was 14, I was crying about not having designer clothes when my friends had their Air Jordans and parents who chauffeured them around in a new Bimmer.

That’s when my dad showed me his retirement statement and how quickly money accumulates when you save and don’t spend it on unnecessary things. My dad retired about 6 years ago with almost $2 million.

In my entire working career, I never cracked $100k. My first job paid $35k and I could only put a few thousand away that first year, but every year I would save as much as I could. Most of my career, I made between $60k and $80k. It was only a few months ago that I finally landed a job that is approaching $100k (which is one of the reasons I rent, so I can easily move to areas with higher paying jobs). Maybe in a few years I will finally break $100k. But I live in NYC and $100k here is probably equivalent to $60k in most parts of the country.

It’s hard when you first start and easy to get discouraged when you want to save more than $1 million and your account only shows a few thousand. But I kept at it and one day, I got my statement and it showed I had saved my first $100k. Today, after 20 years of working and diligently putting away between $10k and $15k a year, I have now saved about $400k. My accounts double every 8-12 years and I’m 41.

Saving money and not buying a $40k car just because I want it is a life lesson my dad taught me and I hope to one day demonstrate to my kids how quickly saving and compound interest can grow an account.

When I die, I will probably be able to leave enough to my kids that if they choose to continue saving money like my dad and not blow their inheritance on a fancy new car, clothes, etc., after 10-15 years of working and saving, the income generated from their savings will be enough for them to live comfortably for the rest of their lives and they can chose to work because they want to, not because they have to.

Sorry for the long post, but people should not “give up” and think it’s okay to just buy whatever they want because they think they’ll never be able to save anything.

A+++++ HOSZ. It is not always about how much money you make, it is what you do with it!!! Also, people do not understand the value of compounding. If you want a comfortable retirement, you have to have a plan and then live under your means to complete the plan. If you start with your first job, you have 40+ years to complete your plan and that gives you plenty of time even if you have some bad years. Most people do not start with their first job but the point is that you need to start ASAP. Take charge and don't be a victim.
 

volaredon

Well-known member
Joined
Oct 7, 2012
Messages
1,618
Location
IL
Sorry I only read about the 1st 1/2 of this thread, plenty to be able to weigh in

OP I know how it feels to be in a hole... except for the feeling of having a paid-for home though i'd have never bought that brand new Yukon (not said as a knock against the choice in vehicle, just in general)

I'm 46 also and am in a huge hole, that $40K Yukon would take me 10 years to pay... I always buy used vehicles, and am proud of it.... my last vehicle purchase was an 01 Durango for my wife to drive, paid for 100% from the money I got from selling the 97 Cherokee that she used to drive.

Myself, I drive a Dakota that I paid $500 for 1.5 years ago. yeah I bought them needing a few repairs but as a mechanic, so what... I get my parts wholesale and do ALL of my own repairs so can't get any cheaper than that for transportation. And I usually keep them til I run them into the ground.
I also have a 97 Wrangler, bought in Y2K I will own that til the wheels fly off.... pd $15K which turned into $24K after 60 payments were finished... NEVER AGAIN! I switch off driving the Dakota and the Wrangler. My wife dislikes them both because that are both 5 speed stick... I drive 90+ miles a day for work. haven't broken down yet

I got hurt at home, wound up on Disability at 40,, just got working again a couple years ago, had to scratch and claw my way from some really crappy jobs, doing OK but will probably never make what I did where I was working when I got hurt (lost that job because of FMLA time expiring) had a couple CCs get outta hand while I was on Disability, I have a house payment and a equity loan (took that out while money was good a year before I got hurt, to build my garage with) one of those "had I known then what I know now" I would not have done that kind of things

I buy used when ever I can, partly out of affordability and partly out of being ashamed to buy anything I don't HAVE to that is "chinamade"
my jacks, much of my tools, 2 post lift, mower, snowblower, and more all bought USED and will still do so even if hit the lottery but i'll still never get ahead
I have a 20 yo in school he's about done but wants to go on to school elsewhere so that's more bills.... He's my only kid
 
Last edited:

MoparTrucks

Well-known member
Joined
Aug 21, 2009
Messages
3,218
Location
Ozarks of Missouri
The OP shared with me one of the "toys" he purchased and I would have done the exact same thing given the chance. His toy is an investment that is worth far more than what he paid for it and unlike most investments of the monetary type it will continue to appreciate nicely.

Maybe some of you guys enjoy sitting in your "investment" property living rooms fondling your stock portfolios but the rest of us want to live life to the fullest. When its time to check out I know I sure dont want to look back and think about all the things I could have done but didnt. I just found a 440 on CL out of a 76 Fury for a few hundred dollars and this thread has convinced me to go look at it and buy it just because I have always wanted one...screw February's savings contribution!
 
OP
A

Autorotica

Well-known member
Joined
Oct 21, 2012
Messages
526
Location
SE Pa
I just found a 440 on CL out of a 76 Fury for a few hundred dollars and this thread has convinced me to go look at it and buy it just because I have always wanted one...screw February's savings contribution!

Make Februaries savings contribution... A 1976 block is a thinner wall design than a late 60s early 70s. Now if it was $50...

Be opportunistic and strike when its a GREAT deal. Tell your friends and buddies your kinda looking for a 440 cuz you always wanted one, but don't want one bad enough to pay a couple o hundy to get one. You might be surprised what turns up when you get the word out...

Chris
 
OP
A

Autorotica

Well-known member
Joined
Oct 21, 2012
Messages
526
Location
SE Pa
Well over 100 replies land not one person has made mention of the FED devaluing the dollar...

Gotta admit I am surprised. Someone mentioned it on page 1 of the thread about the price of home heating oil.

Chris
 

JimVonBaden

Well-known member
Joined
Dec 2, 2011
Messages
15,716
Location
Northern Virginia
Well over 100 replies land not one person has made mention of the FED devaluing the dollar...

Gotta admit I am surprised. Someone mentioned it on page 1 of the thread about the price of home heating oil.

Chris
Because we are not supposed to discuss politics here. That, IMHO, is political.
 

KEH

Well-known member
Joined
Jan 31, 2010
Messages
5,142
I've lived most of the 20th century and most of the leading so called leaders during that time have had and still have the economic sense of first graders. You have to work around the economic stupidity.

The present housing situation is unprecedented in my life time. It IS a good time now to buy an already built home, but not especially good to build a home.

My parents were poor, worked hard, saved money. I worked whenever possible growing up and was able to graduate from college with no debt. I borrowed money to build a house, costs were much less then, but interest rates about double what they are now. As time went on, I would make payments against the principle and paid it off a little early. Nice feeling to be out of debt. I think we bought one used car on credit during that time, after that I bought wrecks and rebuilt them. The last new vehicles we paid cash for, and they weren't $40,000 vehicles.

Did some minor research back to the 1930s and it appears that a new lower priced car has always cost roughly a year's salary for the average working man. The cost of advanced education has increased much faster than that.

Homes as an investment: The biggest danger I have observed to that kind of investment is changing neighborhoods. Think Detriot to a greater or lesser degree. Not sure how to avoid this danger. The biggest problem with owning rental property is getting bad tenants. Some people make a career out of moving often and working the laws to avoid being kicked out in a reasonable amount of time. Some people appearantly are able to avoid paying rent for 3-4 months of the year. If some of the posters are doing well on owning rental property, my hats off to you.

Health care: My advice is to get Long Term Care insurance. Avoid the Captain and Tenille experience, if what has been suggested in other posts about their situation is true.

KEH
 

May Pop

Well-known member
Joined
Aug 7, 2005
Messages
783
Location
Lake in the hills Il.
Now 55 years old. My wife always paid the bill for the first 28 years. I did the 2-600 hours overtime every year. We never seemed to get ahead also. We finally got on the same track and set the same goals. Paid off the house, she said I need a decent car as Ive driven beaters always. She put money aside and I got a nice Jeep. This was with the ex house payment.
5 kids college or whatever. We decided if we didnt have the cash they would have to wait. A semester of waiting is not the end of the world if there is no student loan debt.
The end result is after 30 year the WEIGHT OF DEBT has been lifted from our shoulders. As others have said the ability to tell the boss I no longer wish to work for his miserable *** makes work much easier. Its all about balance and what weight you wish carry. If I decide to take a few days off to visit the Grand kids or another sand dune trip a few missed days of work will not break us.
 
OP
A

Autorotica

Well-known member
Joined
Oct 21, 2012
Messages
526
Location
SE Pa
Re: I have given up... We cant do it...

A couple things stand out in the above statements. First, you capitalized "WE", which to me means your SO has a spending issue. If that's true, it's a big problem and will forever limit your ability to save until it is corrected. My first wife was a spender and overly concerned with her image and what others thought of her. We could never save and were constantly adding to our debt.

'dale

Congratulations Dale. That was a big hint...

My girlfriend grew up with things being REAL thin at home. Best I can figure is she has something wired inside her that automagically adjusts spending to the amount of available income.

I cant say I am without blame. I am the person who spends next to nothing on little things because I like to hunt, research and exercise BIG expenditures. Not her, she is the budget killer by 1,000 needle pricks. Nothing big but lots of little ones.

Lots of things happened since 2007 that prevented us from saving what we were spending. Mostly, The Great Recession. Also playing supporting roles...

Slight income reduction due to dividend reductions.
Bonuses at work got smaller (or disappeared)
Stock market was on sale, so we both increased our 401K contributions to 25%
I have 2 daughters who will have graduated H/s between then and this June
Building a 90 day food/supply stock
Sold an old motorhome and bought a newer one
New windows and exterior doors in the house
Life plain and simply costs more today than it did in 2007
WE stopped saving (or paying) towards a goal

There is a little bit of a disconnect between us with perception of retirement savings specifically and saving for expenditures. I see them as 2 different animals, she does not.

Chris
 

eljefino

Well-known member
Joined
Feb 21, 2008
Messages
336
Concrete cost what per yard 20 years ago? How about today? That was what I meant in the original post concerning inflation... I didn't mean to imply what the "government" stated inflation rate is. I meant to imply the REALITY rate.

There is zero inflation... except for everything I want to buy costs more or is being packaged smaller quantities at the same price.

Chris

Yeah this. I had the site work done in 2006 on my garage, lots of fill and gravel delivered. At the time, fuel was jumping from 2 to 3 to 4 bucks a gallon. Since my gravel guy owns a pit, most of what I was paying for was fuel for all his heavy machinery. It looked like a Hail Mary at the time, or that I was angrily cajoled through desperation to "lay it now or never get it done". In hindsight it was a great idea and adds value to the house... a simple detatched two-car that anyone would like.

Similarly, plywood was $40+ a sheet in the early/ mid 2000s because we were rebuilding Iraq or something or other.

If you're building because you smell a recovery, which will make your structure 10+% more expensive next year-- yup, finance it!

Off topic, when one is young, and they can buy their first house with 5% down and PMI, go for it! PMI is offensive but so is paying rent for a complete lack of equity.
 

Architorture

Well-known member
Joined
Feb 13, 2013
Messages
625
Location
PA
...but with a product life of 75 to 85 years you are only talking about pennies per year buying new versus used...and without a plyfax report who knows if the previous owner kept up on the maintenance or if those knots are OEM..
 

e-tek

Well-known member
Joined
Dec 19, 2007
Messages
10,690
Location
Saskatoon, SK
...but with a product life of 75 to 85 years you are only talking about pennies per year buying new versus used...and without a plyfax report who knows if the previous owner kept up on the maintenance or if those knots are OEM..

The plyfax is a very good point.
But since I live on $20 a week, and assume everyone does also, I demand you to buy the used plywood.

I married my wife at thirteen, she was eight, and because we always bought used meat, we saved $1,000,000 cash by the age of 37.

Not that this has anything to do with my rentals....

See how it sounds?

Funny stuff - and without LOLs yet!
 

Architorture

Well-known member
Joined
Feb 13, 2013
Messages
625
Location
PA
The plyfax is a very good point.
But since I live on $20 a week, and assume everyone does also, I demand you to buy the used plywood.

I married my wife at thirteen, she was eight, and because we always bought used meat, we saved $1,000,000 cash by the age of 37.

Not that this has anything to do with my rentals....


See how it sounds?



sounds a lot like the internet...but I can't be sure...needs at least 100 more posts

I prefer found meat to used or new
 

e-tek

Well-known member
Joined
Dec 19, 2007
Messages
10,690
Location
Saskatoon, SK
Some of yall live in some weird housing markets if renting is cheaper than owning. If renting is cheaper than owning then how is the landlord making a profit, and if he's not making a profit, then that rent won't last long.

I guess other markets are different, but it still is not logical that you could rent a house for less $ than buying one. The landlord has to make his profit somewhere.

Well MacMan, every market is VERY different. Here in Saskatoon, SK, house prices doubled overnight - and tripled in 4 years. You can no longer buy a single-family house and make a profit by renting it. The average house price here is now north of $300K. So if you buy on the "low" side of town for $250K, you can't rent it for more than $1000, which won't pay rent/taxes and insurance, much less repairs. If you buy on the "nice" side of town, a home is $450K and you can't rent it for more than $2K.

We bought just in time - and make money by having 2 suites per home.

No charge.
 

TheGunCollector

Well-known member
Joined
Nov 24, 2009
Messages
275
Well over 100 replies land not one person has made mention of the FED devaluing the dollar...

Gotta admit I am surprised. Someone mentioned it on page 1 of the thread about the price of home heating oil.

Chris

I assumed it was common knowledge. Carry on.
 

BellyUpFish

Well-known member
Joined
Jun 24, 2012
Messages
2,942
Location
Alabama
Re: I have given up... We cant do it...

I don't scrimp & save to buy something, that can get depressing. I find ways to make money over my normal income & buy things that way. It's a lot more fun.

I'm with you..

If I want something, typically, I'll just throw it on the only credit card I have and then I just work a day or 4 or whatever it takes to get said toy paid off before the bill comes..
 

hughfree

Well-known member
Joined
Aug 30, 2011
Messages
125
Location
Fayetteville, GA
I tried both routes....my first 20 years of marriage we bought what we "thought" we needed when we "thought" we needed it. On more than one occasion we ran up credit card debt approaching 5 figures. I would start to lose sleep at night wondering how I would pay for the debt. Slowly we would pay the debt off and swear that we would never go back there.....only to repeat the same mistake again.
About 13 years ago my Dad died of a sudden heart attack. We made the decision to move back home to take care of Mom. Financially we were in the same boat that we had been in for years.
My company was good enough to open up a position in the area that I was moving. We thought that we could manage. 3 months after the move 9/11 hit and the business that I worked in for the past 15 years started to tank. My income was cut by over 70%. With two boys in high school...both of whom wanted to go to college....I started to panic! After much deliberation and churning my wife and I made a few tough choices....I started looking for a new field of work, we told the boys that if they wanted to go to school they would have to pay there own way (something that both mom and dad did), and we would do everything in our power to get rid of our debt.
We started making hard choices about how we spent our money...a few of them were extremely painful. Slowly, we started to dig ourselves out of the hole. The boys did their part....one paid for his school by earning an appointment to one of the military academies, the other paid for his by playing scholarship baseball and our state's college scholarship plan. Both graduated with NO college debt.
Shortly after my youngest son started college my mother passed away from cancer. My wife had been her full time care taker. When my mother passed my wife decided to start a career. About the same time I found a new career in a different field. Within a couple of years we were able to pay off our last credit account. We will NEVER go back.
 

Daedalus

Well-known member
Joined
Sep 28, 2009
Messages
5,991
The boys did their part....one paid for his school by earning an appointment to one of the military academies, the other paid for his by playing scholarship baseball and our state's college scholarship plan. Both graduated with NO college debt.
Wow! No small feat, either one. Way to raise 'em! :thumbup:
 
To avoid these ads, REGISTER NOW!
Top Bottom