Do you have $400 in cash or in the bank you could use in an emergency?

[D2maine]

there is only 1 way to break the cycle earn more spend less. nobody is going to fix your financial life but you.

things that are necessities in life, food/shelter and get them as cheap as you can.

everything else is not necessary, not tv, not internet, not cellphone, not landline, not a car-live within walking/biking distance from work.

way too many people treat debt like its necessary instead of the five alarm emergency it really is! go fvcking hungry to pay off debt, sell off shit that is unnecessary to pay debt, you don't need a couch if you are working 3 jobs...

it does not take long to see where finances go wrong, from the long costly commutes, to the dd coffee every morning, to the buying lunch instead of brown bag, to the mcmansions when a simple small home will do, to the driving the car for every errand even if its within walking distance. trading cash for convenience...

its all fvcking crazy! stuff and things do not make you happy just a fvcking sucker...

 

[dchester]

. . .
The problem is you don't have to get that car that is going to cost you $40,000 with a $500-600 a month payment for 60 or, heaven forbid, now you can get a 72-month loan. You may want it, but you'll live without it. Buy the Corolla, keep your payment at an affordable rate.

But I'd rather drive an Audi than a Toyota.

 

[Beaglebay]

I've always saved money, whether in a Christmas Club, savings or checking account, or reserve cash.

I never convert coin tips I receive, and I probably have close to $500 in a can right now. I've paid for 2 cruises with coin tips saved. I worked at least two jobs for most of my working life.

The security of having money in the bank means much more to me than having a flashy, expensive car or other stuff.

 

[bideau]

But I'd rather drive an Audi than a Toyota.

As would I, but I ended up with a Hyundai.

 

[PatsFanLisa]

As would I, but I ended up with a Hyundai.

I love cars. Love them. I like to be comfortable and want to have a great sound system. The thing is it's just a car. You use it to get you from here to there. So for someone to spend an exorbitant amount of money on something just because they want it or like it is crazy. The mentality of a lot of people today is "What will it cost me every month? And then they use every spare dime to make that payment instead of realizing they could get something that costs less, probably pay half of the car payment than with the more costly car, and save the rest.

And there's nothing wrong with a Hyundai. It gets you where you want to go, right? I'd rather have those Pats season tickets every year and trips to visit my kids whenever I want any day of the year, Bid.

 

[bideau]

I love cars. Love them. I like to be comfortable and want to have a great sound system. The thing is it's just a car. You use it to get you from here to there. So for someone to spend an exorbitant amount of money on something just because they want it or like it is crazy. The mentality of a lot of people today is "What will it cost me every month? And then they use every spare dime to make that payment instead of realizing they could get something that costs less, probably pay half of the car payment than with the more costly car, and save the rest.

And there's nothing wrong with a Hyundai. It gets you where you want to go, right? I'd rather have those Pats season tickets every year and trips to visit my kids whenever I want any day of the year, Bid.

Don't get me wrong, I didn't skimp on the Hyundai. It's fully loaded and I'm very happy with it so far. But compared to a comparable Audi/Accura/Lexus etc..., it's a bargain.

I'm in the fortunate circumstance where I can enjoy the fruits of my labor, but if I wasn't, I'd still be driving my old car and using duct tape to keep it together. And yes, the trips to visit my kids will always be the highest priority, followed by my tix.

My kids got the same philosophy from us. My daughter especially, who tracks every dime. My son is fortunate in that he doesn't need a car, so saves lots of money on all the related costs.

 

[subroc]

...don't forget to teach our own kids that they too need to work and save. Whatever the kids earn gets spilt into three pots. 50% to their IRA, 25% to their savings account and 25% to their checking account. They can spend only from the checking account. It is amazing how easily they adapted to the 25% they could spend...

Kids saving 50% in an IRA? Interesting approach.

 

[dchester]

As would I, but I ended up with a Hyundai.

As my current car has just over 230K miles, I'm having an internal debate over whether my next car should be a Ford Fusion, an Audi, or a Lincoln. It will likely be my next to the last car, (with my last car being sometime after I retire).

It's an emotional thing (or something).

:shrug_n:

 

[Undertaker #59*]

As my current car has just over 230K miles, I'm having an internal debate over whether my next car should be a Ford Fusion, an Audi, or a Lincoln. It will likely be my next to the last car, (with my last car being sometime after I retire).

It's an emotional thing (or something).

:shrug_n:

Of those, and knowing what you have now, Lincoln all the way.

They even brought back the Continental name plate just for you for 2017.

 

[aloyouis]

Kids saving 50% in an IRA? Interesting approach.

Yeah. When we first started this strategy, Fidelity didn't offer a Juvenile IRA so we went to Schwab. Earlier this year Fidelity began to offer them so we switched.

The boys have "jobs" so their payroll departments are able to direct the funds to the IRA and bank accounts before they even see it. My daughter babysits and dog sits (amazing experience for her in marketing and understanding her "brand reputation value") so that is cash and she hands over the money and I send a check to Fidelity.

My oldest has begun to question the underlying investments. Great conversation about tax deferment, dividends and dollar cost averaging.

You can find the Fidelity and Schwab custodial IRA's here:

https://www.fidelity.com/retirement-ira/roth-ira-kids

http://www.schwab.com/public/schwab...and_planning/understanding_iras/custodial_ira

 

[aloyouis]

As my current car has just over 230K miles, I'm having an internal debate over whether my next car should be a Ford Fusion, an Audi, or a Lincoln. It will likely be my next to the last car, (with my last car being sometime after I retire).

It's an emotional thing (or something).

:shrug_n:

I bought a used 2012 Audi Wagon with 40K on it in early 2014. It now has 125K on it (hockey dance and lax) and runs like new. I plan to have it for 200K+.

 

[Big/Sky/Fly]

Of those, and knowing what you have now, Lincoln all the way.

They even brought back the Continental name plate just for you for 2017.

The grille looks similar to a Bentley...I wonder if they were going for that type of look.

 

[dchester]

Of those, and knowing what you have now, Lincoln all the way.

They even brought back the Continental name plate just for you for 2017.

Yeah, that's a sweet car. I'm having trouble justifying getting one though (at least not with the options I'd want on it). One thing I'm considering is getting a year old one, in another year.

 

[aloyouis]

Yeah, that's a sweet car. I'm having trouble justifying getting one though (at least not with the options I'd want on it). One thing I'm considering is getting a year old one, in another year.

That is almost always the way to go. Not sure about Lincoln, but Audi includes almost bumper to bumper to 100K miles on their "certified" cars. So do several other brands.

 

[Beaglebay]

http://www.realcartips.com/usedcars/127-best-time-to-buy-used-car.shtml

 

[deec77]

Granted, it's pretty hard to grasp living in affluent communities with a supportive family and network of friends. To understand the problem some others have, look at it from their vantage point in life, not yours. If you were to quit your job, pretend you didn't get help from loving parents, and are trying to raise a family while working at the Stop & Shop or Bed Bath & Beyond, the answer would be apparent pretty quickly.

We have jobs and make enough money to live, recreate and still save some. Not everyone falls into that category. The popular view is that they all are self-indulgent, and certainly some are, but you don't have to work in too many community programs to see a different side of the problem.

I fully agree about credit card companies targeting college kids, but not all the people in debt do it buying iPhones, and not all are lucky enough to have family with the wherewithal to help if they get into trouble, whether they buy iPhones or just tried to buy necesities and keep a car running so they could get to work.

We were far from well off growing up. My parents couldn't afford to put us all through school so they put none through school, but they expected all of us to go. I worked from the time I was 11 to put money away for college planning for the future.

I worked at stop and shop full time nights in the meat department and went to school full time for 8 years. Now I did get scholarships but that also meant hard work maintaining a certain GPA. I continued my education after getting my degree and went for another 4 years.

I've been on my own since I was 18. I was married and had 3 kids while still in school. It can be done we saved enough to invest in ourselves always socking money away. Our kids never had $100 dollar sneakers or the latest fad clothes, we drove used cars and we lived pretty simply, flip flopped hours so we never needed a babysitter, vacations, and nights out were luxuries. Now all the hard work has paid off and life is very comfortable, because we were able to plan for our future as well as our children's future.

I understand that things aren't the same now and things are more expensive. My kids are fortunate enough to have family willing to help in crunch time. They understand how lucky they are, but they also know the importance of investing in their future.

IMHO thats the part that youth today aren't grasping. They only plan short term. They want immediate success, and most coming out of college are in for a rude awaking. I'm not talking about those who have fallen on hard times loss of a job, or illness, something unforeseen that ate away their savings. It's more about those who don't plan for the unforeseen, or who simply roll the dice and spend today assuming they can pay tomorrow.


~Dee~

 

[mooseontheloose]

IMHO thats the part that youth today aren't grasping. They only plan short term. They want immediate success, and most coming out of college are in for a rude awaking. I'm not talking about those who have fallen on hard times loss of a job, or illness, something unforeseen that ate away their savings. It's more about those who don't plan for the unforeseen, or who simply roll the dice and spend today assuming they can pay tomorrow.


~Dee~

This about sums up my generation and those that came after.

Even my parents' generation has become guilty of it at later stages in their lives.

Retirement and long-term financial security don't just magically happen. For most people, they take years of planning, commitment and hard work. All foreign concepts to most these days.

There's a reason Toyotas are owned by more self-made millionaires than any other vehicle, and it's crazy that someone earning $60,000 with negative net worth is more likely to own a $60,000 vehicle than a self-made millionaire.

Note: By self-made millionaire I'm not talking about someone who struck gold like Zuckerberg. I'm talking about people who worked hard and saved their way to $1m+ net worth. You can't spend your way to financial independence.

 

[aloyouis]

This about sums up my generation and those that came after.

Even my parents' generation has become guilty of it at later stages in their lives.

Retirement and long-term financial security don't just magically happen. For most people, they take years of planning, commitment and hard work. All foreign concepts to most these days.

There's a reason Toyotas are owned by more self-made millionaires than any other vehicle, and it's crazy that someone earning $60,000 with negative net worth is more likely to own a $60,000 vehicle than a self-made millionaire.

Note: By self-made millionaire I'm not talking about someone who struck gold like Zuckerberg. I'm talking about people who worked hard and saved their way to $1m+ net worth. You can't spend your way to financial independence.

You nailed it Moose. The vast majority of "millionaires" are self made over time.
Everyone should read these. They are dated but but SOOOOO enlightening.

The Millionaire Next Door

https://www.amazon.com/Millionaire-...r=8-1&keywords=the+millionaire+next+door+book

The Millionaire Mind

https://www.amazon.com/Millionaire-...75771220&sr=8-1&keywords=the+millionaire+mind

 

[mooseontheloose]

Meant to read Next Door but never got to it. One of the first ones I read that helped me understand it all was Millionaire Teacher. Same basic lessons and ideas, and these types of books should be required reading in high school.

The fact that personal finance isn't hammered home in school (high school or university) is nuts.

 

[deec77]

This about sums up my generation and those that came after.

Even my parents' generation has become guilty of it at later stages in their lives.

Retirement and long-term financial security don't just magically happen. For most people, they take years of planning, commitment and hard work. All foreign concepts to most these days.

There's a reason Toyotas are owned by more self-made millionaires than any other vehicle, and it's crazy that someone earning $60,000 with negative net worth is more likely to own a $60,000 vehicle than a self-made millionaire.

Note: By self-made millionaire I'm not talking about someone who struck gold like Zuckerberg. I'm talking about people who worked hard and saved their way to $1m+ net worth. You can't spend your way to financial independence.

Words to live by!

~Dee~