shiny new credit card

[Phillbo 11]

If you are going to use credit, NEVER buy anything on credit that will not be still around while you are paying it off.

[fanya 3]

money in the bank (not much), debt free from 3 years+, paying credit cards off at the end of the month to rack up free rewards > debt

i can lose/quit my job at a whim and not have to worry for at least 3 months (not long enough but working on it)

debt sucks, working cause you want to is a lot more fun than working cause you have to. knowing you can quit at any time if you choose is the greatest freedom to have.

[Bolas 5]

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If you are going to use credit, NEVER buy anything on credit that will not be still around while you are paying it off.

No worries there. The memories of Boogie in Belize 2010 will always be with me.

Stupidity if left untreated is self-correcting
If ya can't be good, look good, if that fails, make 'em laugh.

[squirrel 0]

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If you are going to use credit, NEVER buy anything on credit that will not be still around while you are paying it off.

No worries there. The memories of Boogie in Belize 2010 will always be with me.

we went to Belize, twice, not for the boogie but to dive, and paid for it up front with CASH. Its called a "budget."

________________________________
Where is Darwin when you need him?

[squirrel 0]

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As a number of people have noted, being debt free is a very good feeling.
I have both cars, motorcycle and house paid off.

yep, me too. and my house, cars, bikes, scuba gear, ultralight, jump gear and all the crap in my yard, all run and feel "better" being paid for. i dont even blink when the cost of maintaining them comes up, and thats what people forget. i would hate to have a payment, and the cost of maintaining and item too.

the thing about owing on an item is that it owns you. and, i don't let the things i own, own me.

________________________________
Where is Darwin when you need him?

[popsjumper 2]

What...2 days and you don't have it maxed out yet?

Pfffft.....amateur.

My reality and yours are quite different.
I think we're all Bozos on this bus.
Falcon5232, SCS8170, SCSA353, POPS9398, DS239

[squirrel 0]

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What...2 days and you don't have it maxed out yet?

Pfffft.....amateur.

________________________________
Where is Darwin when you need him?

[DrewEckhardt 0]

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So, you never want get on the way to buy one? (house). Hell, real estate is on sale right now!

Yeah! 3 bedroom/2 bath ranch homes in my neighborhood are now listing with price tags of only $1.3M price tags and selling for just $1.1M.

Maybe I'll buy two and make a fortune renting them out for $3000 a month - lesee, $4200/month mortgage payment, $1400 in property taxes, $3600 monthly loss before insurance, might not work that well.

While real estate prices have dropped, there are still many places where the cost to "own" (rent most of the money from the bank) is over double what it costs to rent a comparable property in the same neighborhood and school district.

There are also places where it's much less expensive to buy than rent although I wouldn't want to live there.

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oh, and buy the way. not sure how old you are, but fully funding a Roth IRA for 40 years will give you upwards of a million dollars.

From which you might be able to safely draw $40K/year in retirement income if you plan on living a while.

[squirrel 0]

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So, you never want get on the way to buy one? (house). Hell, real estate is on sale right now!

"Yeah! 3 bedroom/2 bath ranch homes in my neighborhood are now listing with price tags of only $1.3M price tags and selling for just $1.1M."

Dude, I know the cost of real estate. I grew up in 94022. Sure I would like to live there, but Prop 13 would not apply to me, and I refuse to pay taxes on a million dollar "ranch" Yes, there are always the upper and the lower ends of the market. I understand taxes, and cost of owning vs. renting. If you can insure that you will have a passive income, then rent till you die. But you better get busy investing, building a business, or something to pay that rent.. when you are unable to work anymore.

"While real estate prices have dropped, there are still many places where the cost to "own" (rent most of the money from the bank) is over double what it costs to rent a comparable property in the same neighborhood and school district."

True, but I would submit that if you don't get in now, you never will.

"There are also places where it's much less expensive to buy than rent although I wouldn't want to live there."

Yep, thats the price of real estate. But guess what, my 6 tenants are paying for my 6 houses, some of which will be sold, to purchase a house where I want to ultimately live. Sure I own rentals where I would not live...its business.

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oh, and buy the way. not sure how old you are, but fully funding a Roth IRA for 40 years will give you upwards of a million dollars.

From which you might be able to safely draw $40K/year in retirement income if you plan on living a while.

Yeah, well I could go out and do what most Americans do, and get a car on credit and not plan for retirement, and hope the government or my kids will take care of me, but I guess I am just different. I do plan to live awhile, and if I don't the Roth will be left to my yet unborn children, or some charity. But once I pass the 5 year rule, should be all good, and if I do live awhile, it will be simply more money to add to the pot of my other investments...while others pay their ... rent. Good luck with your plan. Let me guess, you think we should all go out and buy gold.

________________________________
Where is Darwin when you need him?

[squirrel 0]

Other reasons not to rent.

1. Your Landlord can sell at anytime, forcing you to move.

2. Your Landlord may not make the mortgage payments (if there is one), the house will be foreclosed on, and you will be forced to move. (I deal with this weekly.)

3. Your Landlord can raise the rent. Unless you are a dumb ass and signed an adjustable mortgage, your payment will remain the same.

But again, go ahead and rent forever, and make others rich. It works for me.

________________________________
Where is Darwin when you need him?

[skymama 35]

Interesting news story reported that 89% of Baby Boomers polled do not feel they have saved enough for retirement. That's a whopping big number!

You generation will probably be even worse off because Social Security will be gone and you've (as a group) learned bad spending habits from your parents.

If I knew in my 20's about what I know now about spending and saving, I would have totally had a different attitude. I was in debt then, but the only revolving payment I have now is for my son's car. Now that I'm almost 46, my goal is to live way below my means. I just wish I would have started that 20 years ago.

She is Da Man, and you better not mess with Da Man,
because she will lay some keepdown on you faster than, well, really fast. ~Billvon

[Arvoitus 1]

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Interesting news story reported that 89% of Baby Boomers polled do not feel they have saved enough for retirement. That's a whopping big number!

There is a world of difference between thinking that you don't have enough saved to live the way you feel entitled to vs. having enough to just live by.

Your rights end where my feelings begin.

[Squeak 17]

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Interesting news story reported that 89% of Baby Boomers polled do not feel they have saved enough for retirement. That's a whopping big number!

You generation will probably be even worse off because Social Security will be gone and you've (as a group) learned bad spending habits from your parents.

If I knew in my 20's about what I know now about spending and saving, I would have totally had a different attitude. I was in debt then, but the only revolving payment I have now is for my son's car. Now that I'm almost 46, my goal is to live way below my means. I just wish I would have started that 20 years ago.

if you did know in the 20's what you know now, and you applied that knowledge you most likely would not be where you are now as a person and most likely would know know the likes of Mark or others in your current life.
Looking back and saying "i i knew then..." is pointless and usually BS.

If i knew then what i know now and applied that thinking, the last 20 plus years would have been BATSHIT BORING compared to what they were

You are not now, nor will you ever be, good enough to not die in this sport (Sparky)
My Life ROCKS!
How's yours doing?

[david3 0]

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Interesting news story reported that 89% of Baby Boomers polled do not feel they have saved enough for retirement. That's a whopping big number!

You generation will probably be even worse off because Social Security will be gone and you've (as a group) learned bad spending habits from your parents.

If I knew in my 20's about what I know now about spending and saving, I would have totally had a different attitude. I was in debt then, but the only revolving payment I have now is for my son's car. Now that I'm almost 46, my goal is to live way below my means. I just wish I would have started that 20 years ago.

+1
Not easy to do but I am trying.

[wildcard451 0]

If you really wanna go into debt I could use a new comp velo....

[ntrprnr 0]

Funny you mention that - I'm looking at about four or five homes in Florida now to buy and rent out - Anywhere from $120 to $200k in price. For HOMES! Actually homes - not condos or apartments.

Also looking for one or two in Vegas on the Strip - $600k-$800k 2 bedroom condos now going for $120-$200. It's just sick.

I'm also looking at buying a place in NYC to live, (instead of renting like I do now) but that's down on the list. Fact is, buying in NYC or buying a few places in Florida - I'd make more money buying and renting out the places in FL and LV, while continuing to rent in NYC. Skymama has seen my apartment. She knows it's worth keeping renting it. :)

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Yeah! 3 bedroom/2 bath ranch homes in my neighborhood are now listing with price tags of only $1.3M price tags and selling for just $1.1M.

Maybe I'll buy two and make a fortune renting them out for $3000 a month - lesee, $4200/month mortgage payment, $1400 in property taxes, $3600 monthly loss before insurance, might not work that well.

While real estate prices have dropped, there are still many places where the cost to "own" (rent most of the money from the bank) is over double what it costs to rent a comparable property in the same neighborhood and school district.

There are also places where it's much less expensive to buy than rent although I wouldn't want to live there.

_______________
"Why'd you track away at 7,000 feet?"
"Even in freefall, I have commitment issues."

[skymama 35]

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Skymama has seen my apartment. She knows it's worth keeping renting it. :)

Your apartment is totally awesome!

She is Da Man, and you better not mess with Da Man,
because she will lay some keepdown on you faster than, well, really fast. ~Billvon

[wmw999 2,121]

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my goal is to live way below my means

I was lucky enough to figure out early to live below my means. It was mainly because I wasn't good at remembering to write down checks (credit cards were not de rigueur in those days -- people used checkbooks).

I didn't like making and keeping a budget, so I just made my lifestyle one that didn't require it. And I've kept it that way since.

Things have always been pretty easy that way. No, not rich, and there were some lean years when financial things took a hit. But it's not that bad to cut out cable, extra phone services, cook a lot, and play games instead of going to shows and movies.

That alone makes a huge dent in your budget.

Packing, working for the DZ and instructing/jumpmastering makes a difference in skydiving costs (I paid for about 50% of my first 1000 jumps). Buying used stuff (including gear, furniture, and cars) instead of new, and never buying when you really need it also makes a difference.

I've been lucky enough to be continuously employed. But even unemployed, I wouldn't hesitate to find someone to rent a room from me to help cover expenses, and cut out other stuff.

If you keep your monthly convenience expenses low, it's surprising how much extra money you have.

I have a degree in sociology, and I've never had to ask someone if they wanted fries with their meal -- I can't be doing everything wrong.

Wendy P.

There is nothing more dangerous than breaking a basic safety rule and getting away with it. It removes fear of the consequences and builds false confidence. (tbrown)

[squirrel 0]

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Interesting news story reported that 89% of Baby Boomers polled do not feel they have saved enough for retirement.

and i would guess that about 89% of baby boomers never expect to have a paid for home/condo/whatever, therefore this added expense in their older years forces them to keep working.

an earlier post said a $40k a year income from a Roth IRA would not be enough. guess what, i sometimes have years that I only make that, or less, but since i have no debt, no mortgage, no car payment... its fine, my bills are covered. And, when the $ does roll in, it stacks up real fast because i have no debt.

being debt free is kind of like trying to explain to a wuffo about skydiving, if you haven't done it, sadly you just don't understand. and it is hard and scary to do that first jump, (pay that first debt off), but after that...it gets better and better and better.

________________________________
Where is Darwin when you need him?

[NWFlyer 2]

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an earlier post said a $40k a year income from a Roth IRA would not be enough. guess what, i sometimes have years that I only make that, or less, but since i have no debt, no mortgage, no car payment... its fine, my bills are covered. And, when the $ does roll in, it stacks up real fast because i have no debt.

40K a year is perfectly reasonable in a lot of parts of the country, especially (as you've said) if your home is paid off.

Like others here, I wish I'd gotten my financial house in order a little earlier, but it's in order now and I've got no plans to let it get out of order again. I pay myself first on every paycheck - max amount goes into company retirement plan, then 20% of my net pay goes straight into a savings account so I never see it - that's my short-term "keep myself afloat" account.

I don't acquire a lot of "stuff" anymore - I prefer to use my money for experiences, some of which would be considered indulgent, but they're important to me so I choose to do them as long as I can afford them - skydiving of course, travel, concerts, my personal trainer. If I can find "stuff" I need used, all the better - sometimes the time/effort it takes to try to find something used makes me realize I didn't need it in the first place.

"There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke

[amstalder 0]

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an earlier post said a $40k a year income from a Roth IRA would not be enough. guess what, i sometimes have years that I only make that, or less, but since i have no debt, no mortgage, no car payment... its fine, my bills are covered. And, when the $ does roll in, it stacks up real fast because i have no debt.

40K a year is perfectly reasonable in a lot of parts of the country, especially (as you've said) if your home is paid off.

Like others here, I wish I'd gotten my financial house in order a little earlier, but it's in order now and I've got no plans to let it get out of order again. I pay myself first on every paycheck - max amount goes into company retirement plan, then 20% of my net pay goes straight into a savings account so I never see it - that's my short-term "keep myself afloat" account.

I don't acquire a lot of "stuff" anymore - I prefer to use my money for experiences, some of which would be considered indulgent, but they're important to me so I choose to do them as long as I can afford them - skydiving of course, travel, concerts, my personal trainer. If I can find "stuff" I need used, all the better - sometimes the time/effort it takes to try to find something used makes me realize I didn't need it in the first place.

Sometimes I wonder what we are missing in terms of putting our finances in order. I feel like we're pretty solid in terms of savings and retirement funds, not having any bills. We don't own a home but we also don't plan on buying anytime soon (frankly, I'd probably be okay with renting for the rest of my life....maybe). I don't know, what else should we know? We spend on travels and food "experiences" (aka eating out, what can I say? We're foodies. But we do cook at home too), but that's about it.

[squirrel 0]

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an earlier post said a $40k a year income from a Roth IRA would not be enough. guess what, i sometimes have years that I only make that, or less, but since i have no debt, no mortgage, no car payment... its fine, my bills are covered. And, when the $ does roll in, it stacks up real fast because i have no debt.

40K a year is perfectly reasonable in a lot of parts of the country, especially (as you've said) if your home is paid off.

Like others here, I wish I'd gotten my financial house in order a little earlier, but it's in order now and I've got no plans to let it get out of order again. I pay myself first on every paycheck - max amount goes into company retirement plan, then 20% of my net pay goes straight into a savings account so I never see it - that's my short-term "keep myself afloat" account.

I don't acquire a lot of "stuff" anymore - I prefer to use my money for experiences, some of which would be considered indulgent, but they're important to me so I choose to do them as long as I can afford them - skydiving of course, travel, concerts, my personal trainer. If I can find "stuff" I need used, all the better - sometimes the time/effort it takes to try to find something used makes me realize I didn't need it in the first place.

i hear you on the "experiences." stuff is just stuff, our society seems to make people think that who ever has the most is the best. me, i don't really want to have a big pile o' crap that has to be hauled to the dump when i die.
excellent going by the way on your $ plans. having cash, a Roth, no debt... it brings mental freedom. i'll repeat something that Dave says, if you pay off your house, and don't like the feeling of having no debt, you can always go get a mortgage...but i bet you won't.

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Where is Darwin when you need him?

[NWFlyer 2]

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We spend on travels and food "experiences" (aka eating out, what can I say? We're foodies. But we do cook at home too).

I don't eat out all that much, and if I do go out I try to make sure it's for a good experience, not just convenience (doesn't have to cost a lot but I'd rather go out for something I don't typically make at home). I do spend a fair amount on high-quality food for eating at home (organic and/or grass-fed meats, organic dairy, organic and/or local produce). But I consider that not only enhancing my enjoyment of the food but also an investment in my health (which has both a quality of life payoff and a financial payoff). Same reason I pay for my personal trainer. It's an investment in my health.

I'm pretty smart about buying food, though - I use my freezer extensively to take advantage of deals on quality food (plus if I always have good raw ingredients available at home I'm more likely to cook than go out).

"There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke

[NWFlyer 2]

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having cash, a Roth, no debt... it brings mental freedom.

Sure does. (Though I don't qualify for a Roth ... no, I'm not complaining) I do have a traditional IRA where I've rolled over everything from past employers' retirement plans plus I have my retirement plans at my current employer (they don't match employee contributions in the 403b, but after 2 years of employment, they set up a separate account into which they contribute 5% of my income every paycheck ... which is fully vested from the start. )

"There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke

[amstalder 0]

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We spend on travels and food "experiences" (aka eating out, what can I say? We're foodies. But we do cook at home too).

I don't eat out all that much, and if I do go out I try to make sure it's for a good experience, not just convenience (doesn't have to cost a lot but I'd rather go out for something I don't typically make at home). I do spend a fair amount on high-quality food for eating at home (organic and/or grass-fed meats, organic dairy, organic and/or local produce). But I consider that not only enhancing my enjoyment of the food but also an investment in my health (which has both a quality of life payoff and a financial payoff). Same reason I pay for my personal trainer. It's an investment in my health.

I'm pretty smart about buying food, though - I use my freezer extensively to take advantage of deals on quality food (plus if I always have good raw ingredients available at home I'm more likely to cook than go out).

Oh no, we don't eat out for convenience or eat very little fast food (I will admit to a hankering for pizza hut cheese sticks every now and then, though). I buy a lot of fresh and frozen ingredients, and try to avoid prepackaged meals.