Financial Responsibility

I agree... I have a mortgage on my home. I had student loans. The problem is the monthly responsibility. I hate being cash poor. Every month, good or bad you HAVE to make those payments. I just prefer to owe less and have less. If we hit another recession like 2007 I could really care less. Actually I will buy more houses. I just decided to reap the harvest in our economic upswing. I have a lot of mutual funds and investments as well. I really don't like the bank, especially their morals and ethics. It's ok if I can't afford it. If I really want it I'll find a way. If not, I probably didn't need it anyway.

 

That's my goal. Once I get a couple more things paid down I will be able to save even more. I will say that part of that savings is a vacation fund though haha

 

Work less and play harder is how the pro's do it

 

You have it right! Well done. Stay out of debt and you will sleep soundly. Live below your means.

 

Believe it or not, Cash doesn't Rule Everything Around Me

 

Cash has become difficult. Gas stations don't take $100 bills. Banks start asking questions when large transactions go down. Not much of my net worth is available in fluid cash. A large portion of my freedom comes from the earnings of my investments. I hope that you did't think that this was about "cash", that was not the intention. It is really about no debt and the freedoms that America is missing out on by being a "hyperconsumer". As I stated earlier... I didn't invent this. My grandparents and the generations that were involved in the depression lived this way. I just thought I'd take some time and hopefully help others to look at why they work and what they are working for. My buddy works for the chargecards in his wallet and to eat and drink out on the town 5 days a week in a diesel dodge crew cab dually with a butt load of mods. FYI he lives in one of my apartments and is religiously 2 months behind. He like the other 50% of America has been divorced.... twice

 

A lot of people won't admit it or even deny saying it's different this time, but when the current asset bubble pops they'll being partying like it's 2007/2008 all over again. I still can't figure out how people buy new homes in my area even with two incomes and 20% down. The housing market in my area is nuts for a shit splat dot on a map.

 

Oh my...I think you read me wrong here, I was just referring to this because I thought it fit.


Cash is powerful, and the less you're tied down by it the better, in my post I really just meant I've reached that point where cash isn't tying me down or controlling me.

 

I've been in the same little house for 20 years...we resisted the temptation to move up in house. Won't be long before we are mortgage free.

 

SWMBO and I have been debt free for about 40 years. My fiscal philosophy is much like my investment philosophy. I figure the interest most folks are paying keeps the economy moving. I am content to take a conservative, contrarian viewpoint. So far it has worked very well.

 

I heard a disturbing statistic on the radio here in LA the other week saying that the majority of young adults surveyed here under 30 have less than $1,000 (one thousand) dollars to their name. And many of those are living with barely enough to get through each day, paycheck to paycheck. I don't know how a person can live without anxiety like that. I have to have enough in my account to be able to survive for at least 6 months if I were to lose my job. I aim to keep enough in there for a year if possible.

My thing right now is I know I'm way past due for planning for retirement. I'm still 30 years off, and I have a decent full-time gig for a successful company, but they don't offer retirement plans unless you're at the executive level.

 

I have threatened to start my own charge card company... 15% interest. Sadly ther is no equity in smokes, gas, and beer. Kinda ruins the repo game.

 

Vanguard is a solid performer. Do your own homework, I don't want to lose your money. Most investment places should wear masks and pull a gun. Don't look to investments to be a scratch off ticket. They are a long term ride

 

I used to be the same way, then I realized I enjoyed owning junk more because I never had to worry about it. I can't even enjoy a vehicle until it has over 200,000 miles because at that point, I don't really care about dings, dents or paint fading. But, there are some things you don't want to go the cheap route on... especially tools, things that are good for your health and dating. Don't be a cheap ass when you take a lady friend out.

 

True, but that is not just debt. It is leveraged debt, meaning your money, while borrowed, is working for you. Companies do this all the time. Obviously, not the same as maxing out the credit cards to pay for the latest fashion accessories (*cough* iPhone *cough*) or to go on a trip.

 

Exactly! So many people have either no financial education or are horribly misinformed.

 

Well said my friend, I also only have a house payment. Got to have someplace to live. I just paid off my Tacoma last month, now I am throwing money at it. I am guilty of racking up bills and working for days, weeks, years to pay off that crap. At 54 years old now, I finally got my shit together for myself and the family. I do enjoy spending $$$$ on the Tacoma though. Take care.

 

And this is why I've taught my 21 year old and my 12 year old. Whatever u do, do just a little better than the next person. Don't settle for enough to get by. Because it sucks.
21 year old is in the navy. Been in for 3 years. He's a E5. Was presented the blue jacket award for the top sailor of the Pacific fleet. In only his 2nd year in. I said great job. He says dad I just did a little better than the next guy. And I'm just doing my job. And to think he listened.

 

That is called snowballing your debt. You are used to not having that money that was sent to your truck... Now you just add that to another item and knock that out. Eventually you end up with just a home mortgage like me. I split it out and send some to the mortgage and invest the rest. You have to weight the worst debt vs best returns.

 

Agreed, I have a real nice plot of land, great home, and no bills, except the HP. Will retire in a few more years on a real nice pension. Still enjoying dumping the extra money in the Toy. When I was younger, I couldn't spend my money fast enough, now I spend much more wisely. It truly amazes me how people just rack up dept on credit card one after another.