How do people afford this stuff??

The mentality of finances has shifted drastically.

I remember going with my parents as a kid to purchase a vehicle back in the early 90s.
There were actual negotiations on TOTAL price of the vehicle.
Fast forward to the present.
No negotiations. First few words from the salesman's mouth. "What do you want your monthly note to be?"


Same with any form of borrowed/loaned money.
Nobody cares if they can afford the product/service itself.

All they worry about is that monthly note.

 

Well said.


Four square = salesman orgasm.

 

God that’s so true. On another note, this is the most liked comment I’ve ever seen in such a short period of time. Bravo.

 

Care to explain the four square reference?

 

https://www.edmunds.com/car-loan/four-square-basics.html

 

Not insane credit card debt but I definitely have taken advantage of 0% interest offers to afford a few mods earlier than I otherwise could have afforded. But I make sure I can pay them off before they start to incur interest.

 

Doesn't matter how much you make as long as you live within your means. If you make 100k a year, you can rack up a few grand on credit cards and pay it off monthly.
If you make 30k a year, you can rack up $250 a month on credit cards and pay it off monthly.
If you make 10k a year you can rack up $10 a month on credit cards and pay it of monthly.
Get it?
The same principle applies.
You still make money at their expense.

 

https://consumerist.com/2007/03/30/...ff-with-the-four-square-heres-how-to-beat-it/

 

YES! I know people who think only of that! No wonder there are 96 month loans (which completely blows my mind).

 

I certainly "get it." Thanks for the explanation though.

The average joe doesn't have the financial discipline in the USA, that is bored out by facts, of low savings rates, 72-96 month car loans, incredibly low savings rate, no retirement money....

 

Thanks.

Nothing says responsible like paying on a car that isn't worth the loan amount.

 

But at least they learned geometry in school... I never understood why they don't require basic financial classes in high school.

 

The best way to afford it is to move to the Midwest. Housing is inexpensive, jobs are a plenty, and pay well. Especially if you're willing to not live in a major city and if you are skilled labor your value only increases.

 

I apparently chose wrong at career day.

 

American consumerism at its best....

Sit at a dealership finance office, and see how many people are rolling $7-12K negative equity in new car loans/leases. Just witnessed one last week. Guy makes 200K a year. Owns an Audi worth 8K. Loan 26K. Gave 4K downpayment. Rolled all the negative equity on a $23K mini. 72 month loan....

 

Too true!
Sorry dude, I wasn't trying to insult your intelligence!
Lack of financial discipline and ignorance of loan/credit card terms is a personal problem. That was me in my 20's. Holy shit that was me. I learned the hard way!

 

Agree 100%. I wish they did.

In America, the lack of financial understanding is mind boggling.

 

Me too!

 

Agreed

I was given Kiplingers and Morning Star subscriptions for my 15th bday. Best present I ever got in my life.