Angel1111 Posted December 2, 2008 Posted December 2, 2008 Right now I'm exercising the philosophy that if I don't have the cash in my hand or in the bank, then I can't buy something. We'll see how many years that lasts. You are dead right about this and don't let anyone talk you out of it. If I dated a guy who told me this, I would be blown away. I hope you'll look into Dave Ramsey's CD's because you are exactly on track of what he talks about, and he can take it to another level for you. He has a fabulous step-by-step plan that goes all the way to investing, your career, etc. I'm certain you'll love it. And if you go to the classes in your area, you might even meet a woman who's on the same path as you. You never know! As Dave says, our grandparents thought that debt was something to be ashamed of, then our parents come along and they had a little debt for a few things, then we come along and get into debt for everything. Our grandparents had it right. 'The borrower is slave to the lender.' No truer words have been spoken. Here's Dave's website if you're interested. He is truly awesome: www.daveramesey.com
kashmir Posted December 2, 2008 Posted December 2, 2008 I'll definitely check that out. I honestly don't see how a single person can get into credit debt unless they're impulsive spenders (which many people are). It's understandable when you're like my parents - having to raise 4 kids and pay a mortgage, but when you're single? What do you have to pay for? Mortgage or rent, a car, college loans, and general living expenses like food, utilities, etc. If you went to college then you'll probably have a pretty high-paying job for a single person, so while college loans might be a lot, they shouldn't be that much of an issue if you don't have kids. Obviously you can't have the cash to buy a home or pay entirely for college, but I don't think I'd ever buy a new car without putting a very high down-payment on it. It makes things more secure AND cheaper.
Angel1111 Posted December 2, 2008 Posted December 2, 2008 I'll definitely check that out. I honestly don't see how a single person can get into credit debt unless they're impulsive spenders (which many people are). It's understandable when you're like my parents - having to raise 4 kids and pay a mortgage, but when you're single? What do you have to pay for? Mortgage or rent, a car, college loans, and general living expenses like food, utilities, etc. If you went to college then you'll probably have a pretty high-paying job for a single person, so while college loans might be a lot, they shouldn't be that much of an issue if you don't have kids. Obviously you can't have the cash to buy a home or pay entirely for college, but I don't think I'd ever buy a new car without putting a very high down-payment on it. It makes things more secure AND cheaper. Even when you have kids, you don't need debt. When parents do this, they only teach their kids that debt is ok. That message needs to die. I played the debt game for a long time but I did not want my son to make the same mistakes so he went with me through the Dave Ramsey course. Now he's equipped with knowledge that I never had and will probably be a millionaire by the time he's 30 or 40. He loved Dave's program and it has given him a direction that I couldn't have given to him because I didn't know how to do it. If a person has debt, Dave's plan is done in steps, which includes paying off your mortgage after other things have been done. If you don't start out with debt, there's really no reason to go into debt even for a house - but, as he says, it is the one thing he won't beat you up about. But he says you need to only get a 15-yr mortgage and pay it off asap. I think college loans would also be an exception but a last resort if it could be avoided. Otherwise, all other debt, including cars, is totally unnecessary. Like I said, you're very much on the right path, and you'll do even better once you refine it. Dave is a financial wiz so he has that ability to take it to all the levels it needs to go. I recommend him a lot because he truly is waking people up about debt, money, career, etc.
Trialbyfire Posted December 2, 2008 Posted December 2, 2008 This was my awakening... college courses in: Risk, Insurance, Finance, Business Law, Entrepreneurship, Derivatives, Fixed Income, and others that I realized that it is better to be conservative on income, have a storm fund (rainy day) and take some calculated risks. Also not living beyond one's means (paycheck to paycheck) and quit buying crap I wanted but didn't need. If one never wrote a business plan or campaign plans, try it and it would be an awakening for many. Yup, it's as simple as that. Money in, money out. Monthly allocation towards savings and investments. Don't need it and can't afford it, don't buy it.
wierdmunky Posted December 14, 2008 Posted December 14, 2008 In this country our living standards are high in comparison to a lot of the rest of the WORLD. In our economics class, they defined economy as the choices people make based on the scarcity principle and how that is transferred back into the economy - people buying. And the scarcity principle is based on, that we have unlimited wants and needs but our recourses are limited. Some people are going to just want more and more, do we need them for survival? no, but some people think of them as grounds for being socially accepted - depending on what kind of world we live in.
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