Nightsky Posted February 26, 2012 Posted February 26, 2012 Or maybe people believe in being self sufficient and providing for themselves as they work through life. I worked every daylight hour for three years to clear my mortgage. Hated the knowledge I owed someone money. And guess what, no debt means I'm free. I wonder, what kind of an animal would willingly enslave itself by refusing to provide for itself? You enslaved yourslef by going into debt if thats what you believed. I believe in paying for housing for housing purposes not as an investment. It's much cheaper even in the long run if you use this. Money and debt should be about one thing only CREDIT. Smart people get better CREDIT by going into debt there for being given MORE money to spend. Silly people have the silly notion they need to pay off debt at any cost. Only pay off debt if it's in your advantage.
johan Posted February 26, 2012 Posted February 26, 2012 That doesn't sound like a very smart strategy to me. The more debt you have, the more interest you pay. And interest is just money down the drain. I think taking advantage of credit is ok. It's a tool you can use to attain things and make your life better. You just have to understand how much you can afford. If you take on too much debt, you become financially unstable.
Nightsky Posted February 26, 2012 Posted February 26, 2012 That doesn't sound like a very smart strategy to me. The more debt you have, the more interest you pay. And interest is just money down the drain. I think taking advantage of credit is ok. It's a tool you can use to attain things and make your life better. You just have to understand how much you can afford. If you take on too much debt, you become financially unstable. Rich people do it all the time. Walt Disney, Donald Trump... The biggest companies in this country al went bankrupt... well atleast over used their credit. As long as you know what your doing and dount get in a situation where they can put you in prison on fraud charges abusing credit is exactly what will get you ahead. It's the only way actualy. The only real penalty is losing credit. But you'll usualy gain credit in the process of abusing it so its very win win for every one involved. Most people don't understand money for what it actualy is... IOU. All money is debt in our system. Would be worthless if every one strived to be like you.
johan Posted February 26, 2012 Posted February 26, 2012 Rich people do it all the time. Walt Disney, Donald Trump... The biggest companies in this country al went bankrupt... well atleast over used their credit. As long as you know what your doing and dount get in a situation where they can put you in prison on fraud charges abusing credit is exactly what will get you ahead. It's the only way actualy. The only real penalty is losing credit. But you'll usualy gain credit in the process of abusing it so its very win win for every one involved. Most people don't understand money for what it actualy is... IOU. All money is debt in our system. Would be worthless if every one strived to be like you. Sounds like you have it figured out. Good luck.
Crusoe Posted February 26, 2012 Posted February 26, 2012 You enslaved yourslef by going into debt if thats what you believed. I believe in paying for housing for housing purposes not as an investment. It's much cheaper even in the long run if you use this. Lets see. I borrowed some money, I paid that money back plus only three years interest. I have not had to pay rent or a mortgage for ten years and I never will again. My property is now worth three times what I paid for it. I owe no money, the money that would have been spent on paying interest is now gaining interest in my savings account, I will always have a roof over my head and I'm semi retired at the age of 40. I thought I was fairly financially stable. Silly me.
Imajerk17 Posted February 26, 2012 Posted February 26, 2012 (edited) We could debate on and on about what the definition "financially stable" should be. Whatever definition most people agree on, I myself would need to have over a year's living expenses saved up, BESIDES significant retirement savings, AND ALSO more assets than debt, to feel comfortable. I would also need to be taking in significantly more money per month on average than I am spending (such as say, 10%), with the difference going to savings/investments. I don't believe that you need to be making a really big salary to achieve this, especially if you have no kids. If you are making 60k/year, live like you are making 50k/year, and put the difference away in savings and investments. I'm not sure what this has to do with "dating" per se though, because I don't require my partner be "financially stable", I just require her to be RESPONSIBLE. That isn't the same thing as being financially stable (even though they are positively correlated). Again, I have friends who are teachers, medical students/interns, and even a pastor who do not have that much money, but who I think would make great partners. Edited February 26, 2012 by Imajerk17
Crusoe Posted February 26, 2012 Posted February 26, 2012 Yeah. What a sucker you are! Yeah, I know, I really should learn to think for myself. To answer the OP. To me, financial stability is how a person looks upon and uses money rather than how much they have. A Bud I golf with is worth tens of millions but he is a reckless risk taker, I would never get financialy tied in with him. Another Bud is a roadsweeper on little more than minimum wage, but the way he handles his money and his work ethic make him real stable in my eyes.
Jynxx Posted February 27, 2012 Posted February 27, 2012 Decided not to post itt, but couldn't ignore this one I'm 6 figures in student loan debt; however, my profession has allowed me to make 6 figures basically right out of the gate. I hate delayed gratification and student loans don't get passed off onto to your kids, so part of me is content to just pay the bare-ass minimum until my 50s and just make peace with that, while living decently and accruing savings just like anyone else. If I can handle the cost and it doesn't bother me, and I always have the option of deferring, what does it matter in the end? I mean, governments do it, right? There's a word for borrowing something with the intend of not giving it back despite agreeing otherwise. Sure, you could probably get away with it. Then again, you could also get away with not paying at a gas station, stealing candy from little children and robbing elderly if you pick the right place and time. And what's the big deal, right? What does one tank of gas, one lollipop or one purse matter in the end? Why would you have the moral obligation to pay for your goods when criminals and governments don't? Pay your debts, scum.
Mme. Chaucer Posted February 27, 2012 Posted February 27, 2012 Well I'm putting all my money into building my sail boat, that way when the comet does come the rising water levels won't affect me that much. I may or may not serious here. You should go on "Doomsday Preppers."
Mme. Chaucer Posted February 27, 2012 Posted February 27, 2012 Decided not to post itt, but couldn't ignore this one There's a word for borrowing something with the intend of not giving it back despite agreeing otherwise. Sure, you could probably get away with it. Then again, you could also get away with not paying at a gas station, stealing candy from little children and robbing elderly if you pick the right place and time. And what's the big deal, right? What does one tank of gas, one lollipop or one purse matter in the end? Why would you have the moral obligation to pay for your goods when criminals and governments don't? Pay your debts, scum. Dude. He's paying.
reallyhotguy Posted February 27, 2012 Posted February 27, 2012 Decided not to post itt, but couldn't ignore this one There's a word for borrowing something with the intend of not giving it back despite agreeing otherwise. Sure, you could probably get away with it. Then again, you could also get away with not paying at a gas station, stealing candy from little children and robbing elderly if you pick the right place and time. And what's the big deal, right? What does one tank of gas, one lollipop or one purse matter in the end? Why would you have the moral obligation to pay for your goods when criminals and governments don't? Pay your debts, scum. I believe you're the first person in the history of mankind to suggest that the concept of morality exists anywhere within the student loan market.
Star Gazer Posted February 27, 2012 Posted February 27, 2012 Decided not to post itt, but couldn't ignore this one There's a word for borrowing something with the intend of not giving it back despite agreeing otherwise. Sure, you could probably get away with it. Then again, you could also get away with not paying at a gas station, stealing candy from little children and robbing elderly if you pick the right place and time. And what's the big deal, right? What does one tank of gas, one lollipop or one purse matter in the end? Why would you have the moral obligation to pay for your goods when criminals and governments don't? Pay your debts, scum. Scum? Woah, woah, woah. He's paying! Where did he say he's not going to pay his debts? He said just that, only that he's only going to pay the minimum payment. This is what I do, as recommended by two different financial advisers. My student loans are fairly large and are locked in at 1.02%. My various investments earn way more than that. Sh*t, even my money market account at my bank earns more than that. As such, what extra funds I have at the end of each month do NOT go to Sallie Mae, but rather Charles Schwab. Sallie Mae just gets the minimum.
reallyhotguy Posted February 27, 2012 Posted February 27, 2012 Scum? Woah, woah, woah. He's paying! Where did he say he's not going to pay his debts? He said just that, only that he's only going to pay the minimum payment. This is what I do, as recommended by two different financial advisers. My student loans are fairly large and are locked in at 1.02%. My various investments earn way more than that. Sh*t, even my money market account at my bank earns more than that. As such, what extra funds I have at the end of each month do NOT go to Sallie Mae, but rather Charles Schwab. Sallie Mae just gets the minimum. Holy ****, what did you guarantee those people to get your interest down that low?
Art_Critic Posted February 27, 2012 Posted February 27, 2012 (edited) Sh*t, even my money market account at my bank earns more than that. You have a bank MM paying more than 1.02% ? I need to change banks... I do have a savings account at a CU paying more than that.. but not a MM Edited February 27, 2012 by Art_Critic
aj22one Posted February 27, 2012 Posted February 27, 2012 Decided not to post itt, but couldn't ignore this one There's a word for borrowing something with the intend of not giving it back despite agreeing otherwise. Sure, you could probably get away with it. Then again, you could also get away with not paying at a gas station, stealing candy from little children and robbing elderly if you pick the right place and time. And what's the big deal, right? What does one tank of gas, one lollipop or one purse matter in the end? Why would you have the moral obligation to pay for your goods when criminals and governments don't? Pay your debts, scum. There's also a word for people who print money out of thin air, backed by nothing, loan it out to people and earn interest on it. With each dollar they print it destroys the value of each one already in circulation. When individuals do this, it's called "counterfeiting". When the banks do it, it's called "fractional reserve banking". And for this privilege they give their customers a whopping 1% on their savings accounts. And you're calling this guy scum? Please. I encourage people to get over on these financial institutions any chance they get. They'd do it to you in a heartbeat.
Star Gazer Posted February 27, 2012 Posted February 27, 2012 Holy ****, what did you guarantee those people to get your interest down that low? Several things. When I graduated, they were at 3.15% to begin with. When I consolidated, then went down to like 2.5%. Then, they gave me a discount for auto-pay, and then a discount for consistent payment (don't remember what those percents were though), and then when I went to work for the government and got furloughed, I called them to see if I could reduce my payment somehow during that furlough period, and they lowered it another amount so that it's now sitting at 1.02%. So WTF would I ever pay that off early?
Star Gazer Posted February 27, 2012 Posted February 27, 2012 You have a bank MM paying more than 1.02% ? I need to change banks... I do have a savings account at a CU paying more than that.. but not a MM That's weird. I've had a MM since I was like 22, and my MM always earned significantly more than my savings. My MMs have always been closer to a high CD rate. My current savings account is only like .10% or something ridiculous.
Sanman Posted February 27, 2012 Posted February 27, 2012 This is an interesting conversation. I do agree that financial stability is more than a mere high net worth and issues like liquidity play into it. I also think that diversification of investments plays into it. This is why I am looking into purchasing more dividend producing stocks and looking at investment property. Having several different steady streams of income (and perhaps even more than one job) allow for greater stability of income. While I am hardly old, I do see the benefits slow, steady investing more than big exciting gains many go for. 1% on student loans is impressive. I thought I did well reconsolidating the bulk of my loans at 3.2%. Depending on the interest rate in your debt (especially student loans) it can be worth allowing inflation over the course of a loan to reduce its real value.
Nightsky Posted February 27, 2012 Posted February 27, 2012 Yeah. What a sucker you are! Yeah, I know, I really should learn to think for myself. To answer the OP. To me, financial stability is how a person looks upon and uses money rather than how much they have. A Bud I golf with is worth tens of millions but he is a reckless risk taker, I would never get financialy tied in with him. Another Bud is a roadsweeper on little more than minimum wage, but the way he handles his money and his work ethic make him real stable in my eyes. To treat money as if its worth anything other then what it buys is the suckers attitude. If your one friend really does have millions he's better with it then the roadsweeper who unless he has a passion for roadsweeping is a slave to money.
FrustratedStandards Posted February 27, 2012 Posted February 27, 2012 (edited) Of course he has to be financially stable. If he can't pay his own rent or phone bill, I don't want him. In my own terms though, financially stable means he has enough to pay off all his bills plus some to spare. If someone lives paycheque to paycheque then to me that's not financially stable. To me that's poor. As for age, obviously you cant expect someone right out of university to be financially stable. And there are other circumstances (like recently having migrated to the country or recently lost a family member and had many expenses to pay) that also don't count. I think that if by the age of 26 or 27 a man isn't up on his feet, then it's a turn off. Then again, with my own experiences, my dad opened his own company, bought a house and had a second child all before hitting 30. He kind of set the bar pretty high. Edited February 27, 2012 by FrustratedStandards 1
aj22one Posted February 27, 2012 Posted February 27, 2012 Of course he has to be financially stable. If he can't pay his own rent or phone bill, I don't want him. In my own terms though, financially stable means he has enough to pay off all his bills plus some to spare. If someone lives paycheque to paycheque then to me that's not financially stable. To me that's poor. I like this way of spelling better. haha
Nightsky Posted February 27, 2012 Posted February 27, 2012 I like this way of spelling better. haha haha all these years of been getting a pay cheque... are you saying I'm due a pay check... I wonder how she says pay check to have spelled it that way. Obviously a fun mistake. I like you aj22one!
aj22one Posted February 27, 2012 Posted February 27, 2012 haha all these years of been getting a pay cheque... are you saying I'm due a pay check... I wonder how she says pay check to have spelled it that way. Obviously a fun mistake. I like you aj22one! Nah man it's the European or olde English way of spelling it. Actually it's just a bit of French that leaked into the English way back when. We Americans like to change spellings all the time. Like percent instead of per cent. 1
FrustratedStandards Posted February 27, 2012 Posted February 27, 2012 Cheque is not incorrect, for those of you who are not familiar with english vocabulary. Check is the common American spelling, however cheque is used all elsewhere.
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