phil5185
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Oct 23, 2011 18:06:02 GMT -5
Post by phil5185 on Oct 23, 2011 18:06:02 GMT -5
phil -- you dont take account any risk at all, like if you lost your job or get severely injured and cant pay the loan.
not only that, if bought a $10,000 car with cash, not financed, you would be able to invest more money into the market because you wouldnt have a car loan for 60 months, 1. You are forgetting that I still have the $32,000 - I can use that to make car payments for awhile. But the guy who paid $25,000 in cash doesn't have that money anymore - so he will be in more trouble than I will, in an emergency. 2. If you bought a $10,000 car with cash, you would no longer have the $10,000 that doubles every 6 yrs - $20k, $40k, $80k, and so on. You need capital to make money. that you will never make the money back on replacing windows-You also won't make the money back on solar panels unless your solar panels have been heavily subsidized by tax payers dvm, I agree with your dad 100%, those two items are grossly over-marketed. You'll be told that you get a return on your $20,000 windows in only a few short yrs. Actually, they will probably cost you money, you lose the $1500/yr or $2000/yr returns on your $20k forever. And it's unlikely that you will even save $1500/yr on your bills. In fact, our house is 2000 sq ft, total electric, our elec bill for 2010 was $1406 - $600 or $700 was for heating/AC. So even if magic windows saved 100% of my heating/cooling cost, it would only save $700/yr - and my $20,000 would be gone and my $1500/yr return would be gone. Yes, magic windows are a nice thing to have - but not as a way to save money.
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mizbear
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Oct 23, 2011 18:37:43 GMT -5
Post by mizbear on Oct 23, 2011 18:37:43 GMT -5
The only way replacement windows save you money is if you are a situation like DGM was in- the house is 55+ years old, poorly insulated- if at all- and the windows were going to fall out. So she did the wrap, siding, windows, etc all at once- but she also didn't go with the triple pane, self-opening, self cleaning, blinds in the middle, would you like fries with that option either.
I guess this means I can't stand outside the front windows and warm my hands this winter where the heat is coming out around the cracks. ;D
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mizbear
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Oct 23, 2011 18:52:57 GMT -5
Post by mizbear on Oct 23, 2011 18:52:57 GMT -5
dvm- Thankyou. I make it work because I choose to make it work- which goes to twinmama's original point in a way. There are people who slip up, or who decide that X course of action is going to be better in the long run. Or those who decide they would rather be hamsters. I can't be a hamster. My parents were hamsters. As far as the nieces go- ex-SIL isn't asking me to watch them as much now that she's finding she can't get me to pay for tons of stuff and run all over the place. Now that my usefulness is coming to an end, she is cutting ties.
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seriousthistime
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Oct 23, 2011 19:13:45 GMT -5
Post by seriousthistime on Oct 23, 2011 19:13:45 GMT -5
twinmama, the dog's injection is every 25 days, not every 25 months. By "really expensive," I'm talking $175 each time. So I plan ahead by allocating to pay this every other paycheck. Paychecks are every 14 days, so there are a couple of times when I have to pay for the shot two paychecks in a row. But then I'm back to the every other paycheck routine. I don't put it on my credit card or save half the cost in the bank with every paycheck and then withdraw it from savings during the next pay cycle. Saving ahead works for me when it's something due on a longer term basis (property taxes, for example) and I am actually quite good at that. My point about the dog's injection is that what is pretty expensive canine maintenance to one person is $100 shoes to me. We all have our Achilles heal.
And I do get frustrated when people say they have to buy a new car because their old one is shot, when they plainly should be paying down debt. But I know from my sister's experience that buying a beater and paying $800 here and $1000 there and then paying $400 more the third month doesn't work for her. (She's doing the beater-repair routine because she can't get approved for a car loan and, no thank you, but I don't believe I will co-sign for that one). But you can see why some people choose to take on a car payment when they could choose to buy the beater and pay for repairs. I don't see much difference if you buy the beater and put $250 into the bank every month for repairs you know you will need vs. buying a car with a $250 car payment. Except that the car loan is a line on a WIR update and the beater + repairs is staying debt free. It's sort of like me, owning a house. I have mortgage debt. I could rent an equivalent place for about the same monthly amount; maybe it would be more to rent. If I were to rent, I would not have mortgage debt, but I would have to pay every month, regardless.
I think what you are complaining about is more the situation where people confess, "I took out a loan for X" and people say "Yay!" I don't see that very much. There have been situations that have driven me nuts in the past. None of the prime posters have posted in this thread. For example, here are some I have read: -- I moved in with my parents so I can pay down my debt. Now I want my own apartment and still have this debt so I'm taking bankruptcy so I can afford to move out. (Yay!) -- I can afford this house but I'm dating someone who lives in another state and I want to move in with him so I'm going to do a short sale on this place, move in with my BF, and then since I won't be paying my mortgage I can pay off my debt. I won my debt race. (Yay!) -- I bought my house at the height of the market. Now houses are selling for half the price. I want to buy a bigger house for less money that I owe, so I'm going to buy a new, bigger house, walk away from this one, and let the bank own it and I will have positive equity soon. (Yay!)
That's the kind of crap that gets me.
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mizbear
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Oct 23, 2011 19:21:24 GMT -5
Post by mizbear on Oct 23, 2011 19:21:24 GMT -5
One of the ones I love- again not something seen here often- is when no matte what options the WIR gives even after having the entire budget, the entire history, all the facts-
"Oh no- I couldn't possibly do THAT!"
And when you ask why-
There's no reason- they just don't want to. At least give a rebuttal- even if your rebuttal is "I don't know if I am ready to take that step yet." If people know that, then they can re-configure their advice.
ex.- I'm not ready to give up my apartment and move back in with DM and DGM just because it would be a way to buy a home and probably get my debts paid off quicker- why?
A) It could lead to me having a stroke or another nervous breakdown before my next birthday. B) The financial risk right now outweighs the benefit. C) Just not ready to go there- I'd rather give up my SB and see how much I save there.
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twinmama85
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Oct 23, 2011 19:58:00 GMT -5
Post by twinmama85 on Oct 23, 2011 19:58:00 GMT -5
25 days, not every 25 months
sorry i sometimes imagine words that arent there lol
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twinmama85
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Oct 23, 2011 20:04:48 GMT -5
Post by twinmama85 on Oct 23, 2011 20:04:48 GMT -5
you are right about that...ok serious, you know who this person is...they have pretty low income, boyfriend lives with them, they dont really have anything saving for an EF and they are slowly paying down debt. this person just spent money on boots, i think $98 and are also saving to go on a cruise instead of paying down debt or establishing an EF...but then they turn around and complain about it!! it drives me absolutely bonkers!! yes i know its their own lives and they are adults but give me a break.
phil -- u have 32k to pay for the car loan but what about the rest of your expenses? especially if you have multiple loans, CC, mortgage, rental mortgages...etc
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mizbear
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Oct 23, 2011 20:40:50 GMT -5
Post by mizbear on Oct 23, 2011 20:40:50 GMT -5
If I'm going to buy $100 shoes, they had better be something I need.
I spend about $100- give or take every 3-5 years on good Merrill snow boots. I spend whatever is necessary on my running shoes (although usually I can find a good sale and if I have spent $100, I have gotten 2-3 pair) I wear running shoes for running, walking, and everyday wear. Trying to break myself of wearing them everyday, but it's a 35 year habit.
But I honestly wouldn't pay that much if there were a less expensive quality alternative. (I hate duck boots)
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twinmama85
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Oct 23, 2011 21:31:50 GMT -5
Post by twinmama85 on Oct 23, 2011 21:31:50 GMT -5
i think it was just bought because they felt they deserved it...that isnt really changing your behaviors but to each its own.
i love designer stuff, i have a louis vuitton purse and wallet that i adore and i plan on buying more...but right now, louis is on hold as well as other designer things i want. because i know they arent needs, they are flat out wants...no body needs a $900 purse but i sure as hell want one ;D
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mizbear
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Oct 23, 2011 21:44:50 GMT -5
Post by mizbear on Oct 23, 2011 21:44:50 GMT -5
I think that is another part of what it boils down to- changing or attempting to change your behavior. My DM is still a spender- so is my estranged father- so is my DB.
I can't say that I have changed or not changed as much as I am removing toxic financial habits and personalities from my life.
For instance- I don't shop with my DM if it can be avoided.
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bring in the new year
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Oct 24, 2011 6:48:53 GMT -5
Post by bring in the new year on Oct 24, 2011 6:48:53 GMT -5
Okay, twinmama, I looked over her numbers. Outside of the Kleenex, I don't see any paper goods, cleaning supplies or HBA. (no vitamins frex) It may be she does include them, just not on this grocery bill. But if she doesn't and you do, that's an additional $40 -$80 monthly. I'm not saying you can't cut your grocery bill. I'm saying that you have to be comparing apples to apples before you beat yourself up. (I on the other hand, being single get to go beat myself up now. So, looking at your menu, it looks very reasonable to me. 1. Do you feel you ever have to throw stuff out? 2. Do you ever just buy groceries and NOT add to the stockpile? Becuase if the answer to both those questions are no, then I think, you're doing well. If it makes you feel better, go buy groceries one week where all you're buying is for that week. No freezer stuff you don't expect to use, no great deal on paper towels, etc. Just the replacement stuff for that week. You may find you spend less in groceries than you think. The rest is long term savings in the form of food. Don't try and do this on a week with really good sales. It's just too damn tempting to pick up the extra five boxes of pasta.
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murphath
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Oct 24, 2011 11:45:38 GMT -5
Post by murphath on Oct 24, 2011 11:45:38 GMT -5
Back to your original post on this thread re debt and unwillingness to change. Can't say that I understand any of it the way folks in the debt mess do as we have never been in debt like that. But I think everyone in those shoes comes to their own epiphany at their own time. If you remember, twinmama, you were having great difficulty convincing your DH about not using the Amex card anymore, right? I forget what turned him around but I think anyone posting on a debt board will get that light bulb moment eventually.
I understand your frustration. You've done an amazing job turning things around and since attending that Dave Ramsey event, are all gung ho! More power to you--I'm not a big fan of his. Don't know why, but he just irritates me for some reason. But whatever works to help someone solve their debt problems.
So, I guess I'm in agreement with mizbear: change can happen slowly for some people and others, like you, get on it right out of the gate. Perhaps the gal/guy in question isn't quite ready and I think the purpose of the WIRR racers board is to encourage and nudge people to make better choices. On a positive note, at least the person 'fessed up to whatever the purchase was.
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murphath
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Oct 24, 2011 11:53:21 GMT -5
Post by murphath on Oct 24, 2011 11:53:21 GMT -5
twinmama:
Just a side comment here: I used to work for a French airline many moons ago. All the flight attendants had all the L.Vuitton stuff: suitcases, purses, etc. You do know it's essentially plastic, right? I'm not trying to be nasty, but please explain why you like his products? I must be missing something because I can't see spending that kind of money on a plastic product that has his initials all over it. I don't understand all the hoopla over Coach, Kate Spade etc. for much the same reason. I really am asking "Why"?
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sarcasticgirl
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Oct 24, 2011 12:53:22 GMT -5
Post by sarcasticgirl on Oct 24, 2011 12:53:22 GMT -5
here's a thought...
not everyone responds positively to being told how horribly they are doing and having all their wrong choices pointed out to them.
to me, it's similar to a person trying to lose weight... if you sit and critique every morsel they put in their mouth and chastize them for eating a cookie... it will NOT help them lose weight? statistics show that HURTS and many times makes it worse. but working with them... saying "okay, you ate some cookies today, you can't UN-DO it... what can you do tomorrow to help turn this around?"
if someone states that they have just taken on new debt, what good would it do to call them out, chastize them or what have you? tell them everything they are doing wrong. how is that constructive in any way?
and when it comes down to it... there are people who simply have a different philosophy than you do. some people think "hmmm, i'd rather put a few thousand on a zero interest credit card and pay it off in 6 months than pull $$$ from savings which is earning interest." that is not WRONG... it is just DIFFERENT.
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sarcasticgirl
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Oct 24, 2011 12:58:59 GMT -5
Post by sarcasticgirl on Oct 24, 2011 12:58:59 GMT -5
twinmama:Just a side comment here: I used to work for a French airline many moons ago. All the flight attendants had all the L.Vuitton stuff: suitcases, purses, etc. You do know it's essentially plastic, right? I'm not trying to be nasty, but please explain why you like his products? I must be missing something because I can't see spending that kind of money on a plastic product that has his initials all over it. I don't understand all the hoopla over Coach, Kate Spade etc. for much the same reason. I really am asking "Why"? everytime i see someone walking around with the standard LV or Coach bag i wonder why the heck they'd want someone's initials all over their bag. I don't have an affinity toward the letters C, L or V so i don't *get* the point?
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bring in the new year
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Happy Thanksgiving!
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Oct 24, 2011 13:00:23 GMT -5
Post by bring in the new year on Oct 24, 2011 13:00:23 GMT -5
twinmama:Just a side comment here: I used to work for a French airline many moons ago. All the flight attendants had all the L.Vuitton stuff: suitcases, purses, etc. You do know it's essentially plastic, right? I'm not trying to be nasty, but please explain why you like his products? I must be missing something because I can't see spending that kind of money on a plastic product that has his initials all over it. I don't understand all the hoopla over Coach, Kate Spade etc. for much the same reason. I really am asking "Why"? Murph, Don't know about the other names but on the Coach bags, it's because they last and last, even when treated roughly. The wallet held up for over ten years (until it was stolen); the first purse I think was 15 years and this one is around 10. When something snaps on this one, I'll be trotting into the Coach store as fast as I can.
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midjd
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Oct 24, 2011 13:55:27 GMT -5
Post by midjd on Oct 24, 2011 13:55:27 GMT -5
I think the LV debate is a perfect example. I feel this way about Vera Bradley - a lot of my friends LOOOOOVE her designs and are always searching for the next piece to add to their collection. To me, the bags look like old quilted curtains. Debt-reduction methods are no different. I'm not a fan of the Dave Ramsey method myself - it works OK for reducing debt, but doesn't do much to increase wealth. Others find it immensely helpful. Again, different strokes for different folks.
Some people do react well to a hard-line, tough approach, and will change their behavior if they start getting strong feedback. Others will go running off, never to return.
Another consideration - often, by the time someone has posted here, the deed (whatever it is) is done. Once you've driven that brand-new car off the lot, the dealer isn't going to hand over your deposit in exchange for the keys. In these cases, the criticism may be well-grounded, but what good does it do? Better to frame it as "Okay, not the best idea, NOW what?" versus "That was dumb of you."
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Pants
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Oct 24, 2011 14:32:34 GMT -5
Post by Pants on Oct 24, 2011 14:32:34 GMT -5
twinmama: A couple things: First, not everyone wants to take the fast road to being debt-free. Yes, we're all here to eliminate debt, but different paces work for different people.
When it comes to adding debt, that holds true too. I went off to graduate school and added $90,000 in debt. There was no way I was going to be able to cash-flow $45k each year for 2 years, but my graduate degree enabled me to take a $30,000 raise per year over what I was making before. Is that debt worth it? To me, F*ck yes. Even though I have to pay interest on it.
Just because something works for you does not mean it will work for someone else.
Regarding the poster you were talking about before, you know what, I used to get all worked up over that particular poster too. I looked at her income, looked at her expenses and debt, and just thought "OMG, this is never going to work." I would watch her take 1 step forward and 2 steps back and feel like banging my head against a wall. Then one day I looked around and realized she has eliminated half of her debt in ONE YEAR. Turns out, my system wouldn't necessarily work for her, but hers was working just fine. So while I was getting all upset that she wasn't doing what I would do, she was doing what she wanted and making it work. I say good for her.
Finally, regarding the tone of the board, yes, sometimes we are too squashy for fear of appearing too harsh. Different people react to different criticisms differently. One of the parts of being around for a long time is that you get to know who will respond to what and decide if you want to engage them on those terms or not. If you don't then don't.
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salserabarby
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Oct 24, 2011 14:48:38 GMT -5
Post by salserabarby on Oct 24, 2011 14:48:38 GMT -5
twinmama - I totally agree with you. I made the same comment about people not really being committed to debt payoff and got reamed as well. I read the comment about "I think that when some people work really, really hard to get out of debt, the focus wears them down and they simply HAVE to buy something frivolous to treat themselves." During my debt payoff period I went throught the same issues, but I hung in there, stayed away from the malls, etc.
Now, I'm saving so I can finish my MBA. I figure at the rate that I can afford it it will take me 2+ years. I would love to be able to finish sooner, but the debt when I decided no more debt. I meant it!!!!
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sarcasticgirl
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Oct 24, 2011 14:54:56 GMT -5
Post by sarcasticgirl on Oct 24, 2011 14:54:56 GMT -5
LOL- i feel the SAME way! her designs remind me of things my grandmother used to make. or diaper bags. I can see the point about having a bag last for 15 years... but personally, i'd never carry the same bag for 15 years. i love to change things up so i have a few bags that cost under $100 and i rotate them. then when i'm tired of them, they get donated. just another example of how the same method doesn't work for EVERYONE!
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Rocky Mtn Saver
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Oct 24, 2011 15:22:52 GMT -5
Post by Rocky Mtn Saver on Oct 24, 2011 15:22:52 GMT -5
LOL- i feel the SAME way! her designs remind me of things my grandmother used to make. or diaper bags. I'm glad it's not just me! I only recently even became aware of this line. Shows how often I'm in a mall or around people who are accessory-shopping! ;D But when I noticed them in stores on a recent vacation in New England, I thought they were actually pretty darn garish!
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mizbear
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Oct 24, 2011 19:53:17 GMT -5
Post by mizbear on Oct 24, 2011 19:53:17 GMT -5
I'm glad I'm not the only one who doesn't do Vera Bradley bags- my mother thinks there is something wrong with me. Honestly, I usually carry a backpack because I am carryig my stuff and 3 other peoples! I buy my purses on sale- same with my dress shoes and boots. My 10 year old niece and I make a game out of seeing how much of a discount we can get on dress boots and purses when I need to replace one- 95% off was the best I did thanks to Boscov's wheel. 70% markdown plus 25% on the wheel! ;D One thing I have difficulty balancing while wanting to get rid of debt is remembering that it is okay to replace clothes or shoes when they wear out or when I need clothes for a funeral or wedding.
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twinmama85
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Oct 24, 2011 20:26:42 GMT -5
Post by twinmama85 on Oct 24, 2011 20:26:42 GMT -5
murpath -- i would smite you right now for that statement!! AUTHENTIC Louis Vuitton bags ARE NOT PLASTIC! it is handmade, hand stitched, hand punched leather! OMG some people! ;D sarcastic -- im not going around and calling people idiots, im just saying, you point anything out and they get upset about it...maybe because they realize they shouldnt have done it, i dont know? AS IVE STATED BEFORE, im not talking about falling off the wagon, i mean a WILLING choice to do more harm to their financial situation and then complaining about the debt. ive stated that several times throughout this post hellbound -- your statement:When it comes to adding debt, that holds true too. I went off to graduate school and added $90,000 in debt. There was no way I was going to be able to cash-flow $45k each year for 2 years, but my graduate degree enabled me to take a $30,000 raise per year over what I was making before. Is that debt worth it? To me, F*ck yes. Even though I have to pay interest on it. i used to believe that too, but what would you have done (unless you are a doctor or have a MBS/Phd in some medical field/lawyer) if you couldnt have gotten a job after that or what if you would not have made more money? the risk can be really high sometimes. salserbarby -- twinmama - I totally agree with you. I made the same comment about people not really being committed to debt payoff and got reamed as well. I read the comment about "I think that when some people work really, really hard to get out of debt, the focus wears them down and they simply HAVE to buy something frivolous to treat themselves." During my debt payoff period I went throught the same issues, but I hung in there, stayed away from the malls, etc.
Now, I'm saving so I can finish my MBA. I figure at the rate that I can afford it it will take me 2+ years. I would love to be able to finish sooner, but the debt when I decided no more debt. I meant it!!!! i think you said that on the west board right? i remember someone saying that and at the time i was saving for a vacation to hawaii and that statement checked me lol...we ended up sending that va-ca money to pay off my OBGYN Louis,louis,louis....he is my love lol i also have a soft spot for Gucci and Versace bags (i only have a LV)..i used to like Coach bags but i looked at the tag and realized they are made in China!! a bag named Coach that costs $300 should not be made in China! My personal LV is made here in the USA and my wallet is made in Spain. my Prada sunglasses are made in Italy and my Bvglari sunglasses are also made in Italy...i just dont see why something so expensive should be made in the same place they make wal mart bags AGAIN my main point of MY RANT is people dont change their money habits and i guess im a strong willed person and when i see someone deliberately doing something goofy, it drives me nuts! i can see falling off the wagon, everyone does, but to make a conscience effort to save for an expensive va-ca you cant afford instead of taking care of your finances, it just doesnt make sense to me
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seriousthistime
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Oct 24, 2011 21:46:48 GMT -5
Post by seriousthistime on Oct 24, 2011 21:46:48 GMT -5
Okay, getting back to window replacement, I replaced two windows in my 35-year-old house and oh, yeah did it make my house feel warmer. The windows were double hung with double pane glass. The wood window frames started to loosen, cold air started to creep in, and there was actually a space between the wood frame and the glass. So I would either need to boost my heat or do something else to stop the drafts. I feel warmer, and my thermostat is set lower since replacing them. I also have a gigantic bow window in front and I'm not replacing that sucker! Just had the whole thing reglazed and repainted.
twinmama, I have to laugh with all this talk of Louis Vuitton and Bvlgari and Prada! People do change, apparently. Look how much you've changed. You must have thought at one time that these things were in your budget but now you're completely debt-focused. It takes longer for some than others, kudos to you that it took less time for you.
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HappyCat
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Oct 25, 2011 1:17:20 GMT -5
Post by HappyCat on Oct 25, 2011 1:17:20 GMT -5
I am sure that I am one of the offenders and that's fine with me. My "new" debt is mostly tuition and expenses for my DD#1's last semester of college and my DD#2s first year of college. The rest of it is helping my sister who is a single mother with her three children. It has been well established on the boards that she has taken advantage of my good nature and I am working on curbing my generosity. I find it hard to leave three fatherless children with no shoes or warm winter jacket. It is obviously my flaw. =) For many years I ran my life with little to no debt and life was grand. In 2008, my financial life hit the skids after a major lung surgery, extensive medical bills and long term unemployment during the almost 2 year recovery. The whole ordeal wiped out two very healthy savings accounts and my retirement account. It took me over two years to pay off the debt that accumulated during that time. All I can say is that there are NO perfect people and just because I don't do things the way others do them does not make them right nor does it make me wrong. We just agree to disagree. I certainly hope that I never again experience the series of events that ran my cc debt up to over 60k. There are just some things that even the best of planners can't plan for. Did I have to put my DDs tuition on my cc? No! Did I mind doing that...not at all because they are good kids and I WANT to help them. It is my choice as a mother and NO ONE should slam a mother for doing what they feel is right for their children in any circumstance...and they certainly shouldn't call them out and embarrass them on a forum such as this. I do not think that it has to be all or nothing and I believe that cc's can be a tool to help get through tough times. Barring another physical emergency, I KNOW I will never see 60k in debt again...but if I have to use my cc to help my DD with her tuition...so be it!!
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Pants
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Oct 25, 2011 9:25:27 GMT -5
Post by Pants on Oct 25, 2011 9:25:27 GMT -5
hellbound -- your statement:When it comes to adding debt, that holds true too. I went off to graduate school and added $90,000 in debt. There was no way I was going to be able to cash-flow $45k each year for 2 years, but my graduate degree enabled me to take a $30,000 raise per year over what I was making before. Is that debt worth it? To me, F*ck yes. Even though I have to pay interest on it. i used to believe that too, but what would you have done (unless you are a doctor or have a MBS/Phd in some medical field/lawyer) if you couldnt have gotten a job after that or what if you would not have made more money? the risk can be really high sometimes. What do you mean you used to believe that too? I don't get where anything in my statement indicates a belief. While I don't disagree that returning to school was potentially risky, there's nothing wrong with calculated risk. For me. Again, just because it's not what you would do, doesn't make it wrong.
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sarcasticgirl
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Oct 25, 2011 9:34:33 GMT -5
Post by sarcasticgirl on Oct 25, 2011 9:34:33 GMT -5
personally, if i were carrying around tens of thousands of debt, i'd be looking in to seeing what i could sell of my prada/gucci/LV/etc for and throwing that at my debt. because i'm willing to do that and twinmama hasn't does that mean i'm MORE dedicated to getting rid of debt than her? um NO!
just because people don't do things YOUR way doesn't mean they aren't dedicated and it doesn't mean you are MORE dedicated than they are. i find it pretty darn silly to get so upset with how other people, who ARE actually making progress, handle their money because it's not how YOU do it.
one person might find it infuriating that someone is saving for a vacation while still having debt and someone else may find it infuriating that someone is holding on to designer items that they could sell and move their progress along even further.
now i'm not saying twinmama should sell her stuff, personally i don't care. as long as she's making progress... kudos to her!
My point is that everyone has their own way of doing things and while she can find ways to improve one person's debt pay off, others could find ways to improve HERS.
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midjd
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Oct 25, 2011 9:56:21 GMT -5
Post by midjd on Oct 25, 2011 9:56:21 GMT -5
Agreed.
I have close to $290K in debt - evenly split between mortgage and student loans. I'm in no rush to pay either off, because the interest rates are low and I can put that "extra" money to better use. I saw essentially 2 options after graduating with $140K in SLs:
Option 1 was to live a subsistence lifestyle and throw a good 50% of my gross income at my SLs for 10 years. During this time, I wouldn't be able to save much for retirement, buy a house, buy a newer car, or pretty much anything else. At age 35, I'd begin saving for retirement and hopefully go down the house/kids path (if it wasn't too late).
Option 2 was to consolidate my SLs, pay a much lower payment over 25 years instead of 10, save up a DP for a house, and contribute 30% of gross income to retirement. I will be paying on my SLs for 15 years longer than I would've under Option 1, but at the same time I'm building home equity and increasing my retirement accounts, and we were able to drop down to a single income so that DH could go back to school for a better-paying job. I am hopeful that in 10 or 20 years, this will put me further ahead than Option 1, though it will certainly take me longer to "get out of debt".
Does this work for everyone? Not necessarily. But I think it was the right choice for me.
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salserabarby
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Oct 25, 2011 11:36:25 GMT -5
Post by salserabarby on Oct 25, 2011 11:36:25 GMT -5
twinmama - I did say it on the west board and everyone got defensive similar to the reactions on this thread. hahahaha!!!! I'm glad that my comment had an impact in your decision. I did save and went on a vacation. I felt super guilty. I even cried about it before going because I wanted to get out of debt, but I was really burned out at work and needed the break, plus the BF picked up most of it and I didn't GO into debt for it.
I think the point your were tryin to make was why post on a "get out debt board" if your still getting in debt. Oh the irony. People want sympathy or someone to say it's okay so they don't feel bad about their situation.
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murphath
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Oct 25, 2011 11:53:44 GMT -5
Post by murphath on Oct 25, 2011 11:53:44 GMT -5
twinmama: Good laughs re LV but I'll stick to my guns that it isn't leather. Either that or they put some kind of plasticky stuff on it so it doesn't wear like leather. Different strokes for different folks, I guess. I just really think it's ugly! I will admit, however, to owning a Coach bag that I bought at the annual realtor rummage sale. That along with a baby blanket and a pair of Anne Klein loafers cost $10. I guess if the bag had been a LV I might have succumbed! HappyCat: I, for one, always enjoy your posts. I, too, am a mom who believes that parents are responsible for a child's education. Yes, we could have much more in our retirement funds, but we are happy to have three kids who graduated with no debt. Actually, DS is due to graduate in May. This allowed them to go onto grad school (med school for DD2 and physical therapy for DD1) and not worry about that debt. Fortunately, they'll both be in fields that pay well after graduation. DS is another matter: he's a theater major! Go figure. But that's his passion and he should give it a shot. He likes working with high school age kids, too, so will get a teacher credential later if theater doesn't work out. And, HappyCat, I would have used the cc to pay the tuition in order to get the rewards points but the school charges a fee to use a cc. Did yours?
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