Debt and the Hunter

[WCB]

This may just be a rant but the one thing I do not get is as soon as people start making more money they spend more and are in the same position they were making less. I guess it is just that persons habits but my wife and I have 3 years of living money in cash saved up (plus investments etc) and it grows every month and the last idea in our head is how can we spend this money? Granted we treat ourselves and more than once one of us had said to the other "just buy it if you want it we have the money". But the minute we would have to "check" our finances to see if we can afford it or "make the payments" its an automatic no.

 

[Whaledriver]

Great thread. Want vs need vs nice to have. I constantly go through it. Being debt free is a good way to go through life. In the day of the interwebz and social media advertising is everywhere. It targets you very specific now. The commercials and advertising create this image of how you need to be. Big trucks, 30k utv, high end rifles etc. A lot of people buy into that shit. I feel for them. Now the clothing lines have their own financing....crazy!!

 

[Chefofthewoods]

As an aspiring Entrepreneur I agree with some of what you saying. I believe Dave’s advice, which is really just common sense is excellent to get you in the right place (out of debt with a solid savings). His entire full scope strategy is extremely “defensive” as opposed to offensive with leverage and taking on debt for assets.

As a sales rep I understand his constant selling of his “smartvestor” program. Still annoying as Vanguard is really all you need.

I mean he’s communicating to the masses of which the majority is incredibly financially illiterate.


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I follow both paths.

Income producing debt in grossklw's example of rental income is analogous to investing in college education for career opportunities. Both are long term expensive strategies that requires investment, commitment and a plan to be successful.

The education-work-career path-frugal saving is less risky than debt taking for income producing assets but not prohibitive; rentals or other asset management's a career path too.

My mom's a huge Ramsey and Suze Orman fan, forwards or FB posts me their stuff regularly. She and dad both worked and put 5 kids thru college mirroring their advice, and she can't understand why i keep a rental house (what if you can't rent it? What if the place gets trashed?) but its been a solid inclusion for me too 5+ years running with good return and an asset to boot. I choose the risk, get rewarded.

 

[rayporter]

congrats!!
i was debt totally debt free before i was 40 and was able to retire at 51. that was the a great feeling.

one of my secrets was to put all my raises into savings.

 

[realunlucky]

I'll go against the grain here. I make good money, and still carry more than my share of debt. I'm not ashamed to buy things i can't pay cash for. I enjoy hunting and buy, sell, and trade hunting gear a lot.



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[Doc Holliday]

My advice is to only carry a note (loan) on real estate. Finance the truck or car if you must, but throw money at it and pay it off in 2 yrs after buying. Credit cards should be paid off immediately and in full.....just use them over your debit card for convenience and theft protection (gas stations and online transactions).

 

[Chefofthewoods]

Just wondering out loud.

With coronavirus limiting everything I do from eliminating a 40min each way commute, always eating food at home and never shopping but for groceries, how many of the rest of this thread's respondents find themselves saving MORE? That's been the case in my house.

 

[ChromeKype]

This may just be a rant but the one thing I do not get is as soon as people start making more money they spend more and are in the same position they were making less. I guess it is just that persons habits but my wife and I have 3 years of living money in cash saved up (plus investments etc) and it grows every month and the last idea in our head is how can we spend this money? Granted we treat ourselves and more than once one of us had said to the other "just buy it if you want it we have the money". But the minute we would have to "check" our finances to see if we can afford it or "make the payments" its an automatic no.

Lifestyle creep is like point creep! You’ll never be able to keep up with the Jones’s cuz there’ll always be another set of Jones’s in a nicer neighborhood with a nicer boat! lol it’s never ending for me it would look like

Sako->Blaser->Gunwerks->Dakota->Rigby->H&H


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[conley417]

I like to spend money but I don't ever spend money I don't have.

 

[Gerard Marcaurele]

We just paid off a car (13k worth of debt), and it scared the living hell out of me to get rid of all that cash. However, we are now able to triple-down on another vehicle payment and cut the loan term from 6 to 2 years. We have another baby on the way, and that alone has me so happy to have dumped more debt.
Never carrying a credit card balance has helped tremendously, and at 28 I can say that I am a couple years from only having a house payment.

The most freeing feeling is knowing that we have the ability to save for college, retirement, and never having vehicle debt again. That freedom allows you to do things that not everyone else will “get” to do like mini vacations and hunts.

No better way to live, in my opinion.

 

[S.Clancy]

Correct. It’s essentially predatory because at that price range, FL knows a person can’t really afford a 50$ if they have to finance it. Enticing them to do so is...predatory. I get the “everyone makes their own choices,”. But again, FL is initiating the offer. Like a damn payday loan.

Stone Glacier has financing also, for the last couple years.

 

[Pro953]

For those advocating the positives of credit cards with point etc, getting things for free etc... I assure you. This is being paid indirectly. Credit cards are the vampires of the economy. They take 2-7% of every transaction from a business. That money comes from somewhere. Think if you paid 2-7% less for all of your discretionary purchases every year.

I am not advocating some wild cash only society. I just want to point out that nothing is free. It’s being paid though the higher prices in good you purchase every day. Look at the stock price for Visa/Amex and other providers. That profit comes from from your pocket for the ease of paying by CC instead of cash.


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[THBZN]

Good work on the disciplined approach to money and debt.

Now, here is another example that I just have to shake my head at....really? Only $11 a month! Whew....can't wait to start making payments!

What is with this trend? Seriously?

 

[Evol]

Good work on the disciplined approach to money and debt.

Now, here is another example that I just have to shake my head at....really? Only $11 a month! Whew....can't wait to start making payments!

What is with this trend? Seriously?



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I'll be honest, Sportsman's Guide has a 4 pay feature that I use more than I should. It's also 0 interest, no credit check, almost like layaway but you get the item first.

 

[Marbles]

I'm working with our daughter on financial planning. OK you buy a $1200 iphone. Or you buy a $150 whatever phone, and keep $1050 to invest. One day your refrigerator will die. One day, you'll want to take a bigger vacation. One day, you'll need a car, or have a medical issue, or whatever. And don't count on us, we plan on spending every penny of what could be your inheritance. You'll inherit a house full of dead animals and closets full or old people clothes.

Many people tell me I'm inconsiderate for this, however I absolutely will not put my children through college. I see too many people who do not value what their parents have given them. Now, perhaps if one of them works hard, gets scholarships, and still needs to take out some loans I will pay off those loans as a graduation present, but that is not a possibility they will be aware of. I think too many people are given too much. I value what I learned cutting my own way and don't want to rob my children of that same experience. I will invest in them before college, both in time and experiences, so that they have the tools they need to make the most of opportunities.

For those advocating the positives of credit cards with point etc, getting things for free etc... I assure you. This is being paid indirectly. Credit cards are the vampires of the economy. They take 2-7% of every transaction from a business. That money comes from somewhere. Think if you paid 2-7% less for all of your discretionary purchases every year.

Agreed, however changing what I do would not result in lower prices. All I would do is have less money in my pocket and more of it would be in someone else. I would not object to a sea change in how society spends, but I don't see the trends changing. I will also point out that cash costs money in the form of funding for the mints, which also comes from my pocket.

 

[2britts]

Interest is an expensive habit, paychecks go much further when they aren't being used to pay for money already spent. My wife and I have been diligent at maintaining a debt free lifestyle which promotes marital bliss as well.

 

[Evol]

Many people tell me I'm inconsiderate for this, however I absolutely will not put my children through college. I see too many people who do not value what their parents have given them. Now, perhaps if one of them works hard, gets scholarships, and still needs to take out some loans I will pay off those loans as a graduation present, but that is not a possibility they will be aware of. I think too many people are given too much. I value what I learned cutting my own way and don't want to rob my children of that same experience. I will invest in them before college, both in time and experiences, so that they have the tools they need to make the most of opportunities.



Agreed, however changing what I do would not result in lower prices. All I would do is have less money in my pocket and more of it would be in someone else. I would not object to a sea change in how society spends, but I don't see the trends changing. I will also point out that cash costs money in the form of funding for the mints, which also comes from my pocket.

This is where our heads are at too. My wife and I both went to state schools, paid it off as we went. I know people say school is unaffordable but our state schools were like 8k a year. Not hard to pay that when you're still living at home.

 

[D.Rose]

I went to a community college and paid for it with financial aid. Went for a specific trade (Respiratory Therapy) and came out with an associates degree and great occupation. No need for an outrageous bachelors or masters program to make a great living. All it takes is effort and smart thinking and you can make a great life for yourself.

 

[WCB]

Many people tell me I'm inconsiderate for this, however I absolutely will not put my children through college. I see too many people who do not value what their parents have given them. Now, perhaps if one of them works hard, gets scholarships, and still needs to take out some loans I will pay off those loans as a graduation present, but that is not a possibility they will be aware of. I think too many people are given too much. I value what I learned cutting my own way and don't want to rob my children of that same experience. I will invest in them before college, both in time and experiences, so that they have the tools they need to make the most of opportunities.

I agree partially...I have friends that were in all situations for paying college. Full rides, partials, paid for by family, completely paid themselves etc. I think by the time a kid goes to college who pays for it is not going to determine their appreciation or their perspective on responsibility. Now I agree that too many parents just pay it because thats what they think they have to do as a parent and many of those kids think the same way. Especially kids going to out of state schools with sky high costs just because its a big name school. Now my girl is only 1 but the approach we talked about is similar to yours...let her figure it out and if she needs at the end pay it off for her/help her. We are definitely not telling her we are 100% paying for whatever she wants to do.

 

[S.Clancy]

Working as a wildlife and fisheries tech while paying off my student loan taught me wants vs needs. I paid for my 2nd degree in engineering out of pocket. Currently live on 25-30% of my gross pay. The govt and savings gets the rest.