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Old 04-14-2019, 05:53 PM
 
2,527 posts, read 1,621,179 times
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Quote:
Originally Posted by nuala View Post
How many years does it take to save enough to buy a house?
How many years does it take to save enough to buy a car outright?
How many years (in USA) does it take to pay off a student loan?

Maybe that's why?
None of those questions mean anything without context.
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Old 04-14-2019, 05:54 PM
 
857 posts, read 640,509 times
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Quote:
Originally Posted by jasperhobbs View Post
A large inheritance huh
We got about $2,500 for our wedding from parents. And an old car.
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Old 04-14-2019, 05:57 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
29,237 posts, read 53,179,411 times
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Regardless if how good the economy may be overall, there will always be those that feel “left out” for one reason or another. They are likely to be vocal about it, especially on forums like this one. Very few go online to start a post saying how well things are going for them. Having suffered a huge financial hit in the recession, things started to turn around in 2010 and have gotten better every year since. For us the economy now is the best it’s been in many years, same for our family and friends. After a slowdown in home sales over the winter, they are now selling in a few days again, especially in the lower priced $700,00 range, but that’s here. I’m sure someone elsewhere in the country will talk about dying malls and homes sitting empty.
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Old 04-14-2019, 05:58 PM
 
857 posts, read 640,509 times
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Quote:
Originally Posted by Quietude View Post
Yup, everyone who lucked out always assumes anyone else can do it, too.

Mostly because they completely misunderstand the meaning of the word.
Well we had some pretty crappy luck!

Low income to start out of college. Made several cross country moves for jobs. Bought a house at the 2008 peak and lost 70% of our income two months later. Wife had medical problems. Bad credit due to moving around and not getting student loan notices once we graduated. The list goes on lol.
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Old 04-14-2019, 06:08 PM
 
857 posts, read 640,509 times
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Quote:
Originally Posted by llowllevellowll View Post
All of your glad-handing aside, it's good that you fell into whatever you did because I wouldn't understand the logic behind paying for a car with cash when you could have made far more investing it yourself while paying the 1.9% interest on the car loan (I'd assume you have good credit. Oh, of course you do.). But it's decisions like those that cost people who aren't quite as fortunate as you, so just consider that the next time you want to look down on others for their limited successes. Afterall, it's not flawless financial decision making that made you successful.
I paid cash for a car because I wanted to and could afford to do so, and it was a very small % of our total net worth.

Where people go wrong is by spending too much on a car in general, not if they pay cash or finance it. It's like those stupid internet finance memes, "buying coffee every day wastes $500 a year!". Yeah, it does, but that $500 isn't what is keeping the masses from getting ahead. It's mostly from spending too much on housing and transportation, example...between housing, transportation, and debt payments 65%-70% of the typical household income is spoken for.
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Old 04-14-2019, 06:21 PM
 
Location: San Josť, CA
3,130 posts, read 5,687,729 times
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Quote:
Originally Posted by pipsters View Post
I paid cash for a car because I wanted to and could afford to do so, and it was a very small % of our total net worth.

Where people go wrong is by spending too much on a car in general, not if they pay cash or finance it. It's like those stupid internet finance memes, "buying coffee every day wastes $500 a year!". Yeah, it does, but that $500 isn't what is keeping the masses from getting ahead. It's mostly from spending too much on housing and transportation, example...between housing, transportation, and debt payments 65%-70% of the typical household income is spoken for.
Hey, I absolutely agree that people overspend and it costs them financial freedom. But you just admitted that you wanted to throw money down the drain because you could afford to throw money down the drain.

You cost yourself a significant amount of money with an ill-advised decision by purchasing a car with all-cash, and again, these are the types of poor financial decision making that can cost families that aren't as fortunate as yourself.

So before we accuse others of not maximizing their own potential financially, we have to see that we don't always make the best decisions ourselves. In general, it probably means that you generally make more good decisions than bad ones, but you are not rich because you make impeccable decisions when it comes to finance. People like yourself (and myself too: I once cleared out an IRA to cover credit card debt in my younger days), we are fortunate to have a greater margin for error than others.

For me, I was a high school drop out from a poor, working class neighborhood of Akron, Ohio. So, we all have our success stories, but believe me, I am not delusional enough to believe that I am the sole reason for that success, and I really loathe hearing/seeing others pretend that they created all of their success too, and that everyone else should do the same.
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Old 04-14-2019, 06:30 PM
 
Location: Pac. NW
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Nixon took us off the Gold Standard in 1971. Since then it's been a house of cards that'll collapse any minute now...
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Old 04-14-2019, 06:55 PM
 
Location: Aurora Denveralis
6,079 posts, read 2,157,118 times
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Quote:
Originally Posted by pipsters View Post
Well we had some pretty crappy luck!

Low income to start out of college. Made several cross country moves for jobs. Bought a house at the 2008 peak and lost 70% of our income two months later. Wife had medical problems. Bad credit due to moving around and not getting student loan notices once we graduated. The list goes on lol.
That puts you in a subset, but not one that should fail to be able to recognize that some people have bad luck that make it somewhere between impossible and superhumanly difficult to return to a successful path.

Not you necessarily, but the sheer vicious cruelty of those who "made it" - often on a very modest scale and nearly always with a lot more help than they recall or acknowledge - never fails to astound me.
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Old 04-14-2019, 07:10 PM
 
Location: San Josť, CA
3,130 posts, read 5,687,729 times
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Quote:
Originally Posted by Quietude View Post
That puts you in a subset, but not one that should fail to be able to recognize that some people have bad luck that make it somewhere between impossible and superhumanly difficult to return to a successful path.

Not you necessarily, but the sheer vicious cruelty of those who "made it" - often on a very modest scale and nearly always with a lot more help than they recall or acknowledge - never fails to astound me.
Very good point. And the other thing that really gets me is the attitude of someone who says that they can afford to do it, so they did it. So let's say that instead of paying all cash for a car (which is usually a ridiculous exercise in poor financial planning), you can invest the money, pay for your loan, and at the end of the term, remove your additional earnings, and give those earnings to someone who can use it to create their own success. Hey, what's the difference? But instead of handing money over to a car dealership to invest your money, let it work for someone less fortunate. In the end, it's the same amount of money for yourself, and it's a lot more honorable than simply saying, "Hey, I made a bonehead decision because I wanted to and I could afford to."

If more people thought this way, more people would achieve success.
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Old 04-14-2019, 07:20 PM
 
Location: Aurora Denveralis
6,079 posts, read 2,157,118 times
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Quote:
Originally Posted by llowllevellowll View Post
Very good point. And the other thing that really gets me is the attitude of someone who says that they can afford to do it, so they did it. So let's say that instead of paying all cash for a car (which is usually a ridiculous exercise in poor financial planning), you can invest the money, pay for your loan, and at the end of the term, remove your additional earnings, and give those earnings to someone who can use it to create their own success. Hey, what's the difference? But instead of handing money over to a car dealership to invest your money, let it work for someone less fortunate. In the end, it's the same amount of money for yourself, and it's a lot more honorable than simply saying, "Hey, I made a bonehead decision because I wanted to and I could afford to."

If more people thought this way, more people would achieve success.
I'm not sure which "way" you mean, but this is not a random direction of thought for me; my entire professional focus is about how stupid most consumer decisions are, and why. And why a succession of poor decisions can doom one person, right alongside someone who makes just as many stupid choices but manages to be insulated from their consequences.

The one thing I established long ago is that "poor personal judgment" - as it's usually meant - is not the source of most individual and family economic problems. Not in a vacuum, anyway.
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