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Old 08-23-2018, 02:38 PM
 
Location: Vallejo
13,439 posts, read 15,046,113 times
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Well, I don't really see the point of working up the socioecomic ladder if you're not going to enjoy lifestyle creep. The point is just to live within your means and not get entitled to them so if you need to cut out the creep due to a change in circumstances you can do that.

No point busting your butt to live in a crappy studio apartment in the ghetto and eat rice and beans, only buy clothes at Goodwill, never take vacations. At the same time if you get a $20,000/yr raise don't buy a Lexus and all new furniture. Maybe go out and enjoy a nice weekend or buy that recliner you've been thinking about but couldn't justify the price. It's easily absorbed lifestyle creep as opposed to rushing out and borrowing $50,000 for a Lexus and $20,000 for furniture you'll spend the next five years paying back with your raise.
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Old 08-23-2018, 02:46 PM
 
3,969 posts, read 1,596,412 times
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Quote:
Originally Posted by JonathanLB View Post
Also obviously places in middle America didnít have a big drop in the recession, they never had a big gain! Nobody wanted to live in those places before and nobody wants to live there now, either. You need to live in desirable areas if you want to see larger or more consistent gains.

You know, every time I read one of your posts, I think to myself, "Wow, this guy can't be real." In truth, there amazing places all over the country, not just the coasts.
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Old 08-23-2018, 03:14 PM
 
6,319 posts, read 7,994,152 times
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You avoid the creep by prioritizing your savings and retirement goals first. You have to commit to maxing out every bucket as much as you can, every year, and then invest in a brokerage account in addition.

You should hopefully also be debt-free except for a mortgage, if not pay off your all consumer debts and don't stop until they're paid off.

Then you can get some of those extras you want, and enjoy them!

Commit to following a reasonable budget every month and avoid the urge to suddenly upgrade everything in your life. You don't have to do that. If your goal is to be able to retire early or earlier, you don't want a bunch of extra lifestyle expenses holding you back. Think about longer term and what's really important to you.
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Old 08-23-2018, 06:43 PM
 
Location: Phoenix-Valley of the Sun
2,461 posts, read 1,203,437 times
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Quote:
Originally Posted by hikernut View Post
Yes homes appreciate, but they also have considerable carrying costs. Making a profit after considering all expenses is hardly a slam dunk even over decades, and most people do not keep good enough records to even know if they came out ahead. Over 30 years I would wager most houses have more money sunk into remodel/replace items than the original purchase price.
Especially if you have a mortgage where the first 15 years of it is mostly interest. You may have made 100k in payments but your principal only went down 50k.
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Old 08-23-2018, 08:06 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,112 posts, read 3,404,360 times
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Quote:
Originally Posted by ylisa7 View Post
Sure but less headache, no worries about maintenance, no insurances. I get what you are saying but I'm not so sure anymore that homeownership is all that great anymore. It also ties you down to one place. I am kind of like a gypsy and while I do own my house I could easily rent or travel.
I don't know how old you are, but I have heard the younger generation is less enamored with owning a home and having mobility and options to try new experiences. For a while I rented because it made more sense financially for me. Now I own a big house and rent out part so my housing is less than when I rented. Everyone has different needs and wants.
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Old 08-23-2018, 10:38 PM
 
Location: The World
3,012 posts, read 1,811,747 times
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Quote:
Originally Posted by northshorenative View Post
Um - Because houses generally increase in value. You are "making money" on your loan.

Cars lose value. At some point you will owe more on your car than it is worth.


Borrowing money to purchase an appreciating asset is called investing. Borrowing money to purchase a decreasing asset is not.
This was the traditional advice for many years. Maybe it still is. But houses certainly don't always appreciate in value, and they certainly aren't always good investments.

A car isn't a good "investment" either, of course. But, for one thing, a car loan is usually only a 6-year commitment. You're committed to your mortgage for 15-30 years. Also, even if you buy a brand new car, your car payment probably isn't going to rival your mortgage payment.
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Old 08-23-2018, 11:46 PM
 
247 posts, read 100,575 times
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Quote:
Originally Posted by Malloric View Post

No point busting your butt to live in a crappy studio apartment in the ghetto and eat rice and beans, only buy clothes at Goodwill, never take vacations.
This is exactly the kind of attitude that has people living beyond their means and making absurdly unrealistic decisions once they get a raise or a better position at work. Some people actually enjoy living in a studio apartment in a so-called ghetto (as you probably call any area of town that is not fancy and gentrified) and eating rice and beans. Some people don't care about spending money on traveling, and some people actually think that having a modest life is not "missing out" on whatever it is that people supposedly miss out on when they don't waste their money on pointless luxuries that society tells us are "essential."
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Old 08-24-2018, 04:50 AM
Status: "I cannot wait for the heat to break..." (set 5 days ago)
 
Location: Where the sun likes to shine!!
20,368 posts, read 25,494,040 times
Reputation: 87958
Quote:
Originally Posted by aslowdodge View Post
I don't know how old you are, but I have heard the younger generation is less enamored with owning a home and having mobility and options to try new experiences. For a while I rented because it made more sense financially for me. Now I own a big house and rent out part so my housing is less than when I rented. Everyone has different needs and wants.


That is a very smart move. If you do own a house make it pay you something My mother occasionally rented out a room in our house when I was growing up. I would do the same but my husband would not I am 51 and moved over 35 times in my life and owned 14 houses in the pat 25 years. Most of them were flip houses.




Quote:
Originally Posted by Oramasfella View Post
This is exactly the kind of attitude that has people living beyond their means and making absurdly unrealistic decisions once they get a raise or a better position at work. Some people actually enjoy living in a studio apartment in a so-called ghetto (as you probably call any area of town that is not fancy and gentrified) and eating rice and beans. Some people don't care about spending money on traveling, and some people actually think that having a modest life is not "missing out" on whatever it is that people supposedly miss out on when they don't waste their money on pointless luxuries that society tells us are "essential."

I like rice and beans and shopping thrift stores I actually think Goodwill is expensive. No matter what I make I am just not programmed to spend a lot. I tell my husband that people start out shopping at Walmart, they get a raise and go to Target to spend more for the same items, then they get another raise and feel they need to shop at Macy's and I just don't understand that mentality.
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Old 08-24-2018, 07:40 AM
 
Location: NJ
22,680 posts, read 28,568,174 times
Reputation: 14619
Quote:
Originally Posted by MinivanDriver View Post
You know, every time I read one of your posts, I think to myself, "Wow, this guy can't be real." In truth, there amazing places all over the country, not just the coasts.
i have always heard this stuff about calling everything between the east and west coast "flyover country" and pretending it is worse there. i believe the opposite. people just get it in their heads that the coasts are so fabulous but there are a lot of places in the middle that offer high quality of life and often at substantially lower costs.
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Old 08-24-2018, 08:43 AM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,112 posts, read 3,404,360 times
Reputation: 5638
Quote:
Originally Posted by ylisa7 View Post
That is a very smart move. If you do own a house make it pay you something My mother occasionally rented out a room in our house when I was growing up. I would do the same but my husband would not I am 51 and moved over 35 times in my life and owned 14 houses in the pat 25 years. Most of them were flip houses.







I like rice and beans and shopping thrift stores I actually think Goodwill is expensive. No matter what I make I am just not programmed to spend a lot. I tell my husband that people start out shopping at Walmart, they get a raise and go to Target to spend more for the same items, then they get another raise and feel they need to shop at Macy's and I just don't understand that mentality.
35 times? Wow? Were you moving all around the country or local? Are you still flipping?
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