Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Personal Finance
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-26-2011, 05:30 AM
 
Location: Victoria TX
42,579 posts, read 86,764,762 times
Reputation: 36643

Advertisements

Quote:
Originally Posted by Willy702 View Post
Why don't you do it yourself? Why would I or any sane person invest in anyone with a fearful mindset who wouldn't take a calculated risk?
.
You advised people to take the risk. You asked if people would rather have the debt or the cash, and said the answer was clear cut. You didn't ask first if they had a fearful mindset or willing to take a calculated risk.

You proposed the general principle that people ought to invest, even if they have a fearful mindset, even if they know from their own prior experience that they would not likely be successful investors, or capable of running their own business, or possessing the necessary expertise of business acumen to manage large profit-loss decision-making.

Put your money where your mouth is. Either back up your advice with your own risk, or stop telling people who will certainly lose money to take the risk themselves, and assume a heavy debt burden that they can't manage.

The point is simply the opposite of what you said it is. The point is that people should not be counseled to go into hundreds of thousands of dollars in debt, if there is no pre-existing evidence that they have the experience and expertise to successfully manage that money into an economically successful enterprise.

There is nothing wrong with a 'fearful mindset', as long as you understand who you are and what your limitations are and your fears are well grounded in reality. I've done things in my life, fearlessly, that my friends think were foolhardy. I'm not going to come on here and tell you that everyone ought to hitchhike across Africa, because there are those with a fearful mindset that I would not trust to exercise sound judgment along the way. I did it because I trusted my fear assessment, and that is exactly the same reason I don't want to run a million dollar business, even on you money. Saying someone has a fearful mindset is not the insult or the putdown that you intended it to be---it is a reasonable appraisal of their prospects for success, as measured against an understanding of their own limitations..

Why don't I do it myself? Because following your advice would be absolutely stupid and a recipe for financial disaster. And contrary to your belief, there are some of us here who are not absolutely stupid.

Last edited by jtur88; 02-26-2011 at 05:52 AM..
Reply With Quote Quick reply to this message

 
Old 02-26-2011, 07:24 AM
 
Location: Ayrsley
4,713 posts, read 9,675,913 times
Reputation: 3824
Quote:
Originally Posted by killer2021 View Post

1. stop buying stuff on credit, its a scam (interest adds up big time over time)
There is nothing wrong with using credit cards - but they should be a tool of convenience on which you pay off the balance in full every month, not a way to buy things you don't have the cash to afford.

Quote:
Originally Posted by killer2021 View Post
2. If you can't realistically pay off the consumer debt (anything but the student loan/mortgage) in 1 year or less then file bankruptcy.
So, instead of budgeting your money and finding a way to pay off debt as soon as possible, you advocate for someone just trashing their credit? Bad advice. Bankruptcy should be an option of last resort (and should also be much more difficult to do).
Reply With Quote Quick reply to this message
 
Old 02-26-2011, 07:26 AM
 
5,747 posts, read 12,032,538 times
Reputation: 4511
My spouse and I are in our early forties, and our house, car and educations are long paid in full. We haven't carried any consumer debt since our early thirties. Our single-income puts us in the top 2% of American households, but we live on less than half of it and invest the remainder.

While we appreciate nice things, we try very hard not to base our senses of self-worth on the size of our home or the horsepower in our one, shared car. (Don't even get me started on the amount of money the typical American family wastes on personal vehicles.)

How did we do it? We earned degrees with high earning potential without incurring high debt, we live under our means, we avoid consumer debt, and we invest consistently. It's not glamorous, but it works.

Last edited by formercalifornian; 02-26-2011 at 07:41 AM..
Reply With Quote Quick reply to this message
 
Old 02-26-2011, 07:47 AM
 
22 posts, read 47,174 times
Reputation: 25
Quote:
Originally Posted by formercalifornian View Post
My spouse and I are in our early forties, and our house, car and educations are long paid in full. We haven't carried any consumer debt since our early thirties. Our single-income puts us in the top 2% of American households, but we live on less than half of it and invest the remainder.

While we appreciate nice things, we try very hard not to base our senses of self-worth on the size of our home or the horsepower in our one, shared car. (Don't even get me started on the amount of money the typical American family wastes on personal vehicles.)

How did we do it? We earned degrees with high earning potential without incurring high debt, we live under our means, we avoid consumer debt, and we invest consistently. It's not glamorous, but it works.

Fantastic! You are doing what we are doing.. which is rare. We are currently set to completely retire early, and travel.
Reply With Quote Quick reply to this message
 
Old 02-26-2011, 09:24 AM
 
5,747 posts, read 12,032,538 times
Reputation: 4511
We also try to think strategically about our finances, and that includes everything from taxes to transportation.

When we moved to our current city, my spouse noted that his employer would fully-reimburse a public transportation pass, which is non-specific so anybody in our family can use it. (When he telecommutes or rides his bike to the office, I can use the pass to run errands.) As such, we arranged our lives to take advantage by purchasing a house within walking distance of a light rail station. That allowed us to remove a large expense, an extra car, from our lives.

We do not scrimp on areas of our life that could have dire consequences for our financial well-being, like insurance. One health crisis could wipe out everything we have worked so hard to accomplish, so we consider the money well-spent.

Sunibuns, good for you!

Last edited by formercalifornian; 02-26-2011 at 09:35 AM..
Reply With Quote Quick reply to this message
 
Old 02-26-2011, 09:37 AM
 
Location: Bradenton, Florida
27,232 posts, read 46,578,960 times
Reputation: 11083
I never acquired debt to be paid off. If I could not pay cash for it, I didn't get it.
Reply With Quote Quick reply to this message
 
Old 02-26-2011, 10:16 AM
 
22 posts, read 47,174 times
Reputation: 25
Quote:
Originally Posted by TKramar View Post
I never acquired debt to be paid off. If I could not pay cash for it, I didn't get it.

Yes, you have already stated this...

However... realistically, you need other options in case something happens, you need at least one credit card. Note, I did say, if something happens.. which would be a need issue versus a want issue.
Reply With Quote Quick reply to this message
 
Old 02-26-2011, 10:21 AM
 
Location: Bradenton, Florida
27,232 posts, read 46,578,960 times
Reputation: 11083
Like?

I intend to work until I die. If I cannot work, there is no reason for me to continue to live.
Reply With Quote Quick reply to this message
 
Old 02-26-2011, 10:38 AM
 
5,747 posts, read 12,032,538 times
Reputation: 4511
I think helping kids get off on the right foot is essential. The two major things that I think set my spouse and I on the path to financial security were as follows: a well-kept hand-me-down economy car that we drove right through college into our thirties; and very low college debt (< $9k total) for a degree with high-earning potential (think engineering, not communications).

A 19-year-old who buys a shiny, new car on credit to drive to his $40k per year liberal arts college is making decisions that will haunt his bank account for decades to come.
Reply With Quote Quick reply to this message
 
Old 02-26-2011, 10:45 AM
 
22 posts, read 47,174 times
Reputation: 25
Quote:
Originally Posted by TKramar View Post
Like?

I intend to work until I die. If I cannot work, there is no reason for me to continue to live.

LIKE???

Something to do... besides work. There is such a thing you know...


Do not get me wrong. I fully believe in work, have proper work ethics, but, I have ME time also. To state that you will work until you die is stating you only live to work. That to me is sad.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Personal Finance
Similar Threads

All times are GMT -6. The time now is 07:39 AM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top