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Nothing's wrong with it per se. It's just that most people (Americans, at least) don't do it if they don't have to.
I have to. I am a high strung individual and am easily panicked/stressed. If I work into my 50s or 60s I will most likely suffer a heart attack. I need to invest so I can live a comfortable lifestyle as I age.
I'm 23, have 0 debt, and a net worth of 52k. I consider myself poor compared to most people. Is it really that rare to be debt free?
Yes, unfortunately.
It took me a long time to figure out that a lot of people are not motivated to save and invest and that debt doesn't bother them that much (or they ignore its negative effects on their lives, at least).
Many/most people are more motivated by living the best possible lifestyle they can live right now and then complain about the results of that mindset when they get old and kicked out of decent paying employment (usually putting the blame on external forces beyond their control instead of on their own actions, or lack thereof).
To you guys talking about these 0% Car Loans, what was the total package? Did you have any additional fees, did the car's purchase price cost MORE than the general buying area, etc.? There's obviously a Catch somewhere, come on guys, a Bank nor a Dealer can give you a FREE LOAN because the act of even Underwriting and Administering the loan costs money so it can't be given for FREE.
Okay... I'll bite on this, then I am out of this thread.
I negotiated a cash price on a new car on a Friday. I was to pick it up Monday. Over the weekend, I saw a TV ad for 0% financing on Mercury vehicles.
When I went in Monday, I demanded the financing and got it with no additional costs. I got it for my negotiated cash price, and zero down payment.
And yes, the dealer did not give me the loan.
A bank did not give me the loan.
I got it through Mercury.
You seem upset about that and I fail to see why.
Oh, but don't feel a need to explain.... as that changes nothing really.
It took me a long time to figure out that a lot of people are not motivated to save and invest and that debt doesn't bother them that much (or they ignore its negative effects on their lives, at least).
Many/most people are more motivated by living the best possible lifestyle they can live right now and then complain about the results of that mindset when they get old and kicked out of decent paying employment (usually putting the blame on external forces beyond their control instead of on their own actions, or lack thereof).
Complaints are for losers, actions are for winners. Harsh but true.
Let me explain why net worth is important.
Let's assume someone is making 50k a year. He somehow invests most of his money.
As time goes on his net worth rises to 1 million. Now he is making 50k plus 50k just from the interest on his investments if he's getting a 5% return. If he continues to save and work his income from investments will continue to outperform his income. He could easily retire or continue to work and improve his standard of living for when he does finally decide to call it quits.
Hey but that's a nice assumption buddy, but here's some questions with that example:
- He's making $50,000 a year but where does he stay? In a low cost of living area or a high cost of living area?
- Does he have a FAT HAG housewife that he has to support along with 2 kids?
- Does he have any loans that he has to pay back? What's his total tax liabilities a year?
You can't possibly invest 100% of the income you make a year, you can invest the amount left over, IF ANY. I'm telling you most of the reason people retire BROKE is because they had WAY too many kids, got a bad divorce, wasn't somewhat of a MINIMALIST, as well as didn't seek to self-improve their skills to the best of their abilities.
For some people, the MOST you are going to get to is $60,000 a year in income production. So you know what that means? You can't buy $40,000 SUVs, $150,000 houses, have 3 kids, a fat hag housewife, etc. But they DO IT ANYWAY and wonder why they retire broke.
Why but that's a nice assumption buddy, but here's some questions with that example:
- He's making $50,000 a year but where does he stay? In a low cost of living area or a high cost of living area?
- Does he have a FAT HAG housewife that he has to support along with 2 kids?
- Does he have any loans that he has to pay back? What's his total tax liabilities a year?
You can't possibly invest 100% of the income you make a year, you can invest the amount left over, IF ANY. I'm telling you most of the reason people retire BROKE is because they had WAY too many kids, got a bad divorce, wasn't somewhat of a MINIMALIST, as well as didn't seek to self-improve their skills to the best of their abilities.
For some people, the MOST you are going to get to is $60,000 a year in income production. So you know what that means? You can't buy $40,000 SUVs, $150,000 houses, have 3 kids, a fat hag housewife, etc. But they DO IT ANYWAY and wonder why they retire broke.
While I agree having a wife is a terrible investment I ask why do people need those things?
Why be ashamed living my lifestyle?
Doesn't matter how you get there. All that matters is you succeed. We're a team. I give back to them as well.
i think the other poster's point was basically - you think the average household should be "millionaire" quite possibly because you've got a skewed version of reality since you're being given a collossal head start over what most people get by being subsidized by your parents the first few years of your professional life.
you have to recognize that's a luxury, not "average"
i think the other poster's point was basically - you think the average household should be "millionaire" quite possibly because you've got a skewed version of reality since you're being given a collossal head start over what most people get by being subsidized by your parents the first few years of your professional life.
you have to recognize that's a luxury, not "average"
How do I have a massive head start? I only have a few k above the median net worth.
Personally I consider myself quite poor.
Why not (though my familys meet the definition regardless of whether you consider primary residence or not)? There's nothing inherently wrong with counting your primary residence for net worth calculation purposes: http://finance.yahoo.com/news/home-n...150238942.html, Should I Include My Primary Home When Calculating Net Worth? | Financial Samurai. True, the SEC no longer considers primary residence for accredited investor net worth purposes, but I'd think that we are being more general than that. Granted, if you consider primary residence for net worth purposes, you have to exclude any liabilities (both in terms of money owed on a property and in terms of the amount of money it would take to find new housing if you sold your primary residence).
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