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Buying America's symbol of success and 'wealth building' ... A house.
The woman with whom I was close friends for a long time called me recently to give me a status update on her life. She had purchased a McMansion in 2009, with hardly any money down on close to half a million dollar house. She was the only signer on the mortgage since her husband had bad credit from overspending. She was able to qualify herself, and went shopping for the max she was approved for. We all told her not to do it but she did it anyways; I think both she and her husband are on the title.
Immediately after they moved in they started furniture shopping, adding a deck, upgrading the kitchen. Somehow they ended up with more than $100k in credit card debt to furnish the house (I did not think that would even be possible), and the damned place still felt empty.
So, currently she and her husband are separated after years of fights over money and spending - they are both guilty parties to buying stuff they don't need with money they haven't earned yet - and probably headed for divorce, and possibly bankruptcy. After 6 years of home ownership, they might be able to sell the house for what their mortgage is. I don't know about other costs of sale though. Unfortunately it could be difficult to sell, since the builder in their subdivision keeps on building newer houses, with better layouts and scale, better materials, and better lawns, for less than what they originally paid in 2009.
They just got carried away with a dream of owning a house as a status symbol to impress their relatives and show off, and weren't thinking long term. Cautionary story.
For myself, I was also guilty for a while of buying stuff I didn't need with money I hadn't earned but that ended during my early 20s when I finally wised up.
When I first started learning about stocks and investing I started out with about $2,000 (which was a lot for me back then). I noticed all the forums were talking about the same little penny stock so I backed up the truck. I doubled my money the next day and sold in a panic! I didn't even realize I was on the ground level of a huge pump and dump. Could have made $50,000 in a month.
I regret just being young and stupid, and not thinking longer term. I had a good job making $14hr when I was 19 years old, I only worked like 20hrs a week cause that was all the money I needed to have fun. If I was smart and just saved up a little and started a 401k I'd be miles ahead of where I am today. I also wish I had purchased a house and got roommates to cover my mortgage when I was in my early 20s.
I don't know if I've ever really "lost" large amounts of money.. but I've most definitely left plenty on the table.
Are you ever able to sell a car that's underwater and just pay on whatever is left over on the loan? Or do most lenders not allow that?
Normally it is not allowed because an auto loan is a secured debt, and the car is the collateral which cannot be sold without paying off the loan to release the title, clear of liens, to the buyer.
You could ask the lender for an arrangement involving signing a note for the difference, but the lender is under no obligation to allow it, and if it's one of the big banks, they are unlikely to. A credit union might.
A 0% CC can be used if the limit exceeds the negative equity portion, this way the car can be sold private party.
Right now. I was laid off a decent job a year ago and haven't tried to find another job since. (Live simple, frugal, debt free, savings). Gawd I love having all my time for myself. I've been piddling around doing a little temp work here and there but haven't tried to find a real job. The thought of a 40 hour work week is excruciating.
Right now. I was laid off a decent job a year ago and haven't tried to find another job since. (Live simple, frugal, debt free, savings). Gawd I love having all my time for myself. I've been piddling around doing a little temp work here and there but haven't tried to find a real job. The thought of a 40 hour work week is excruciating.
Sold Facebook Shares at $28....used the money and bought Sandridge at $5/share, lost 90% value
The stock market butterfly effect.. anyone that trades has been there to some extent. Very easy to look back and say "IF ONLY I DID THAT!"
I held a stock for many years that I bought around $10. I finally took the loss and sold it around $3. 4 months later it was at $6 and leveled out. Not too happy about that one.
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