How do you afford a $350K plus home? (Plano, Garland: for sale, credit)

[CallMeLaura]

Originally Posted by galore

Sams sells Bag-in-Box Coke products for commercial fountains.

I will definitely have to check that out. I didn't find that when I looked a couple of years ago. Sam's had the chilled bottle/can dispensers, but nothing for soda fountains.

Actually, what I came across suggested that commercial soda fountains were leased to businesses (only) and that anyone who had one got it illegally from a business, oh and you'd probably have to work on it yourself to make it functional.

If that's not true or has changed, I'm all over it.

fil - banker used "trick" colloquially to mean "strategy". It's definitely not a trick as in slight of hand to spend less than you make. I would venture to say that based on his description, he's better off than a very large majority of Dallas in a financial stability respect.

He also used 'trick' exactly once in that quote...

[galore]

Originally Posted by CallMeLaura

Actually, what I came across suggested that commercial soda fountains were leased to businesses (only) and that anyone who had one got it illegally from a business, oh and you'd probably have to work on it yourself to make it functional.

If that's not true or has changed, I'm all over it.

Sams even sells the whole system Sam's Club - Willtec 4 Flavor Soda Refrig Unit w/Bar Gun

Nothing illegal there. It just isn't that practical for residential use. Bag-in-Box syrups are 5gal. With a 7:1 ratio you get 35 gallons of mixed product. This is a LOT of soda. If you run 4 flavors, you have 140 gallons of mixed product. Unfortunately Syrup doesn't stay fresh forever...
I have a 6 flavor WUNDER-Bar gun but only run 1 flavor. I use it mostly for endless carbonated water...

[banker]

Originally Posted by CallMeLaura

fil - banker used "trick" colloquially to mean "strategy". It's definitely not a trick as in slight of hand to spend less than you make. I would venture to say that based on his description, he's better off than a very large majority of Dallas in a financial stability respect.

He also used 'trick' exactly once in that quote...

Thank you.

[CallMeLaura]

galore - Thanks! The dispenser (like the ones at gas stations) is less than two grand. I might be able to swing that by Christmas.

(Now taking donations for a popcorn maker )

[fil]

I called him on the use of the word, as I find it an inappropriate term used in the same conversation as financial responsibility or financial discipline.

From banker:

The trick is to find a home that you can reasonably afford and have savings.

The trick isn't tons of income or credit card debt...it is called budgeting.

banker,
We're cool. Only you can decide what works for you and, frankly, I don't want to know about your finances.

We have a tendency in our society to award people for things undeserved and for mediocrity. So are you practicing what you profess? May be. Do you practice living below your means? I don't know only you do.

It's simply amazing to see, hear, and be asked by people that you know that live well for a quick loan and I've seen it from people living very well because their strategy includes debt, very little savings (e.g. I hardly believe that 3-4 months of liquid assets are enough to overcome adversity as I've seen very marketable people spending 4-8 months looking for a good next job), and reliance on their 401k, which if you use it before retirement age results in heavy penalties. These are many of the areas that banker calls out that are part of his "strategy."

Either way good luck.

[banker]

Originally Posted by fil

banker,
We're cool. Only you can decide what works for you and, frankly, I don't want to know about your finances.

We have a tendency in our society to award people for things undeserved and for mediocrity. So are you practicing what you profess? May be. Do you practice living below your means? I don't know only you do.

It's simply amazing to see, hear, and be asked by people that you know that live well for a quick loan and I've seen it from people living very well because their strategy includes debt, very little savings (e.g. I hardly believe that 3-4 months of liquid assets are enough to overcome adversity as I've seen very marketable people spending 4-8 months looking for a good next job), and reliance on their 401k, which if you use it before retirement age results in heavy penalties. These are many of the areas that banker calls out that are part of his "strategy."

Either way good luck.

So now you say you don't know if I am living below my means...in your last post you had a strong opinion of it. I wouldn't use my 401(k) to fund living expenses unless an extreme emergency. Clearly I didn't get where I am by cashing out my retirement and paying penalties. I am 33 years old and very marketable in terms of my career/skills.

As I asked the following question: "I would appreciate your definition of living below or within your means for the sake of the group here. If I am not doing that - who is? Remember - a house purchase is long term in nature - and it is wise to buy smart (location/quality/size/value)."

Can you answer that? You criticized me - but when asked for clarification you back track and say "We have a tendency in our society to award people for things undeserved and for mediocrity. So are you practicing what you profess? May be. Do you practice living below your means? I don't know only you do."

What is your definition of living below your means? Do you practice what you preach? How old are you relative to your current financial state?

[CallMeLaura]

Originally Posted by fil

I called him on the use of the word, as I find it an inappropriate term used in the same conversation as financial responsibility or financial discipline.

I, perhaps inappropriately, use the term "trick" for serious matters. I guess whether you take offense depends on your culture. Are you a southerner? (I hear it down here a lot more than other places.)

For example, I have been known to say things like, "The trick to getting services running properly is entering the data correctly." It is hardly an accident to use proper syntax. Although some days I do feel if they get it right, it wasn't intentional! lol

Quite honestly, you're not going to get anyone to quit saying it, so I'd just file away that if someone uses it in a similar context, they are giving you the key to success and not hocus-pocus.

Originally Posted by fil

We have a tendency in our society to award people for things undeserved and for mediocrity. So are you practicing what you profess? May be. Do you practice living below your means? I don't know only you do.

Now you're just backpedalling. He quite clearly spends less than he makes. I'm not going to argue mortgages vs cash, because it's been done. In the majority of situations, borrowing money for a house makes more financial sense than paying cash. He's saving (which you can't do if you spend more than you make.)

Originally Posted by fil

It's simply amazing to see, hear, and be asked by people that you know that live well for a quick loan and I've seen it from people living very well because their strategy includes debt, very little savings (e.g. I hardly believe that 3-4 months of liquid assets are enough to overcome adversity as I've seen very marketable people spending 4-8 months looking for a good next job), and reliance on their 401k, which if you use it before retirement age results in heavy penalties. These are many of the areas that banker calls out that are part of his "strategy."

Are we reading different posts? banker isn't asking for loans, has savings inside the commonly accepted cushion, and doesn't plan to raid his 401(k) until retirement.

Yes, it is possible to be unemployed longer than 3 months. It's possible to have major medical expenses that eat up all your savings. That doesn't negate the fact that having between 3 and 6 months worth of expenses in liquid assets is usually enough. You have to play the odds here a little bit. Sure, people could save 50% of their income and be prepared for just about any financial difficulty, but they could also die before being able to spend it in retirement.

[Rabbitwarren]

I'm actually with fil on this one; I thought some of Banker's advice sounded rough around the edges as well. I do know that my late grandfather always said your home should cost no more than three times your annual salary - perhaps Banker's circles believe that, too. I wouldn't want to live that close to the edge but I'll willingly admit I get skittish if the edge is even remotely in sight.

M

[CMDallas]

There are some Local new town homes, which are 3 story going for 250k. This is in Las Collinas Irving, the area is not trashy at all...i my opinion. IF your looking for actual houses that are of a large size, they will tend to be that high, i would suggest looking in valley ranch for that, but that is not in Frisco, Allen or Plano.

[banker]

Originally Posted by maddyzmommy

I'm actually with fil on this one; I thought some of Banker's advice sounded rough around the edges as well. I do know that my late grandfather always said your home should cost no more than three times your annual salary - perhaps Banker's circles believe that, too. I wouldn't want to live that close to the edge but I'll willingly admit I get skittish if the edge is even remotely in sight.

M

It isn't so much how much your house costs or is worth. The more important thing is how much you owe relative to your total income. If you have cash to put toward a home (which is a long term investment) and can borrow at reasonable levels to finance the diference then you are making a sound decision. The responsible thing is to make sure that no matter what you are spending less than you make. Some people might spend less on a mortgage but go out to eat more or have nicer newer cars. I chose to save and spend my money on a mortgage. I am living below my means and looking at having a mortgage that is roughly two times my annual income. Being a credit officer in the banking community for the past 11 years I know for a fact that I am the exception. Most people live much larger than I ever have or will.