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I don't follow your logic here. How is it riskier for me to have a paid-off house than to carry a mortgage on it?
As I see it, if I had invested the money I used to purchase my house, I would be vulnerable to the vagaries of the market. Instead, I have the peace of mind that a downturn would not result in my family being out on the street.
Let's say you buy your house on day 1 with cash. On day two something unexpected comes up requiring a big cash outlay. And on day three something else happens. And so on. Personally I would much rather have funds I can easily get at than have to think about getting the cash out of my house.
Now if you have so much cash that you can buy the house and have a massive amount of cash reserves then that is a different story. But in that case you probably want to invest that money anyway instead of having it locked up in the house.
No, what you're getting from my posts is sarcasm, nobody is super-human and everyone is susceptible to the things I've mentioned whether they want to believe it or not. Ironically, those that thick they are beyond it are the ones that get suckered the most.
yet, you, somehow, are beyond it with plastic as a method of payment? you're being awfully hypocritical and it seems as though everyone here sees that.
What you don't seem to understand is that not everyone will succumb to these things. Again, you seem to be projecting your own issues on to other people.
Yep I don't understand that because there is no reason to believe its true. Everyone is susceptible to psychological biases its part of being human. But apparently NJ has its own science...
From looking at their site I don't see a single car that starts above $30k, of course you can add options to get the price above $30k but that follows the same logic as I've been describing. The additional options are priced significantly above their actual costs, again its price discrimination. Stupid things like more fancy rims, etc. Speaking of rims, that is a good example, people spend tons of money on fancy rims yet they don't do anything to improve the car. Its about image and nothing more.
sorry, didn't realize that the models that start at $28,000 and $29,000 fell under your imaginary threshold of the beginning point for a "luxury" item. how about chevrolet? is that not a "luxury brand"? because they absolutely have vehicles that start over $30,000. let me guess...only those vehicles are "luxury" right?
nearly every honda model out has a comparable hyundai competing model that is at least a few thousand dollars less. so, i'm going to start calling honda a luxury good. hyundai's warranty is better too!
because all your money is tied up in your house, what if you have an emergency need for cash
As in job loss? I tap the money I have invested in the market, which is far more than I have in my house. For more minor issues, we have an emergency fund and insurance.
or you have a situation where you need to leave the area fast?
As in a tremendous job offer comes our way somewhere else in the country? We rent out the house and leave.
what if the housing market crashes and you asset is losing tons of money and you have no ability to walk away?
That's only a problem if I have debt, if which I have none.
if you invest the money in more liquid assets, you would have access to it when needed.
I have plenty of liquid assets.
you are buying the asset anyway, so its clearly more risky to tie up all your money in a non-liquid asset.
yet, you, somehow, are beyond it with plastic as a method of payment? you're being awfully hypocritical and it seems as though everyone here sees that.
Nope, again, I've tested it and always pay off the balance to prevent myself from building up debt. This is a case that is pretty easy to test, but other issues are far more difficult to test. I'd much rather assume that I'm susceptible to corrupting involves than assume that I'm not... Again, not something you have to worry about because you're super-human.
there is no disagreeing with it. what im saying isnt refutable.
now there is a cost of this reduction of risk and thats the interest on the debt. if you are earning interest on the money you are holding, that reduces that cost. but ultimately, you are likely paying something for it. but you cant disagree with my point, its a fact. its less risky to have cash on hand than have it tied up in an asset that isnt liquid.
Because you have no idea what you would have done if you thought about things differently. The fact that you seem to finance just about everything is telling...
I am susceptible to it, that is why I have a rule to pay off the balance each month. In terms of spending more with credit cards vs cash, I actually tested it, I went a couple months spending cash and didn't observe any difference.
Of course since you're super-human you'd never need to do such a test.
i finance just about everything? you have no idea what i thought about, yet you presume to know. i went in not knowing if i'd be financing or paying cash, because i didn't know if there would be an attractive enough finance offer. are you really this foolish that you cannot comprehend these basic english words. I knew what my spending limit was. i knew what the invoice price of the car was. i knew what dealer holdback from the manufacturer was. i also purchased a vehicle that was last year's model as the new ones were rolling out. it was also sitting on the lot, with options i didn't want, so the dealer didn't invoice those options. i paid LESS than invoice, with some things i got left off the invoice! i paid LESS than holdback. it's pretty common knowledge that holdback is usually untouchable, but if the dealer wants to get rid of the car, you may get into that piece of the pie too.
the funny thing is, you're not criticizing me for buying a new car vs a used car (which would be an easy argument to tell me i wasted money on "new")...you're telling me i spent more than i would have otherwise because of my method of payment. flip back a few pages, and you're trying to convince others you do not spend more than you otherwise would have desipite YOUR method of payment.
baffling. it's obvious that you lack the understanding that is required to have this conversation.
Yep I don't understand that because there is no reason to believe its true. Everyone is susceptible to psychological biases its part of being human. But apparently NJ has its own science...
there is no disagreeing with it. what im saying isnt refutable.
now there is a cost of this reduction of risk and thats the interest on the debt. if you are earning interest on the money you are holding, that reduces that cost. but ultimately, you are likely paying something for it. but you cant disagree with my point, its a fact. its less risky to have cash on hand than have it tied up in an asset that isnt liquid.
captain and i don't always agree, but he's spot on here. he is stating a fact.
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hyundai's warranty is better too!
