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re: People who can't manage finances or spending. How does this happen?
Posted on 9/21/20 at 2:17 pm to BigPapiDoesItAgain
Posted on 9/21/20 at 2:17 pm to BigPapiDoesItAgain
quote:
I do the exact same, and pay them off the minute the charge hits my cc account
quote:No particular reason, sometimes I pay once a month and sometimes I just pay off any balance I see on the account when I check my cc.
Why this?? Seems as this would have you having to log on and make payments all the time. Why not take advantage of the grace period and pay the statement balance each month? You will never accumulate interest, and you'll only have to make one payment on the card each month. This is how I use mine to accumulate cash back.
0
Posted on 9/21/20 at 2:21 pm to DiamondDog
quote:
I love when people argue and downvote 0% finance for 5-6 years. I went through and got every rebate they had plus the 0%. Like everyone should do.
How the dealership moves the money around, I do not know but I never choose the financing or the rebate.
I negotiate down to a price then tell them I want the 0%. Walk if they don’t agree. You never allow them to set the terms of your purchase.
Because people suck at money and think financing for that long is stupid because they listen to Dave Ramsey. I love Dave and he is amazing for those that do not understand money or suck at money, but his system is not for those that are good with money. He plays to human emotion.
Example is his debt snowball, he wants you paying off the smallest debt first, paying the minimum on others, no matter the interest rate. That's fricking dumb from a straight numbers stand point, but people are stupid and emotional and need to feel like they accomplished something.
He preaches not to buy new cars. Well the used market is high as shite right now and is anything but a deal. Throw in used vehicles get a higher interest rate and it doesnt make sense for someone that can afford it to buy a quality used vehicle.
Throw in the fact many places offer 7 years at 0-2% and new vehicles routinely last 10+ years if taken care of and it doesn't make sense to take out a higher interest loan for a used vehicle.
Posted on 9/21/20 at 2:24 pm to lsu777
Buying a new shitty car like a Hyundai Accent or Chevy Cruze is probably the best way to go for a lot of people these days
ETA - people don’t like to hear things aren’t always the same as what/when their patents taught them
ETA - people don’t like to hear things aren’t always the same as what/when their patents taught them
This post was edited on 9/21/20 at 2:30 pm
Posted on 9/21/20 at 2:30 pm to GreatLakesTiger24
yep or honda civic etc. get a 6-7 year low note, low interest if you have decent credit and the damn things last forever. easy on gas, can be used with kids etc.
Posted on 9/21/20 at 4:09 pm to SlowFlowPro
quote:
it doesn't require a formal education process to understand you make x a month and shouldn't spend twice that
the people on this show almost always have transferred credit cards, used personal LOCs, or have multiple consolidation loans. they KNOW they can't afford it based on what they had to do to keep having money coming in
maybe it’s entitlement?
The human brain isn’t always rational.
Posted on 9/21/20 at 4:22 pm to lsu777
Yea the age old wisdom about buying 1-2 years used vs new has gone out the window lately.
Posted on 9/21/20 at 5:06 pm to Ross
quote:
maybe it’s entitlement?
The human brain isn’t always rational.
Yeah. For those I know personally who are spendy beyond their means, they were raised comfortably (private school, given a car as a teenager, etc.) but they work in careers that aren't high paying.
So it isn't necessarily intentional, but moreso that they're living the lifestyle they've always known without realizing they don't make the income to afford it.
Posted on 11/2/20 at 11:13 am to northshorebamaman
quote:
Some people are stupid.
Posted on 11/2/20 at 11:21 am to Hanna8899
quote:
Life is unpredictable, and all of us can face issues that require a big sum of money
my thread is NOT about these situations
the key part of the subject is "spending"
Posted on 11/2/20 at 11:30 am to LouisianaLady
quote:
From the people I know in major debt, its the spending $300 at the grocery store then only cooking like twice that week.
Its stopping every single morning for coffee and breakfast sandwiches.
Its going shopping so often you know the entire layout of the mall, Target, Whole Foods, etc. without having to guess.
Its visiting the food court when you go to those places, every single time.
Yep, even fast food/quick service will add up real quick. I have some buddies that eat out daily. They make great pay (200k a year) so they always say "I deserve this"
Posted on 11/2/20 at 11:38 am to SlowFlowPro
quote:
The one legit takeaway from this show that I found myself agreeing with fully was all the "stuff" these people have. The host lady will go into their house and it's always filled with "stuff".
I will not throw away old books. I’m not a book burning communist.
But I also have no debt but student loans and vehicles.
Posted on 11/2/20 at 11:45 am to lsu777
quote:It's not dumb, the best strategy depends on your situation. From a "straight numbers" standpoint, it depends on what numbers you need to get right.
Example is his debt snowball, he wants you paying off the smallest debt first, paying the minimum on others, no matter the interest rate. That's fricking dumb from a straight numbers stand point, but people are stupid and emotional and need to feel like they accomplished something.
If you want to maximize long-term wealth, then you should probably pay off the highest interest rate debts first. But that can be risky, and you can only do it if your monthly cash flow is in the black regardless. The "debt snowball" improves cash flow by knocking out required monthly expenses. For many people, this is the fastest way to stop sinking and start floating. And maybe even save a little bit.
I would imagine most people should not take either approach strictly. Best to balance short-term flexibility with long-term wealth goals.
Posted on 11/2/20 at 11:49 am to Korkstand
quote:
would imagine most people should not take either approach strictly. Best to balance short-term flexibility with long-term wealth goals.
My wife and I did this with our student loans. We have 200k that’s a 4% over 15 years. So we will be 50 and 47.
We could be paying a much larger note and save interest but it was important for us to gradually save more now. I think we can beat the 4% interest rate on the difference in the market. We also wanted the flexibility to begin building wealth now. Not when student loans are paid off.
And hey, if the Dems ever come back in power everything will be free so we might not even have to pay it back apparently.
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