Quote:
Originally Posted by GregWeld
I always like the "I can afford it" statement when it comes to MAKING PAYMENTS....
NO..... if you're making payments..... then YOU CAN NOT AFFORD IT. Affording it means you bought it - straight up. Period.
Putting 10% or less down on a house..... Yeah - NO. You really shouldn't be in that house (YET).
Being in debt on depreciating assets.... Yeah about that.... Not the way to EVER get ahead. Try buying something that you can pay for -- and if you can "afford" to make payments - make that payment to your savings account instead of to the lender. Next time you go to the "jacked up truck store" -- I'll bet you look at that pile of cash it took you 5 years to save, a little differently. Guaranteed you won't be in such a big hurry to piss it away.
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That's basically what happened to me when I was still working for Halliburton in Kansas. I really wanted a 01-06 GMC Duramax 2500 with 4 doors and 4WD in dark blue. I could easily have afforded it paying cash etc. But, I'm sitting there doing my thing in the back of my wireline truck going into hour I don't know for the day because I had lost count and started doing the math. Even though I could easily have bought a ~$20k truck, I decided that I was better off doing something else with the money because of how much time, since time is money after all, I was basically spending to buy the truck. I decided my time was worth more than a really sweet truck.
Hell, I'm doing this again right now. I'm seriously looking at 540i BMWs instead of M5s simply because I don't want to spend the money. Never mind that I can afford the M. My time is worth more and it's just a toy. So I'll go get my jollies in the 540 with all that extra cash in my pocket.