Investing 102

[GregWeld]

Originally Posted by WSSix

That's basically why I have not spent much money on my TA. I just don't feel that I have enough of a savings cushion or retirement started. At times I believe I'm wrong and can easily afford to do what I want to the car. Maybe I'm a little scared too as I've never had the kind of money I have now to spend. When I was younger and just day dreaming, spending all this money on a car was nothing. Now that I'm working through the labor day weekend(I'll be up at 3am tomorrow) to earn the money I make, I'm not so interested in spending it quickly. I never want to find myself questioning if I'll be able to keep the house I'm living in. Hopefully, I'm not taking it too far and not living life at the same time but that's for a different thread.

Life does have to be lived -- but there's this thing called LIFE AFTER YOU NO LONGER WORK --- that seems to be getting stretched out longer and longer. I don't want to be 82 and working at McDonalds -- I want McDonalds to send me a dividend check!


What happens to ALL OF US -- is that we tend to SPEND early -- and Save too late.... and what we need to do is SAVE EARLY so we can spend later and be able to do that at a far higher rate!

[mdprovee]

What happens to ALL OF US -- is that we tend to SPEND early -- and Save too late.... and what we need to do is SAVE EARLY so we can spend later and be able to do that at a far higher rate![/QUOTE]

That is a mouthful, and the key to latter success. And stay away from credit cards.

[GregWeld]

Originally Posted by mdprovee

And stay away from credit cards.

Credit cards are the worst thing to ever happen to "money management". The fact that we can "charge" things -- does not mean that we can afford them. It just means that we've successfully managed to defer paying for them. Usually that means then that we charge more than we can actually afford to pay for - which contributes to LESS cash flow each month which leads to more charging!

A very vicious cycle even for rich folks! Rich folk that I know have 100K limits on their cards --- rather than 10K or 1K for the less fortunate... and I know people that have maxed out 100K cards. OMG -- really!! 100K at 18%....

THEY, of course, don't think they're broke because... after all... they're rich. Dude -- if you're rich!?!?! Then pay your balance each month. Otherwise you're IN DEBT.

"Affording something" is being able to pay for it. Right now - all in all done. Don't kid yourself otherwise. Paying "CASH" -- but using the house credit line -- is not PAYING CASH... You're just full of crap and kidding yourself if you think that's paying cash.

I do, however, think that payments and leases are fine --- IF you're saving a large percentage of dough each month at the same time, i.e., You lease a car but you're also contributing $500 or $600 a month to your 401/IRA/ROTH account. Then it's just cash management --- but if you aren't saving money then you're just stalling the debt.

[glassman]

I personally believe they teach (or don't) the law of exponential math at a far too early age, you should have too take it in junior high, then high school, then again in college to ram it into your brain...to quote "cool hand luke", "some folks you just cant reach..."

[WSSix]

Personally, I love my credit card. I use it for everything I can. I get 1% bonus points for each dollar. I pay it off each month. They owe me $600 for using their card

[GregWeld]

Originally Posted by WSSix

Personally, I love my credit card. I use it for everything I can. I get 1% bonus points for each dollar. I pay it off each month. They owe me $600 for using their card

Nobody burns the plastic better than I do... but it's a convenience that's used in place of carrying around cash. We travel a LOT... and I can wear the stripe off that bad boy. But like you - the bill is paid - and frankly - because I'm so anal - before it's due. I see the bill climbing during the month (thanks to on line banking) I transfer some money to it. For whatever reason the big balance bothers me.

[hifi875]

I pay my credit card off everymonth and have never paid a dime of interest or a annual fee. I like getting the cash back bonus and use the money to buy tires etc for my cars. Stuff that you need but don't necessarily get excited about.

[Vegas69]

I've almost completely stopped using credit cards. I pay with cash or my debit card. I spent years buying on plastic and paying off the bill every month. I just find that the immediate weight of the purchase makes you debate whether it's really worth spending the money or not vs. the surprise in the mail box every month. What really woke me up was looking back over my bank statements for 6 months and seeing what I now consider reckless spending and waste on credit card bills. Every dollar counts as it can be used for investing and ensuring your freedom at a predetermined age.

Americans have been programmed to be in debt over the last 50 years by the banks. To buy the biggest house, a new car every 3 years, student loans, 5 credit cards with balances, you name it. I've never liked debt but I'm at the point now where I hate debt. Live well within you means and invest wisely and you can be very wealthy and weave the lifestyle you desire.

[WSSix]

Originally Posted by Vegas69

I've almost completely stopped using credit cards. I pay with cash or my debit card. I spent years buying on plastic and paying off the bill every month. I just find that the immediate weight of the purchase makes you debate whether it's really worth spending the money or not vs. the surprise in the mail box every month. What really woke me up was looking back over my bank statements for 6 months and seeing what I now consider reckless spending and waste on credit card bills. Every dollar counts as it can be used for investing and ensuring your freedom at a predetermined age.

Americans have been programmed to be in debt over the last 50 years by the banks. To buy the biggest house, a new car every 3 years, student loans, 5 credit cards with balances, you name it. I've never liked debt but I'm at the point now where I hate debt. Live well within you means and invest wisely and you can be very wealthy and weave the lifestyle you desire.

Agreed. You do have to be careful with what you spend your money on when using a CC since it's not immediately coming out of your wallet. I'm too busy right now to do much more than spend my money on the basic necessities in life so I'm not getting crazy with the CC that's for sure.

You're also right about the way we're programmed. The marketing folks in this country are doing a great job. Luckily, their BS doesn't work on me though I am fascinated by it.

[XLexusTech]

Anyone have a thought on what this Vodaphone separation will mean? I have some of it and am a bit on edge...