Next year you'll be one year older (a debt/lifestyle thread)

[SomeStrangeGuy]

Thanks to a moving discussion, I figured this might make for an interesting anonymous poll/discussion.

[SomeStrangeGuy]

I tried to get the options as random as possible but if you need something more specific that I neglected, pm me or post here.

[RedRider]

Thanks to a moving discussion, I figured this might make for an interesting anonymous poll/discussion.

I thought it was because you haven't posted a poll in awhile...

[JohnnyDiablo]

Toys? I have my bike and no more toys for me. Since I can commute on the HOV lane it made more sense than say a track bike. Oh the Vespa? yeh thats a money pit begging for another $500. Dont remind the wife.

[Richard636]

I'm debt free, however in that same breath, I still live at home!

[SomeStrangeGuy]

I thought it was because you haven't posted a poll in awhile...

Well I do long for board metrics every now and then


But in this case I am more curious how the majority of voters feels.

[ONEvcs]

Our only debt is our mortgage and that should be gone in 4-5 years max If everything goes as planned.

[luvtolean]

First and last choices are the current modus operendi in my house and they're related...when we're down to mortgage only we'll talk again.

We do have budgeted, in cash, an allowance for each of us in discretionary money we don't have to ask each other's permission for, examples would be clothes and entertainment. No more significant toys until everything but the house is paid off though. There will be toys sold too, when spring arrives. We've even turned way down retirement savings. As committed double digit savers who can appreciate a good tax haven, this was probably the hardest decision for me personally in the whole plan.


The retirement sites, Smith/Vanguard/Fidelity have some good articles, this one on the psychology of cash:

https://retirementplans.vanguard.com...boutRetirement

[SheepOfBlue]

Interesting that there seems to be no choice for I treat it like the Dodo Bird

[JohnnyDiablo]

Investing is an interesting subject. Save by investing in stocks and bonds in this volatile market when your dollars are getting watered down with every stimulus? I am up 68% on my investment in physical gold

[BizJetGuy]

First and last choices are the current modus operendi in my house and they're related

That's where we are.

The only substantial debt we have is the mortgage. SWMBO has a little left on the student loans and we have a paltry amount on one credit card from some holiday/kids' birthday expeditures. All vehicles are free and clear.

Toys are paid for in cash and, if it's a large amount, it's covered from savings rather than buy-now-pay-later.

Not easy and not extravagant but we sleep a little better at night.

[slickwill]

More when I'm not typing on a PDA but I'm at a weird blend of the first two, and last choices.

This thread, and others, may move me to do some very painful things.

[CBR929RE]

I'm debt free, however in that same breath, I still live at home!

and yet there's no option for us. truck was paid off a couple months ago, over 2 years early. anything that goes on the credit card gets paid off immediately. although I would like to add a huge amount of debt in that one big giant purchase that people seem to make in life.

completely debt free should be added to the pole.

[bda116]

So far underwater I don't even know where the surface is, let alone see it.

[SomeStrangeGuy]

I'm debt free, however in that same breath, I still live at home!

I lived "at home" on and off for many years, SAVE SAVE SAVE is all I have to say buddy.

The retirement sites, Smith/Vanguard/Fidelity have some good articles, this one on the psychology of cash:

https://retirementplans.vanguard.com...boutRetirement

Thanks for the input and the link...I think that is sort of where we are headed even, but I chose the "balance" option.

Interesting that there seems to be no choice for I treat it like the Dodo Bird

need a sheepesian translator here...

and yet there's no option for us. truck was paid off a couple months ago, over 2 years early. anything that goes on the credit card gets paid off immediately. although I would like to add a huge amount of debt in that one big giant purchase that people seem to make in life.

completely debt free should be added to the pole.

Congrats on paying everything off, now move out!
In all seriousness, the only time all the above really matters is when you're out paying rent or a mortgage. Till that time, it's all play money. In the do as I say not as I do category - and start saving now that you're all square


For those who are 'debt free' I modified the last option and I'll tack in another now.

[CBR929RE]

need a sheepesian translator here...



Congrats on paying everything off, now move out!
In all seriousness, the only time all the above really matters is when you're out paying rent or a mortgage. Till that time, it's all play money. In the do as I say not as I do category - and start saving now that you're all square


For those who are 'debt free' I modified the last option and I'll tack in another now.

here's a translation and also why I suggested the completely debt free. Sheep doesn't owe anyone any money for anything he owns. cars, trucks, bikes, house, paid off. his debt is extinct like the dodo bird.

[SomeStrangeGuy]

here's a translation and also why I suggested the completely debt free. Sheep doesn't owe anyone any money for anything he owns. cars, trucks, bikes, house, paid off. his debt is extinct like the dodo bird.

Oh, that was too easy...the 'treat it' part was what messed me up.

Nice work sheep

[CBRVFR]

Passed BDA on the way down..

[DrHall]

where is the "This poll sucks" option ?

[SomeStrangeGuy]

So far underwater I don't even know where the surface is, let alone see it.

Passed BDA on the way down..

Somehow I think you're full of it...but that's just me.

[SHOTIME]

We do have budgeted, in cash, an allowance for each of us in discretionary money we don't have to ask each other's permission for, examples would be clothes and entertainment. No more significant toys until everything but the house is paid off though.

Wife and I are close to this as well. We have a small amount we both get to spend frivously, keeps us sane.

We have some debt left, but it is manageable. Student loan, wedding we paid for ourselves, the house and her car are all on credit. We will be getting rid of all of that debt before I buy another toy (corvette), or remodel the house (her "toy").

[SomeStrangeGuy]

For those discussing budgeting and "frivolous spending", what % of your gross are we talking about here? (or what amount of $ if you want to make it easy on me).

I fail to budget, that's my problem...

[slickwill]

We "budget" but we do it backwards and with the wrong focus. We live 100% on student loans which means only two pay days each year, Aug 5th, Jan 8th. We put the lump sum in a separate bank, then each month we write a check to our other bank account for $1650.

[SheepOfBlue]

Oh, that was too easy...the 'treat it' part was what messed me up.

Nice work sheep

Actually owe a bit on the sheepfold but I probably won't meet the minimum to deduct interest this year When it gets paid off I plan on buying some land and building a larger custom sheepfold and get back into a mortgage again Otherwise VISA loves me at the end of the month sometimes (washer, dryer, dishwasher, TV, TV stand this month ) but zero debt. I was informed by friends that one day I would meet "THE" ewe and she would cure my lack of debt....

[DrHall]

Life has been "interesting" for the last ten years. A lot has happened, both in, and outside, my control. I have been making some very large adjustments financially the last couple years, and at this point I am basically starting over.

Not what I expected to be doing, but oddly freeing in a way that is rather hard to explain.

[bwhip]

My on all this:

I hope that I'm continually learning about finding an appropriate balance between living for today, and preparing for tomorrow.

One thing of which I'm certain, is that at the end of each year it's easy to think "I should have saved more, or reduced debt more..." or whatever. How much debt is appropriate? Is it better to have a mortgage (and the tax advantages that go along with it), or to be debt-free? That question has a multitude of answers, depending on one's situation.

I have some very wealthy friends, that are extremely tight with their money. It's pretty much all they think about. They do a fabulous job of saving and investing. I envy their discipline, and often worry that I'm not doing as well as them at preparing for retirement or other future needs. Yet, at the same time, I know that they aren't enjoying today as much as I am. That they go to bed at night worried about their financial situation, because it's never enough (I worry about that too when I go to sleep some nights, but not as much as they do). So, which approach is better?

Since moving out of my parents' house at age 17, and making my own living, I've had times where I've had the endless phone calls of bill collectors and collection agencies, and have also had times where I've been in a very high tax bracket, with little debt and substantial investments. I've worked seven days a week, ten hours a day, for sustained periods to feed the family, borrowed heavily at times to fund my children's college education, and other times where I've bought some toys that made others think I must have it made.

Bottom line is, at this point in time I'm reasonably comfortable with the current balance between having some fun today, and making sure that I'll be able to retire someday. Do I wish I had more in savings and investments? Of course! Who doesn't?

I'm glad to not have much debt, other than mortgage, and my ratio is pretty good there. It wasn't too many years ago that I had WAY too much of that. Thankfully, I've worked hard to reduce it, and still manage to get through the kids' college years.

Like most people, I suppose, I compare myself to others my own age or thereabouts to gauge how we're doing at being intelligent with our money. I suppose it's better than many, but woefully short of others. Oh well.

I guess my approach has always leaned more toward a sense of abundance than lack. If my options are to spend less or make more, I usually have been able to find away to make more. This mindset has driven me forward for the most part (although certainly it's gotten me in trouble a few times too!). Keeps life interesting, anyway.

[CBRVFR]

That, folks, might be the post of the millennium.

Notice how many times he said 'balance'?



Tons of rep. I have nothing to add.

[seamus]

There's some gold nuggets in those two cents up there...

[08silvercbr]

I'm debt free, however in that same breath, I still live at home!

If I could go back to that I'd be way better off. My dad tried to tell me, but of course I didn't listen. Odd thing is I made better money back then than I do now. If I lived like I do now back then this house I live in would be paid for. Some say "yeah you lived and had fun". You know what.. I pissed a bunch of money away, and to be honest, other than a car and some nice guitars that I still have, I don't know where it went. Live some, but take advantage of the savings there.

As far as the poll, I'm in between a few. We don't owe anything except the on the house. Before my wife and I were married she had a little student loan left over, but in a few months the government is going to wipe most of that out because of her job and then when we know what’s left (not much) we'll knock out the remainder. I won't borrow money on anything anymore.. not even cars. Because of my up and down commission based job I've had to become a bit of a planner. I got tired of the rollercoaster. Now I might be on the extreme end of things, even to a fault, but I feel I'm better off being on the extreme end. To reflect off what Whip said, I don't see anything at all wrong with spending money on nice stuff once the priorities are in order. We work hard for what we have, and there needs to be a time when it can be enjoyed.. even wasted, although I use that term lightly. I think as long as you have 6 months of expenses in savings, the appropriate amount going into retirement, no debt except for the house, and bills paid one month in advance, whatever is left should be able to be enjoyed for whatever as long as you can pay cash for it.

[navydevildoc]

I'm fairly lucky to pretty much be debt free. The LR3 has 3 or 4 more payments and it's paid off. No other debt.

Have money in a 401(k) that needs to be rolled over to something else; all my toy purchases are from monthly slush money.