Act your wage - Financial Peace

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ga. prime

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Credit is necessary. Debt is good. Where would we be without it? Nobody could buy a car. Nobody could buy a house. Nobody could buy land. Nobody could buy a washing machine. Nobody could make hotel reservations. Well, I guess backhoeboogie could. Let's all be like backhoeboogie!
 

lavacarancher

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ga. prime":2pyh262v said:
Credit is necessary. Debt is good. Where would we be without it? Nobody could buy a car. Nobody could buy a house. Nobody could buy land. Nobody could buy a washing machine. Nobody could make hotel reservations. Well, I guess backhoeboogie could. Let's all be like backhoeboogie!

I'll drink to that!!!!
 

TexasBred

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lavacarancher":244jonre said:
ga. prime":244jonre said:
Credit is necessary. Debt is good. Where would we be without it? Nobody could buy a car. Nobody could buy a house. Nobody could buy land. Nobody could buy a washing machine. Nobody could make hotel reservations. Well, I guess backhoeboogie could. Let's all be like backhoeboogie!

I'll drink to that!!!!


A Toast..."Here's to you and me....may we never disagree....but if we do...to hel with you...here's to me". :drink: :lol2: :lol2:
 

backhoeboogie

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All you really have to do is think. Build it yourself. Repair things that need to be repaired.

Financing a home or land is a good decision. I have always made money on land. If you are paying $800 a month rent, in 10 months you have spent $8,000 with nothing gained but a place to sleep.

Financing a new auto is a bad decision. I have always lost money on new vehicles. If you earn money with that vehicle and the pen and paper prove it, finance it. Otherwise buy what you can afford.

Early in life I owed my whole paycheck each week. I decided to climb out of that hole and never intend to go back. Just a choice me and the wife agreed to. We have done great for the last 15 years in spite of being burned out and a host of other incidents. Putting the kids through college was not easy either.

In the last couple of years gas royalties have been another blessing, but I have not been running out and spending it or living beyond my means. My spending habits have not changed.

I have credit cards. They are paid off in full when the bill comes. There is nothing wrong with credit. Use it wisely. I financed the backhoe and made money with it the whole time. I financed the caterpillar and made money with it the whole time. Borrowing money to make money is a wise thing.

Just think before you spend. If you can make money on something you buy, buy it. Otherwise don't.
 

Brandonm22

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ga. prime":36lelt3z said:
Credit is necessary. Debt is good. Where would we be without it? Nobody could buy a car. Nobody could buy a house. Nobody could buy land. Nobody could buy a washing machine. Nobody could make hotel reservations. Well, I guess backhoeboogie could. Let's all be like backhoeboogie!

I am probably not rich like backhoe; but we bought 456 acres 8 years ago and paid CASH on the barrell right up front for the whole thing and got a better deal because we could. We got no mortgage on that, the house, the 28 acres the house is on, the lot in Florida, or my Great Aunt's house in Ga. (that @#*!2#!*^ isn't selling because of hoods in the neighborhood and people who do live on credit messing up the housing market). I got no credit cards. I don't owe anything on the tractors. We don't owe payments on our TV, computers, or our furniture. If I need to buy a washing machine I write a check for it. I have no trouble at all making hotel reservations. I owe about $9000 on the truck (2006 Dodge Ram) and about $3200 too lawyers (if my Great Aunt had updated her will and had a living executor I wouldn't be making half of those payments) and that is it. I am not rushing but I will be completely out of all debt in 18 months (probably a lot sooner) and could be by Friday if I cashed in stocks. IF you LIKE credit and are a good manager of credit (most people aren't) GREAT I am glad it is working for you. I won't moralize and give an opinion on whether debt is good or not; but it is definitely NOT necessary and if it were abolished tomorrow (while a big shock to the economy) there are people who could still buy homes, cars, washing machines, and land.
 

TexasBred

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I'd cash in the stocks, pay off the truck and the attorney's and claim the stock loss on my 2009 income tax return.
 

HOSS

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The old scriptural saying "the borrower is slave to the lender" is very true. I look forward to the day when I am out of debt. I owe on my house and some of my land but have no credit cards or car payments. I use a Visa debit card and have had no problems booking a hotel, rental car or buying airline tickets.
 

MO_cows

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My sister did something I thought was smart. When her car was paid off she kept right on making payments - into a savings account. Her next car, she paid cash. Brand new, too, just not a luxury model.
 

1982vett

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MO_cows":21rj1wi2 said:
My sister did something I thought was smart. When her car was paid off she kept right on making payments - into a savings account. Her next car, she paid cash. Brand new, too, just not a luxury model.

I did that with my first home, course I did have unearned income to help. But once it was paid off I kept putting that money aside till I bout my second home. Then rented the first to help pay the second. Each time I got a raise I would up the savings amount. It doesn't take long before you can have a nice tidy sum to invest. I would not have been able to "retire" 4 years ago had I not looked down the road and planned a route to get here. Small sacrifices when one is young pays bigger rewards later in life.
 

larryshoat

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backhoeboogie":jerxdjuk said:
All you really have to do is think. Build it yourself. Repair things that need to be repaired.

Financing a home or land is a good decision. I have always made money on land. If you are paying $800 a month rent, in 10 months you have spent $8,000 with nothing gained but a place to sleep.

Financing a new auto is a bad decision. I have always lost money on new vehicles. If you earn money with that vehicle and the pen and paper prove it, finance it. Otherwise buy what you can afford.

Early in life I owed my whole paycheck each week. I decided to climb out of that hole and never intend to go back. Just a choice me and the wife agreed to. We have done great for the last 15 years in spite of being burned out and a host of other incidents. Putting the kids through college was not easy either.

In the last couple of years gas royalties have been another blessing, but I have not been running out and spending it or living beyond my means. My spending habits have not changed.

I have credit cards. They are paid off in full when the bill comes. There is nothing wrong with credit. Use it wisely. I financed the backhoe and made money with it the whole time. I financed the caterpillar and made money with it the whole time. Borrowing money to make money is a wise thing.

Just think before you spend. If you can make money on something you buy, buy it. Otherwise don't.

Very good post, very good advice.

Dave Ramsey, I like, I've disagreed with him from time to time, like when he was saying there was'n't a problem with mortgages, but sitting in Ohio maybe it was a lot easier to see. I've heard him advise people to sell vehicles and buy an old beater, which is fine if you can work on it yourself and your boss is understanding if the thing doesn't get you to work on time, but I know plenty of people that would buy that old beater and soon have as much in it as the one they sold. For the most part Dave rocks.

Larry
 

TexasBred

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MO_cows":2lszk3dg said:
My sister did something I thought was smart. When her car was paid off she kept right on making payments - into a savings account. Her next car, she paid cash. Brand new, too, just not a luxury model.

If you can pay the lender for 36-60-72 months no reason to not just go ahead and pay yourself once the car is paid in full. (If it's still a good car).
 
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