Dave Ramsey Millionaire Study

Help Support CattleToday:

faster horses

Well-known member
Joined
Nov 7, 2011
Messages
258
Reaction score
321
Our banker always told us "Cash is King."
We have borrowed money all our life. It's not so much going in debt, it's what you go in debt FOR!

We started out with nothing and we still have nothing, but the dash between
has been fun. 🤣😂🤣
 

Jeanne - Simme Valley

Well-known member
Joined
Dec 9, 2004
Messages
12,414
Reaction score
1,394
Location
Central Upstate New York
I pulled $23,000 out of my stock account to pay difference of trade in (2014 Ram 3500 diesel) and new 2021 Ram 3500 diesel. Stock account has increased back to balance before truck purchase! Didn't expect that, but I would rather take money I have to buy something than to be committed to payments. I worked hard thru the years to pay off all debt. Maybe a millionaire on paper - maybe not, but loving my life as it is can't be bought. Work hard, pay off debt as best as possible. Live within your means.
 

Stocker Steve

Well-known member
Joined
May 2, 2005
Messages
11,350
Reaction score
671
Location
Central Minnesota
You have $350,000 in an investment account earning an average 8% over the last 5-6 yrs. The land next to you comes up for sale for $180,000 and is appraised for $220,000. Do you make the 20% down payment (you have the down payment in another account) and finance the rest at 4% or, take the the money out of the investment account pay cash then start hitting the investment account hard to catch it back up? Lets also say the land payment won’t affect anything else you have going and you plan on stocking it to expand a cow herd.
What would a conservative banker advise? Calculate the rental value and then make a big enough down payment that the land cash flows.

The cows are a tougher question.
 
Last edited:

Stocker Steve

Well-known member
Joined
May 2, 2005
Messages
11,350
Reaction score
671
Location
Central Minnesota
For me, I have a decent amount of fluid cash, no debt, but instead of investing in stocks, I'm investing in things I need to keep the farm running.. I've got 5 years of diesel I bought in Mar 2020, I've got a few years of bale twine, oil, filters, grease, tires for the vehicles... If there's a serious inflation coming it should at least tide me over for the prices of my goods to catch up a bit
2020 petroleum prices look like a steal today, and 10 year old tractors have really made a jump in price.

What are there other farm tools or items that seem to at least hold their value in more normal times? I am thinking about HD corral panels, aluminum trailers, collectible tractors ?
 

littletom

Well-known member
Joined
Feb 6, 2015
Messages
1,082
Reaction score
48
Location
southern Ky
If i would of bought 10k worth of round up in may i could double my money today. I have friend that farms pretty big he won't finance anything with rubber under it period. Most people that farm on scale can't do that hell few can at all. He will borrow for land but thats about it. Really big gap in haves and have nots in ky.
 

BFE

Well-known member
Joined
Jun 10, 2017
Messages
932
Reaction score
705
Location
Southeast Illinois
That's not a Dave question.

Couple of things.

Why are you buying the land? Just because it's value is a little more at this moment doesn't mean it's a good buy. What is your plan? If it's to run cows will the cows pay for it?
The one thing about land is it will always be there. Buy stocks, they tank, you light your wood stove with the notes.

Land generally appreciates over time. My non-farm grandpa lost his ass in '08 (whoever his financial man was I would love to choke unconscious due to poor advice, but that's another story). Let's say, 30 years ago, he bought one decent 40 for 1000-1200 per acre as an investment, took him 20 years to pay for it at 8.5% interest, a little over $100,000. His 100 grand in 2010 was worth 160,000. Four years later, 350-400,000. Plus he gets a rent check every year. I wish he would've done that with his money instead.
 

Dave

Well-known member
Joined
Jul 12, 2004
Messages
10,470
Reaction score
2,492
Location
Baker County, Oregon
I think @HDRider missed one. It's almost always less expensive to make repairs to a used vehicle than it is to make payments on a new one, and in any case, buying a vehicle new is rarely a good financial decision. The value drops too much as soon as you leave the dealership with it.
I am not so sure about that. I have bought them new but drove them until the wheels fall off. I know the maintenance the vehicle has had. I know who and how it has been driven. Right now I have a 2008 KIA that I bought new. It has 273,000 miles on it now and is still going with very little maintenance. I had a co worker who always bought used. Over 15+ years we worked together he spent more money purchasing vehicles than I did. Buy it new and take care of it. But keep driving it until it is ready for the junk yard. Buying new and trading off in 2, 3, 4 years simply doesn't work.
 

shaz

Well-known member
Joined
Jan 9, 2010
Messages
2,332
Reaction score
703
Location
Middle Tn
I am not so sure about that. I have bought them new but drove them until the wheels fall off. I know the maintenance the vehicle has had. I know who and how it has been driven. Right now I have a 2008 KIA that I bought new. It has 273,000 miles on it now and is still going with very little maintenance. I had a co worker who always bought used. Over 15+ years we worked together he spent more money purchasing vehicles than I did. Buy it new and take care of it. But keep driving it until it is ready for the junk yard. Buying new and trading off in 2, 3, 4 years simply doesn't work.
My preference too. You would have to be insane to buy a used work truck around here.
 

Rafter S

Well-known member
Joined
Sep 17, 2013
Messages
4,606
Reaction score
424
Location
Grimes County, TX
I am not so sure about that. I have bought them new but drove them until the wheels fall off. I know the maintenance the vehicle has had. I know who and how it has been driven. Right now I have a 2008 KIA that I bought new. It has 273,000 miles on it now and is still going with very little maintenance. I had a co worker who always bought used. Over 15+ years we worked together he spent more money purchasing vehicles than I did. Buy it new and take care of it. But keep driving it until it is ready for the junk yard. Buying new and trading off in 2, 3, 4 years simply doesn't work.

My preference too. You would have to be insane to buy a used work truck around here.

I'll admit you have to be lucky to find one, but twice I've bought used trucks with around 25,000 miles on them. They were considerably less expensive than a brand new one would have been, and no one will convince me I would have been better off buying new.

However, as well as vehicles hold up now compared to 40 years ago I think you'd still come out better buying one with 50,000 miles on it instead of brand new. Feel free to disagree if you want, I'm done with the subject.
 
OP
HDRider

HDRider

Well-known member
Joined
Jul 25, 2011
Messages
7,011
Reaction score
1,193
Location
NE Arkansas
I am not so sure about that. I have bought them new but drove them until the wheels fall off. I know the maintenance the vehicle has had. I know who and how it has been driven. Right now I have a 2008 KIA that I bought new. It has 273,000 miles on it now and is still going with very little maintenance. I had a co worker who always bought used. Over 15+ years we worked together he spent more money purchasing vehicles than I did. Buy it new and take care of it. But keep driving it until it is ready for the junk yard. Buying new and trading off in 2, 3, 4 years simply doesn't work.
I agree. I do like you do Dave.

Plus if you buy used at a dealer you are paying top dollar and the depreciation you think came off the car price is actually baked in to the used car dealer price.

If you buy used right, maybe close to wholesale price, and the car is maintained (how would you be sure) then buying used is OK.
 

Lucky

Well-known member
Joined
Feb 11, 2018
Messages
1,472
Reaction score
455
Location
TX
New vs used all depends on purchase price vs actual cost. At the end of the day their probably pretty close to the same. I’ve bought both new and used but prefer new. Equipment is a little different depending on what you buy.
 

herofan

Well-known member
Joined
Dec 28, 2011
Messages
2,722
Reaction score
442
Location
Kentucky
I'll admit you have to be lucky to find one, but twice I've bought used trucks with around 25,000 miles on them. They were considerably less expensive than a brand new one would have been, and no one will convince me I would have been better off buying new.

However, as well as vehicles hold up now compared to 40 years ago I think you'd still come out better buying one with 50,000 miles on it instead of brand new. Feel free to disagree if you want, I'm done with the subject.
I agree. I’m never buying a new vehicle, but then again, I can’t justify buying new. I have actually bought rebuilds and had great luck. I bought my daughter a rebuilt Nissan Altima a few years ago with 50,000 miles for $6,000, and it hasn’t had any issues. She loves it. The same with the Nissan truck I drive. I got it cheap and have had it 7 years without an issue. I can’t think of any reason I would have been better off buying new in either situation.
 

faster horses

Well-known member
Joined
Nov 7, 2011
Messages
258
Reaction score
321
The current climate has the price of used vehicles going through the roof and it's hard to find a new 1-ton pickup on the lots around here. One story I heard was a fella ordered a new 1-ton dually 4x4. He had to wait a long time to get it, but it finally came in. Before he left the dealership he was offered $5000 more than he paid. Our cousin has a 2018 Ford 1-ton dually 4X4 and he said it is worth what he paid for it. Vehicles can't get repaired because the parts are sitting on a cargo ship in the ocean. Crazy times.
 

KAstocker

Well-known member
Joined
Apr 24, 2020
Messages
217
Reaction score
199
Location
Western Missouri
The one thing about land is it will always be there. Buy stocks, they tank, you light your wood stove with the notes.

Land generally appreciates over time. My non-farm grandpa lost his ass in '08 (whoever his financial man was I would love to choke unconscious due to poor advice, but that's another story). Let's say, 30 years ago, he bought one decent 40 for 1000-1200 per acre as an investment, took him 20 years to pay for it at 8.5% interest, a little over $100,000. His 100 grand in 2010 was worth 160,000. Four years later, 350-400,000. Plus he gets a rent check every year. I wish he would've done that with his money instead.
The last 40 years has been pretty good for land owners. There's also been declining interest rates in that time. It will be interesting to see how land does if rates ever go up and investors can buy bonds and make decent fixed income. I believe land declined and was then stagnant in the early 80s.
 

Rafter S

Well-known member
Joined
Sep 17, 2013
Messages
4,606
Reaction score
424
Location
Grimes County, TX
The current climate has the price of used vehicles going through the roof and it's hard to find a new 1-ton pickup on the lots around here. One story I heard was a fella ordered a new 1-ton dually 4x4. He had to wait a long time to get it, but it finally came in. Before he left the dealership he was offered $5000 more than he paid. Our cousin has a 2018 Ford 1-ton dually 4X4 and he said it is worth what he paid for it. Vehicles can't get repaired because the parts are sitting on a cargo ship in the ocean. Crazy times.

I don't doubt it. A friend of mine owns a plumbing company, so he buys quite a few trucks, and he was telling me a few months ago that he can usually buy a truck for about 80 - 85% of list price. He expected to do that again the last time he was shopping, but was told no, that now it's list price + $5,000.

He decided he didn't need a new truck yet.
 

Jeanne - Simme Valley

Well-known member
Joined
Dec 9, 2004
Messages
12,414
Reaction score
1,394
Location
Central Upstate New York
Used trucks (and cars) are bringing outrageous prices. They gave me $43,000 for my 2014 when I traded in for the 2021. I had ordered it brand new, paid $64,000 for it. I figured it cost me $3,000 year. Had no repairs I had to pay for.
Same with small farms and homes. Family sold their place and it went into a bidding war. Got like $40,000 over their asking price!!!
 

Latest posts

Top