Get Ready

[Caustic Burno]

I remember the early 80’s double digit inflation. Folks on fixed income suffered. Many retired folks had to go back in the workplace. Unemployment sky rocketed that much more.

CB I am ready.

That was terrible times.
If you had job you better not quit. Jobs were few and far between, wasn’t all these “safety nets”.

County commissioner has been after me to come work part time as equipment operator.
He has as many retirees working for him as full time.

 

[simme]

I remember the early 80’s double digit inflation. Folks on fixed income suffered. Many retired folks had to go back in the workplace. Unemployment sky rocketed that much more.

CB I am ready.

If I remember correctly, you could get 18% on a money market account for a while then. I think it is about 0.01% now. I remember getting two raises per year. But not getting ahead. Is that the plan for all the government debt? Run inflation so high that the debt amount looks smaller? But no one can afford anything. I guess the government will just send us more and more useless money.

 

[KAstocker]

If I remember correctly, you could get 18% on a money market account for a while then. I think it is about 0.01% now. I remember getting two raises per year. But not getting ahead. Is that the plan for all the government debt? Run inflation so high that the debt amount looks smaller? But no one can afford anything. I guess the government will just send us more and more useless money.

That is exactly the plan. No other option now.

 

[farmerjan]

I'm still waiting to hear about all the "New Green" jobs that were suppose to materialize when many of the oil workers got laid off. A few pipeline welders from here are back in the area and working for irrigation companies for way less $$$. Seems like the Government wants everyone broke and depending on handouts.

That is the mindset of socialism morphing into communism. Dependence gives them control

 

[Caustic Burno]

If I remember correctly, you could get 18% on a money market account for a while then. I think it is about 0.01% now. I remember getting two raises per year. But not getting ahead. Is that the plan for all the government debt? Run inflation so high that the debt amount looks smaller? But no one can afford anything. I guess the government will just send us more and more useless money.

I remember my house catching fire and the mortgage company recalling the 7% loan.
The insurance company paid off the mortgage company and cut me a check for the remainder.
Try to borrow money on a half burnt down house.
The mortgage company offered to refinance my house at 16%.
That was a very short one sided conversation.
I pulled out every penny in savings and financed the remainder at 16%.
Wife and I paid that off in five years and we have never had
a mortgage since.

 

[WFfarm]

I remember my house catching fire and the mortgage company recalling the 7% loan.
The insurance company paid off the mortgage company and cut me a check for the remainder.
Try to borrow money on a half burnt down house.
The mortgage company offered to refinance my house at 16%.
That was a very short one sided conversation.
I pulled out every penny in savings and financed the remainder at 16%.
Wife and I paid that off in five years and we have never had
a mortgage since.

Can you imagine what's going to happen to the realistate market when mortgages go from 3% to 6-8%?

 

[TCRanch]

If I remember correctly, you could get 18% on a money market account for a while then. I think it is about 0.01% now. I remember getting two raises per year. But not getting ahead. Is that the plan for all the government debt? Run inflation so high that the debt amount looks smaller? But no one can afford anything. I guess the government will just send us more and more useless money.

I was in Banking back then. We had an IRA @18% for 15 years, The annual interest was transferred to a companion account with a variable rate, which (if I recall correctly), never went below 5.67%.

 

[backhoeboogie]

If I remember correctly, you could get 18% on a money market account for a while then. I think it is about 0.01% now. I remember getting two raises per year. But not getting ahead. Is that the plan for all the government debt? Run inflation so high that the debt amount looks smaller? But no one can afford anything. I guess the government will just send us more and more useless money.

Simme if they double salaries and double prices, everyone is just in a higher tax bracket. The government wins and no one else.

 

[TexasBred]

T

I remember my house catching fire and the mortgage company recalling the 7% loan.
The insurance company paid off the mortgage company and cut me a check for the remainder.
Try to borrow money on a half burnt down house.
The mortgage company offered to refinance my house at 16%.
That was a very short one sided conversation.
I pulled out every penny in savings and financed the remainder at 16%.
Wife and I paid that off in five years and we have never had
a mortgage since.

hats what my mom called “cutting of your nose to spite your face”.

 

[Caustic Burno]

T

hats what my mom called “cutting of your nose to spite your face”.

No that was when I learned to loathe bankers. It’s ok it took me seven years haven’t been in debt since.
I haven’t had an account with a bank in over forty years, just too slimy for me.
But keep posting your opinion as I continue to read even though usually wrong.

 

[C-Ranch]

My grandparents and parents didn't go into debt for anything unless it could be paid off in 2yrs or less. It's amazing the flexibility you have when hard earned $$$ isn't going to huge payments. My dad always preached put 20% into saving, 20% to yourself, and the last 60% for monthly bills etc. At the end of the month if you have anything left that should also go to savings. Rewind and do it all over again. He too never had a house payment, he saved and paid cash for the house and built it as they had money. Mom never worked outside the home. He is no longer with us, but mom is living off the $$$ they saved all those years. I think my dad would turn over in his grave if he could see the crazy spending going on right now.

 

[Nesikep]

My grandparents and parents didn't go into debt for anything unless it could be paid off in 2yrs or less. It's amazing the flexibility you have when hard earned $$$ isn't going to huge payments. My dad always preached put 20% into saving, 20% to yourself, and the last 60% for monthly bills etc. At the end of the month if you have anything left that should also go to savings. Rewind and do it all over again. He too never had a house payment, he saved and paid cash for the house and built it as they had money. Mom never worked outside the home. He is no longer with us, but mom is living off the $$$ they saved all those years. I think my dad would turn over in his grave if he could see the crazy spending going on right now.

That worked well back then when inflation wasn't too bad, but in times of high inflation, it eats the buying power of your savings faster than you can add to it... With low mortgage rates, it makes perfect sense to take up debt to buy something... Property prices around here are completely out of reach without debt or a rich dying uncle. Debt for things that depreciate though is still not a great idea IMHO... $100K trucks, 72" plasma TV's and the like

 

[Nesikep]

I remember the early 80’s double digit inflation. Folks on fixed income suffered. Many retired folks had to go back in the workplace. Unemployment sky rocketed that much more.

CB I am ready.

Good to see you posting again :)

You know what's scary? People are spending a greater portion of their disposable income today to service debt at 3% interest than they did in the 80's at 20%, just because everyone has SO MUCH MORE DEBT and wages haven't kept up with inflation at all

 

[Caustic Burno]

That worked well back then when inflation wasn't too bad, but in times of high inflation, it eats the buying power of your savings faster than you can add to it... With low mortgage rates, it makes perfect sense to take up debt to buy something... Property prices around here are completely out of reach without debt or a rich dying uncle. Debt for things that depreciate though is still not a great idea IMHO... $100K trucks, 72" plasma TV's and the like

It would surprise a lot of people
at millionaire next door.
“The bestselling The Millionaire Next Dooridentifies seven common traits that show up again and again among those who have accumulated wealth. Most of the truly wealthy in this country don't live in Beverly Hills or on Park Avenue-they live next door. “

 

[sstterry]

It would surprise a lot of people
at millionaire next door.
“The bestselling The Millionaire Next Dooridentifies seven common traits that show up again and again among those who have accumulated wealth. Most of the truly wealthy in this country don't live in Beverly Hills or on Park Avenue-they live next door. “

When I first started practicing my partner had a client that came in regularly. This guy was always dirty wearing boots covered in manure. One day he mentioned that he was on his way to Florida, a temp receptionist made the comment that this was probably his first trip down there because he looked so poor. My partner turned to her and said no, actually he was going down to inspect one of the three 5 star hotels he owned down there.

 

[Caustic Burno]

My grandparents and parents didn't go into debt for anything unless it could be paid off in 2yrs or less. It's amazing the flexibility you have when hard earned $$$ isn't going to huge payments. My dad always preached put 20% into saving, 20% to yourself, and the last 60% for monthly bills etc. At the end of the month if you have anything left that should also go to savings. Rewind and do it all over again. He too never had a house payment, he saved and paid cash for the house and built it as they had money. Mom never worked outside the home. He is no longer with us, but mom is living off the $$$ they saved all those years. I think my dad would turn over in his grave if he could see the crazy spending going on right now.

My parents were born in 1914.
Those people who lived though the depression had a very dim view of banks and debt.
What they watched the bankers and lawyers do to families left a lasting impact.

 

[C-Ranch]

My parents were born in 1914.
Those people who lived though the depression had a very dim view of banks and debt.
What they watched the bankers and lawyers do to families left a lasting impact.

My father was born in 1932 and he mentioned numerous times how many farms/ranches he saw the banks take over the years. Even the ones that only missed one payment and had made arrangements to pay in full in a few months. Banks still foreclosed and then resold them to deals that had been done behind closed doors. Banks were just hedging their bets. One thing grandpa and my dad both preached. There are good loan decisions and bad ones (most bad), but NEVER put land up for collateral because then the banks have you.

 

[herofan]

My grandparents and parents didn't go into debt for anything unless it could be paid off in 2yrs or less. It's amazing the flexibility you have when hard earned $$$ isn't going to huge payments. My dad always preached put 20% into saving, 20% to yourself, and the last 60% for monthly bills etc. At the end of the month if you have anything left that should also go to savings. Rewind and do it all over again. He too never had a house payment, he saved and paid cash for the house and built it as they had money. Mom never worked outside the home. He is no longer with us, but mom is living off the $$$ they saved all those years. I think my dad would turn over in his grave if he could see the crazy spending going on right now.

My parents have a very similar situation. I don’t believe they ever borrowed money in their life. My dad retired from a good-paying factory, and my mother stayed home with us kids. We didn’t have things dripping in gold, but I don’t recall going without anything or times ever being rough. Now that my parents are in their 80s, they don’t have to worry about money.

 

[KAstocker]

That worked well back then when inflation wasn't too bad, but in times of high inflation, it eats the buying power of your savings faster than you can add to it... With low mortgage rates, it makes perfect sense to take up debt to buy something... Property prices around here are completely out of reach without debt or a rich dying uncle. Debt for things that depreciate though is still not a great idea IMHO... $100K trucks, 72" plasma TV's and the like

Yep. The game has changed. Inflation and low interest debt on appreciating assets is a wealth builder.

 

[Nesikep]

Last spring when fuel prices were low we bought 4000 gallons of fuel... the price increase in the next 2 months paid for the double wall tank, the rest, well, it's gaining much more interest than money in the bank, and it's something USEFUL.
We have more tractors than we need, but on the other hand, I don't think any of them see over 100 hours a year and we use the right size tractor for the job, we don't use a 100hp 4wd tractor to rake hay and don't beat the crap out an undersize tractor pulling a disc.. Last year I picked up a new-to-me NH320 baler with low hours, but I'll keep running my old NH282 until it just can't be fixed no more