How mush cash?

[Williamsv]

It is great to owe nothing. My dad always said don't buy until you can pay for it. We have been blessed greatly and have everything paid for now for which I am truly thankful. We have always worked hard, saved all we could, and lived within our means. Paid for our daughter's college and pharmacy school so she could graduate debt free. She earned several scholarships that helped a lot.
No, it is not wasteful to feed sugar water to the hummingbirds. I have to get my feeders up here and at my mother's. I am running late. Feeding the birds is a simple thing to do for the joy that they bring us with their beauty and sweet songs. I do enjoy listening to birdsong in the early morning when the air is still cool and I can walk down the dirt road that I walked on as a child and watch my cows grazing or laying peacefully under a tree. That is what I enjoy and have time to do each morning except Sunday.

 

[Rafter S]

I suppose you are rolling in it.

I can afford sugar water for hummingbird feeders. Probably a stupid waste by some people's standards. But I enjoy watching them outside the window. The grandkids really like it too up until they are around 6 years old.

There's nothing wrong with spending money on things you enjoy, as long as it's money you can afford to spend.

"I spent half my money on wine, women, and song; and like a fool I squandered the rest." - Benny Hill

 

[backhoeboogie]

TB I truly don't give a rats what you think.

Excellent. Had me worried to death. :mrgreen: :lol2: :lol2: :lol2:

Just breaks my heart TB. I am going to have to run to town and buy a couple of more boxes of Kleenex. Should I lie about my opinions? Tell everyone "Life's not fair". "Sit around the house in the evening and catch every episode of I Love Lucy". "It'll bring you happiness". "Set your goals extremely low so that you'll feel like a success". "Sit around whining and complaining". "The government is going to take care of you - forever".

Naw. I like being honest. It upsets you. Therefore there must be value in it somewhere. Maybe I should have actually used real numbers. I only lost half of my net worth in the divorce.

 

[TexasBred]

Naw. I like being honest. It upsets you. Therefore there must be value in it somewhere. Maybe I should have actually used real numbers. I only lost half of my net worth in the divorce.

Not really. I just enjoy fricking with you cause you're so easy. Sort of like Sky camping out in Hook's head. :lol2: :lol2: It's easy to pick out truth from BS. ;-) ;-)

 

[backhoeboogie]

Naw. I like being honest. It upsets you. Therefore there must be value in it somewhere. Maybe I should have actually used real numbers. I only lost half of my net worth in the divorce.

Not really. I just enjoy fricking with you cause you're so easy. Sort of like Sky camping out in Hook's head. :lol2: :lol2: It's easy to pick out truth from BS. ;-) ;-)

Yes. Lots of post chilling. Whole lots of folks sending pm's these days. Fine with me. Just gets confusing from time to time. Plus limitations on the numbers.

Keep chillin the threads Seems the mods would want to encourage dialog.

 

[James T]

Well then, here's some more.

What is the value of happiness or contentment? My grandparents had very little in the way of cash on hand, had plenty of debt for farm equipment but yet, they were content and made it all work. When one of their kids got married, it wasn't some high dollar extravaganza. Everyone pitched in a little here and there and the weddings with receptions were awesome! I think we have all witnessed people with a chunk of money but they just don't seem happy or content; always yearning for something else. And, we have all seen those that seem to have little in the way of dollars and "things" but they seem very content.

As to herofan's question; your never going to have enough cash stowed away to cover EVERY contingency and there will always be someone that has more, and those that work a boat load of jobs and on and on. In my opinion, all one can do is try to reach a balance between having "enough" and still remaining good with their world.

 

[Nesikep]

I've never had a mountain of debt.. the most I've owed at any time was $15k.. that was after being without work, or minimal work for a very long time... I have lived out of the back of a chevy blazer for a couple months. it took me FOREVER to pay off that credit card debt, and I couldn't consolidate it into something lower interest because I couldn't get a line of credit, but I still paid my monthly minimums, if I was just robbing from peter to pay paul. When I finally had it paid off and I was in a secure job, I did buy a 'toy', but got smarter about it, I got it on a line of credit that was 5% instead of 20%, and that was about $10,000.. I had it paid off in a few months.

Now I have a little bit of a stash in the bank, not a whole lot, but I know I'm comfortable until I decide to sell calves, and that could be put off for a considerable time, I have 1000 gallons of diesel, my insurances are paid up by the year, etc. I have NEVER financed anything in my life, though you could say that having a line of credit is financing, you're not obliged to pay it back at a set rate.. If you just make a $100 payment one month it's fine (I like that liberty).

As far as the farm goes, we have TONS of machinery that all has it's purpose, but not much in the way of toys, our vehicles are 20+ years old but have be renovated, we're slowly renovating the 80 year old house, I keep my eyes open for good deals on stuff at auctions like the Yazoo mower for $50.. it did take 2 days of work and about $50 in parts, but it starts on the first pull now and will last for years yet. We have more tractors than we could get by with, but at the same time, having 1 tractor for a couple specific duties (IE, heavy work) saves abuse on the smaller ones.

Most of our stuff remembers JFK, Nixon, and some go back a lot further!.. Additionally to what's saved in your bank account, look at what kind of food you have stored, we have a ton of wheat, a ton of oilseed, beef in the yard, potatoes, corn, carrots and onions in the ground, and seed to keep going.

 

[skyhightree1]

I won't divulge my personal finances but I tell you this... There is no such thing as debt free you will ALWAYS OWE SOMEONE. The problem with debt is when you are not responsible and incur too much debt and truly have no means to pay back what you owe. Debt is like alcohol you shouldn't abuse it and know your limit.

 

[Rafter S]

I won't divulge you're personal finances but I tell you this... There is no such thing as debt free you will ALWAYS OWE SOMEONE. The problem with debt is when you are not responsible and incur too much debt and truly have no means to pay back what you owe. Debt is like alcohol you shouldn't abuse it and know your limit.

Please explain what you mean by "There is no such thing as debt free." I'm pretty sure I'd know about it if I owed any money.

 

[skyhightree1]

I won't divulge you're personal finances but I tell you this... There is no such thing as debt free you will ALWAYS OWE SOMEONE. The problem with debt is when you are not responsible and incur too much debt and truly have no means to pay back what you owe. Debt is like alcohol you shouldn't abuse it and know your limit.

Please explain what you mean by "There is no such thing as debt free." I'm pretty sure I'd know about it if I owed any money.

are you tax exempt ? if yes you will never owe your uncle. if not you owe him which = not debt free
Do you supply your own electricity? how do you access the internet to post here? do you have a phone? cable? satellite? if so that's a debt.

 

[Commercialfarmer]

I won't divulge you're personal finances but I tell you this... There is no such thing as debt free you will ALWAYS OWE SOMEONE. The problem with debt is when you are not responsible and incur too much debt and truly have no means to pay back what you owe. Debt is like alcohol you shouldn't abuse it and know your limit.

Please explain what you mean by "There is no such thing as debt free." I'm pretty sure I'd know about it if I owed any money.

are you tax exempt ? if yes you will never owe your uncle. if not you owe him which = not debt free
Do you supply your own electricity? how do you access the internet to post here? do you have a phone? cable? satellite? if so that's a debt.

Taxes are pulled before I see a dime.

Use a prepaid phone.... no internet, no land line and no cable or satellite. Those are just a waste for me. ;-)

 

[Commercialfarmer]

Responsibility is rare. The reward is bigger if learned early.

I've been glad I had an emergency fund in the past. Life throws to many curve balls.

Saying that, I don't put much faith in an account.

 

[gimpyrancher]

There is no such thing as debt free you will ALWAYS OWE SOMEONE.

Debt free is commonly referring to not financing anything. I do owe for my monthly utilities and credit card bills. But I carry no balance at the end of the month. So I am debt free.

 

[bball]

Please explain what you mean by "There is no such thing as debt free." I'm pretty sure I'd know about it if I owed any money.

[/quote]



I believe there is a difference between debt/loan vs. Expenses. I know tax bill will be there every year, just like fuel cost will be there each week i pull up to the diesel pump. I dont consider myself in debt to the govt anymore than i am in debt to the fuel company. I pay them as i use them. These are expected expenses. Debt to me implies owing a bank, finance company, credit card, etc. for things that i am using but do not have the money or desire to pay off currently. I do realize for some folks, its better to finance large purchases at lower interest rates, in order to free up capital to use in attempts to generate income at a level higher than the interest rate of the loan. But as it currently stands, i dont owe anyone a cent. My taxes are paid, all bills are paid, home, lands, livestock, equipment, etc all paid off. Im just attempting to illustrate a difference between debt vs. expenses. Im not being charged finance charges or interest on any of my expenses. On a loan/debt, there is usually one, if not both. Free money is hard to find.....

 

[Rafter S]

I won't divulge you're personal finances but I tell you this... There is no such thing as debt free you will ALWAYS OWE SOMEONE. The problem with debt is when you are not responsible and incur too much debt and truly have no means to pay back what you owe. Debt is like alcohol you shouldn't abuse it and know your limit.

Please explain what you mean by "There is no such thing as debt free." I'm pretty sure I'd know about it if I owed any money.

are you tax exempt ? if yes you will never owe your uncle. if not you owe him which = not debt free
Do you supply your own electricity? how do you access the internet to post here? do you have a phone? cable? satellite? if so that's a debt.

You and I apparently define debt differently. I don't borrow money, I don't buy anything on credit, and I don't have a credit card. The things you mentioned are normal expenses, which I pay for as they are received. They aren't debts.

 

[Dave]

To me it is much more important as to how you spend your time than how much money you have on hand. In my 20's and 30's I worked in an occupation that paid really well and one where I could get a new job with just a phone call or two. So I only worked part of the time. The rest of the time I traveled, I played, and I went out and enjoyed life. I was retired or at least semi retired at an age when I could do things. Things that an older person just physically can't do. I have watched people work 2 or 3 jobs to get ahead. Ahead of what? If you have a dry place to sleep, cloths on your back, and food in your stomach what else matters? No matter what else you only have so many days on this earth so you better enjoy them as much as possible. I have never seen a armored car following in a funeral procession. In this society there are some people who work extra hard so they can do something. There are others who just do it (whatever it is) and get by on less.

 

[Nesikep]

I do have a credit card and a line of credit.... If I wanted to be, I could be $50K in debt tomorrow, but that's not going to happen. Fuel, phone bills, etc are just expenses as long as you have the money in the account to pay them off at the end of the month.. if you don't, that's when they become debts.

A lot of big companies buy themselves to death acquiring subsidiaries on borrowed money.. yes, they have assets, but in a downturn or higher interest rates they have to sell everything at a major loss to keep the parent company alive... Nortel Networks was a good example of that...

I need a couple little toys to stay happy, but I certainly don't need the newest of anything and will use something until it's absolutely dead... I don't have a problem finding the toys I want in need of a little repair for a good bargain. I shake my head at my next door neighbors.. the parents and one of the kids spent $25,000 each on some kind of side-by-side.. I know the parents have the money to pay for it outright, though they probably financed it anyhow.. the kid on the other hand without a doubt is in debt for it, and he probably only uses it about 10 days a year... Those are some expensive miles!

 

[GMN]

You guys make it sound like all debt and being in debt is super bad-it does enable a person to have a good credit score and have some very useful things-especially when you own your own business. Finance charges don't really bother me, to me its all part of doing business-
Yes eventually I would like to be debt free on the major things, and it will happen-but I'm not going to cry over being in debt either

 

[GMN]

Invest in something. Find a way. I dug patio stone with a shovel and rock bar. Then a loaded. Then a backhoe. It was hard work. I worked on drilling rigs on weekends. Managed a service station in the evenings. Welded. Built fence. Worked cattle. Sold cedar posts. Sold firewood.

Dave R advises similar to his listeners who are predominantly 9-5 city folks :nod: I can't remember his exact quote, but it goes something like investing is 80% behavior and 20% mental. Just do it.

Dave advises folks to find a way to earn extra cash, whether it's mowing lawns, delivering pizzas, etc. Yes, those ideas probably wouldn't work very well in a rural setting Basically anything that require little to no investment and a lot of elbow grease and sweat equity. In other words, try to think "out of the box" to earn extra some income wherever you can.

Many ranchers "here" bought cattle pots and diversified into trucking during the lean times. Some of them still do it, and it's handy to have their own truck to do their own work. One guy with a gravel trailer and a wheel loader turns down jobs because there is just not enough of him to go around.

I'm a Dave Ramsey follower.... in no way do I work 9-5.... I have no less than 3 jobs going at one time... live in a town of less than 3K.... He is very popular around here. There are classes in most local churches in the area.

He is 100% correct it's behavior. When you change your mentality, change the way you look at money... its a lot easier. Those of us who have been through the transition know that the peace on the other side it far more fun than the toys.

We run our family ranch, o&g company, the properties I manage, my buiness, all with the principles he teaches. It's a pretty basic idea. Spend what you have, not what you think your going to make. It's a pretty simple concept and it hard to go wrong living that way.

The one thing Dave Ramsey says is his plan will not work for dairy farmers or people who's income varies from month to month

 

[D2Cat]

"You guys make it sound like all debt and being in debt is super bad-it does enable a person to have a good credit score..."

If you don't have debt you don't need a credit score. Don't have to worship the FICO god.