How mush cash?

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Bigfoot":1gdvjem0 said:
Here is one, I don't know the answer to. I know you can put a CD up for collateral at the bank it is deposited at. It would be silly to, but I know it can be done. Can you like wise, put up say something like a mutual fund, or some blue chip stocks? Both could go down in value, and where would the lien be filed.
Many banks will only accept CD's issued by them. They are allowed to cash them in to pay off the debt if necessary. Right of offset I believe it use to be called. It really doesn't make any sense to do it these days as CD's are paying almost nothing to begin with so you're not losing anything to cash it in. I personally wouldn't hold any security for collateral that is publicly traded.Just too volatile.
 
GMN":jyn9en5y said:
If u run a business u simply are going to need credit eventually it's great if u all have zillions in the bank but many do not and borrowing or doing loans is not a horrible thing to do to make your business better-you have to do it smart though and pay off debt in a certain period of time

Exactly I bought my fleet of business trucks no way was paying cash. Here the crop farmers finance their equipment some pieces not all equipment my family included we finance equip. You can buy million bucks worth of equipment real quick fast and in a hurry. Credit also affects your rates you get on insurances. I couldn't rent my office if I had no credit. I will say it again credit is fine as long as you use it correctly.
 
bball":38pqzsk7 said:
branguscowgirl":38pqzsk7 said:
LRTX1":38pqzsk7 said:
A good credit score can be pretty handy to have when your buying a house.
Exactly.
Unless you have sold something, inherited something, or saved and bought land and built out of pocket, how are people mortgage free??
Having to start over more than once in my adult life, I don't think that I can have my farm paid off before I retire. :?

Those that have inherited family land well, they are very lucky. Those that had bought land when they were very young, are also lucky. But buying land in California is tuff on most people with single incomes. I have done well, but maybe not well enough. :?

How are people mortgage free? I don't know how others do it, but I will share how I have done it. I started in my 20s in the Air Force, bought our first place on a VA loan, little 5 ac spread. Sweat equaity, and smart BUYING allowed to sell at a substantial profit, repeat process with a 30 ac spread, sold at a profit upgrade to 56 acres, sold at a profit, upgrade to 80 acres, sold at a profit, upgrade to 125 acres which is where I am currently. This process has taken over 20 years, more sweat equity then I can explain, and the key is doing your research before you buy, so there is actually room to make money when you sell. Nothing tricky, no gimmicks, just discipline, hardwork and sacrifice, years without all the nice new toys and temptations, and now that it has snowballed for me into my 40s, I appreciate everything I have because I KNOW I earned it, and it is really mine. I went 19 years without a vacation. Wife and I went to Mexico last year and absolutely enjoyed ourselves and it meant so much because we had sacrificed for years. Little things like that just mean more. if you sacrifice early in life, you can enjoy A LOT later. I didn't have a rich daddy or uncle to leave me land,homes, cattle, equipment. I don't begrudge anyone who does, but if you do, you better understand what a responsibility you have and blessing you have been given.

The only thing most American's own today is a note.
If or when we have another real economic collapse be a lot of people with nothing.
We were only hanging on by a thread back in 08 that was caused by bad laws on lending and
selling mortgages.
Talk about ugly let this current two generations that majority have never went without get put out.
We will look like Argentina during their collapse.
 
For the record, I don't have "zillions" and I keep very little in the bank and would continue to do so no matter how much I have. The dollars I have, I expect to make more dollars for me. Money sitting in a low interest savings is wasted..I invest in many things and expect that money to generate more revenue. I don't buy a single luxury item until I have significant surplus.. any thing I purchase for cattle is purchased with money made by the cattle..if the money isn't there, they don't get it, or liquidate to purchase a necessity..I refuse to rob Peter to pay Paul. It's just a mindset thing, you'd be surprised how creative you can be. I understand people will be in a situation to go into some debt, the problem arises when that debt is for luxury, not necessity..and a whole helluva a lot of folks don't know the difference. Bottom line is I expect my dollars to make me more dollars..and if I ever borrowed money to make money, they better be doing it at a very quick pace.
 
bball":ozyme4ol said:
For the record, I don't have "zillions" and I keep very little in the bank and would continue to do so no matter how much I have. The dollars I have, I expect to make more dollars for me. Money sitting in a low interest savings is wasted..I invest in many things and expect that money to generate more revenue. I don't buy a single luxury item until I have significant surplus.. any thing I purchase for cattle is purchased with money made by the cattle..if the money isn't there, they don't get it, or liquidate to purchase a necessity..I refuse to rob Peter to pay Paul. It's just a mindset thing, you'd be surprised how creative you can be. I understand people will be in a situation to go into some debt, the problem arises when that debt is for luxury, not necessity..and a whole helluva a lot of folks don't know the difference. Bottom line is I expect my dollars to make me more dollars..and if I ever borrowed money to make money, they better be doing it at a very quick pace.
bball it really doesn't matter how or why you accumulate debt....having the responsibility to repay it as agreed goes back to upbringing and the values your mom and dad instilled in you. Over my lifetime I've borrowed money a lot of times and it has never crossed my mind to not pay it back.
 
TexasBred":2w5bd9er said:
bball":2w5bd9er said:
For the record, I don't have "zillions" and I keep very little in the bank and would continue to do so no matter how much I have. The dollars I have, I expect to make more dollars for me. Money sitting in a low interest savings is wasted..I invest in many things and expect that money to generate more revenue. I don't buy a single luxury item until I have significant surplus.. any thing I purchase for cattle is purchased with money made by the cattle..if the money isn't there, they don't get it, or liquidate to purchase a necessity..I refuse to rob Peter to pay Paul. It's just a mindset thing, you'd be surprised how creative you can be. I understand people will be in a situation to go into some debt, the problem arises when that debt is for luxury, not necessity..and a whole helluva a lot of folks don't know the difference. Bottom line is I expect my dollars to make me more dollars..and if I ever borrowed money to make money, they better be doing it at a very quick pace.
bball it really doesn't matter how or why you accumulate debt....having the responsibility to repay it as agreed goes back to upbringing and the values your mom and dad instilled in you. Over my lifetime I've borrowed money a lot of times and it has never crossed my mind to not pay it back.


TB what I can't wrap my head around is lending institutions giving money to people that have most
of their paycheck owed in notes.
Seems like the ones that are constantly getting something reposed can turn right around and borrow money.
Got to be good friends with the Constable as he was always hiding out on my place to try to serve or find
a piece of equipment my old neighbor was hiding.
 
Some years ago I had a secretary that was always why to far in debt. She would max out a couple of credit cards then apply for new ones and use most of the money from them to pay off the others. Her mother was the department heads secretary and I mentioned it to her and sugested she halve a talk with her daughter. Her response was "What's wrong with that? That's what I do". I just never could get my head around that concept.
 
TexasBred":11lve15m said:
bball":11lve15m said:
For the record, I don't have "zillions" and I keep very little in the bank and would continue to do so no matter how much I have. The dollars I have, I expect to make more dollars for me. Money sitting in a low interest savings is wasted..I invest in many things and expect that money to generate more revenue. I don't buy a single luxury item until I have significant surplus.. any thing I purchase for cattle is purchased with money made by the cattle..if the money isn't there, they don't get it, or liquidate to purchase a necessity..I refuse to rob Peter to pay Paul. It's just a mindset thing, you'd be surprised how creative you can be. I understand people will be in a situation to go into some debt, the problem arises when that debt is for luxury, not necessity..and a whole helluva a lot of folks don't know the difference. Bottom line is I expect my dollars to make me more dollars..and if I ever borrowed money to make money, they better be doing it at a very quick pace.
bball it really doesn't matter how or why you accumulate debt....having the responsibility to repay it as agreed goes back to upbringing and the values your mom and dad instilled in you. Over my lifetime I've borrowed money a lot of times and it has never crossed my mind to not pay it back.

TB, I read your post and my immediate thought was 'wow, I never even considered that some folks would actually go into debt without the slightest intention of repaying it' (should tell you how I was raised)...now, from what I can tell, you're an intelligent person based on your wit and posts, and I seldom disagree with your posts, but the part about how and why people go into debt being irrelevant, I respectfully disagree..why is a question many folks never even ask, they just do. And how is the difference between being able to repay ir or dying that slow, painful financial death so many in our country are...I work with so many dual income folks that are so over extended on a huge house, two bmws, a boat, etc and are just a few down months away from being belly up..the How and Why did we get here are most relevant..to avoid it in future, should they ever get out of debt and be able to educate their offspring on how to manage finances..a snooze fest 1 semester high school economics class doesn't seem to cut it for most Americans anymore..
 
denvermartinfarms":2z2hr7ub said:
Bigfoot":2z2hr7ub said:
Dave Ramsey has made some good money over the years, telling people stuff that common sense should have told them to begin with. I respect the guy, but the truth is the truth.

I don't have a problem with debt. I grew up on a tobacco and cattle farm in the 80's. That's not far removed, from saying you grew up in the Great Depression. It left a big mark on my mind.
Exactly, it alot of common sense.

The never borrowing money for any reason is something I can't agree with. Me or my family either one would not have anything if it wasn't for having loans to do things that made us money.
The new super power.
 
Cash is for potential emergencies. This is a very personal thing. Debt is different. It is a very finance thing.

I read a post recently on why debt has such a poor rep in ag -- and the message was that many borrow to buy things (iron, land, toys) that do not have a good return on investment.

I borrowed money last spring to double our cow/calf herd. :cboy: (So far) I am ahead on this one.
 
My cousin use to be a probation officer. The people would tell him how hard it is not to sell drugs or steal and still provide for their families. They did good financially (except when they got caught) living that lifestyle. They would always say it's the only way they know.

He would try to shed light on other more legal ways to prosper and highlight how stress free life could be not having to look over your shoulder for the law all the time.

Sounds just like this thread. Not a lot of difference from a behavioral or mental stand point between selling drugs and debt. One is legal... one isnt.
 
bball":4okishwu said:
TB, I read your post and my immediate thought was 'wow, I never even considered that some folks would actually go into debt without the slightest intention of repaying it' (should tell you how I was raised)...now, from what I can tell, you're an intelligent person based on your wit and posts, and I seldom disagree with your posts, but the part about how and why people go into debt being irrelevant, I respectfully disagree..why is a question many folks never even ask, they just do. And how is the difference between being able to repay ir or dying that slow, painful financial death so many in our country are...I work with so many dual income folks that are so over extended on a huge house, two bmws, a boat, etc and are just a few down months away from being belly up..the How and Why did we get here are most relevant..to avoid it in future, should they ever get out of debt and be able to educate their offspring on how to manage finances..a snooze fest 1 semester high school economics class doesn't seem to cut it for most Americans anymore..
Can't disagree with that. My parents being very frugal folks and not buying things they never needed I guess I just learned to do the same by watching them. As for getting out of debt, I remember an old saying a man told me once...."Keeping up is hard....catching up is dam near impossible". Few learn that and thing nothing of skipping payments always thinking they'll catch up someday.

CB I'll never understand how our banking system works today. I do know many new regulations almost force them to make loans to people who do not qualify and if you won't do it they'll just go down to the next bank and they'll do it. People are allowed to do this over and over. Repossessions and foreclosures don't seem to hurt that much on a credit rating any more. Down payments are seldom required, people can borrow in excess of 100% of the selling price of something and pocket the excess money. There is no rhyme nor reason the way they operate. Nothing like it was when I was in banking. But again I still believe that if you do not have that responsibility ingrained in your being which makes you recognize you have an obligation to repay the debt all else doesn't matter anyway.
 

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