Wants vs. Needs and Deep in Debt

[Running Arrow Bill]

Read a story on MSNBC today where a family of 3 on East coast with their 28 yo son who is handicapped had spent around $200,000 to remodel (handicap ramps, new door/entry re-sizing, kitchen & bath remodel) their already ~ $360,000 house. They had an ADJ rate mortage (with $3500 monthly payments), credit cards maxed out, had borrowed from family, etc. Dad was employed as a painter at a college.

Now...

Even in a high living cost area, NO one needs a house that expensive or should have to pay those outrageous prices for "minor" remodeling! This is part of our National delimma...people buying houses up to 50% of their monthly income. There are jobs in other places where cost of living isn't outrageous. Houses that are modestly prices (with same SF of living space).

IMO people like this are too "tied to a leash" with their "town" or area and other "grew up here", etc., reasons to stay in those expensive areas.

The American public is too hung up on a "nice home" mentality (aka keep up with Joneses and/or "success" image) that all logic, common sense, and financial skill has gone down tubes.

No wonder our economy is a disaster!

My heart bleeds canola oil for people like these... The same goes for ranchers and farmers who have "mega-houses" and complain about the price of everything, agricultural products sales, etc. "Move into a smaller, less ostentatious house and all.

 

[Angus Cowman]

People live way beyond their means and it is evident everywhere in the U.S.

 

[Crowderfarms]

Today's message is real simple. Dont try and keep up with the Jones' because most of the Jones' are about to lose their A$$. I know at least a half dozen people within 10 miles of here losing about everything they have. I have two family members losing 3 houses.(SILS). Made over 200K a year when things were good, but never saved a plug Nickel. I can reach them, but cant save them.

 

[Wewild]

The American public is too hung up on a "nice home" mentality (aka keep up with Joneses and/or "success" image) that all logic, common sense, and financial skill has gone down tubes.

No wonder our economy is a disaster!

My heart bleeds canola oil for people like these... The same goes for ranchers and farmers who have "mega-houses" and complain about the price of everything, agricultural products sales, etc. "Move into a smaller, less ostentatious house and all.

Good post.

I own one house with my wife, a log cabin, that was our first and paid for a while back that now provides rental income of $900 per month. I have a loan on the one we live in now but that $700 monthly bill will be gone in another 8 years. We are building a nicer house and plan to rent the one we are in now.

My wife gets the urge every 10 years or there about to move to a different house. We have been married 21 years and I think she deserves what she wants because she puts up with me.

We have several more rental properties and the cash flow is purty good. It is better now than it has been.

I guess we will move on up and let them pay for it.

 

[Jogeephus]

Herefordshire once asked me what my plans were to deal with this dilema. While I can't give all my schemes out I will share just one with my friends on the board. What I'm aiming to do is to start buying up all these rich extravagent people for what they are actually worth and selling them for what they think they are worth. The profit margin on this is going to be astronomical don't ya think?

 

[Wewild]

Herefordshire once asked me what my plans were to deal with this dilema. While I can't give all my schemes out I will share just one with my friends on the board. What I'm aiming to do is to start buying up all these rich extravagent people for what they are actually worth and selling them for what they think they are worth. The profit margin on this is going to be astronomical don't ya think?

I think you will go broke trying to buy them up. They don't have any market value so you'd be sitting on a gold mine with no way to dig.

People need to use better judgment in dealing with their affairs.

 

[hillrancher]

Herefordshire once asked me what my plans were to deal with this dilema. While I can't give all my schemes out I will share just one with my friends on the board. What I'm aiming to do is to start buying up all these rich extravagent people for what they are actually worth and selling them for what they think they are worth. The profit margin on this is going to be astronomical don't ya think?

I would want to turn them in a hurry because there might come a hail storm and pound the **** out of them and you will not have any thing left to sell.

 

[skyline]

Had someone tell me once that your "needs" will always rise to your level of income. The older and dumber that I become, the more sense that statement makes.

I believe some folks "needs" rise well above their level of income. It's a losing proposition. No future in that.

 

[Wewild]

Had someone tell me once that your "needs" will always rise to your level of income. The older and dumber that I become, the more sense that statement makes.

I believe some folks "needs" rise well above their level of income. It's a losing proposition. No future in that.

Good post.

I don't hold with that. I call that wants. I would say that is what the quote marks are for.

 

[skyline]

Had someone tell me once that your "needs" will always rise to your level of income. The older and dumber that I become, the more sense that statement makes.

I believe some folks "needs" rise well above their level of income. It's a losing proposition. No future in that.

I don't hold with that. I call that wants.

Substitute "wants" for "needs". His point was that no matter how much you make, for some folks, it's never enough. The things you think you "need" will increase to match your income. I think we've got a lot of folks confusing things they "want" for things they "need".

This issue has become more personal for me since the financial wizards in DC started talking about using my tax money to help foot the bill.

 

[Wewild]

Substitute "wants" for "needs". His point was that no matter how much you make, for some folks, it's never enough. The things you think you "need" will increase to match your income. I think we've got a lot of folks confusing things they "want" for things they "need".

This issue has become more personal for me since the financial wizards in DC started talking about using my tax money to help foot the bill.

I agree. I think I edited my post to add the quote marks statement after you hit it. I always thought that was what was being said.

There is a difference. Now a days folks will spend every penny they make. When times are good they get themselves in more debt than they can stand when times are as they are now.

 

[Brute 23]

I don't get off to that big house ego. As long as it is warm and dry. Putting your family in a big house and nice neighborhood won't fix the problems. ;-)

 

[Caustic Burno]

The only thing most Americans own today is a note, House, Boat,Car,ATV,Tractor,Furniture etc.
Instant gratifacation has got this country in trouble this debt has finally come home to roost.
I am still amazed when I here someone on TV say we are in this jam because of this or that, it has never crossed their mind it was the person's fault looking back at them in the mirror.

 

[I luv herfrds]

I agree CB too many people are placing the blame everywhere else except for where it belongs, on themselves.

What is really scarey is some of these loans in which they are just paying the interest and NOT the principle, at the end of that time they have a balloon payment for the principle, but cannot afford it because all of their money is paying for other junk they don't need.
Talked to a friend last night about this same thing. She had looked into purchasing a piece of property. Found out she would be paying on the loan til she was 94 years old. It would be a loan just where she would be paying interest only. She walked away after telling the banker they were crazy.
Too many of these people just didn't look at the whole picture and now must pay the piper.

Why should I have to pay for their mistakes?

 

[Jogeephus]

Instant gratifacation has got this country in trouble this debt has finally come home to roost.

That is a big problem. I'm happy to say my wife and I both believe in deferred gratification. We have both worked hard toward the same goals. When people told us we "deserved more" or "owed it to ourselves" to spend our hard earned money on luxuries we did not buy into it. The interesting thing about delayed gratification is that in our youth our appetite for luxury was much more than it is now. Pursuing luxury in our youth would have put us in debt. Now, after years of skimping we can afford to do almost anything our heart desires but both our eyes are on the two rocking chairs on the front porch. To us, being able to enjoy our sunset years together in these chairs is about all we now desire. Funny how your priorities change.

 

[J. T.]

Instant gratifacation has got this country in trouble this debt has finally come home to roost.

That is a big problem. I'm happy to say my wife and I both believe in deferred gratification. We have both worked hard toward the same goals. When people told us we "deserved more" or "owed it to ourselves" to spend our hard earned money on luxuries we did not buy into it. The interesting thing about delayed gratification is that in our youth our appetite for luxury was much more than it is now. Pursuing luxury in our youth would have put us in debt. Now, after years of skimping we can afford to do almost anything our heart desires but both our eyes are on the two rocking chairs on the front porch. To us, being able to enjoy our sunset years together in these chairs is about all we now desire. Funny how your priorities change.

Jogee,
Nothing personal, but if that's you in your avatar, I hope your wife has someone else with her in that rocker on the front porch!
:lol:

 

[Jogeephus]

Funny you should say that. Most people say we go together like peas and taters.

http://boortz.com/images/funny/redneck_pics_tattoo2.jpg

 

[john250]

Wow~I don't think I've seen Rat Fink in 40 yrs.
Did you take her to the show this weekend? http://www.courier-journal.com/article/ ... /811240419

 

[Jogeephus]

Wow~I don't think I've seen Rat Fink in 40 yrs.
Did you take her to the show this weekend? http://www.courier-journal.com/article/ ... /811240419

Wow. Nah, she's too modest for that. :lol2: Seriously though, I couldn't see filling my body with ink. Seems this is something that is getting pretty common. It looks expensive to and many people who really can't afford it feel they "need" to do it to show their individuality. I guess they've never heard the old saying about "dress for success".

 

[dun]

I guess they've never heard the old saying about "dress for success".

Or the famouse quote "Stupid is as stupid does" Forrest Gump