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Login to post Forums » Off-topic discussion » Emergency Financial Habits

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Aug. 12, 2011 7:43 p.m. mtn SuperDork

Duke wrote:

Yeah, I go both ways. Some cars I've bought cash, some I've financed. However, I've always made sure that financing never added more than 500-600 dollars to the total cost of the car, and I've never been upside down.

My brother sold a car to a man about a month ago. He chose to finance it. On the sheet to fill out, you have to enter your monthly income. $300,000. My brother assumed it was a typo and checked to make sure. Nope, it was right the first time. Guy figured he could do better in the market than the 4% interest rate.

Oh, car he was buying? Camry.
Aug. 12, 2011 8:27 p.m. SVreX SuperDork

I guess I don't fit the 64%.

A tree fell on my truck yesterday, and I had to fork out $1000 to keep it running in order to go to work.

So yes, I was able to do it. Didn't like it, but I did it.
Aug. 12, 2011 10:52 p.m. fasted58 Dork

64% is a scary amount, is this country really in that bad a shape?
Aug. 12, 2011 11:11 p.m. David S. Wallens Editorial Director

fasted58 wrote:

64% is a scary amount, is this country really in that bad a shape?

Sometimes I do wonder. I know people who are five figures in debt yet they're still able to go away on vacation, buy cool toys, have iPhones, etc. I must be doing something wrong.
Aug. 12, 2011 11:18 p.m. gamby SuperDork

David S. Wallens wrote:

fasted58 wrote:

64% is a scary amount, is this country really in that bad a shape?

Sometimes I do wonder. I know people who are five figures in debt yet they're still able to go away on vacation, buy cool toys, have iPhones, etc. I must be doing something wrong.

...and new cars, and big TV's, and expensive clothes...

I dunno. I'm WAY too fiscally conservative--my credit is 849 and my wife's is 850. Thanks to the housing crisis, we can't even get a decent re-fi to do our kitchen over because our house isn't worth enough (and this was with a good loan in 2003, before the bubble burst).

We have a LOT in savings and keep a really decent amount in checking. We put almost half down on her new car last year (2010 Fit Sport--nothing flashy), so the payment is a paltry $197/mo, that I'm paying way more on.

Work is going to hell for me, so there's room for me to bail until I do a plan b. I can scale a lot back and not worry about much.
Aug. 13, 2011 8:27 a.m. DILYSI Dave SuperDork

David S. Wallens wrote:

fasted58 wrote:

64% is a scary amount, is this country really in that bad a shape?

Sometimes I do wonder. I know people who are five figures in debt yet they're still able to go away on vacation, buy cool toys, have iPhones, etc. I must be doing something wrong.

If it's any consolation, you can point and laugh when they are a walmart greeter @ 70.
Aug. 13, 2011 12:30 p.m. The_Jed Reader

I see it all the time at work; brand new Harleys as far as the eye can see.

One guy in particular is a few dollars per hour ahead of me and on average he works about 60 hours per week which puts him around $60,000 a year. His wife is an IRS agent and is salaried at around $70,000 per year. They have no children living with them but he always complains about being broke. They own 2 Suburbans; one with a big block and the other, an '05 is still being paid for and has such huge tires and such a ridiculous lift it gets about 10 mpg. She also has a new Corolla and he has a new Camaro, both being financed. They have a boat that was also financed. Their mortgage is just over $1,200 per month.

He was complaining about having no money one day so I had him give me the rundown of their debt. Their PAYMENTS alone total $3,000 per month. Then there's utilities, insurance (health, house and car), registration, gas, tires, oil changes, brakes, etc...

He's in his late 40's and just took a loan out of his 401k to build a garage more than twice the size of my house.

After he finished I was dumbfounded. I responded with, "Dude...why?"

"I wanted it."

Sure, it's nice to have lots of cool things but it's a whole lot nicer to actually own what you have and not be enslaved to payments.

Instant gratification will be the downfall of our civilization.
Aug. 13, 2011 5:35 p.m. fast_eddie_72 Dork

The_Jed wrote:

He's in his late 40's and just took a loan out of his 401k to build a garage more than twice the size of my house.

Good Lord.
Aug. 13, 2011 5:41 p.m. egnorant Dork

keethrax wrote:

egnorant wrote:

keethrax wrote:

egnorant wrote:

Notice that the "emergencies" they used were dental work and car repairs.

Those are budgeted items in my household.

Depends on how serious the repair or work is. I mean, we figure a certain amount for that sort of stuff in a year. But as it's not necessarily predictable, the budgeting may or may not be sufficient.

Budgets are adjustable to meet changing conditions. But if you're close you can build it up over time to cover bigger expenses! Start a budget and have fun! Having 50% of the funds ready for an unexpected repair is much better than needing all the funds because you pooh-poohed a reasonable plan and rationalized why you didn't do it!

Bruce

Right. Cause that's exactly what I said... Oh wait. I do budget for that stuff. And that is what I said as opposed to "pooh-poohing it and rationalizing why I didn't do it"

Nevertheless a big hit is still potentially a big hit, even if your budgeting covers half of it.

In any case. Forget it. You're playing made up, oversimplified, bullE36 M3 straw man games to allow you to play the smug, pseudo-superior card. A game not worth playing, so have fun.

Your right! I'm sorry.

It's just that I used to convince myself of the very thing you said as an excuse to not even try. I catch myself being very guilty of reformed guy overzealousness.

Bruce
Aug. 13, 2011 6:30 p.m. Ian F SuperDork

The_Jed wrote:

Sure, it's nice to have lots of cool things but it's a whole lot nicer to actually own what you have and not be enslaved to payments.

Instant gratification will be the downfall of our civilization.

I know how they feel, and I used to do that myself. It's an easy trap to fall into. Getting 'stuff' can give you a certain euphoric feeling. Only to be followed by the depression when the bills come in. But you still want and seek that feeling, so you do stupid things to get it.

I still 'want' but now I love the feeling of security even more. Most people dread bills in the mail. I look forward to them in a bazaar way, and schedule the payment ASAP.

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