How do you live with your debt?

Machinate · Post by **Machinate** » Tue Oct 14, 2008 10:46 am

Johnisfaster wrote:without owning a house how exactly do you plan on paying for rent when you're too old to work?

http://en.wikipedia.org/wiki/Pension

-and like Tone Deft said, owning a house as a retiree can be a really big chore, and too big a burden for a lot of elderly. Smaller, protected living arrangements are much better for that large group.

Punky921 · Post by **Punky921** » Tue Oct 14, 2008 7:18 pm

To be blunt, I think it's REALLY stupid to live with as much debt as the OP's boss and family. To be cliche and Fight Clubbish, the things that you own end up owning you. If you go on unemployment and your lifestyle DOESN'T CHANGE except for your music purchases, then you're doing something REALLY wrong.

I have no student debt (thanks Dad and Grandma and myself for going to state university), and I pay off my credit card IN FULL every month. Paying interest only makes you poorer and lines the pockets of banks. Why the hell would you want to do that?

J

hambone1 · Post by **hambone1** » Wed Oct 15, 2008 12:15 pm

It can be tough to get there, but home ownership really pays off once the mortgage is paid off!

It means a sizeable increase in disposable income, less reliance on cash in retirement, and becoming impervious to variations in the housing market, as long as you don't plan on selling (and I don't).

brightonalex · Post by **brightonalex** » Wed Oct 15, 2008 12:34 pm

hambone1 wrote:It can be tough to get there, but home ownership really pays off once the mortgage is paid off!

It means a sizeable increase in disposable income, less reliance on cash in retirement, and becoming impervious to variations in the housing market, as long as you don't plan on selling (and I don't).

Any bargains in Abu Dhabi?

hambone1 · Post by **hambone1** » Wed Oct 15, 2008 2:04 pm

Abu Dhabi is ridiculously expensive. The company I'm contracting for puts us up in Al Ain, which is unfortunately 90 minutes from work.

As more industry moves into Al Ain, the prices there are rising, too.

IMO, worldwide house prices will settle to realistic and affordable levels. They've been hyperinflated far too long.

Moody · Post by **Moody** » Wed Oct 15, 2008 2:38 pm

The trick is to own multiple houses.

beats me · Post by **beats me** » Wed Oct 15, 2008 2:41 pm

Punky921 wrote:To be blunt, I think it's REALLY stupid to live with as much debt as the OP's boss and family. To be cliche and Fight Clubbish, the things that you own end up owning you. If you go on unemployment and your lifestyle DOESN'T CHANGE except for your music purchases, then you're doing something REALLY wrong.

No doubt I haven't done some things right to keep up with the Joneses but I've had 2 long term jobs with widely respected large global corporations (neither of which is involved directly in this economic mess) and I still work at one, so I'm not a complete loser. My main point was that I don't have a bunch of assets that I am deep in debt that I wouldn't be able to pay for when hard times hit. But if you saw the way I've made music purchases then you would understand what a huge drop in spending that would be.

In a twisted way you are saying that if I haven't reached the point of being completely fucked by unemployment and a bad economy then I'm REALY wrong.

Tone Deft · Post by **Tone Deft** » Wed Oct 15, 2008 3:53 pm

what you guys miss completely is that once you're stable and save up money, what do you do with the money you've saved?? I thought maybe just American kids were clueless about the basics, apparently not, this is why the world gets fucked over and finance scams occur.

you still don't get home ownership and can't put up one example of a better investment, it's all just negative. talking about this stuff on here is pointless, fine time for Northern Monkey to be going back to work.

beats me · Post by **beats me** » Wed Oct 15, 2008 4:07 pm

Nobody has solid investment advice at this point in history, including real estate. So I wouldn't ask for a rainbow when there isn't one.

The best advice I've heard is don't invest in anything until you've paid off all your debt and saved at least 6-12 months of living expenses, and that's regardless of the state of the economy.

Tone Deft · Post by **Tone Deft** » Wed Oct 15, 2008 4:16 pm

"Nobody has solid investment advice at this point in history"
what? I totally disagree. nobody has any advice for saving for a future and putting your saved money to good use?? most people are doing that, and have been for most of their lives, it's fundamental.

of course it's step 1 to pay off CC debt first or more to the point, not get into it! you have to get rid of the negative cash flows, they'll be stronger than the positive cash flows. I already wrote about having 'float' money around to cover 6 months of living.

sorry to argue but this is ridiculous. what's the point of working if you don't take care of the money from your job? it's just negative reactions to headlines in the news.

if you had saved up a spare $10k what would you do with it?

I'm not well versed in this stuff, I got into it as I got older, people need to educate themselves. a book that I liked, simple, straightforward was Rich Dad Poor Dad. good, practical advice. he's a bit heavy into real estate but the basic advice is very good.

ChiDJ · Post by **ChiDJ** » Wed Oct 15, 2008 4:24 pm

Tone Deft wrote:if you had saved up a spare $10k what would you do with it?

That's easy.

Hookers and Blow.

Duh!?!

beats me · Post by **beats me** » Wed Oct 15, 2008 4:29 pm

Tone Deft wrote:if you had saved up a spare $10k what would you do with it?

Buy Microsoft's Big Ass Table to post on this forum

I get your point though. I thought it might actually be a good time to invest minimally in a low risk Vanguard mutual fund to start with. There's a huge gap between not being invested in anything at all and taking out a 30 year $500,000+ loan.

forge · Post by **forge** » Wed Oct 15, 2008 4:36 pm

pepezabala wrote:No debt, no money, small income. Life's great, but I will probably never be able to buy a house. Instead I feel stupid for paying too much rent every month. But flat prices are ridiculous high and the banks don't give mortgages to people like me or my wife, so ... at least I only work parttime in the office (surfing the live forum ...), do a lot of music and have no debt.

sounds like my life!

forge · Post by **forge** » Wed Oct 15, 2008 4:40 pm

Tone Deft wrote:... and keep enough money in the bank to pay for rent and food for 6 months (float money.)
..

and that sounds like the opposite to my life

Moody · Post by **Moody** » Wed Oct 15, 2008 4:47 pm

beats me wrote:Nobody has solid investment advice at this point in history, including real estate. So I wouldn't ask for a rainbow when there isn't one.

The best advice I've heard is don't invest in anything until you've paid off all your debt and saved at least 6-12 months of living expenses, and that's regardless of the state of the economy.

Actually a good business man never gambles with his own money and everything about investing is a gamble. So, one may not have personal debt but one must have debt to conduct business. If this makes sense then you are probably on the right track; if not, one may want to consult a CPA and lawyer.

How do you live with your debt?

Re: How do you live with your debt?