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how do you do it?

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  • Car totaled insurance

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    06-06-2012, 07:49 PM
  #21
Trained
Walkamile I do not buy a new car every year.
I meant that I would rather have money in the bank than a car payment.
I own a 09 Land rover, a 95 Chevy pickup and a 2005 ford taurus. Paid cash for every one of them new.
I practice what I preach.
I just know plenty of people that live far beyond their means. Shalom
     
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    06-06-2012, 07:51 PM
  #22
Trained
Quote:
Originally Posted by Faceman    
As db said, live within your means. People not living within their means is a large part of why the economy is so bad. If you can afford a $100,000 house, don't buy a $200,000 house. If you can afford a $20,000 car, don't buy a $30,000 car. And throw your credit cards in the fireplace...they are a ripoff and you don't need them...
Credit cards are only a rip if you do not pay them in full each month and have one that charges an annual fee. If either is the case...yeah, you need to get rid of those puppies! Otherwise, they are great. You need to shop for the one that benefits you personally the most, though. I love my points, and I love the "accounting tool" they present, etc.,!!! If one cannot see, calculate, and handle money as money whether it is plastic, green paper, or a check....one should definitely not have a credit card of any sort, I agree.

Semi related.... I usually look to see if there is a statement somewhere (sign, form) that an establishment will give a discount if you use cash. They should...and often do. In that case, I do not use a card.
dbarabians likes this.
     
    06-06-2012, 08:48 PM
  #23
Green Broke
Quote:
Originally Posted by dbarabians    
Walkamile I do not buy a new car every year.
I meant that I would rather have money in the bank than a car payment.
I own a 09 Land rover, a 95 Chevy pickup and a 2005 ford taurus. Paid cash for every one of them new.
I practice what I preach.
I just know plenty of people that live far beyond their means. Shalom
Much embarrassment dbarabians on my part , as I completely misread what you said. Though I still appreciate those people that buy new cars every year or every two as that is what I am able to select from.

My husband and I are frugal also, and like the comfort of knowing there is a buffer in the savings account. I still feel guilty having horses, but I keep them at home and do all the work myself. They are my luxury and I gladly pay their expenses as opposed to a tropical vacation for myself and husband.

We also know people that live way beyond their means, and have seen many a marriage fall apart when life throws a curve at them.

Thank goodness both my husband and I enjoy the simpler things in life!
     
    06-06-2012, 09:46 PM
  #24
Trained
Walkamile there is no need to be embarassed.
In fact I was worried that I might have posted incorrectly.
The" I see it therefore I gotta have it" mindset is very prevelant in our soceity.
I have had clients of the AIDS organization that I work with ask for rental assistance because they had to pay their cell phone and cable bills.
I just want to slap some sense into them instead of guiding them to make better decisions sometimes.
Thankfully I'm not their social worker or I might end up in jail. Shalom
     
    06-06-2012, 11:16 PM
  #25
Trained
Quote:
Originally Posted by dbarabians    
Walkamile there is no need to be embarassed.
In fact I was worried that I might have posted incorrectly.
The" I see it therefore I gotta have it" mindset is very prevelant in our soceity.
I have had clients of the AIDS organization that I work with ask for rental assistance because they had to pay their cell phone and cable bills.
I just want to slap some sense into them instead of guiding them to make better decisions sometimes.
Thankfully I'm not their social worker or I might end up in jail. Shalom
I don't know db, I can understand a cell phone if you have some sort of health issue. Most people don't have land lines these days. An iphone, no...but a basic cell phone I would think would be a necessity. Cable, no...uh uh.

Things that always get me about people w lower income are things like...Starbucks. I almost never go there - 5 bucks for a coffee??? But, people w very little income will!!

I am the miser in my family...I am sure that comes as a huge surprise. But the prevalence of the mentallity you described really makes it hard for kids and parents. Parents have to try and make their kids "see" that all this junk is unnecessary, overpriced, and it "adds up". I can easily see how kids raised w/o a miser around the house are headed for a rude awakening when they leave the nest....and how they can easily go into debt. Whenever my kids really want something I consider a pure waste of money...I let them know nothing is stopping them from buying it w their own money. That generally puts a kibosh on their "gotta have it" mind set. Ha! Conversely, when they call my bluff and buy it....I have to keep my mouth shut. :)
     
    06-07-2012, 08:05 AM
  #26
Trained
Missy May I see your point about the phone but I would still pay the rent first.
I am the person that resisted a cell phone until 7 years ago and only with daughter in college and another about to leave didi I consent.
I can still go a couple of days without talking on it.. Shalom
     
    06-07-2012, 09:01 AM
  #27
Trained
I really held out on a credit card, but my bank convinced me to get one so I can build my credit. I only use it on fuel and NOTHING else. I pay it off on the dot every month.
     
    06-07-2012, 09:07 AM
  #28
Foal
It's really astounding how poorly some people manage money.

The one that gets me the most is people buying cars that they can't afford to pay cash for. Making payments on a car is NEVER a smart idea.
I wonder, do they realize how much more they are actually paying for the car, with the interest?
I can't tell you how many people I've known that were making payments on a car, car was involved in an accident and totaled. Insurance pays up to the value of the car. But of course, when you're making payments on a car, you owe more than the car is worth, so then they're stuck with a totaled car, that they STILL owe money on.
So stupid.

I don't really understand the big draw to buying a brand new car. Do people not realize how much a car's value depreciates in the first year? Even if you buy a used car that only a year or two old, you're still doing a lot better than if you buy new.

I'll also never buy a car model that hasn't been on the market long enough for Consumer Reports to review it. You see so many people driving around in cars that are complete crap, either because of poor safety ratings, poor reliability or both. I just really don't understand paying that much money for something, without doing any research first, but ignorance seems to be the norm.
     
    06-07-2012, 09:16 AM
  #29
Showing
Quote:
Originally Posted by enh817    
I can't tell you how many people I've known that were making payments on a car, car was involved in an accident and totaled. Insurance pays up to the value of the car. But of course, when you're making payments on a car, you owe more than the car is worth, so then they're stuck with a totaled car, that they STILL owe money on.
So stupid.
Apparently you've never heard of GAP insurance.

Not everyone has $16,000 in cash to plunk down on a vehicle, and except for my mortgage, the only other credit payment I have is my truck.

I totaled my vehicle back in February, and while it's true my primary auto insurance company only paid actual cash value for it, GAP took care of the rest. So I hardly think having a vehicle loan is 'stupid'.

I now have another truck, and yes, I'm making payments on it. I also have GAP insurance on it, in case the unthinkable should happen to this one as well. I hope I don't have to use it, but better safe than sorry.

FWIW, neither vehicle was brand new. Both the totaled one and the one I'm driving now are 2008 models. If you want a decent hauling vehicle, you're going to have to pay for it. Bully for you if you have that kind of money lying around to pay cash for one.
     
    06-07-2012, 10:34 AM
  #30
Foal
Quote:
Originally Posted by Speed Racer    
Apparently you've never heard of GAP insurance.

Not everyone has $16,000 in cash to plunk down on a vehicle, and except for my mortgage, the only other credit payment I have is my truck.

I totaled my vehicle back in February, and while it's true my primary auto insurance company only paid actual cash value for it, GAP took care of the rest. So I hardly think having a vehicle loan is 'stupid'.

I now have another truck, and yes, I'm making payments on it. I also have GAP insurance on it, in case the unthinkable should happen to this one as well. I hope I don't have to use it, but better safe than sorry.

FWIW, neither vehicle was brand new. Both the totaled one and the one I'm driving now are 2008 models. If you want a decent hauling vehicle, you're going to have to pay for it. Bully for you if you have that kind of money lying around to pay cash for one.
I'm sorry. I wasn't meaning to offend anyone. I didn't necessarily mean that taking out a car loan was always stupid, just that the way that the people I know went about it was stupid. There were plenty of other cars they could've gotten that were within their means, and would've been just fine for their purposes. But MOST people just want a new, shiny car.

If there's no vehicle that fits your needs, that you can pay cash for and you're capable of managing you debt responsibly, as in your case, then it's not stupid. Sorry, I should've clarified that.

But you ARE paying quite a bit more in the long run, with the interest and extra insurance. Plus, a lot of times, when you're paying cash for a vehicle, you have more leverage for negotiating the price.
So, in my view, the vehicle needs to be important enough that it's worth that extra money. You should have a real need for it, not just -- "I want the newer, prettier one", which seems to be the only reasoning behind the purchases that people I know, have made.
These are usually the same people, who are complaining like a year later about all the money they're having to pour into their *usually* American-made car, for repairs. I simple have no sympathy for people who buy cars that are known to have crappy reliability and then bitch and moan about the costs to maintain that vehicle.


I am currently saving for a Toyota Prius. That will be my next car (used of course ). I'd love to get me a big ole pickup, but I can't stomach the thought of how much I'd be spending on gas. I want to cry every time I have to go to the gas station, I would really love to not have to do that quite so often.
     

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