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46 Comments
- strum40, on 09/05/2008, -0/+10Put money in the bank now, you have money years later
Spend money on gadgets/food/beer, you have a bunch of outdated crap in your closet, a beer gut and a some medical condition which you can't afford to pay for years later. - mfc5200, on 09/05/2008, -1/+10Am I the only one who gets a kick out of seeing their bank account numbers go up? I usually hate spending money, unless its on something really cool, which I do like 1-2 times a year (a new computer, TV, basically a fun toy). When I spend money, I usually feel like I'm wasting it.
- inactive, on 09/05/2008, -1/+7or John McCain.
- topherbook, on 09/05/2008, -1/+7That's like saying that it's better to spend my toothpaste money on candy because candy is awesome. I'd rather enjoy candy than brush my teeth -- it's more fun and less responsibility for me. Too bad I'll get diabetes and lose all of my teeth in a few years.
On the other hand, I could have candy in moderation, be responsible and brush my teeth regularly, and continue to enjoy candy for a very long time.
(Somewhere in there is a good analogy, I'm sure of it.) - tones1, on 09/05/2008, -0/+5I bet your mom owes more than your dad.
- SwingCorey, on 09/04/2008, -2/+7seeing the math really helps
too many people are told rates of return or final values, but they don't see the full line of numbers getting bigger year by year - consonance, on 09/05/2008, -1/+6We as a country spend 101% of our income. I once learned this from an economics teacher. Think about that. That's more than we collectively earn in a year. You know where the other 1% comes from? Credit. We are literally borrowing more than we can afford and then spending it on more goods. Change has to start at the individual level. We have to stop convincing ourselves that we can afford what we cannot. In this case, throwing money at the problem will not help, because we have no money to throw.
- inactive, on 09/05/2008, -1/+5My parents are divorced and they both live in separate homes. Both of their homes are pretty large, but they owe over a million dollars combined to the bank.
- kryo, on 09/05/2008, -0/+4You're not alone. I just don't get how other people can blow through all their money without having a clue where it went, *and* go into debt on top of that by buying junk they don't need.
The only debts I've got are my student loans (own my car, rent an apartment, no credit cards), which I took only because the interest is subsidized--I can put the money I'd be spending out of pocket on tuition in a CD, then pay off the loans at graduation with a bit of extra coin to show for it. Admittedly not much at the rates they have these days, but it beats letting Uncle Sam earn the interest instead.
Maybe I'm just greedy, but it's nice to look at the numbers in the bank and feel good about it, rather than pulling my hair out over when checks will clear and whether I'll be able to pay the bills like so many do. And nothing quite beats the look on people's faces when you make a major purchase (car, etc), they ask you about financing, and you say "no thanks" and hand them a check for the full amount (knowing that I worked for it). - Typhoon2009, on 09/05/2008, -2/+6I'm glad that as a teen I don't have responsibilities like bills and health insurance. Not that I make a fortune at my job, but every bit that I put towards my savings helps. I'm trying to save enough to put into a small CD, or maybe even an IRA... the earlier you start investing in an IRA, the more money you'll have at retirement...
- CamperBob, on 09/05/2008, -1/+5There's an old Depression-era saying that seems to be coming around again:
You owe the bank a thousand dollars? You have a problem.
You owe the bank a million dollars? The bank has a problem. - inactive, on 09/05/2008, -0/+2Your credit score won't matter after all the banks collapse.
- TheCasablancan, on 09/05/2008, -0/+2I disagree.
Make your own crystal meth, keep the super hot wife, and sell a little extra on the side. - evilgourmet, on 09/05/2008, -2/+4even 100% of ZERO is still zero. Thanks though.
- topherbook, on 09/05/2008, -0/+2Agreed. I think it's a bad thing because I don't have fun with the toys that other people have and I feel bad if I "waste" money. But I also think it's a good thing because I enjoy my spending a lot more than other people and tend to be more secure than my friends. In the end, it's a good habit to have.
- pattywack, on 09/05/2008, -0/+2There is a big difference between intelligently enjoying your money and spending it unwisely... that seems to be the point most of you naysayers are missing. Just because someone saves money doesn't mean they're not enjoying life.
The best math class I ever took required us to file taxes, balance a household budget on limited funds, and learn how to save money.
Kids shouldn't be allowed to take any advanced math (or graduate) if they're unable to do the above. - inactive, on 09/05/2008, -2/+4Don't purchase that which you can't afford.
Example; don't get yourself that super-hott crystal-meth addicted wife, she'll cost you too much over the long haul. Go with the more affordable average-looking sane version. - rframpton, on 09/05/2008, -1/+2It's fun watching your money grow!
- JayWright, on 09/05/2008, -1/+2Pearbudget.com
I use it, and ever since I started I have NOT dipped into my overdraft protection ONCE and I now have $2000 in savings. Whether you use this site or some other way, budgeting is a MUST!!! - falser, on 09/06/2008, -0/+1Nah, I'll just force my children and grandchildren to fund my retirement. Oh, they don't like it? Well then ***** em, they're my offspring, therefore they owe me.
- BetterOffEd, on 09/05/2008, -0/+1Yeah---all *five* of them.
/s
?? - rframpton, on 09/05/2008, -0/+1Like a foreclosed house!
- inactive, on 09/05/2008, -1/+2You are dumb lol
- CamperBob, on 09/05/2008, -1/+2Let's see... empty suit fraud, or malevolent, hypocritical, book-banning Creationists?
"Fraud, table for 2. Your table is now available. Fraud, table for 2." - vivisimonvi, on 09/05/2008, -2/+3During tough times, consider offering to pay your parents rent as opposed to an apartment. I think I'm getting a pretty good deal, I'm saving more than 2/3's of my salary each year and my parents get a slight boost of income. As bad as "still living at home" sounds, it really can be beneficial to both you and the parents depending on the situation.
The truth for me is, until I get a better job or more pay, it SUCKS trying to save living in an apartment/house on your own. - kryo, on 09/05/2008, -1/+2And if you buy everything right now, you pay even more to the credit card companies and their ilk. Even with inflation, the most sensible way to go is to save or invest, at least enough to make your purchases with your own money.
- pappyblueribs, on 09/06/2008, -0/+1
There goes your inheritance... - siekosunfire, on 09/05/2008, -0/+1@Moomoomoo
You come across as incredibly myopic, hedonistic and foolish. Saving $1000/mo, for 25 years, would mean that you would have $300,000, assuming no interest and that the money was not touched. With a constant 3% interest rate, compounded annually over those 25 years, you'd be looking at over $450,000. If you linearly increased the amount put away each year, to $24000/annum by the 25th year, and assuming the same interest rate, you'd have over $640,000.
I'm not sure about yourself, but having almost half a million dollars, or anything over that amount, makes a difference to me. I would rather have that money available to help pay for my kids' university tuition, supplement my retirement, or even enable me to set up a charitable trust fund then to not have it at all. - falser, on 09/06/2008, -0/+1If they die the mortgage company will come after you for their debt. Just saying.
- facepalmjpg, on 09/05/2008, -1/+2Why would I save money, that's what loans are for....
- diggThis77, on 09/05/2008, -0/+1@moomoo
You know when I'm sitting on a beach drinking whatever I choose to drink at age 55 I'll think about you and order another drink. I put all my money away before I even see it. Yes I'll have to pay taxes on it later, I get that, but I'd rather have money to spend later than have to work my entire life because I wanted a brand new shiny car to get me from point A to B instead of keeping my paid off, running car.
It's all about what you want to spend your money on. If you're happy working for the rest of your life that's great. Me? I'll save my money and retire with many years ahead of me and enjoy my hard work. - pappy97, on 09/05/2008, -0/+1You are getting dugg down not because Ramsey doesn't have good ideas, but that his basis is religion. Just like AA programs, many of these types think you need to believe in a higher power to get right. Somehow, IMHO, that tends to undercut the principles touted by these guys.
- brusty, on 09/05/2008, -0/+1These type of stories make me chuckle. When you can't afford to pay your basic bills every month, how in the hell are you supposed to save money.
Trickle Down Economics at it's finest. I'm working two jobs and can't afford to pay the bills with a college degree. Thank you, republicans, for keeping wages low and ***** on all the people who struggle for so many years. You've really had an impact on my life, and for that I say ***** you. - FolkTheory, on 09/05/2008, -2/+3if you save you gut ***** by the inflation tax. people are acting rationally when they refuse to save. the bankers want you to save money, go on save a lot in the banks!
- DangerCollie, on 09/05/2008, -3/+2Saving is important, so is investing. Not necessarily in stocks. Some of the richest people I know don't own equities, or if they do only one or two. I vary my investments between stocks, real estate and t-bills. In '05 and '06 I sold off my real estate holdings. We also moved somewhere with a low cost of living and ratcheted down our lifestyle. When things started going downhill, the adjustments were minor.
Now you can judge whether my timing is any good or if that was a fluke. I'm starting to shift some cash out of t-bills and I'm buying broad based stock funds. A little bit every month that the market keeps going down. The more people who are selling, the more gloom and doom the news, the more likely I am to move cash there. The way I figure...even if it keeps going down, my investments won't be worth any less on a relative basis than anyone else. Cash is a loser right now. T-bills are paying less than 4%, not even keeping pace with inflation.
Next year I'm going to start looking for cash flow positive properties and put a big equity stake in the ones I buy. Not that you have a choice anymore, but I would have done it anyway. Real estate is going to be soft for a long time but this is a good time to be a qualified buyer. - Moomoomoo, on 09/05/2008, -2/+1There comes a sense of freedom, maturity, and independence when being out on your own. However, as you said, finding a better paying job is not easy, and paying for an apartment (let alone buying a house) and maintaining it is even harder.
What people fail to understand is that the majority are living from paycheck to paycheck, not because they overspend, but because they underearn. Just the bare essentials can wipe out the average wage. So the $100 they put away is not going to be much of a help later when money is needed for medical treatment or retirement. Hence, enjoy today. - Moomoomoo, on 09/05/2008, -2/+1If you are going to make calculations, please be sure to calculate and deduct the tax owed on interest earned each year and then compound. Only then can you come up with an actual figure. And when you are done with that, please be sure to adjust it for inflation so it will reflect today's value.
Finally, how many families can save $500 a month, let alone $1000, for.... 25 years?
Your calculation of $1000/mo for 25 years @ 3% interest (2.5% inflation and 25% tax rate) would only yield $284,037, not $450,000. Tax is a reality my friend, and so is inflation. And who that can consistently put away $1000 is in the 25% tax bracket? All you are doing is ensuring that you have and extra $284k to spend, but at the cost of what?
Does saving that $1000 per month mean, only one vacation per year, no dining in restaurants, no weekend trips, not being able to drive a decent vehicle, not being able to take the kids to a game etc..?
Why suffer 25 years of not having? Not living? Always sacrificing? So you can enjoy yourself later when you lose you health or your spouse?
Maybe this video will make the point for you:
http://www.youtube.com/watch?v=ERbvKrH-GC4 - chilldeity, on 09/05/2008, -4/+2welfare's easier than reading this and it covers the cost of alcohol and cigarettes
- jphandley, on 09/05/2008, -1/+0Dave Ramsey
Works! Just read one of his books or listen to his radio program. "Live like no other so that you can live like no other!" - gluecode, on 09/05/2008, -2/+1Saving money is a good thing. Buy only what you need, not what you want. Also knowing some finance math helps.
- wonderchemist, on 09/05/2008, -2/+1If your salary is stable than its better to buy in bad economic times and save in good ones.
- Moomoomoo, on 09/05/2008, -3/+0It is better to enjoy your life today while you are living, then worry about how you will survive tomorrow. You are surving now are you not? Are you enjoying yourself now, or are you prolonging it until tomorrow, which may never come?
If you are surving now, then what is the big worry about "saving" for tomorrow?
How much are you able to really save that is going to make your life so much better tomorrow?
Now I never advocated enjoying today by going into debt. I have only asked, would it be better to use your extra cash now, while you are young, healthy and physically at the prime of your life, or later when you are old, weak, unable to do the things you once were able to do?
I wouldn't equivocate eating candy and getting diabetes with living life now, versus living it for a tomorrow, which is always a day away. - Moomoomoo, on 09/05/2008, -4/+0I'd rather spend my money on living while I am healthy, and enjoy some of society's toys, than spend money on myself when I am sick, suffering, and dying. You can't cheat death. Why work to support it? If I have no money for health care when I am older, the younger generation will pick up the tab.
- Moomoomoo, on 09/05/2008, -6/+1Why save for tomorrow, when you can enjoy yourself today? Tomorrow may never come, and if it does you will still find a way to survive. It is not like the $500-$1000 a month you put away is going to make much of a difference. Why deprive yourself from living and enjoying life now versus now later?
- GTKashi, on 09/05/2008, -9/+1In Soviet Russia, money saves you.
...
Sorry. - inactive, on 09/05/2008, -15/+1Don't donate your hard earn money to empty suit frauds like Obama and Ron Paul
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