This should probably be in politics, but....
- Thread starter ODanksta
- Start date
ZaraBeth420
Well-Known Member
You would love my parents. They taught me a lot of the same things.
Just one example, I'm 29 and I've had only 2 loans in my life: one for a car, but I paid 50% down and got a low interest rate cause my parents co signed. Got it paid off ahead of time.
And not long ago I bought my first house. small but nice for a first house. I put about 40% down and got a loan. I'm commited to making a couple extra payments per year.
Just one example, I'm 29 and I've had only 2 loans in my life: one for a car, but I paid 50% down and got a low interest rate cause my parents co signed. Got it paid off ahead of time.
And not long ago I bought my first house. small but nice for a first house. I put about 40% down and got a loan. I'm commited to making a couple extra payments per year.
ttystikk
Well-Known Member
The car I can see- but you walked away from some serious mortgage interest deductions on your income tax re the home loan.
This is part of why America makes no sense anymore; due to opaque accounting rules, it's actually financially advantageous to be in debt up to your eyeballs- as long as it's the right kind of debt...
ttystikk
Well-Known Member
It's our country that's the problem, not most of the people.
ZaraBeth420
Well-Known Member
The car I can see- but you walked away from some serious mortgage interest deductions on your income tax re the home loan.
This is part of why America makes no sense anymore; due to opaque accounting rules, it's actually financially advantageous to be in debt up to your eyeballs- as long as it's the right kind of debt...
The loan person at the bank said some of the same things your saying. But my dad told me I should just get it paid for as soon as possible so I couldnt lose it to the bank.
ttystikk
Well-Known Member
Your dad should have told you to put the money into investments instead. There's no rate of return quite like earning money for free.
Some light reading;
Rich Dad, Poor Dad
How to Think Like a Millionaire
The Millionaire Mind
These will change your attitude about money and how to make it work for you instead of the reverse.
Flaming Pie
Well-Known Member
My dad loves those books.
ttystikk
Well-Known Member
By the way, the best way to lose your house to the bank is to be late on a mortgage payment on a house that's got a lot of equity in it; gives them more incentive to take it from you.
If the house has no or even negative equity, the bank will leave you alone because there's no upside in foreclosing.
Isn't America great?
ttystikk
Well-Known Member
Have YOU read any of them?
ZaraBeth420
Well-Known Member
Thanks.
My dad went to chiropractor school on loan, and had a big debt to pay back when he graduated. That turned him off of debt for good. After he got our house paid for growing up, he never borrowed money again.
Flaming Pie
Well-Known Member
I probably should. Which one talks about the house payments vs payoff?
I could always borrow from my dad.
ttystikk
Well-Known Member
We live in different and far less financially stable times than your dad did.
Debt for education to gain you a specific marketable skillset (NOT just 'college') = good debt
Debt on a home loan, where mortgage interest is fully deductible from your income taxes = good debt.
Debt to gain access to assets that will work to provide a return, like tools, work truck, office space = good debt
Debt for clothes, unless necessary for earning income = bad debt
Auto loans, unless it meets the above criteria = bad debt
Debt for travel, unless for business purposes = bad debt
The problem with owning one's home outright in the current tax climate is that it's dead money that isn't earning you anything. Owning the asset gives you exposure to profit as the value increases... but keep in mind that the amount of equity you have in the home means nothing in the calculation. Therefore, it's much better to have that money elsewhere, working for YOU. Then if you lose your job or something happens, you have a big pile of easily accessible money to dip into for payments.
The moment you're late on your mortgage payment you can kiss accessing your equity goodbye, so it's a terrible place to keep the bulk of your nest egg. Half the reason to have one at all is to be able to access it when shit hits the fan, right?
ttystikk
Well-Known Member
Since it's financial science 101, I'd be surprised if any of them didn't touch on it at least once.
GrowUrOwnDank
Well-Known Member
This is me. Not my car tho. 
ttystikk
Well-Known Member
I wanna see the rest of the car...
GrowUrOwnDank
Well-Known Member
I been seeing this girl I really like. Haven't even had the $ to take her on a date. Couple of weeks ago I had promised her a steak dinner at a really good steak house. Woulda had to have $100 bill and I order cheap. Well, it wasn't in the budget. So I let her know early Friday morning. I just knew it was bye Felicia for me and was ok with it. Much to my surprise she kept talking to me. Later she got all bitchy and finally Saturday I asked her why she was bitchy in a very tactful way. She told me she was upset because her husband(recently found out she is only separated) wouldn't keep the kids so she could come see me anyway Friday night. Anyway, I saw that car and was like damn. Story of my life. 
ttystikk
Well-Known Member
I been seeing this girl I really like. Haven't even had the $ to take her on a date. Couple of weeks ago I had promised her a steak dinner at a really good steak house. Woulda had to have $100 bill and I order cheap. Well, it wasn't in the budget. So I let her know early Friday morning. I just knew it was bye Felicia for me and was ok with it. Much to my surprise she kept talking to me. Later she got all bitchy and finally Saturday I asked her why she was bitchy in a very tactful way. She told me she was upset because her husband(recently found out she is only separated) wouldn't keep the kids so she could come see me anyway Friday night. Anyway, I saw that car and was like damn. Story of my life.
The good ones are taken. That doesn't mean they're taken by guys who deserve them... but I still don't play that game.
