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Non Compos Mentis
Join Date: May 2001
Location: Off the grid- Almost
Posts: 10,598
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Be careful with every dime, and they accumulate. |
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I used to work for Joeaksa's boss, who's worth high nine or low 10 figures. No cheaper man in the world. And I have to respect the hell out of that.
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2022 BMW 530i 2021 MB GLA250 2020 BMW R1250GS |
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Senior Member
Join Date: Feb 2000
Location: Lacey, WA. USA
Posts: 25,310
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Pounds are made of ounces. Ounces are made of grams.
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Man of Carbon Fiber (stronger than steel) Mocha 1978 911SC. "Coco" |
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Any healthy person with an average intelligence (or higher) can easily become relatively wealthy over a lifetime of work in this country. It is not that difficult if one works at it.
A little self-discipline and delayed gratification goes a long way. Choosing not to spend after-tax dollars is really helpful as they represent many more "pretax dollars earned". In many ways, people with much smaller incomes can essentially live as well as those making a great deal more if they don't fritter away their money on nonsense and "invest" their time and money on their housing, their education/knowledge, etc...and put aside the money that others waste playing (into financial investments that grow over time). The compounding value of time and money is enormous.
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74 Targa 3.0, 89 Carrera, 04 Cayenne Turbo http://www.pelicanparts.com/gallery/fintstone/ "The problem with socialism is that you eventually run out of other people's money" Some are born free. Some have freedom thrust upon them. Others simply surrender |
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I see you
Join Date: Nov 2002
Location: NJ
Posts: 29,921
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Si non potes inimicum tuum vincere, habeas eum amicum and ride a big blue trike. "'Bipartisan' usually means that a larger-than-usual deception is being carried out." |
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Join Date: Jul 2022
Location: Redondo Beach, CA
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^^^
Self-discipline, delayed gratification and nonsense spending are simple concepts that I’ve attempted to explain to family members and close friends MANY times. Even the occasional young bank teller who shows an interest at what they perceive is a comfortable account balance. But it also takes a certain kind of personality to actually do it. In my experience, that person is 1 in 100 or fewer. Or I’m just not convincing enough. Last edited by fisher22; 12-09-2022 at 08:20 AM.. |
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Counterclockwise?
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In our day it was all about paying off the mortgage to remove the debt.
In the present situation, with the price of homes, I don't know if this is achievable anymore. My son has a $600,000 mortgage which is triple the amount of my highest mortgage. He and his wife are teachers, so they make okay money. It might make more sense to just pay the regular mortgage payment so you have money to have a life. $1,000/month is 25 years to pay $300,000
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Rod 1986 Carrera 2001 996TT A bunch of stuff with spark plugs |
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I see you
Join Date: Nov 2002
Location: NJ
Posts: 29,921
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Si non potes inimicum tuum vincere, habeas eum amicum and ride a big blue trike. "'Bipartisan' usually means that a larger-than-usual deception is being carried out." |
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How can two teachers afford a $600k mortgage? Is it interest-only? My wife and I make several times what teachers make and I'd not be comfortable with a mortgage that size. What is that P&I payment? $5000/mo?
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2022 BMW 530i 2021 MB GLA250 2020 BMW R1250GS |
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But I get your point and agree with the sentiment. $600K is a lot of money to owe. At the same time, if you view it not necessarily as an amount you have to pay off before retirement, but rather as a means to build wealth/equity for when you do retire and downsize, then maybe it's not as daunting.
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1987 Venetian Blue (looks like grey) 930 Coupe 1990 Black 964 C2 Targa |
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Join Date: Jul 2004
Location: Maryland
Posts: 31,529
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![]() ![]() The basics of personal finance have remained and will remain constant in terms of budget items and percentages of income going into the budget of each. The money has to come from somewhere...most people have no idea, no household budget. Trust me, I know. My Dad could make copper wire out of a penny but he wasn't cheap, he sought value and tried, as have I, to not borrow and assume debt across the spectrum. It works. Cars. Over the years, I have owned 20 or more "frivolous" cars, not DD's or long distance family machines, something that made me smile. One car at a time, however, and I worked budgets and lost money on maybe three cars...and I always sold the one I owned first. I am not monetarily wealthy by any stretch of the imagination but I probably define real wealth differently than most. Real wealth is not income based anymore than being poor is. The most important thing is that we, my wife and I, know exactly were we are financially and are simpatico on where we want our family to be.
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1996 FJ80. Last edited by Seahawk; 12-09-2022 at 10:03 AM.. |
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Counterclockwise?
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The real kick in the head is that after 5 years @ 5% you pay off $70,000 to the principal and $140,000 in interest! Remember when interest rates were in the teens and you paid for the front door after 5 years?
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Rod 1986 Carrera 2001 996TT A bunch of stuff with spark plugs |
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Join Date: Apr 2002
Posts: 30,525
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In general, I think most folks on this board have figured it out, and found a path that works ... for them. But it's also about balance, living & enjoying life too imo. I've pi$$ed away a small fortune over the years .... after doing a lot of the "right $tuff" first ..... then I .... well.... I digress
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Managing money is a skill just like riding a bike, rebuilding a 3.0L Carrera motor, or learning to fly.
Most of my extended family came from nothing and were painfully frugal. As a result I absorbed many of those traits but these skills can just as easily be learned from a book. You just have to want it enough to get control of money so it never controls you. I never made a big pile of cash and some business transactions and RE deals went better than others but I managed to hang onto enough. Now sharing these experiences with my kids and grandkids.
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2009 Cayman PDK With a few tweaks 2021 Cayman GTS 4.0L 2021 Macan (dog hauler) |
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Join Date: Jul 2004
Location: Maryland
Posts: 31,529
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Again, IMHO. Rick, your posts on this sector of life are always fascinating.
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1996 FJ80. |
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?
Join Date: Apr 2002
Posts: 30,525
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You've lived LARGE ![]() |
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Join Date: Jul 2004
Location: Maryland
Posts: 31,529
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"Large" is a relative term ![]()
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1996 FJ80. |
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Get off my lawn!
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I ran an amortization schedule on my 30 year note and saw the principal paid on the first payment was about 5 bucks. So I owned the key for the door, and that was about all. I ran the amortization for a 20 year term, and the payment only went up something like 15 bucks. So I did that. I love having no debt at all, except the airplane loan, and the business owns that and the airplane is worth over double the loan amount. No doubt, we could sell the our 2004 Cessna 182T in a short time for more than we paid for it.
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Glen 49 Year member of the Porsche Club of America 1985 911 Carrera; 2017 Macan 1986 El Camino with Fuel Injected 350 Crate Engine My Motto: I will never be too old to have a happy childhood! |
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Used to be that, back of the envelope math, you should not have a mortgage more than 3x your annual household income. At my age now I'm thinking more about having zero mortgage before I retire. Though I love what I do so much, that I will never retire as long as I'm physically able to do the work. Still, I hate the feeling of longterm debt.
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I see you
Join Date: Nov 2002
Location: NJ
Posts: 29,921
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Plus, I am grounded in a concept (somewhat esoteric) that far too many people are unaware of. That is the knowledge that what I have is in fact "enough". I'm not referring to the number of zeroes in my acc't balance.
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Si non potes inimicum tuum vincere, habeas eum amicum and ride a big blue trike. "'Bipartisan' usually means that a larger-than-usual deception is being carried out." |
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