hard work and patience my friend.

 

Where do people come up with this, "the economy is bad" stuff? I don't know anyone who is struggling right now. ? We all hear it on the news but it's not the reality on the streets. It's all politics; let me remind you it's an election year again.

If you want to put your money in 120 consecutive 3-month CD's over 40 years go right ahead. I'm talking about a 40-year investment, not a 3-month investment. 8% is modest over that period. It's a self-perpetuating wealth.

All I am suggesting is don’t go in debt and you can have all the toys you want. Loans cost you money, saving pays you money. I guess it just too logical.

 

Im in the payed for mods with credit card boat. Tryin to turn that state of mind around now. Cut up your credit card and save for the mods thats what im gonna start doing. Got my G for 18k and allowed my self to spend a couple grand.

 

Only loan I have is on my car (still owe around 18k). After reading this thread makes me want to just work on paying it off. I have some money saved up that i was going to spend on mods, but like i said I just might put it towards my car. I have an excellent paying job and can afford just about anything a 20 yr old wants including my G. bump for this thread
-dumaG35

 

This is a funny thread

I'm single, a student, living on my own by myself and I have rent, bills, a car note and credit cards to pay and I still have some money left over hahahahah

Work 'till you fall

and I am a drug dealer

j/k

 

Ill bet none of the people who say buy what you can afford to pay cash for now have a house in Southern CA-

I put a ton of money in my 401K- but when your house payment for a entry level home is $3500 a month (thats on a 30 year fixed) - after putting 20% down-

There is not alot of money left over to be able to pay off 40K cars in a year or two-

People say I could just move out of state- but SO CAL>>>>>>>>>everywhere else..LOL

Budget and keep to that budget- thats what I do-

I only pay cash for mods as well-

 

I owned a house in San Diego before moving back to KC. I was on the 11th green of Carmel Mountain Ranch (Capewood Lane) and I have always paid cash. I currently own my car - no loan to anyone. I love SD but my family is in KS. The trade off nice weather or seeing your fam, I pick the latter. You are right houses have gone way up in So Cal. I bought for $225 in '95, sold for $750k. Not a bad investment. But try SF or NY, So Cal is like a walk on the beach. My sister live in NY, and my wifes best friend lives in SF. Suck to have to pay that much but that the price you pay to live there.

 

Man it almost brings a tear to my eye that there are some people that still think this way. I didn't have this thought process originally I learned it from some senior partners I am in business with who also pay cash for cars like you as well as pay cash for homes. Me personally I am saving about 5k a month for my G35, my wife and I use one car because we work almost right next door to each other so no need to waste gas. Not trying to brag or anything but we are in the process of closing on our first house, since someone mentioned people living in a apartment and single. Also a job that pays very well doesn't hurt either.

Also for the people that pay cash for there cars, they get a better deal by paying it off in one lump sum as opposed to financing it for long periods of time.

I used to live in San Diego for about 12 years, dad is still out there was talking to him homes here in VA are going for the same price out in Cali.

 

you guys burning on debt is not 100% realistic.. sometimes debt is extremely useful and MUST be used, it's why even the wealthy don't always buy homes cash. cars it's slightly different because the payments are much higher BUT if you expect a rise in your income in the coming months it makes perfect sense to lever yourself as much as you can.

The basic question is is YOUR discount rate higher than theirs? A car loan with 10% interest makes alot of sense if you anticipate your income growing by more than 10% a year: that means that the money you get from the loan TODAY is worth more to you than the money you're going to be paying back, since you're poorer when you receive the loan than when you pay it. of course, there's always the danger you fk up but...I dont fk up.

your car payments magic path to millions doesnt really work either. if you invested the amount of a car payment for the rest of your life true you'd be balling BUT where would you get teh cash to pay for the car in the first place? if you had that cash, you'd probably have opportunities to use that cash in ventures more profitable than purchasing a vehicle. BASICALLY the rule is this: if your car payments are 10% interest, then you should borrow the money if and only if you can make more than 10% with what the cash amount of the car would have been. throughout the entire time you keep in mind the volatility of your investment and you make sure to have a constant revenue stream that can handle the car payments without any risk of default. I ADMIT, for 99% of people this is not the case but I just think it is a bit disingenuous to leave the details out.

that said.. i cant afford mods because I spend hundreds of dollars a week on f'ing FOOD. seriously food kills me, everytime i'm running under budget a big dinner comes up and there goes $200. wow and dont even talk about club bills...$500 here $1500 there, all for a single night of drinking. if I stay away from clubs for a month i'd definitely get my car hooked up with at least intake-exhaust, if not more. what's a guy to do


EDIT:
you understand why even with my logic why credit cards dont work though...most CCs have rates of 15%+, up to 30% even...that is absolutely ridiculous and only makes sense if you're unemployed now but will start your fat investment banking job in a couple of months.