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Spezialist
Banned
Joined: July 01, 2005
Posts: 1941
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 Posted: Mon May 16, 2016 11:46 am Post subject: Re: Is the economy really as bad as they say? |
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Any old car guys that want to retire in Year Round Sunshine and Bikini's and have skills they can do out of their vehicle of choice, I've got a recipe for Hawaii. Pure and simple.
Spend everyday thinking about how you can do more with less.
PM me if you want to chat, give me your skill set and I'll tell you your plan, it's up to you to implement it.
It's easier than you think.
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TDCTDI
Samba Advocatus Diaboli
Joined: August 31, 2013
Posts: 12850
Location: North Carolina
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| Posted: Mon May 16, 2016 11:57 am Post subject: Re: Is the economy really as bad as they say? |
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| Spezialist wrote: |
Any old car guys that want to retire in Year Round Sunshine and Bikini's and have skills they can do out of their vehicle of choice, I've got a recipe for Hawaii. Pure and simple.
Spend everyday thinking about how you can do more with less.
PM me if you want to chat, give me your skill set and I'll tell you your plan, it's up to you to implement it.
It's easier than you think. |
Yep, the main key is staying away from car loans, boat loans, house loans, credit cards, college loans, & so on. Sure, you can afford $79 a month here, $800 there until you've got a dozen different loans & then you get downsized or slow, or even injured.
_________________
Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
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&Dan
Samba Member
Joined: January 29, 2008
Posts: 1784
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| Posted: Mon May 16, 2016 12:16 pm Post subject: Re: Is the economy really as bad as they say? |
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| TDCTDI wrote: |
Yep, the main key is staying away from car loans, boat loans, house loans, credit cards, college loans, & so on. Sure, you can afford $79 a month here, $800 there until you've got a dozen different loans & then you get downsized or slow, or even injured. |
Boom! There's some great advice right there- wish I had undertaken it a long time before I finally did, but getting rid of loan-lampreys and creeping decimalism is certainly crucial to getting by with less fear and worry.
Also, a couple dippy, childlike but helpful little rhymes, packed with great advice, are my mantras:
Why buy new
When used will do?
and
Use it up
Wear it out
Make it do
Or do without.
That these little ditties date back to The New Deal/WWll should come as no surprise. |
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skills@eurocarsplus
Samba Peckerhead
Joined: January 01, 2007
Posts: 16863
Location: sticksville, ct.
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| Posted: Mon May 16, 2016 1:25 pm Post subject: Re: Is the economy really as bad as they say? |
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too funny, never heard the second one
we built a house in '09. we went from a 30 year note to a 20 year note within our first few months. with extra payments etc we are now down to 12 years remaining on that loan, and are about to do a loan modification which will drop our payments by 110/month....which is going in a coffee can to pay towards the principal yet again, and we are going to add even more $$ to it and try and pay this fucker off faster...
I never liked the whole "dollar down, chase me around" bullshit, and always go without till I have the funds to buy outright....
other than the house, we have almost no debt to speak of...1 CC with about 1k on it.
the whole forum will hear the day we pay off the mortgage 
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| gprudenciop wrote: |
my reason for switching to subaru is my german car was turning chinese so i said fuck it and went japanese....... |
| Jake Raby wrote: |
| Thanks for the correction. I used to be a nice guy, then I ruined it by exposing myself to the public. |
| Brian wrote: |
| Also the fact that people are agreeing with Skills, it's a turn of events for samba history |
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TDCTDI
Samba Advocatus Diaboli
Joined: August 31, 2013
Posts: 12850
Location: North Carolina
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| Posted: Mon May 16, 2016 5:18 pm Post subject: Re: Is the economy really as bad as they say? |
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I hadn't heard either one, I like them. I just recently paid off the house after selling a PITA rental. I can pay off the shop and once I sell off the other.
_________________
Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
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Zundfolge1432 
Samba Member
Joined: June 13, 2004
Posts: 12467
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| Posted: Mon May 16, 2016 5:33 pm Post subject: Re: Is the economy really as bad as they say? |
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yep
Last edited by Zundfolge1432 on Tue May 17, 2016 4:21 am; edited 1 time in total |
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EverettB
Administrator
Joined: April 11, 2000
Posts: 69812
Location: Phoenix Metro
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| Posted: Mon May 16, 2016 5:40 pm Post subject: Re: Is the economy really as bad as they say? |
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| skills@eurocarsplus wrote: |
we built a house in '09. we went from a 30 year note to a 20 year note within our first few months. with extra payments etc we are now down to 12 years remaining on that loan, and are about to do a loan modification which will drop our payments by 110/month....which is going in a coffee can to pay towards the principal yet again, and we are going to add even more $$ to it and try and pay this fucker off faster...
other than the house, we have almost no debt to speak of...1 CC with about 1k on it.
the whole forum will hear the day we pay off the mortgage |
When we bought our previous house our priority was to try to knock some years off of the life of the loan. We had a loan where you paid every 2 weeks and were also paying extra principal from the very beginning. The bank would readjust the monthly payment as we paid more principal and we kept upping the principal payments at the same time. At the end we were basically double-paying. A few times I got a bonus at work - all of it went straight to principal payment. It was paid off very early.
Once you have no house payment, all of a sudden you have A LOT of money.
One thing of note is that we bought a house we could afford.
It was about 2x our yearly salaries at the time of purchase.
Honestly I don't know if that is possible anymore as the house is worth double now.
_________________
How to Post Photos
Everett Barnes - [email protected] | My wanted ads
"Water is the only drink for a wise man" | "Communication prevents complaints"
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Last edited by EverettB on Mon May 16, 2016 11:05 pm; edited 1 time in total |
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far rider
Samba Member
Joined: August 30, 2005
Posts: 771
Location: Rutland, VT
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| Posted: Mon May 16, 2016 5:53 pm Post subject: Re: Is the economy really as bad as they say? |
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One of my favorite ads from the Doyle Dane etc. days had a picture of a bug with the caption, "Live below your means."
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67 zenith blue sunroof
Contentment; when what you have is what you want. |
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enjoyther1de
Samba Member
Joined: December 19, 2010
Posts: 1279
Location: chino,ca
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| Posted: Mon May 16, 2016 6:06 pm Post subject: Re: Is the economy really as bad as they say? |
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In my opinion the economy is chugging along like it always will. The difference is highly paid skilled people are being replaced with lower skilled lower paid people. There is a huge lack of jobs between the 30k-100k a year range.
Basically your doing really well or your not. Too poor to buy a house yet too wealthy receive any breaks or assistance. Yet meanwhile down the road the under 30k a year crowd has turned yet another very nice apartment complex(section 8 ) into a complete shithole. 
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HBB took me to BBV. |
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jspbtown
Samba Member
Joined: January 27, 2004
Posts: 5156
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| Posted: Mon May 16, 2016 6:43 pm Post subject: Re: Is the economy really as bad as they say? |
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I don't know....I don't mind "good" debt.
Interest rates are so low now that its a great time to borrow money. I have sub 3% loans on house & two cars. I have enough investment money to pay off all 3 but its earning way more than the cost of my notes.
Managed to sock away enough to pay for my son's college (writing $16k check twice a year ain't fun!) by investing my money and borrowing wisely.
When he gets out of school I will start paying down my house but I won't sacrifice my 401k contributions. I think the old adage of your house being your retirement is kind of antiquated.
I have no cc debt. Got rid of that and use AMEX exclusively for all my purchases. Went on a couple of nice vacations with the points.
Other than my cars I live pretty frugally. I don't go on a lot of vacations and since I gave up building cars I really don't have any hobbies. |
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skills@eurocarsplus
Samba Peckerhead
Joined: January 01, 2007
Posts: 16863
Location: sticksville, ct.
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| Posted: Mon May 16, 2016 7:27 pm Post subject: Re: Is the economy really as bad as they say? |
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| EverettB wrote: |
When we bought our previous house our priority was to try to knock some years off of the life of the loan. We had a loan where you paid every 2 weeks and were also paying extra principal from the very beginning. The bank would readjust the monthly payment as we paid more principal and we kept upping the principal payments at the same time. At the end we were basically double-paying. A few times I got a bonus at work - all of it went straight to principal payment. It was paid off very early.
Once you have no house payment, all of a sudden you have A LOT of money.
One thing of note is that we bought a house we could afford.
It was about 2x our yearly salaries at the time of purchase.
Honestly I don't know if that is possible anymore as the house is worth double now. |
we were in a unique position. basically all of my tradesmen friends and I built the place. we got pretty lucky, and doing work on old service vans for my buddies paid off. if I could convince my wife to live like a squatter for 2-3 years we would have the place paid off in a snap. however, I think it brings back bad college memories for her
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| gprudenciop wrote: |
my reason for switching to subaru is my german car was turning chinese so i said fuck it and went japanese....... |
| Jake Raby wrote: |
| Thanks for the correction. I used to be a nice guy, then I ruined it by exposing myself to the public. |
| Brian wrote: |
| Also the fact that people are agreeing with Skills, it's a turn of events for samba history |
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TDCTDI
Samba Advocatus Diaboli
Joined: August 31, 2013
Posts: 12850
Location: North Carolina
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| Posted: Mon May 16, 2016 8:11 pm Post subject: Re: Is the economy really as bad as they say? |
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There is no "good debt". Once it's all paid for, you'll never want to go into it again.
_________________
Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
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| Back to top |
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enjoyther1de
Samba Member
Joined: December 19, 2010
Posts: 1279
Location: chino,ca
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| Posted: Mon May 16, 2016 9:20 pm Post subject: Re: Is the economy really as bad as they say? |
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| TDCTDI wrote: |
| There is no "good debt". Once it's all paid for, you'll never want to go into it again. |
I was thinking the same thing. No debt is good debt.
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HBB took me to BBV. |
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EverettB
Administrator
Joined: April 11, 2000
Posts: 69812
Location: Phoenix Metro
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| Posted: Mon May 16, 2016 11:04 pm Post subject: Re: Is the economy really as bad as they say? |
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| enjoyther1de wrote: |
| TDCTDI wrote: |
| There is no "good debt". Once it's all paid for, you'll never want to go into it again. |
I was thinking the same thing. No debt is good debt. |
As the guy above said, he is making more on investments.
Monetarily it makes sense. If you are paying 3% on a $10K loan but you take that $10K and invest it and make 7%, you are still ahead 4%.
Of course, that is simplified a bit and ignores capital gains and stuff.
There is a certain peace of mind that comes with having no debt though.
_________________
How to Post Photos
Everett Barnes - [email protected] | My wanted ads
"Water is the only drink for a wise man" | "Communication prevents complaints"
Stop dead photo links! Post your photos to The Samba Gallery! |
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TDCTDI
Samba Advocatus Diaboli
Joined: August 31, 2013
Posts: 12850
Location: North Carolina
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| Posted: Tue May 17, 2016 2:54 am Post subject: Re: Is the economy really as bad as they say? |
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That effectively is gambling with borrowed money, there's also a good chance that the investment loses & you still have to pay back the borrowed money. With the exception of a bankruptcy, the payback of 3% is guaranteed where the gain of 7% is not. A 4% difference really isn't 4% once you account for taxes & fees (especially all the hidden gotchas.). All you're doing is chasing your tail & making money for the bank & investment house. Those are the only entities guaranteed to make money.
_________________
Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
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| Back to top |
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TDCTDI
Samba Advocatus Diaboli
Joined: August 31, 2013
Posts: 12850
Location: North Carolina
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| Posted: Tue May 17, 2016 3:38 am Post subject: Re: Is the economy really as bad as they say? |
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Actually, in that scenario, you are borrowing money to give to someone else to gamble for you. So they get to lend out or gamble your borrowed money with no consequences, for the possibility of maybe, after taxes & fees, 2%? Sounds like a great plan.
_________________
Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
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Malokin Martin
Samba Member
Joined: August 19, 2007
Posts: 3099
Location: E-burg
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| Posted: Tue May 17, 2016 9:11 am Post subject: Re: Is the economy really as bad as they say? |
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| ^ That's all investing is in general. House/stock market/car etc. this info isn't earth shattering. |
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jspbtown
Samba Member
Joined: January 27, 2004
Posts: 5156
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| Posted: Tue May 17, 2016 9:20 am Post subject: Re: Is the economy really as bad as they say? |
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Here is how I look at it in a VERY simplistic way....and as it gets bigger the results are bigger.
Say I want to finance $25k for a new car. At 2.35% interest (one of my current loan rates) I would pay just over $1500 in interest over 5 years.
Now if I invest that money in a reasonable fund and I earn a very reasonable 6% return on my money I will have about $33,500.00 in my account after 5 years. That's $8,500 in interest or $7000 more than I pay on my loan.
I pay no tax on that unless I take a distribution.
And lets say this "gamble" doesn't pay off and I earn 0% off of my $25000...then it costs me $300 bucks per year. And yes...I understand I could lose money....but I have run out of coffee cans to bury the money and prevent that from happening.
I will take that chance.
Last edited by jspbtown on Tue May 17, 2016 9:35 am; edited 1 time in total |
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jspbtown
Samba Member
Joined: January 27, 2004
Posts: 5156
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| Posted: Tue May 17, 2016 9:23 am Post subject: Re: Is the economy really as bad as they say? |
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| Quote: |
| . A 4% difference really isn't 4% once you account for taxes & fees (especially all the hidden gotchas.). |
The difference is more than 4% because you are compounding interest. And there are no taxes (delayed until distribution) so they don't impact your return.
And things like auto loans do not have any tax deductions assigned to them. |
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TDCTDI
Samba Advocatus Diaboli
Joined: August 31, 2013
Posts: 12850
Location: North Carolina
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| Posted: Tue May 17, 2016 9:52 am Post subject: Re: Is the economy really as bad as they say? |
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Then congratulations, because if you're counting compound interest, then you have a lot of money & it's been there quite a while.
_________________
Everybody born before 1975 has a story, good, bad, or indifferent, about a VW.
GOFUNDYOURSELF, quit asking everyone to do it for you!
An air cooled VW will make you a hoarder.
Do something, anything, to your project every day, and you will eventually complete it. |
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