Saving Money
Started by
Good2bme
, Oct 25 2007 07:46 AM
206 replies to this topic
#106
mylo
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Posted 29 October 2007 - 01:26 PM
A is unemployed, B makes $250k.. I'd say they're dramatically different situations
"Ah, yes, those Gucci extremists and their Prada jihad!" --ducky
#107
bishmasterb
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Posted 29 October 2007 - 01:27 PM
QUOTE(banana @ Oct 29 2007, 01:57 PM) 
A lot of this stuff is pretty subjective.
How do you know/determine what you can afford? Just because you have cash?
A, B want to buy X. X will cost $10k. Who can afford it?
(Interest on all debts and investments is 6%)
A: $150k in mortgage debt, no other debts, $25k in cash & investments
B: $100k in mortgage debt, $50k in other debts, $25k in cash & investments
How do you know/determine what you can afford? Just because you have cash?
A, B want to buy X. X will cost $10k. Who can afford it?
(Interest on all debts and investments is 6%)
A: $150k in mortgage debt, no other debts, $25k in cash & investments
B: $100k in mortgage debt, $50k in other debts, $25k in cash & investments
If X=life saving drug, then they both can afford it.
#108
Chad Vander Veen
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Posted 29 October 2007 - 01:29 PM
QUOTE(bishmasterb @ Oct 29 2007, 02:27 PM)
If X=life saving drug, then they both can afford it.
Or if X is a gold-plated clone of a deceased pet iguana.
#109
mylo
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Posted 29 October 2007 - 01:29 PM
X costs $10k upfront, but $25k yearly maint. Neither can afford it.
"Ah, yes, those Gucci extremists and their Prada jihad!" --ducky
#110
ChipShot
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Posted 29 October 2007 - 01:30 PM
QUOTE(banana @ Oct 29 2007, 12:57 PM)
A lot of this stuff is pretty subjective.
Essentially, you are correct, as all of us have different situations and/or goals. Life is all about choices and situations.
I have opinions, you have opinions. We'll just call it even...is that OK ??
#111
cw68
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Posted 29 October 2007 - 01:45 PM
We're a bit off the track here. Saving money doesn't mean just buying things you can avoid. Saving money is NOT buying the things, even if you can afford them.
#112
mylo
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Posted 29 October 2007 - 01:47 PM
QUOTE(cw68 @ Oct 29 2007, 02:45 PM)
We're a bit off the track here. Saving money doesn't mean just buying things you can avoid. Saving money is NOT buying the things, even if you can afford them.
So, if I can afford a Wii, but it's going to be out of date soon.. should I just save my money?
"Ah, yes, those Gucci extremists and their Prada jihad!" --ducky
#113
ChipShot
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Posted 29 October 2007 - 01:47 PM
QUOTE(cw68 @ Oct 29 2007, 01:45 PM)
We're a bit off the track here.
That would be a shame. Threads here never get off track...
I have opinions, you have opinions. We'll just call it even...is that OK ??
#114
bishmasterb
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Posted 29 October 2007 - 02:08 PM
QUOTE(c_vanderveen @ Oct 29 2007, 02:29 PM)
Or if X is a gold-plated clone of a deceased pet iguana.
Well, can anyone really NOT afford that?!
#115
folsombound
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Posted 29 October 2007 - 02:31 PM
QUOTE(mylo @ Oct 29 2007, 02:47 PM)
So, if I can afford a Wii, but it's going to be out of date soon.. should I just save my money?
If it's Tech related it's always going to be out of date soon! If it's going to provide the enjoyment and pleasure that you think will be worth the money and you can afford it, then go for it. Life is short and some pleasures are worth some sacrifice.
#116
banana
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Posted 29 October 2007 - 02:52 PM
QUOTE(c_vanderveen @ Oct 29 2007, 02:20 PM)
Gee, I'd say if you don't know what you can afford, you're in a bad situation. A&B should both have $10k readily available and spending it should not affect their ability to pay their existing bills.
Just because they have $10k readily available and spending it doesn't affect their ability to pay their existing bills means they can afford it?
QUOTE(mylo @ Oct 29 2007, 02:26 PM)
A is unemployed, B makes $250k.. I'd say they're dramatically different situations
Agreed. Assume both make the same amount of money and both are employed.
QUOTE(bishmasterb @ Oct 29 2007, 02:27 PM)
If X=life saving drug, then they both can afford it.
Not a life saving drug. Just another non-essential that they want.
Like I said, a lot of this stuff is subjective, that's why it's easier to joke about the scenario than to answer the question.
I'd venture out on a limb to state that most people don't know what they can afford. The only metric people use for affordability, is their ability to pay. By that measure any fool with $5 in their pocket can "afford" to buy a cup of coffee at Starbucks, but how many can truly afford it?
#117
cw68
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Posted 29 October 2007 - 03:06 PM
QUOTE(banana @ Oct 29 2007, 03:52 PM)
I'd venture out on a limb to state that most people don't know what they can afford. The only metric people use for affordability, is their ability to pay. By that measure any fool with $5 in their pocket can "afford" to buy a cup of coffee at Starbucks, but how many can truly afford it?
I bet that they know they shouldn't buy it, but don't care. buy buy buy buy buy. That's our country's mantra.
#118
mylo
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Posted 29 October 2007 - 03:07 PM
How do you define "afford" then? Sure, the bum with $5 can "afford" the coffee today. It's not in his best interest, and will likely hurt him tomorrow (when he wakes up on a bench), but he can pay for it and walk away without any debt.
"Ah, yes, those Gucci extremists and their Prada jihad!" --ducky
#119
CostcoLover
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Posted 29 October 2007 - 03:17 PM
Always a great topic. My favorite comment so far is this one.
On the car talk, we've owned 2 cars. The first lasted 13yrs before we donated the car. The 2nd is 4yrs old and we'll drive it for another 8-10 if all goes well. Both were new, both $25k and under.
QUOTE(cw68 @ Oct 29 2007, 02:45 PM)
We're a bit off the track here. Saving money doesn't mean just buying things you can avoid. Saving money is NOT buying the things, even if you can afford them.
On the car talk, we've owned 2 cars. The first lasted 13yrs before we donated the car. The 2nd is 4yrs old and we'll drive it for another 8-10 if all goes well. Both were new, both $25k and under.
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#120
Doug Moore
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Posted 29 October 2007 - 03:57 PM
Hate to get back on topic here, but here comes my head, now my neck. Okay, I'm officially stick my neck out now...
Our favorite cost saving tactic is using the free TV available to all if you simply put an antenna on the roof. Not only do you save $600 - 1200/year, but you also get hours of time back spent watching unnecessary crud. "57 channels and nothing's on" is the same as "12 channels and nothing's on."
Our favorite cost saving tactic is using the free TV available to all if you simply put an antenna on the roof. Not only do you save $600 - 1200/year, but you also get hours of time back spent watching unnecessary crud. "57 channels and nothing's on" is the same as "12 channels and nothing's on."
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