financial planning

[clawman]

NEVER finance anything that depreciates.

[grizzley]

I know what you are saying; but I don't think they would sell too many cars, trucks, boats, ATVs, jet skis, snowmobiles, etc., if financing weren't available!

[clawman]

It is not the fault of the seller, it is the mismanagement of their monies by the buyers

[Knutson21]

I guess I shouldn't enjoy live at all then. I currently have a note on my house that depreciated a lot over the last 5 years. My truck, my wife's car, the family boat.

Maybe I should move the family in with my parents, sell everything and ride our bikes to work.

I understand what you are saying but its not always possible. My wife and I make a very good living, but we also enjoy having nice things. I am sure I am not saving enough for a rainy day, hopefully if it rains it doesn't rain for ever, but I don't have any credit card debit and my wife and kids are comfortable, well feed and happy. My wife's car and my truck are both on 1.9% loans. That is like free money and doesn't take a chunk out of the bank all at once, so that you have something in the bank just in case. Just saying.

[97roughneck]

Sick of Dave Ramsey disciples and their self-rightous preaching. How I spend MY money is MY business.

My only brother died at 21 and my only son died at 24. I am acutely aware of the fragile hold all of us have on this life. I will not deny my remaining family one moment of vacation time together. I don't have to but if I did, I wouldn't hesitate for a second to borrow the money to do it either.

Mind your own business.

That little bit of wisdom is lacking one thing....wisdom. There is nothing wrong with well managed debt.

A better suggestion is from Warren Buffet..."If it appreciates, buy it, if it depreciates...lease it." I think this geared more towards businesses but overall its not a bad idea. He said that if possible, he'd lease his pencils.

I recently bought a Honda Civic for my kids in college. I could easily have written a check for it but 1.9% financing was available so I took it. I make an average of about 8-10% on my investments. Why would I take cash from them when I can borrow at 1.9%?

[reclending]

These threads are always a gas: Paying cash for everything or using some smart managed loans. We are in the loan business so we always get slammed for giving our opinion in these. The real "cash zealots" will say "of course you want people to get loans or you would be out of business". Our business started because dealers and private parties were having trouble finding help. When I see customers who make more money than me with clean credit histories borrow money for a boat, I know there is something to it. In my own house, we have managed loans and been able to survive. Sure, debt can be like anything else that can be abused. We see people that have had some real trouble. Let me just say this, it is not the loan that gets people into trouble. It's not managing money, spending too much and not keeping track. In today's boat loan business, loans are not given out like candy. Lenders look very close at debt to income, credit card debt and loan history. I will enjoy watching this thread grow.
Let us know if we can help.
Thank you,
Ken (517) 930-2721 - Cell

[Roon]

Originally Posted by clawman

NEVER finance anything that depreciates.

Everything depreciates eventually. So you are suggesting to do away with credit entirely?

[rats1955]

I am a loan officer. It is a matter of need (or want) of an item that you can not pay for fully at purchase. As long as the borrower has the ability and the mindset to repay the loan, I personally don't see any issues with borrowing for items.

In our country there is no incentive for the average consumer to save money. 1/2% or less return on savings is terrible. On top of that we need to declare that small amount of return as income at regular tax rates.

The other issue is that I see a lot of working poor. An average blue collar guy trying to raise a family and something happens that they can handle financially all at once.

It is great that someone does not need to borrow depreciable Items, but for most people that is not the case.

[antlers & eyes]

Originally Posted by mk cant log

That little bit of wisdom is lacking one thing....wisdom. There is nothing wrong with well managed debt.

A better suggestion is from Warren Buffet..."If it appreciates, buy it, if it depreciates...lease it." I think this geared more towards businesses but overall its not a bad idea. He said that if possible, he'd lease his pencils.

I recently bought a Honda Civic for my kids in college. I could easily have written a check for it but 1.9% financing was available so I took it. I make an average of about 8-10% on my investments. Why would I take cash from them when I can borrow at 1.9%?

right. if your rich, then maybe that is the way to go. if warren was poor like the most of us working stiffs, his ideas would be different. rich people have more money to play with and can do different things with it that benefits them. working class people don't have that benefit.