Do you feel the majority of people understand financing and debt?
Estafador
BIG APPLE
So a month ago, I learned people are willing to go into debt for the iPhone. Here's some links:
https://www.google.com/amp/s/nypost.com/…
https://www.google.com/amp/s/www.applewo…
Do you think majority of people really are ignorant of debt and finance?
https://www.google.com/amp/s/nypost.com/…
https://www.google.com/amp/s/www.applewo…
Do you think majority of people really are ignorant of debt and finance?
39 comments
Also, I’d like to see the question asked, that allowed them to conclude folks would go into debt. If they are asking if they would take on debt to buy a new iPhone - that simply means they would make monthly payments on a new phone.
They also spelled debt - debut - in the second article. That’s not a good sign.
So, I’d withhold my opinion until a better study is conducted.
Unless you had a really good upbringing, the masses will just need to fall on their faces a few times, before they teach themselves, if they ever learn at all. I know I'm correcting my illiteracy. I fell for some really bad advice that seems reasonable. I was dumb. At least I can own it.
Not everyone is smart like someone who buys a 1 day used 2 calls used iPhone 6 with a cracked screen for free on CL, then just replace the screen at an Apple Store. Still works 4 yrs later, knock on gorilla glass. Pay cash for a depreciating asset.
It would be nice to see the questions asked on wallethub from this survey. That way we could see if their conclusions are reasonable. I bet no alternatives were given on the survey, like maybe a maybe pay cash for a sub$100 or sub$200 phone. Many Android phones out there but people might not know that or somehow think those are unsuitable when really nothing is further from the truth. And that's just one example. This also could be a reflective symptom of something like internet addiction, and the phone is just one part of that. The other one is just living for the monthly payments. Or lack of discipline or financial protection to save without having one's savings depleted (e.g. expected or unexpected medical bills, not understanding how to haggle $$$). All financial literacy 101 type stuff.
@Dominic77 thanks.Being poor all your young life, you kind of just get fed up and look for ways to grow.
You must examine the financing rates and terms, and weigh them against the rates of return on the money you have invested. If you are making significantly more on your invested assets, and you will pay capital gains when withdrawing funds, then an auto loan isn’t a bad choice. A heloc can be a better choice.
I use that type of comparison in many buy vs finance choices for large ticket purchases.
Financing a purchase by using a high interest credit card is always a bad choice. It’s one step above a pay day type of loan.
After all your expenses are paid, Housing, food, savings, retirement....and you have between +3K to blow, and your networth is not more then 2 million, i dont think youll will feel much happier then the guys just scraping buy that have less then $150 of disposible income after all your basic expenses are met. Sure the guy with $3k to blow will have a little more piece of my but he wont necessarily be happier then the guy with only 150 to blow.
experiencing beautiful girls is NOT one of them.
“half of Americans (50th percentile) have almost no savings ($5,000). Meanwhile, the 90th percentile family had $274,000, and the top 1 percent of families had $1,080,000 or more”
Source: https://www.financialsamurai.com/how-muc…
https://www.budget.senate.gov/ranking-me…
I’ve seen some blue class working ditch diggers become millionaires because they stayed disciplined and spent below their means. They weren’t highly intellectual, but persisted with their plan and stayed the course.
Folks don’t save money - regardless of income. They have minimal discipline - and extreme entitlement.
It’s crazy to me, as I’ve saved since I was in high school. It is a discipline, and it’s best developed young. It’s not easy to decide to save later in life, as you’ve become dependent on more net income in each paycheck.
As we age, the chances for unexpected and expensive medical crises increase, and a little savings can be wiped out quickly.
It’s a gamble, if you choose to not save, but think you will save later. When you are young, it’s ok to live meagerly. Everyone is starting out and they have less. But as you age, you might need certain things more. It’s easy to shovel snow in your 20’s - but when you are 60 and have a bad back and bad knees, it’s not easy to clear the driveway of the house you had to have!
That's as bad as some stripper-logic :)
These were the two examples I had growing up. One was a Depression survivor who stressed acetic life and saved everything and her children whom seemed frivolous. I thought I struct the balance between the two but even I goofed it.
As disciplined as grandma was she was constantly miserable, complaining, everything was Sin, etc. I should have been more like her. She was more right than my young self gave her credit.
Estafador,
I think one thing people may not understand is there are lower priced options.
Like with my house. Simply I paid too much at the wrong time. I knew that but felt it was the least terrible option. I didn't think it or **any** house was worth over $100K to me at the time (I made $32K, bought 123K house), but I couldn't find anything under that threshold unless I bought inner-city Cleveland. Which is where I also rented and split rent 2-3 ways on a house rental. All of my GFs and my wife hated those homes and the areas. L-E-A-F-Y--N-E-I-G-H-B-O-R-H-O-O-D they all said. No landlords, no more roommates they said. I was dumb to go along. My fault. Not being able to afford mortgage on 15 year, no DP, double my faults. I knew these were overpriced (2004) based on household incomes and a market correction was inevitable. My fault for signing.
I knew financing and debt but felt there wasn't an option that would shut-up most American women (mistake #4 or 5 at this point). Other ways it could have gone down and should have gone down. I knew better but chose to be weak.
I wonder if my situation is that unique?
I used to joke HR must have sent a text each time I got a raise to alert someone to raise local taxes, raise insurance. Because every raise got vacuumed up. Or it felt that way. Esp. with my credit score and history.
House will be paid off in 2043. can't wait. I had to get a loan restructure in 2013 when I went through foreclosure. I wished I would have just worked 2-3 jobs and got a 15 yr loan like I wanted. Can't change the past.
None of us have a crystal-ball to know what the future will bring (good or bad) and these days I'm of the thought that most of us have no choice but to play it down the middle when it comes to the "living for today" vs the "saving for tomorrow" paradox (i.e. perhaps best to do a healthy amount of both while not getting into either extreme).
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Horseshit. But you don't need to be a great thinker in family law.
Every young person should blow some money on stupid things to blow off steam, it’s creating a balance to stash some away for later in life, and budget some for entertainment, too.
I think balancing between wants and needs is confusing to emotionally needy people. They want that new IPhone, even though they only need a cheap flip phone. Stick to the needs when your young and you’ll get what you want with women later in life.
SJG