loghousenut
08-07-2024, 05:02 PM
1... Drinking soda pop.
2... Nicotine and Alcohol.
3... SIX DOLLAR COFFEE.
4... Thinking about payday. My parents always went to town grocery shopping on payday. Two days before the next payday, we were always out of toilet paper and had to use Kleenex. I still do not know how they could afford Kleenex when there was not enough money for toilet paper. They both died broke. You will never generate wealth if you can't spend less money than you make. Go ahead. Try it and see where it gets you when your kid needs a kidney. The sooner you forget the date of every payday, the sooner you will end that part of the cycle. Don't spend like you are wealthy until a year or two of actually being wealthy.
5... Lotto. It's not gambling. Paying $6 for a cool looking old painting at a yard sale is gambling. I might be worth more than $6 but it's still a cool painting one way or another. Tossing the price of a pack of sandpaper on the counter and getting 3 Lotto tickets would not be so insane if you couldn't read the odds against you. THINK ABOUT IT. IT IS A TAX. Yes I have gambled money. In the Navy I used to cheat at cards. I did fine against guys (very few gals back then) who were trying to find a way to cheat against me. I was better, so it really wasn't gambling, was it. I would never have tried it in Vegas. I gave it up for moral reasons.
6... Buying a vehicle on credit. Yes, that includes boats, bikes, trucks, and motorhomes. I know everyone does it, but it is insane to attempt to set yourself up with a $600 payment for the rest of your life. It's just a car. Yeah, I know you need it. Yeah, I know it has to be dependable because you cant afford to fix it if it breaks down. But every time my car needs fixing I can afford the fix and I could afford to replace it on the spot. Early on, I learned from a really cool guy who worked with my Dad at NASA, about always having a thousand dollars in your pocket. He was always picking up some cool car or motorcycle for pocket change. He had the prettiest 1962 Chrysler 300 convertible in town. Bright red. because he paid cash, he wasn't limited and was always driving up in some neat motorcycle or sports car. Every purchase had a story. Usually that story included a hard luck story about "can't afford the payment". So, look around at all your buddies and take a good hard look at who you are trying to impress. Better yet, see how many of them have $3,000 in their pocket (inflation).
7... New or Rented Furniture... I know, you're too classy to sleep on a used mattress. Well, my first new mattress didn't happen until I could afford it without arguing with my banker (the one I sleep with).
8... Home Mortgage... If you have the ability to pay for a house as you build it, well that's where to aim your effort. I know, you're probably saying you're too damned stupid and lazy to build a house. I doubt it. You don't have to build a mansion. My mentor, Skip Ellsworth, said you should build the smallest house you can afford. We were able to afford and build 2000 square feet. Before we broke ground, we paid off a reasonable note for the land in 4 years. Yes, we were frugal, but it all happened on one income while Mom stayed home to raise and home school the rugrat. I can see no way it would have happened if we'd had a car payment (or two), furniture payment, new computer payment, credit card at Ross Dress for Less payment, or any payment that included interest. In our world there are no "minimum monthly payments" (with the exception of that one land purchase).
9... School Loans... You may think you are smart enough to win at this game. You are likely wrong.
10... Loan Consolidation... If you are being hurt by interest from several directions, you are already doing it wrong. If you really want to give money each month to a bank, get out of debt and buy stock.
PS... Those first three are good advice that may be hard to swallow. Just consider it. Remember, You are teaching all of this stuff to your children, no matter how old they are and no matter what you say to them. Our daughter is 33 years old, never been in debt, has money, and knows how to build a home with her own hands.
https://uploads.tapatalk-cdn.com/20240808/238d65280203d9780837323119c99948.jpghttps://uploads.tapatalk-cdn.com/20240808/8dbf49f017f4e13dd27e40f1d4211e7e.jpg
2... Nicotine and Alcohol.
3... SIX DOLLAR COFFEE.
4... Thinking about payday. My parents always went to town grocery shopping on payday. Two days before the next payday, we were always out of toilet paper and had to use Kleenex. I still do not know how they could afford Kleenex when there was not enough money for toilet paper. They both died broke. You will never generate wealth if you can't spend less money than you make. Go ahead. Try it and see where it gets you when your kid needs a kidney. The sooner you forget the date of every payday, the sooner you will end that part of the cycle. Don't spend like you are wealthy until a year or two of actually being wealthy.
5... Lotto. It's not gambling. Paying $6 for a cool looking old painting at a yard sale is gambling. I might be worth more than $6 but it's still a cool painting one way or another. Tossing the price of a pack of sandpaper on the counter and getting 3 Lotto tickets would not be so insane if you couldn't read the odds against you. THINK ABOUT IT. IT IS A TAX. Yes I have gambled money. In the Navy I used to cheat at cards. I did fine against guys (very few gals back then) who were trying to find a way to cheat against me. I was better, so it really wasn't gambling, was it. I would never have tried it in Vegas. I gave it up for moral reasons.
6... Buying a vehicle on credit. Yes, that includes boats, bikes, trucks, and motorhomes. I know everyone does it, but it is insane to attempt to set yourself up with a $600 payment for the rest of your life. It's just a car. Yeah, I know you need it. Yeah, I know it has to be dependable because you cant afford to fix it if it breaks down. But every time my car needs fixing I can afford the fix and I could afford to replace it on the spot. Early on, I learned from a really cool guy who worked with my Dad at NASA, about always having a thousand dollars in your pocket. He was always picking up some cool car or motorcycle for pocket change. He had the prettiest 1962 Chrysler 300 convertible in town. Bright red. because he paid cash, he wasn't limited and was always driving up in some neat motorcycle or sports car. Every purchase had a story. Usually that story included a hard luck story about "can't afford the payment". So, look around at all your buddies and take a good hard look at who you are trying to impress. Better yet, see how many of them have $3,000 in their pocket (inflation).
7... New or Rented Furniture... I know, you're too classy to sleep on a used mattress. Well, my first new mattress didn't happen until I could afford it without arguing with my banker (the one I sleep with).
8... Home Mortgage... If you have the ability to pay for a house as you build it, well that's where to aim your effort. I know, you're probably saying you're too damned stupid and lazy to build a house. I doubt it. You don't have to build a mansion. My mentor, Skip Ellsworth, said you should build the smallest house you can afford. We were able to afford and build 2000 square feet. Before we broke ground, we paid off a reasonable note for the land in 4 years. Yes, we were frugal, but it all happened on one income while Mom stayed home to raise and home school the rugrat. I can see no way it would have happened if we'd had a car payment (or two), furniture payment, new computer payment, credit card at Ross Dress for Less payment, or any payment that included interest. In our world there are no "minimum monthly payments" (with the exception of that one land purchase).
9... School Loans... You may think you are smart enough to win at this game. You are likely wrong.
10... Loan Consolidation... If you are being hurt by interest from several directions, you are already doing it wrong. If you really want to give money each month to a bank, get out of debt and buy stock.
PS... Those first three are good advice that may be hard to swallow. Just consider it. Remember, You are teaching all of this stuff to your children, no matter how old they are and no matter what you say to them. Our daughter is 33 years old, never been in debt, has money, and knows how to build a home with her own hands.
https://uploads.tapatalk-cdn.com/20240808/238d65280203d9780837323119c99948.jpghttps://uploads.tapatalk-cdn.com/20240808/8dbf49f017f4e13dd27e40f1d4211e7e.jpg