How does this happen?

[FLA]

How anyone could earn 300K and have no savings to show for it is beyond me. If you gave me a raise tomorrow to 300K, I can guarantee you that in about a year, we'd have $1 million in savings (by adding to what we already have). In 5 years we'd have $2 million. Soon after that, I'd be retired and set for life.

me, too. How hard is that to do on 300k, I mean really? And they are renting. I lived on a tenth of their salary and saved the rest. I had 2 kids, a mortgage, a car payment. Yet I managed to save quite a bit and I do not feel like our life was so spartan that it was miserable. The only way I could blow 300k, amass no savings and not even have a new car and nice house to show for it, would be to drive around with the window open letting hundos fly out. Ridiculous.

[disneysteve]

Credit Card Rewards, Points, are terrible for people's finances.

I'm not hating on people that uses points responsible, or the people in SA forum. However, there are majority of college students unaware of the "pitfalls" of point system.

The problem is when people don't pay their balance every month. If you can't afford a purchase, don't buy it. If you can't pay the bill when it comes, don't make the charge.

Reward points are worthless if you're carrying a balance and paying 29.99% interest.

[7Figures]

The problem is when people don't pay their balance every month. If you can't afford a purchase, don't buy it. If you can't pay the bill when it comes, don't make the charge.

Reward points are worthless if you're carrying a balance and paying 29.99% interest.

hey disneysteve random question lol are you invested in disney lol ?

[7Figures]

the window open letting hundos fly out. Ridiculous.

Like a Boss hahahaha

[disneysteve]

hey disneysteve random question lol are you invested in disney lol ?

Yes, but not a lot. Just a small exposure. I mainly did it way back when to get the annual report and other correspondence.

[LivingAlmostLarge]

I have no idea what people spend on. Not the car she drives. But maybe his car? Not the rent it's $3k for a 4 bedroom house. We rent for $2400 for a 3 bd house and couldn't spend $300k in year renting. I can tell you we'd probably be saving at least $100k or more easily.

But at least like she said they aren't in debt charging and financing cars and everything else. They just can't seem to save.

The $115k live like they make $300k but it's not working. The debt the cars it's overwhelming and no savings. This friend who had blogged about finance said the plan is to work until he dies.

[disneysteve]

I have no idea what people spend on. Not the car she drives. But maybe his car? Not the rent it's $3k for a 4 bedroom house. We rent for $2400 for a 3 bd house and couldn't spend $300k in year renting. I can tell you we'd probably be saving at least $100k or more easily.

Oh I'm sure I could manage to burn through 300K/year if I really wanted to. We do a lot of things frugally but could easily go the non-budget way for all of that stuff. Our $2,500 week in Disney World could be over $10,000 in a snap. The cruise we're taking later this year in one of the cheapest cabins could be several times more in a bigger cabin or suite. Instead of going to a Broadway show only once a year or so, we could go once a month. A million little things could easily add up to serious money if we wanted it to. And for most of it, we'd have nothing to show for it. I'd much rather spend on experiences than things given the choice. But we could spend on things, too. Remodel our kitchen. Finish our basement. Get a bigger TV.

[7Figures]

Yes, but not a lot. Just a small exposure. I mainly did it way back when to get the annual report and other correspondence.

Oh alright nice I recently bought 100 shares Got in at $88 a share. My 1st true investment LoL

[disneysteve]

Credit Card Rewards, Points, are terrible for people's finances.

I couldn't help but think of this a minute ago when I logged into my Chase account and redeemed $130 cashback in rewards points.

Obviously, my credit card bill is paid in full every month. I've never paid a penny in interest or fees. It is possible to play the game to your advantage but you need to have the discipline to do that.

[tripods68]

I couldn't help but think of this a minute ago when I logged into my Chase account and redeemed $130 cashback in rewards points.

Obviously, my credit card bill is paid in full every month. I've never paid a penny in interest or fees. It is possible to play the game to your advantage but you need to have the discipline to do that.

Steve,

Keep building the points responsibly


Majority of people play the game but losses, trap in the cycle of debt unfortunately!

[LivingAlmostLarge]

I think that only a few people really fall deep into CC debt. I read the average debt is $8500 on CC. Car loans on the other hand is something like $30k. So you tell me what's making broke?

Credit cards or new cars?

[greenskeeper]

A car loan has a means to be paid off. Credit card debt could be carried almost forever if you only make the minimum payment and continually use the card for things you really don't need.

I agree though....cars are one of the biggest wastes of money and inhibitor of building wealth.

[Nutria]

I agree though....cars are one of the biggest wastes of money and inhibitor of building wealth.

Everyone keeps saying this, but no one shows any evidence.

The balance on the 60 month (2.99% APR) loan our Dodge Grand Caravan in $3,480, but as of 31-December the dealer trade-in value was $8,235.

Even if it's dropped to $7,000 since then, it still has significant net worth.

Expensive cars are an inhibitor to building wealth.

[disneysteve]

Expensive cars are an inhibitor to building wealth.

True. Also leasing a car. Or replacing a car every 2-3 years, or rolling an old loan into a new loan. Or borrowing for 5+ years to get that car you really want but can't really afford. Or buying a new car in general.

Most of us need a car. Most of us also buy way more than we need or can afford. That inhibits building wealth.

[Nutria]

Or borrowing for 5+ years to get that car you really want but can't really afford. Or buying a new car in general.

We bought a new "car" (minivan, really) on a 5 year loan ($25K!!!). You all would scream at me about how stupid I am and that I should pay it off now.

But it has a positive net worth. Yes, we could have bought a cheaper van, but we like fold-into-the-floor seats, dual sliding doors and the Caravan's extra wide seats. They add non-monetary value which we are willing to pay for.

Most of us need a car. Most of us also buy way more than we need or can afford. That inhibits building wealth.

That's the "expensive" part, and why we didn't buy a big SUV like our peers. Not only is it less "featureful" than the minivan, but we're not so vain as to not be embarrassed by driving a minivan.