The first time we had a credit card was back in the 70's. They can be handy and like others have said, don't carry a balance. So in the neighborhood of 50 years we have never carried a balance. I see no danger here but it is very apparent there are some folks who are not able to discipline themselves. That is nothing but plain foolishness. I might add we also do not finance a vehicle although we did a few times many, many moons ago.
The theory we always had was to never use a credit card or buy anything unless we had the money right then.
Maxed Out: Inside America's Credit Card Debt Crisis -- and What We Do Next 'In August, the Federal Reserve Bank of New York released its Household Debt and Credit Report for the second quarter of 2023 with one particularly eye-popping statistic: Americans had surpassed a combined total of over $1 trillion in credit card debt. Three months later, the balance had already gone up an additional $48 billion.' A lot of folks can't handle it. Gonna get worse as more people lean on credit to offset inflation that's not going away.
It's amazing how bad most people suck at money. Years ago I worked for a company that paid manager level and above employees once per month. For whatever reason they decided to change us to weekly and gave us like 6 months notice. This doesn't sound like a big deal but a lot of people weren't sure how they were going to navigate getting a 4X paycheck down to a 1X paycheck for the first couple weeks. A lot of these people were making well over 150K/year and couldn't figure out how to save up a 2 week cash cushion over six months.
Just a bunch of kids in adult bodies is what i like to say. They may have physically gotten older but mentally they never matured and probably never will.
It's somewhat comforting to me as one of the Poors that the Rich are so leveraged. Maybe someday we can find again that being Rich doesn't necessarily mean you have lots of material things.
I got a Credit Karma message last week, my credit score dropped 15 points. What? I looked, turns out the mortgage of our previous home we sold in 2014 fell off (10 years). I didn't know that could happen, I have other credit history since then, weird.
When I paid off the house my credit score dropped. When I paid off my truck it dropped again. Seems kinda bass ackwards.
Investing is where it's at for me and my family. I look at what I've put into my 403B (public employee version of 401K) and what I have in there now (24 years later) and it's mind boggling. Will have the house paid off in 4 more years (I will be 51 years old). Solar panels and an outdoor wood boiler keep the utility man away for the most part. Retirement should come at 55 and then I can just cut more wood!
Hahaha...We shall see, as of now I have a bunch of cashed (a lot for me...Of course cash will get us nothing if the world crumbles) stashed away and enough guns and ammo to keep the neighbors at bay for a few days if the poop hits the fan! I am happy, so that's all that matters to me. If this has my head in the sand then so be it....When/If the time comes, we will see which strategy pays off. I sure hope it doesn't come to that, but who knows!
As it is said. Jesus saves, but Moses invests. I do both. For quick access for emergency I use money market fund. Im going back to budgeting and taking enough cash out for week. One its done, Im done. Only have debit card for emergency. My retirement is on me. No 401k offered or profit sharing. Saving and investing 20% of my salary. No credit card. No car payment Starting to snowball my mortgage payment. Im done with the rat race. I also invest in lead. Edit: also don't forget to live and enjoy life because you never know.
We refinanced when the rates were low(sub4%). Use credit cards that have incentives but don’t cary a balance. Live well within our means. We both pack a lunch everyday. Drive decent cars but buy when we can get 0% financing always a Ford but I’m sure to make sure not to get a new model year or a known dud. Did the company match 401k(no brainer) for as long as it was offered. One thing that may not have been mentioned, the company I did the 401k thing with was you have to contribute for 5 years before you are vested (can take the company contributions if you leave) so if you arnt in it for a bit might not be worth it. spending less than we make is key here!
Yep I've seen so many people in my home state over-extend themselves for homes and vehicles they were in trouble when auto repairs came along. I bet a lot of them are also using credit cards to compensate for inflation at this point in time. One in particular a few times over. Knowing one is spending inside what they can afford is-priceless.
I remember rolling my eyes at people telling me I needed granite counters and a new vehicle at my old house. Ummm. No. My laminate counters function great and I like my not new vehicle.
