It's all age groups of people making bad choices for debt. There's lots of money to be made with your hands out there. The bad part is a lot of it requires traveling to get it. Keeping 2 places to stay up is not cheap. With interest rates so low my truck loan and the wife's vehicle loan were something like $700 over the life of one loan and the other was $1500. Not a bad penalty for a new vehicle under warranty for someone who isn't within 50 miles of home 320 days a year on average. It's hard to take some money out of savings when it makes more there than you pay in interest.
Dennis, you are so right but let's look at those house price.... which values are determined by jobs in that area...( meating why DC, NYC aND LA are 5 x aNY where else) . and vary so widely and a lot matters what you are buying..... a 35 yo 980 square foot chalet on 5 acres sold across street from me a year after I bought my house for 180k in a week! my house is 3x that size was closer to 245K.. So did I make a bad choice no.. Paul Harvey and rest of story... my house has at least 3... 1 acre building lots in front fields in worse case scenario worth 70k a piece.. probably 200k free after permits and expenses so I got my house with whats left (18 acres) 30x 40 barn and garage for less than 40k (unbelievable deal where i live) when I choose to subdivide.... in town with school choice low crime etc etc in country setting 5 minutes from interstate.. 20 minute from biggest city in state for jobs with 2 adjoining landowners that have about 1500 acres... my point... more to story then debt to income and what you pay.. I am not trying to brag.. but 6 years of finance classes taught me how to make money and how to lie on paper.. the real truth a home is not an asset! It's an expense! I put things in real terms Asset puts $ in your pocket .... expenses take $ out of your pocket... The financial education in this country is shameful.... Fellow hoarders if you want to buy something and get a debt.. if it works and makes sense DO SO! BUT know what you are buying and how to cover the expense and plan on a 3 way analysis.. the case you hope for.. what you expect and what to do when life screws you up thru injury illness.. Being debt free is good.. having debts that make money is good.. paying 40k or 500 dollars a month for a truck for 7 years that 4 years after you get done paying it off is worth 6k or less is nuts.... oh and saving for retirement at negative real rates is damm near impossible... not trying to preach or put anyone down but like most things it gets a little complicated... oh I have had house for 12 years and have paid excess payments every month on 30 year note will be paid off in 20 years or less... and I have had the things go to wrong plan happen! So educate yourselves cause broker and politicians lie!
Very true for anyone considering living accommodations, vs folks like us that want and will pay extra for land and the things that go along with them. I questioned my own financial sanity shortly after buying the current house with 12ac ~$175k 10years ago I was 26yo with 20% down. -resided the house myself new windows, doors, sheathing, siding - never kept track of total material bill but ~18K -repave driveway ~$8k -Kitchen gut total remodel ~17k -Bathroom gut ~6k -laundry room ~3-4k - a dozen other 1-2projects from carpet to hardware it adds up quick all paid for with cash I never cut corners when fixing something, install stuff that will last for my life expectancy and beyond - don't want to deal with the same thing 20-30yrs from now. roof and HVAC are next. House note will be paid off before I'm 38
I used to be good at math, it was really only important during college. In the real world there's programs or vendors to do the math for you so I've lost most of my math skills! Walmart isn't too far off, I actually got hit up by a recruiter from them last week but there's no way I'm moving to Bentonville, Arkansas! I used to work at P&G and now Kroger. I'm very fortunate that Cincinnati has some big companies based here.
I can't decide how I feel about my kids going to college. If I had to do it all over again, I think I would have gone into a skilled trade...probably...maybe...I don't know.
I'm not gonna push mine. Heck, I very well may discourage it unless he has a good plan of what he wants to do and how to get there. College is beyond overpriced...and doesn't guarantee a job by any means...especially some of the total BS degrees that are out there. I know more people that are working in fields that are outside (way outside!) their degree than people that are actually using their $100k education! The demand for skilled trades is increasing more every day...and it is predicted to skyrocket as boomers continue to retire with no qualified replacements in sight.
I actually use my degree (not a psychology major), but I think I would be much happier making things with my hands than babysitting adults.
My wife's plan is to try to eventually get a job at a local college so our kids can get free or heavily discounted schooling. There's a job right now at Xavier she's thinking about applying for, they cover 90% of tuition for children of employees. Really though, there's cheaper options if you look around. I just checked out tuition for the 2 top schools here, University of Cincinnati @ $26k/year and Xavier @ $32k/year. That's just stupid. But just across the river Northern Kentucky University is $8.4k a year, which isn't that bad.
Only degree I have is from the school of hard knocks- I own a small machine shop , I make my own tooling, I can repair electronics, I can likely think of a circuit to resolve an issue, I can tear your fancy new car down- repair it and put it back together again. Build a home from scratch or repair any section of it. There is a lot more. According to the various HR departments I don't know nuthin. One thing though, I am not a people person. The art of interacting with other humans is something I have never mastered.
That's probably one of the most important skills to have, regardless of what you do for a living. I'm sure I'd be a little better of if I was better at this. Just yesterday in a meeting I felt the need to correct a VP. He didn't respond well to it, but my dumb azz mouth kept pushing things. So he shut down the conversation, killed the project, moved us to a different topic, and now one of the things I've been working on for the past few weeks is dead.
I do consider my home an expense, but it is also an investment. If you don't over-improve it, and the Real Estate Bubble of a few years ago notwithstanding, it will increase in value. Not to mention you own the thing, no one can put you out unless you don't pay your taxes, or mortgage. Cars and trucks lose value soon as you drive them off the lot. All in all, what Dennis said. Just don't confuse wants with needs! I can live on a lot less than the average person, and probably a lot less that what I do now. College IS outrageously expensive. A thermometer has degrees--and you know where they put that.
A Home is where you live, a House is to make money off of IMO. When I build my Home, I will live there for the rest of my days. It's monetary value will only be considered when the tax man is figuring how much to charge me.
That is nice. I agree; however, in my case, Mr. Firebroad and I bought our first house in '76, as a "Handyman's Special". Our payments were a lot cheaper than any rent. We fixed it up (mostly cosmetic) and sold it three years later for twice what we paid for it. It was a rowhouse, and we were able to get a nice semi-detached. We had to leave after 15 years, due to job changes, and found a nice cape cod. Each time we had improved the homes we lived in, and were able to buy something a little nicer. After widowhood, I sold that place in 2006 to move to the country, away from the urban crime, and I will live there hopefully 'til the end. Oh, and I was able to pay cash for it! I still make "house payments"--but to myself, for my retirement.
It's nice to 100% debt free and not want for anything, with only one exception and that is to be retired.
