Quote:
Originally Posted by Cynthetiq
rb... that's what my point is.
I'm very happy to live within my means of CASH. I charge everything because I'm getting the benefit of mileage, but if I didn't get that benefit? I'd pay in CASH. My lifestyle is to live within the means that I make. If I don't have the cash to pay for the bill at the end of the month, I don't buy it.
To say that it's just "small frame thinking" is a bit dismissive. My version of fiscal responsibility isn't about kiting checks and juggling my cashflow. It's HAVING the cash to pay for what I actually spend. No cash, no spend.
Conservative principle, and simple.
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Yes, yes, YES. You just can't tell me part of this BS crisis isn't firmly planted at the feet of US consumers who "need" to consume much more then they need nor can afford. Sure they're the banks writing the "bad paper," but someone's taking that paper and using it buy a plasma TV or $500 video iPod.
I have a some younger friends (yes, I have friends- who knew?) they got married a couple years ago. Both employed but no house- renters. Between the rings, the wedding and the honeymoon they were 40K in debt. Other then the ring, some photos and the memories it's basically 40K spent in two weeks, gone. Most of it went on a CC. What couldn't go on the cards he got a second loan on the equity in his car. I've heard of a home equity loan but a car equity loan? I watched, listened... I stayed the hell out of it. But many family members saw this train wreck coming and tried to talk sense to them. Nope! They knew what they were doing and everything would be fine. Last I heard his dad gave him some cash to keep his car from being repossessed.
Now they both have two jobs. Well she has two jobs. Clerical during the day, waitress at night. But he's picking up every overtime shift he can get. I talked to him right before moving here a year ago. He said he figured if they kept at it for another five years they'd be in the black. As he put it "It's not what they borrowed, it's the interest. He was explaining to me the interest on the car loan was crazy. Turns out the bank wanted more in interest, over time, then the amount of the loan. No kidding, really? Wait till he sees what the total amount of the payments adds up to on a 30 year mortgage.
Oh well, on the upside it was a beautiful ceremony and I guess they had a great time in Paris and Rome.