Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Mortgage:
"the charging of real (or personal) property by a debtor to a creditor as security for a debt (especially one incurred by the purchase of the property), on the condition that it shall be returned on payment of the debt within a certain period."
Here's the way I try to look at this whole thing. There's no guarantee that you'll live to use your retirement savings.
All it takes is a serious look at your mortality, like a heart attack or severe disease like cancer to remind you that you could be permanently moving on today or tomorrow.
What good does all that sacrifice do you then?
I say it's all about balance, there "may" be a retirement, it "may" be a long one but it "may" not be.
Having been in the position of lying in that hospital bed realizing how close I came to checking out all the money in the world wouldn't have mattered or made any difference had I actually not made it to see the next day.
All it would've done is buy me a nicer box to take the eternal dirt nap in.
Here's the way I try to look at this whole thing. There's no guarantee that you'll live to use your retirement savings.
All it takes is a serious look at your mortality, like a heart attack or severe disease like cancer to remind you that you could be permanently moving on today or tomorrow.
What good does all that sacrifice do you then?
I say it's all about balance, there "may" be a retirement, it "may" be a long one but it "may" not be.
Having been in the position of lying in that hospital bed realizing how close I came to checking out all the money in the world wouldn't have mattered or made any difference had I actually not made it to see the next day.
All it would've done is buy me a nicer box to take the eternal dirt nap in.
I've been there myself. My answer: You don't know if you will check out early, therefore you must prepare. Why? Because now you can prepare. Later on, you will not be able to, or might not be able to prepare. There's also the spouse, or kids, to think about should something happen, or not happen until later. However, at the same time, I want to enjoy life now. It's tricky, but possible, to do both, IMO.
Here's the way I try to look at this whole thing. There's no guarantee that you'll live to use your retirement savings.
All it takes is a serious look at your mortality, like a heart attack or severe disease like cancer to remind you that you could be permanently moving on today or tomorrow.
What good does all that sacrifice do you then?
I say it's all about balance, there "may" be a retirement, it "may" be a long one but it "may" not be.
Having been in the position of lying in that hospital bed realizing how close I came to checking out all the money in the world wouldn't have mattered or made any difference had I actually not made it to see the next day.
All it would've done is buy me a nicer box to take the eternal dirt nap in.
As you stated ..."finding a balance is the key!" Enjoy your life while preparing for retirement. All work without enjoying the fruits of your labor is pointless to me. If all one is doing is working their entire lives just to prepare for death, then just buy a fast convertible sports car and drive it off a cliff and get it over and done with. Lol.
Some people are "living life" while others are merely existing.
Last edited by louie0406; 12-22-2015 at 08:33 AM..
Here's the way I try to look at this whole thing. There's no guarantee that you'll live to use your retirement savings.
All it takes is a serious look at your mortality, like a heart attack or severe disease like cancer to remind you that you could be permanently moving on today or tomorrow.
What good does all that sacrifice do you then?
I say it's all about balance, there "may" be a retirement, it "may" be a long one but it "may" not be.
Having been in the position of lying in that hospital bed realizing how close I came to checking out all the money in the world wouldn't have mattered or made any difference had I actually not made it to see the next day.
All it would've done is buy me a nicer box to take the eternal dirt nap in.
You should also note that while the average age of death might be 70 something, the actuarial tables shift when you hit 65. Once you reach 65, you can reasonably expect to live to 80. If you're married, one of you can expect to live to either 85 or 90 (I forget which.)
You did not factor in the time it takes to save up 14k to buy the used truck out right. Your true Cost of Ownership is definitely higher than $50/month.
Why do I need to factor that time in? It has nothing to do with anything. That was money saved while I already had a vehicle and when I didn't need one. Time in that essence has no value. I didn't "need" a truck to the point that I had to sacrifice anything in the short term to get it. I simply set a budget that didn't take away from anything else and bought the truck when I had enough to get what I wanted.
My true cost of ownership was broken down for you.
Purchased Price: $14,000 cash
Maintenance and repairs: $1,200
Time owned: 2 years (24 months)
PP+M&R = $15,200
Sale Price = $14,700
Delta: $500 <-- This is how much I "lost" on the truck after using it daily for two years.
You can't factor in insurance or fuel, because those are givens on every vehicle and irrelevant considering my mpg didn't change nor did my insurance costs (I went from an F150 to a newer lesser mileage F150). All things considered, the actual cost of ownership after recouping my money was $21 per month because I recouped all my money less $500. $500 / 24 mos = $20.83/mo.
You can't lease a vehicle, or buy one brand new and when turned in, sold, or traded-in come out of pocket only $500. That's my point.
I don't let having the latest and greatest of anything to define me. This all goes back to what DR was saying about not spending more than you can afford. I saved up an additional $9,300 over the course of time I owned the F150 to put with the $14,700 I sold the F150 for and bought a newer F250 outright for $24,000. I have been doing this for years to get to what I want. It isn't instant gratification, but I'm working towards a goal that will not put my finances in jeopardy to do so. A lot more people should do this. It's really not that difficult. I still get the things I want, but not today.
As you stated ..."finding a balance is the key!" Enjoy your life while preparing for retirement. All work without enjoying the fruits of your labor is pointless to me. If all one is doing is working their entire lives just to prepare for death, then just buy a fast convertible sports car and drive it off a cliff and get it over and done with. Lol.
Some people are "living life" while others are merely existing.
So obviously there are extremes to both methodologies. But those who want to "live life" to the extreme (financing expensive vehicles, hobbies, etc..) seem to assume that those of us who do not are frugal to the extreme. That's not true in most people. There IS a balance there.... we just know that you have to start somewhere, and there may be a few years that you have to sacrifice to get to a comfortable medium. But trying to use the excuse of "you can't take it with you" is unwise. What happens if you DO live to be 90 and you haven't put anything aside? Who has to foot that bill?
So obviously there are extremes to both methodologies. But those who want to "live life" to the extreme (financing expensive vehicles, hobbies, etc..) seem to assume that those of us who do not are frugal to the extreme. That's not true in most people. There IS a balance there.... we just know that you have to start somewhere, and there may be a few years that you have to sacrifice to get to a comfortable medium. But trying to use the excuse of "you can't take it with you" is unwise. What happens if you DO live to be 90 and you haven't put anything aside? Who has to foot that bill?
Every single Friday for the last 5yrs I get $100 in dollar coins and put them away. I purposely get it in coins so that it's harder to just grab and go spend like physical dollars. I will continue to do so until I retire in about 15yrs. That is in addition to a max contribution to my 401k retirement plan that my company matches btw. If all goes according to plan I will be more than well off come retirement time. In the meantime I enjoy spending my excess cash on things I enjoy. Vacations, new car every 3yrs, fine dining, latest tech toys, etc. if I kick the bucket next will I will have no regrets as I've enjoyed my time thus far. If I live to be 90 I have prepared to have that covered.
2) Used is always cheaper than new. I repeat, used is always cheaper than new, even taking into account significant repairs. A new transmission is $2500 or so. Interest on a new car finance charge is probably 5-7K over the life of the loan.
A few things. We financed our last car at 1.8 percent for 5 years. Not going to be 5-7k over the life of the loan.
Secondly, on the surface used is cheaper than new. We found that 2015's were only running 1-2k more than 1-2 year old used with 20-40K miles. Add on the extra interest rate of buying a used car vs buying new, It ends up costing us LESS to buy new, looking at the same car.
A few things. We financed our last car at 1.8 percent for 5 years. Not going to be 5-7k over the life of the loan.
Secondly, on the surface used is cheaper than new. We found that 2015's were only running 1-2k more than 1-2 year old used with 20-40K miles. Add on the extra interest rate of buying a used car vs buying new, It ends up costing us LESS to buy new, looking at the same car.
Did you get that loan at a bank/credit union, or at the dealership where you bought the car? If the answer is, "dealership," you didn't get 1.8% financing for that vehicle.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
