[dotdash]

Warren Buffett's advice was "Be scared with others are greedy, and greedy when others are scared" We know now that not enough people were scared 3 years ago -- everyone was greedy.

My question: why isn't everyone who doesn't own a home running out to buy one in this fire-sale environment? Everyone is scared now, and homes are selling for a song. God knows, most of us homeowners are wishing we could re-buy our homes now and pay only what today's price would be. And yet, renters are hanging back. Why?

[sike0000]

Originally Posted by MTUCache

As a late-twenty-something heading into my thirty-somethings, my wife and I bought into the 90s economic-plan hook line and sinker. College loans, credit cards, big wedding, new cars, equity line, adjustable rate mortgage, all of it. I'm not particularly proud of it, but I do feel confident that I can get back on the right side of the ledger. My eyes have certainly been opened, and I don't think it's too late either.

My wife and I were kinda in the same boat. In my twenties I never really looked to the future. I had some debt, was going into more debt when I went back to school at 25. Had the wedding, son at 31, finally bought our first house at 35. Even my career didn't start earning me good money until I was 31. Between bad spending habits, school, cars etc I was already in quite a bit of debt going into my thirties.

I don't complain about the school debt and don't mind it. I have career with great earning potential and future.

Cars are my weekness, always have been. But it is one indulgance I have allowed myself. I will probably be more practical now that I am pushing 40 though.

Credit cards from my late teens and twenties still haunt me. Most are paid off. I keep one open and hardly use it.

We bought a house last year, but bought well below our means. Something we could still manage if we were unemployed.

We have a lot of debt (mostly school and cars) but we are not hurting by any means. As we move forward we will probably have no credit card balance, one car payment, plus school loans and house. I could live with that.

My wife has to work which is my one big regret (although she was worse than me with the spending so I can't blame myself too much ). My plan is to pay off the cards, have one car payment (we are only 1.5 years away), and then we are golden. So hopefully in 2 years she can quit.

The hardest thing is keeping spending in check while our incomes go up. I could have been debt free (other than house/school) a while ago.

I don't mind having some debt. Alot of people say there is no such thing as good debt but I disagree. My school debt is one example, plus my house.

I guess when you don't have a plan in your twenties, then life kicks you in the face later in life, you tend to owe a little money

[michigan83]

And yet, renters are hanging back. Why?

I can tell you why this renter is hanging back!!

I don't have a 20% down payment to put down on a house. I could scrape 3.5% or whatever and get one, but I refuse to do what other Americans did to get us in this mess in the first place. I'm going to be debt-free and have 20% to put down, end of discussion.

I'm also not convinced in the least the the real estate market in Michigan has hit bottom.

[Cliffie]

Originally Posted by Driller1

Everything we have is paid for. Homes pole building, well rigs, all the equipment. We just pay uiities and insurance. And advertising.

I've said it before and I'll say it again, Driller -- you RAWK.

But if I were you I would break down and replace the toilet seat that's being held together with duct tape.

[Driller1]

Originally Posted by Cliffie

I've said it before and I'll say it again, Driller -- you RAWK.

But if I were you I would break down and replace the toilet seat that's being held together with duct tape.

Urban Dictionary: rawk

Read #3, I am not calling you an idiot but, the dictionary did.

[SunsetSky]

When I was 16, my dad took me to the bank to get a credit card and instructed me to never ever carry a balance. His instructions were the law to me, not because he was strict, but because he was the smartest person I knew. Now, 19 years later, I have never carried a balance and never paid one cent of interest. In retrospect, 16 was a bit young to get a credit card, but my point is that parents can have a significant impact on their kids in terms of financial discipline.

I seem to remember learning some basic money/finance topics in high school accounting class. Do schools even cover that anymore? It should be required, in my opinion.

[Driller1]

Originally Posted by SunsetSky

When I was 16, my dad took me to the bank to get a credit card and instructed me to never ever carry a balance. His instructions were the law to me, not because he was strict, but because he was the smartest person I knew. Now, 19 years later, I have never carried a balance and never paid one cent of interest. In retrospect, 16 was a bit young to get a credit card, but my point is that parents can have a significant impact on their kids in terms of financial discipline.

I seem to remember learning some basic money/finance topics in high school accounting class. Do schools even cover that anymore? It should be required, in my opinion.

I 100% agree!!!

[ShermanJoe]

We've always aimed for balance in our lives, in terms of allowing ourselves hobbies and vacations, because you never know if you'll be around long enough to to enjoy retirement. That being said, we early on set some rules for how we'd live. For instance: if we can't pay off a car in 3 yrs., we can't afford it. We'd never carry any credit card debt. We'd always live beneath our means. We'd always invest. All those things are easier to do if you haven't bought into the the rabid consumer mentality our culture encourages, and look for value in experiences and relationships.
So.....I've just retired at age 52 and the hubster will soon at 55. As the income scales back so will the spending. We'll see how the next chapter goes.
But you know, luck does play into all this, too. We've been fortunate.

[preferentialtreatment]

My crystal ball says that people will hang around for a while and then leave this state for good.I think many of them are trying to save enough to make their next move and not cement their foot in a graveyard.Sorry,but businesses have dumped this state long ago and so many others are going to have to.What should people do then?The elite is doing business in China,India and what not.Things can only change if the government steps in.Do you foresee that happening,i do not.Government bails out some cheating banksters and other squalids,but does not help people or put a brake to this lifetime crisis.It does expect though and is actively pushing for the idea that people create/innovate and bring about new industries so they can be saved.I mean this is not really straight talk goverment is propositioning.I guess the rich and relatives,friends matter more than the country and the citizens living in it.