Money and BOMBs

[Hohn]

This is a chance for each of you to post your own philosophy on money management, BOMBs, and life in general pertaining to money.



Some folks spend away, carry a lot of debt, and don't care. You can't take it with you, so why horde it?



Some save every penny, and don't care. You can't take it with you, so why acquire all this stuff?



Those of you who spent the money to bomb, how did you pay for it? Credit card, and just "put it on the tab"? Cash? Do you generally carry a balance on credit cards, or pay each off every month? Where are YOU in the balance between spender and saver? Do you invest? Are you hoping for a lotto win to finance retirement? How high a debt level are you comfortable carrying?



I guess this is related to occupation. Maybe I need to find a new one, since the AF isn't known for making people wealthy How easy was it for you to get the money to BOMB? I know that's a personal question, so please don't be offended. Your money is that-- YOURS and none of my business. But I am curious how tight we in the TDR are with our money, how much of it we have, and what financial priority we place on maintaining and souping up our trucks... .



All replies will be as confidential as an Internet post open to billions of people will allow



HOHN



EDIT: my 200th post! YAY! If I would post shorter ones, I could be over 1000 by now...

 

[RustyJC]

In the early 1990's my wife and I decided to get completely out of debt. We paid off the vehicle note and mortgage on the house and put the money we had been paying into savings. At this point, we operate on a cash basis. When we moved back to the Houston area, we paid cash for the house - same for any new vehicles.



I will use a credit card to make a purchase over the Internet (i. e. , BOMBs), but any balances are paid off each month.



Rusty

 

[rfcom]

Same here, no debts or mortgage, everything paid for. It's true you can't take it with you but the trick is to mete it out so that you die just as you go broke. (or vice versa) We will want to enjoy life somewhat for many years after I lose the ability to earn an income and it's hard to determine how much to acquire before coasting the rest of the way. If it wasn't BOMBs, it would be something else, like plasma TV or an FJR1300.



He who dies with the most toys, wins.

Jim

 

[SnoDawg]

I am strictly CIA (Cash in advance) It took me a couple of years of scrimping and saving to get out of debt (some stupid moves I did when I was younger) These banks make it too easy to get deeper in debt when you have credit. I have one credit card and only use it when I have to fly somewhere and have to rent a car, even then IT gets paid off that payday. Sometimes it is hard to wait to build up the cash to buy some goodies but I like the feeling of not having most my paycheck going to a lending institution.

This my opinion your mileage may vary...

 

[Rams-n-Hogs]

Hohn,



I spent 20 years in the AF, and my AF retirement check pays for all my toys. Hopefully in a couple more years, I'll be paying cash for everything, too, including the house. Pay yourself first.



Jim

 

[smartineau]

I hate being in debt, right now I owe on the house 9 years to go.



I put %50 down on the Ram. it will be paid in three years or less.



We pay the credits cards off monthly.



I'm looking for a camper and we will pay cash.



For my bombs I just sold my old gasser chev. So I have play money.



I think it comes down to priorities, some people I know have huge mortages, 2 car payments, boat payments, and take vacations all over the place. I could do that but then I would be so in debt like them I would be a nervous wreck. I guess it comes down to how you financially prioritize your life.



steve

 

[illflem]

I read where the average American has seven credit cards with an average debit of $2500 each or $17,500 on credit cards alone.

No wonder the economy is in trouble.

My feeling is the federal government is setting a bad example with deficit spending. I still can't figure out how anyone could ever conceive of it working.

I owe absolutely nothing.

 

[kiwi bird]

I used to be a cash for everything dude, then I got a full featured Kalifornia divorce .



Now I'm on the +2 plan - 2 years after I finish paying off my ex I'll be out of debt again, until then I'm building my credit rating and living now rather than later. In addition to my truck payment, I have credit debt equal to 25% of my annual salary. I have budgeted to be able to handle up to 33%.



I pay cash where possible but should I "need" a bigger BOMB bad enough I'll sweat it for a couple of months until I'm sure it's not just a shiney attractive baubel and then buy it.



I have little affection for the saying "I wish I had just... ... ... "



CARPE DIEM!!

 

[esommer2500]

Being in college and the budget that comes with it... I find myself planning all the 'what-if's' and have to have a lot of restraint. I really try to make sure that if I don't have the cash when I buy something truck-related, that I know it will be coming shortly. I pay my credit cards off every month. No matter what. I refuse to be in debt more than I have to. The loans that I have through school barely pay for my tuition, housing, and food; let alone beer and other expenses: like the girlfriend.



Regarding the truck: The bottom line is I need reliable transportation, and I have to pay for it. I could have bought a $4000 vehicle, but how long would it be before it started to fall apart? I chose to take the hit up front, that way I know what I have to pay out every month.



My BOMB's have mostly been finance by: money won in Las Vegas a couple of years ago Christmas, tax refunds, etc. This year's tax check is going towards new shocks, brakes, mirrors (driver's side got hit by hail. Good reason to upgrade to the flip-out tow mirrors. ) filters, and fluids for the transmission and diffs.



Believe me, I have a plan on paper that could allow me to drop several thousand into the truck tomorrow, IF I WON THE LOTTERY. Until then, or I am out of debt and have a job, the BOMB's are gonna be a slow-go.



Eric

 

[stevek]

I just got done digging myself out of major CC debt--I had a tad over 21K by the time I was 22:-( Now that I am 24 I am happy to say that the only debt I have is my truck and everything is paid for by cash Never again will I ever use a CC

 

[Champane Flight]

Debt

I owe on my house, it will be paid off in two years or I could pay it off now. I have not started to Bomb yet, figured to wait for the engine to break in first =100,000 miles. Everything I do right now is paid in cash, I have a so, so retirment with my company, a so, so, long term stock savings,total a few hundred K, but do not plan on full retirement until I hear the shovel above my head. Will start my third career in a couple years. Don't know what I want to grow up to be yet.



Life is here to enjoy, do it.

 

[Silver]

I won't buy anything on credit unless the interest rate they are charging me is less than the rate of return on my investments. Right now my only debt is my truck, but it is financed at 3. 9%. Everything else is paid in full at the end of the month. I don't buy toys until after I have set aside my IRA contribution for the year... Some may think that "wasting" money on my truck is foolish, but I'd rather be happy and have less cash than unhappy.



BTW I dont have a family to provide for (Yet!) Just me and my dog.

 

[BV]

debt

Let's put it this way - Sold Ram to buy wife the mini van so kids could make it to/from school without worring about a break down.



We have 2 mortgages and CC debt still left from Christmas. Tax return should pay off the cards and we will be back to 35 years of house payments.



Oh - We do pay extra on the 1st and have shaved 3 years off it already and the kids (7 & 4) have more savings then us.

 

[ladyjaine]

Save for it before you buy it. Do without until you can afford exactly the one you want. Get the best one you can find and take good care of it so you keep it for a long time. Buying 'cheap' and replacing frequently costs both money and time. I have better things to do.





Jean



"Those that don't understand compound interest are doomed to always pay it. " R. A. Heinlein.

 

[csevers]

Compond Interest?

Any body try to figure out simple interest... ... ... ... . IT AIN'T SIMPLE at all. I am a simple man I should understand that interest but I don't.



My opinion is that you only live for a short time buy all the stuff you want and when your dead hopfully you will have it payed for, If I waited to have the money to spend I wouldn't ever have the money so spend now so you have a reason to work. Now that IS a simple mans point of view!



Craig

 

[Hummin Cummins]

My opinion is that you only live for a short time buy all the stuff you want and when your dead hopfully you will have it payed for,

Thats my "plan"

Its the american way, isnt it?



"sign here, here, here, and here please"