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Being financially responsible sucks

J

Jumpem

Lifer
$800-1000 a month into savings.
$600 a month paying off debt.

Even went out and got some extra long term disability and life insurance for $126 a month.
 
Originally posted by: oldsmoboat
How is having debt being financially responsible?
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Depends on the nature of the debt, and the interest rate. For example, going into debt to purchase a vehicle that will allow the owner to travel to work to pay off debt is completely understandable. Alternatively, he may be inheriting the debt from someone else for some reason.

Also, we do not know for how long the OP has been financially responsible. This could be a new thing for him. Besides, paying off debt *is* financially responsible, as opposed to simply making minimum payments and/or gradually letting the debt amount increase.
 
Originally posted by: oldsmoboat
How is having debt being financially responsible?
Click to expand...

O NO! DEBT IS DE DEBIL!!!11!!1!

The misuse of debt is the issue. Debt itself is a very positive thing if used correctly.
 
Originally posted by: Kadarin
Depends on the nature of the debt, and the interest rate. For example, going into debt to purchase a vehicle that will allow the owner to travel to work to pay off debt is completely understandable. Alternatively, he may be inheriting the debt from someone else for some reason.

Also, we do not know for how long the OP has been financially responsible. This could be a new thing for him. Besides, paying off debt *is* financially responsible, as opposed to simply making minimum payments and/or gradually letting the debt amount increase.
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House is 4.5%, car is 4.9%, student loans are 3.0-3.25%, credit cards are 0.0-3.99%, home improvement loan is 5.9%. Nothing has terribly high rates.

We spent a little more than we should tight out of college... some of it is on for things for the house like the tv and furniture, some is small home improvement loans or credit card debt for needed home repairs, and some is just credit card debt from college when student loans weren't enough.

My goal is to have just the 15 year mortgage, student loans, and car loan left by the end of 2011.
 
I agree.
I've worked my butt off since graduating university...paid off all my debts and saved $50k.
I've decided to go out and spend $25k of it on a "new to me" 2006 Audi A4.

After thinking about it for some time now, life is too short to hold back on things you will enjoy. Dying a rich man would suck bigtime.
 
Originally posted by: Jumpem

House is 4.5%, car is 4.9%, student loans are 3.0-3.25%, credit cards are 0.0-3.99%, home improvement loan is 5.9%. Nothing has terribly high rates.

We spent a little more than we should tight out of college... some of it is on for things for the house like the tv and furniture, some is small home improvement loans or credit card debt for needed home repairs, and some is just credit card debt from college when student loans weren't enough.

My goal is to have just the 15 year mortgage, student loans, and car loan left by the end of 2011.
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Good job! You're getting there. You have set your goals are working towards them.

I congratulate you on being financially responsible, just keep in mind that not all debt is bad and if used wisely debt/loans can actually make you richer. Only when you really sit down and crunch the numbers will it make sense. IMHO paying off a low interest mortgage early is a bad idea as long as you can be responsible enough to invest the payment difference into something with higher returns than your interest rate.

Finance appreciating assets, lease depreciating ones. But you have to funnel money somewhere else for the difference to really work for you. Make your money make more money for you.
 
Like others have said, certain kinds of debt will actually end up making you more money in the long run. However, it's so much less stressful without things like CC debt weighing on your mind all the time. I bought a bed (the one I had was awful, the middle sagged at least 4 inches lower than the sides and hurt my back) and some computer goodies thinking I'd have money in the middle of that month to pay it all off. Then I got put in the hospital by a drunk driver and missed 2 weeks of income. I've been playing catch up all summer and it sucks. I'm working 70 hour weeks all this month before school starts to pay it all back and even though I'm exhausted, I feel great at the same time.

I think you're doing the right thing - congratulations!

Edit: So jealous of the 800-1000 into savings! I would've been sunk without my 2k rainy day account! Again, good work!
 
Good job. Financial freedom doesn't happen overnight and requires hard work. Just like your debt didn't accumulate all at once. It gets easier over time and you can reward yourself as you pass milestones.

I hate all debts. People like to say mortgage is good debt but to me, it's still debt and is something to be avoided if possible. There's nothing like being mortgage free and it's worth paying extra for IMO. I have a car note at 0%, and I HATE it. I've had the crazy idea to pay it off even at 0% because I hate making monthly payments. I have 7 more annoying payments to go.
 
Originally posted by: oldsmoboat
How is having debt being financially responsible?
Click to expand...

Paying it off when you have it is the very definition of financial responsibility.
 
Originally posted by: oldsmoboat
How is having debt being financially responsible?
Click to expand...

Count how many people you know that live in a house that's not rented that they've lived in less than 10 years, or that graduated college without a scholarship in the last 10 years and the number of people with a less than 3 year old car they don't owe on


you probably won't even have to take off your shoes to count that high
 
Originally posted by: oldsmoboat
How is having debt being financially responsible?
Click to expand...

Er, if you're investing the loan in something that will bring returns down the road (i.e. education, a home, etc.) debt can definitely be financially responsible. Fail.
 
Originally posted by: Naustica
I hate all debts. People like to say mortgage is good debt but to me, it's still debt and is something to be avoided if possible. There's nothing like being mortgage free and it's worth paying extra for IMO. I have a car note at 0%, and I HATE it. I've had the crazy idea to pay it off even at 0% because I hate making monthly payments. I have 7 more annoying payments to go.
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I did exactly that with my 0% car loan in May even though I had a year left on the note, and that was the best decision I could have made. Now I've got a few hundred a month extra to toss into savings, and I don't feel as financially tight as I did before.

Paying off the car loan was the first major step though... at this point I am 2 years into my 10 year plan to be completely out of debt, including paying off the house. Man, that'll be a sweet day indeed. 😀
 
Originally posted by: Naustica
Good job. Financial freedom doesn't happen overnight and requires hard work. Just like your debt didn't accumulate all at once. It gets easier over time and you can reward yourself as you pass milestones.

I hate all debts. People like to say mortgage is good debt but to me, it's still debt and is something to be avoided if possible. There's nothing like being mortgage free and it's worth paying extra for IMO. I have a car note at 0%, and I HATE it. I've had the crazy idea to pay it off even at 0% because I hate making monthly payments. I have 7 more annoying payments to go.
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The "must have" attitude of home ownership is what caused a big part of the economic turmoil we're in now. It's probably safer not to be locked in to such a huge commitment right now.

We had a good thread here some time ago debating the merits of home "ownership" vs renting.

 
Originally posted by: Jumpem
Originally posted by: oldsmoboat
How is having debt being financially responsible?
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College and house.
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$600 a month for house AND student loan?

Where did you go to school? Where did you live? I want to go there.
 
Originally posted by: spidey07
<snip>
Finance appreciating assets, lease depreciating ones.
<snip>
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This depends on how much/fast something depreciates and how much you are paying. I just bought a used car (4 years old 10k miles) for $9300, that's $300/month for 3 years. Or I could lease a car for around that for three years. Which is a better deal? Obviously I am going to have a car paid off which requires little upkeep at the end of my three years so owning works out better.

And to add to that I can pay it off faster with no penalties, for instance I am planning on paying it off in 6 months, therefore paying only $200 in interest.
 
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