Your parents ever talk to you about money?

[Kaido]

I think when people call cars "good debt," they are convinced that taking out a loan to purchase one is somehow a good idea.

Yeah, it gets tricky, but it helps to look at things on a timeline, since (not to be morbid) we're all going to die at some point. Along the way, we have needs. Unless you live in NYC or something, you'll need a car to get around. If you're busy & can afford it, buying a new car (or or leasing a car is nice because you typically have zero problems with them for a few years, thus reducing your downtime for when it goes into the shop. If you're mechanically inclined or on more of a budget, a used car may be a better idea. I had my share of beaters after high school because, well, that was the budget

I don't think it's necessarily a bad thing to have debt, at least the "good" debt kind that actively contributes to your life...a degree or certification, a reliable car, a good home...because eventually, we all drop dead & all the savings you have in your bank account is moot. I have a friend who married a girl who was taught all her life "save, save, save". Which is typically a good thing, but it ended up causing a lot of issues because she had anxiety about spending money, ever, at all, other than for basic stuff like going out to dinner on a date. So I'd say, dump mindless saving & adopt saving with goals in mind, and also with 'healthy' spending along the way (i.e. if you want a nice house in a safe neighborhood & it also fits your budget).

A loan is never (well, rarely) a good idea if you can avoid it, but it lets you do things that you couldn't otherwise do, and if you can pay back the loan in a responsible way, then I don't think there's any problem with that. I remember back in high school, I had class with a kid who bought a WRX. Like $500 a month. Full-time high school, part-time work, 100% paid for it himself. But then he got strapped with that for five years...had to live with his mom for years until he got a better job & was able to afford both the car & a place to live, food, etc. So in that case...maybe not such a good idea

 

[Kaido]

Don't go into debt for stupid frivolous crappie was the basic msg

qft

 

[ponyo]

I agree with your statement to extent. income is a very important part of wealth building, but expense control is just as important and requires different levels of attention depending on the number and habits of the people involved.

Are you married? I ask because your comment doesn't allude to you being married. I certainly could be wrong on your situation, but for me, having a healthy relationship has always involved a lot of communication on finances. A simple budget is a great (fairly passive) method of communicating. Our budget doesn't even involve spending buckets, but rather a goal, pre-loaded expenses, trends, and rates.

I make good money, but I have a number of friends who make significantly more. With the exception of one of them (he and his wife live like they are one step from being homeless), I am in a way better financial state then all of them. I also have another friend who makes significantly less than I do, but is thinking of early retirement in the next few years (at 32 ... some good investments and extreme expense control).

So while a few minutes a day may sound like a waste of time to you, I would argue that it is equally important to the income effort.

I'm married, but I'm sole income provider. My wife doesn't work. We do talk about finance, but we don't tell each other about every purchase. She's authorized user on my credit cards and she uses that for all her purchases too which I pay. I also give her lot of money when I get my bonus checks several times a year. I let her do whatever she wants with that money and don't ask questions. We don't budget but I do keep fairly large balance in the checking account for the piece of mind.

I'm self-employed so I care lot more about income and how to increase it. That's what I focus on. Small daily expenses don't concern me. I'm completely debt free with paid off house and cars so I have lot of flexibility. I worry more about how and where to best invest the extra money each month.

 

[PricklyPete]

I'm married, but I'm sole income provider. My wife doesn't work. We do talk about finance, but we don't tell each other about every purchase. She's authorized user on my credit cards and she uses that for all her purchases too which I pay. I also give her lot of money when I get my bonus checks several times a year. I let her do whatever she wants with that money and don't ask questions. We don't budget but I do keep fairly large balance in the checking account for the piece of mind.

I'm self-employed so I care lot more about income and how to increase it. That's what I focus on. Small daily expenses don't concern me. I'm completely debt free with paid off house and cars so I have lot of flexibility. I worry more about how and where to best invest the extra money each month.

Cool. Glad you guys have a system that works for you, but you have to admit that with with a budget, you're "margin" for you business would even be larger. Maybe not enough to concern you if you bring in a lot of revenue, but a budget will just about always help build wealth if you use it to limit your expenses.

Most people do not have the luxury to allow each other to spend freely with no checks. For most people, regular communication regarding finances between spouses is important to heading off fights over where money has gone. A budget is a great way to do this.

 

[Red Squirrel]

I don't really recall them talking too much about money, maybe when I was really young, maybe being told it's good to save etc but not more than that. I just kind of naturally picked it up. As soon as I was old enough to work I got a summer job, and while I did spend some money I knew I had to start saving up for college. While I was in college I'd work summers so I can save up for next college year, some toys, and eventually a house.

Graduated college with zero debts and almost enough money in the bank for a house downpayment. (helps that my parents had setup a scholarship for me, and I won lot of bursaries throughout my school years too). Worked full time for a year or two then had enough to buy a house and all the stuff needed. Lot of stuff did go on credit too, but I knew that all excess cash had to go towards paying that debt. It took me almost 3 years before I bought a TV and other stuff of that nature as I wanted to pay stuff off first.

Now I probably don't save as much as I should, but I do try to keep at least a small emergency buffer. I tend to go on spending spurts where I buy hobby related stuff or do a house project. I put more money than I care to admit into my server room for example. Decided to stop spending on that for a while. I told myself I need to find a way for that server room to make me money, then I can spend more money on it. Too bad ISPs don't allow server hosting.

 

[John Connor]

My parents always encouraged me to save and I even had a savings account. But I couldn't save one damn dime. LOL

 

[disappoint]

Money cannot buy you time. Nothing can buy you time. Once you spend time on something that time is gone forever.

Money buys you freedom and security.

What I meant by buying time, I meant being able to live the life you want today. While you're young and able. That's what I meant.

Of course, when the "Now" is spent it's over. But, it's nice being in control of the "Now."

Yes, that is called freedom.

 

[Bardock]

Of course they did why wouldn't they? The only thing I was really unprepared for was credit reporting and how all that works, there is a lot to it, what makes your score go up and down. Now I am 765 across the bureaus and have some cash in the bank so doing ok. They told me don't borrow what you dont need and definitely dont borrow what you can't pay back. I don't own property other than my car but I have zero debt.

One of my friends I met when traveling borrowed something like $5-6K to travel europe knowing they were never going to pay it off. I could never live my life this way. Only things I put on my card are car expenses, bills, and shopping (groceries and toiletries whatnot). Every year I build up cash back and use it for a snowboarding trip.

Keeps me just happy enough to continue in the rat race.