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Escaping the mindset of a poor person, help please.


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#21 Carolina Husker

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Posted 21 January 2013 - 04:08 PM

I don't understand this idea of never using credit cards. As long as you don't buy more than you could afford to pay with cash anyway, THEY PAY YOU TO USE THEM.

#22 pstall

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Posted 21 January 2013 - 04:28 PM

if the rewards are worth it, sure. cc can be a good tool.

#23 Mrs Pantherfan

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Posted 21 January 2013 - 04:34 PM

I understand all this saving and whatnot...but why not go out and have some fun! yes, save..put money away...it's important blah blah blah....but if you and and your wife and struggled and now you have a bit more? Go to the movies..buy some new clothes..buy your wife something shiny! Do something nice for yourselves! You only live once...make the most of it!

#24 pstall

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Posted 21 January 2013 - 04:45 PM

I understand all this saving and whatnot...but why not go out and have some fun! yes, save..put money away...it's important blah blah blah....but if you and and your wife and struggled and now you have a bit more? Go to the movies..buy some new clothes..but your wife something shiny! Do something nice for yourselves! You only live once...make the most of it!



yep. if anything, if you splurge, just make sure it's on a memory. a big trip etc. not the 92" tv for the man cave.

thats how i guage my big ticket items. can we do this every year and how big a memory will it make? and go from there.

#25 Donald LaFell

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Posted 21 January 2013 - 05:02 PM

i would stay frugal!

#26 frash.exe

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Posted 22 January 2013 - 03:00 AM

Vegas

#27 stirs

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Posted 22 January 2013 - 09:05 AM

Delhommey advice was very good.

Don't put "savings" in the bank drawing 1% while still having debt which charges you 10-20% interest. Obviously going in the hole there.

Look at all your debts. Pick one, pay it off. Take the monthly payment you were paying and then apply it to the next one. Knock em off one by one. The poor mindset will be transformed by your success.

Being out of debt is a wonderful feeling. Then, all the debt money is going into your bank account each month. Soon, you can buy things with cash. You have no idea what kind of car deals you can get when you offer cash rather than the bad credit stuff they are used to. You can take advantage of bargains, etc.


Glad you are headed down this path. Not saying you can't spend on some stuff, but the out of debt feeling is pretty good in itself.

#28 Epistaxis

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Posted 22 January 2013 - 01:12 PM

Lots of good advice here.

Something MPF mentioned has been what is giving me pause lately.

I wonder if all my frugality is going to leave me with regret in the future.

Perhaps there is something to be said for dying penniless...like you timed it just right and crapped out at the finish line.

Dunno, not even sure I can do it since my nature is "frugal"...which is just churchin up being a cheapass bastard.

#29 frash.exe

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Posted 22 January 2013 - 05:03 PM

But seriously mutual funds

#30 thefuzz

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Posted 24 January 2013 - 10:49 AM

I don't understand this idea of never using credit cards. As long as you don't buy more than you could afford to pay with cash anyway, THEY PAY YOU TO USE THEM.



Many people can handle it like you described, but sooooo many more cannot. That's how they PAY YOU to use them.

Credit cards for many are used for non essential items...don't have the cash this month to take Mom and Dad to the chop house for their birthdays....put it on the card. Have a bad month at work, need new cleats for football for the son, and new tires....put it on the card.

Can't remember what the % is, but it's crazy high, how many Americans are two weeks from being broke if they don't have a paycheck.

IMO it's safer to stick with cash, and to keep 6 months living expenses on hand and not use credit.

How many homes were foreclosed on that were paid off in full?


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