Saddled up for an S550 test drive, left with my hopes dashed.
1/21/15, 06:34 PM
#81
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https://ycharts.com/indicators/personal_saving_rate
For Nov 2014:
US Personal Saving Rate is at 4.40%, compared to 4.60% last month and 4.30% last year. This is lower than the long term average of 8.40%.
If we keep this up, our children will pay the price and our country will no longer be the economic powerhouse that it has been during our lives.
1/21/15, 07:44 PM
#82
THE RED FLASH ------Moderator
Yes, I know... I get that response in real life as well sometimes, but it does help when the message is delivered with a compassionate tone which doesn't come across on the Internet very well.No judgement, harshness, or anything else is intended in these posts, rather I'm just trying to share what I think is sound financial advice. At least in my opinion.
Although I may not always agree with your posts/opinions, I do recognize that your intentions are good and are not trying to come across as being harsh or judgmental towards anyone personally, therefore I really appreciate and respect you for that..
Last edited by m05fastbackGT; 1/21/15 at 07:45 PM.
1/21/15, 08:03 PM
#83
THE RED FLASH ------Moderator
I'm simply suggesting that you should HAVE an IRA before you buy a new car. Lots of people don't have one and they spend all their money on shiny stuff that doesn't hold any value.If you don't have a retirement account setup, the very last thing anyone should be doing is buying a new car. Take that money and setup a retirement account, pay yourself first each month, THEN once that is done, if you have the money left over, go buy your nice new car and have fun.
Does that make more sense?
1/21/15, 08:44 PM
#84
THE RED FLASH ------Moderator
I don't undersatnd your math. You can't borrow $27.5k for $350 a month unless you borrow for 7 or 8 years at 0% interest which is impossible. I think it's nice that you can put away so much for retirement. But I the real world so many people just make enough each month to pay the bills, but I don't won't to get into a political discussion on this board. I'm also a believer in if you want something and can afford it just get it. Life is to short to worry long term.
Last edited by m05fastbackGT; 1/21/15 at 08:46 PM.
1/21/15, 09:13 PM
#85
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Ok, this won't be a popular post... but...
If you have to finance the new car, then you can't afford it. You can afford it when you can pay cash and not one second sooner.
Note 1: This does not mean you SHOULD pay cash, I financed my current truck at 1.9%, at that rate I'd be crazy not to... but I can pay it off any time I want...
If you HAVE to finance, then you shouldn't buy it unless you have no other choice because you have to have a working car. It is a depreciating asset, never buy those unless you have the money.
*takes father hat off now*
Note 2: You can do anything you want, I'm just telling you what is in your financial best interest, you're free to join the rest of America in debt.
Note 3: Houses are different, you have to have a place to live and they generally appreciate in value, so financing them does make sense, to a point.
If you have to finance the new car, then you can't afford it. You can afford it when you can pay cash and not one second sooner.
Note 1: This does not mean you SHOULD pay cash, I financed my current truck at 1.9%, at that rate I'd be crazy not to... but I can pay it off any time I want...
If you HAVE to finance, then you shouldn't buy it unless you have no other choice because you have to have a working car. It is a depreciating asset, never buy those unless you have the money.
*takes father hat off now*
Note 2: You can do anything you want, I'm just telling you what is in your financial best interest, you're free to join the rest of America in debt.
Note 3: Houses are different, you have to have a place to live and they generally appreciate in value, so financing them does make sense, to a point.
1/21/15, 09:15 PM
#86
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1/21/15, 09:45 PM
#87
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I'm simply suggesting that you should HAVE an IRA before you buy a new car. Lots of people don't have one and they spend all their money on shiny stuff that doesn't hold any value.If you don't have a retirement account setup, the very last thing anyone should be doing is buying a new car. Take that money and setup a retirement account, pay yourself first each month, THEN once that is done, if you have the money left over, go buy your nice new car and have fun.
Does that make more sense?
Here's one more way I look at it. 2014 GTs are great test cases. Look at the normal sales price of the new '14 (i.e., probably lower than MSRP, maybe a couple hundred over invoice). Then look at the same 2013 for sale used with say 10k miles. Not the asking price on AutoTrader, but the KBB or other value that is more likely to be the actual sale price.
If you can't afford to, or would be made violently ill to throw away that depreciation (picture yourself throwing 10k worth of $100 bills into the fireplace) you shouldn't buy new. Or, you see a '13 (used) and '14 (new) side by side and you are offered either for free. But the '13 comes with 10k in cash yet besides...which would you choose? Regardless of the "small" difference in monthly payments, this is pretty close to the choice you are making.
Last edited by KC3333; 1/21/15 at 10:05 PM.
1/22/15, 12:42 AM
#88
V6 Member
I didn't want to get into a political discussion here but if it wasn't for the majority of us that are just getting by, then people like FlyTexas wouldn't be so financially secure. The way I see it less money for the folks at the bottom means a lot more for those on top. I'm not an economist but I don't think you need to be see my point. Example, my wife works very hard at her job and makes good money but should be making so much more for what she does. Now her 2 immediate bosses make at least double of what see does, and do much less work. If they paid her more there would less for them, and they sure as hell ain't going to do that. Sometimes life is unfair but that's just the way it is. Again for people like FlyTexas they need to appreciate the situation their in and stop preaching to others about how to handle their finances.
1/22/15, 01:51 AM
#90
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I didn't want to get into a political discussion here but if it wasn't for the majority of us that are just getting by, then people like FlyTexas wouldn't be so financially secure. The way I see it less money for the folks at the bottom means a lot more for those on top. I'm not an economist but I don't think you need to be see my point. .
In the USA's free enterprise system, a successful person's success has nothing to do with your present lack thereof. They don't owe you ****. What a pathetic crybaby post. Life will give YOU what you FIGHT for, not what you
about. Work harder, work smarter. Quit feeling sorry for yourself and go kick some asz. Surround yourself with success stories and books. Dream big and fight harder for your goals. You can do it - like millions of other US citizens have - and millions of immigrants that risked everything who came (legally) to the 'Land of Opportunity' have! 
Last edited by cdynaco; 1/22/15 at 02:16 AM.
1/22/15, 03:25 AM
#91
A Man Just Needs Some....
I kinda agree with FlyTexas. Yes you should be able to afford it outright before you buy one. But that's just not the case with the majority of new mustangs sold. Hell the mustang isn't even produced for people who actually have a spare $40k sitting in the bank. The people that keep that kinda cash usually buy better cars. Lol. If everyone would take your advise, which is great advise btw, no new mustangs would be sold and the car manufacturers would go out of business.
The bottom line is go right ahead and finance your new mustang if you absolutely have to buy one. That is if you can comfortably swing the note. And while you are crunching numbers, price the loaded GT. If you can't swing the top line model, you realistically can't afford any of the models. If that extra $150 a month puts you in a bind, you truly can't afford the base model. So if the note is comfortable and you still can retain a cash cushion, go ahead and get that new mustang. If you MUST have it.
The bottom line is go right ahead and finance your new mustang if you absolutely have to buy one. That is if you can comfortably swing the note. And while you are crunching numbers, price the loaded GT. If you can't swing the top line model, you realistically can't afford any of the models. If that extra $150 a month puts you in a bind, you truly can't afford the base model. So if the note is comfortable and you still can retain a cash cushion, go ahead and get that new mustang. If you MUST have it.
1/22/15, 01:28 PM
#92
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No one can stick to a diet of just carrot juice (well, I couldn't anyway), so trying is pointless...Living on a budget can just suck, which is why I pay myself first, then I can spend the rest on anything I want. Everyone needs some chocolate cake in their lives, or life gets boring...
I just want to encourage people to eat their fruits and vegetables before their chocolate cake.
1/22/15, 01:50 PM
#94
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I debated if I should even reply to this... it probably goes outside of what belongs on this forum and I don't want to derail a happy forum.
On the other hand, I actually do want to help people. I firmly believe in "a rising tide lifts all boats". If you do better in your life, it improves us all. So helping other people ultimatly makes the world a better place for my children to live in.
So here goes...
I am well aware that many people feel that way.
You want to know a little secret? I'm not special. I put my pants on one leg at a time like you do.
The sad thing is that you and millions of other people have been sold a message that you're being held down. You're not, you're doing the holding yourself.
And it isn't political, both parties are guilty of it. Spending money you don't have is the quickest way to stay poor.
It also doesn't take a lot of money to start. I started my first business with $6K and built it up to a $2 million dollar a year company in 3 years. I'm not super smart, I don't know anything you don't know.
If I can do it, so can you.
I've heard that story many times...
Perhaps your wife should not be in that job, perhaps she should have her boss's job!
I've had many employees over the years and while they generally won't say it to my face, I still hear it anyway... "the boss makes so much money, he should pay us more".
If I had the chance, I'd reply, "then why don't you go start your own business and be the boss then?"
Regarding the preaching... perhaps it would be worthwhile to listen to people who have money rather than deride them. If you're taking your financial advice from people who don't have money, that's your first problem.
People like Donald Trump get made fun of by a lot of people, I hear it all the time. Well... he is rich and you are not, perhaps instead of making fun of him, you should listen to him. He doesn't even keep it a secret, he has written books (that you can get for free from the library) detailing what he does.
---
The truth is, if you work in a position that is fairly easy to replace, then you'll never really make good money. Does your boss have a stack of 10 resumes for every open position? If so, then he can pay less and get away with it. If he doesn't, then you have negotiating power.
Perhaps your wife is special and hard to replace. Has she asked for more money?
True story... about 10 years ago my bookkeeper was putting in lots of long hours and had taken on several new duties in the office, including bringing payroll in house (we had paid ADP up to that point).
At the time, I was paying her average wages for a bookkeeper for a company of my size (20 employees at the time). I had recently had the front desk girl leave and noticed how annoying that transition could be, it took 3 months before the front desk ran smoothly again (we went through two more girls before finding the right one).
So out of the blue, I gave my bookkeeper a $10K a year raise at her annual review. She was shocked, she said she honestly expected maybe a $2-3K raise. My reply, "you're valuable to me and my company, it would be painful to replace you, I want you to have no reason to look for employment elsewhere".
She stayed with me 3 more years until having to leave because her husband was relocated out of state. In the end, replacing her was just as painful as I had expected, but she did give me 6 weeks notice so that I had time to bring someone in for her to train.
I also do things that I hope make it easy to work for me. Is your son sick at school? You have to go pick him up? No worries, make up the time tomorrow, family always comes first, that never will affect your job. I've seen companies where it does and that is a shame.
Perhaps your wife is in a similar position and can have more money if she just asks?
On the other hand, I actually do want to help people. I firmly believe in "a rising tide lifts all boats". If you do better in your life, it improves us all. So helping other people ultimatly makes the world a better place for my children to live in.
So here goes...
I am well aware that many people feel that way.You want to know a little secret? I'm not special. I put my pants on one leg at a time like you do.
The sad thing is that you and millions of other people have been sold a message that you're being held down. You're not, you're doing the holding yourself.
And it isn't political, both parties are guilty of it. Spending money you don't have is the quickest way to stay poor.
It also doesn't take a lot of money to start. I started my first business with $6K and built it up to a $2 million dollar a year company in 3 years. I'm not super smart, I don't know anything you don't know.
If I can do it, so can you.
The way I see it less money for the folks at the bottom means a lot more for those on top. I'm not an economist but I don't think you need to be see my point. Example, my wife works very hard at her job and makes good money but should be making so much more for what she does. Now her 2 immediate bosses make at least double of what see does, and do much less work. If they paid her more there would less for them, and they sure as hell ain't going to do that. Sometimes life is unfair but that's just the way it is. Again for people like FlyTexas they need to appreciate the situation their in and stop preaching to others about how to handle their finances.
I've heard that story many times...Perhaps your wife should not be in that job, perhaps she should have her boss's job!
I've had many employees over the years and while they generally won't say it to my face, I still hear it anyway... "the boss makes so much money, he should pay us more".
If I had the chance, I'd reply, "then why don't you go start your own business and be the boss then?"
Regarding the preaching... perhaps it would be worthwhile to listen to people who have money rather than deride them. If you're taking your financial advice from people who don't have money, that's your first problem.
People like Donald Trump get made fun of by a lot of people, I hear it all the time. Well... he is rich and you are not, perhaps instead of making fun of him, you should listen to him. He doesn't even keep it a secret, he has written books (that you can get for free from the library) detailing what he does.
---
The truth is, if you work in a position that is fairly easy to replace, then you'll never really make good money. Does your boss have a stack of 10 resumes for every open position? If so, then he can pay less and get away with it. If he doesn't, then you have negotiating power.
Perhaps your wife is special and hard to replace. Has she asked for more money?
True story... about 10 years ago my bookkeeper was putting in lots of long hours and had taken on several new duties in the office, including bringing payroll in house (we had paid ADP up to that point).
At the time, I was paying her average wages for a bookkeeper for a company of my size (20 employees at the time). I had recently had the front desk girl leave and noticed how annoying that transition could be, it took 3 months before the front desk ran smoothly again (we went through two more girls before finding the right one).
So out of the blue, I gave my bookkeeper a $10K a year raise at her annual review. She was shocked, she said she honestly expected maybe a $2-3K raise. My reply, "you're valuable to me and my company, it would be painful to replace you, I want you to have no reason to look for employment elsewhere".
She stayed with me 3 more years until having to leave because her husband was relocated out of state. In the end, replacing her was just as painful as I had expected, but she did give me 6 weeks notice so that I had time to bring someone in for her to train.
I also do things that I hope make it easy to work for me. Is your son sick at school? You have to go pick him up? No worries, make up the time tomorrow, family always comes first, that never will affect your job. I've seen companies where it does and that is a shame.
Perhaps your wife is in a similar position and can have more money if she just asks?
1/22/15, 01:59 PM
#95
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John ! I totally agree 100% and I'm not ashamed to admit that I happen to be one of those people who have to live from paycheck to paycheck just in order to pay the bills.. It's unfortunate, but never the less for some of us it's reality whether we like it or not, so it is what it is
"Do you wish to continue living paycheck to paycheck, or do you wish to do things differently?"
If the answer is "paycheck to paycheck", then never mind and don't listen to me.
If the answer is "do things differently", let me know and I'd be happy to offer financial advice.
---
"If you always do what you've always done, you'll always get what you've always gotten."
You have to change to make things different in the future. The first step is to stop buying things that you have to finance. Which most people don't want to hear, but it is the truth.
Pay your car off and keep driving it, take the money that you used to give the finance company and put it into a Roth IRA invested in broad base index funds like the S&P 500 (Spiders, ticker symbol SPY)
That is how you stop living paycheck to paycheck. In truth, it doesn't matter if your paycheck is $1,000 a month or $10,000 a month, you can spend every penny of it and more. Take the first 10% of whatever you make and pay yourself, put it in long term savings. Never touch it, it isn't yours today, it will be yours when you're 65 (or 62 or 68, whatever).
Whatever is left, spend however you like, but always keep a positive net worth. Not counting your retirement savings, if you sell everything you have and pay off all debt, is the number a positive or a negative? If it is a negative, don't borrow money. If it is a positive, don't borrow so much that it becomes a negative.
1/22/15, 02:25 PM
#96
Legacy TMS Member
I think we should move all these posts to another thread.
That said, I think we should keep it going, because I think it's a topic that everyone could use some counseling on, including myself.
That said, I think we should keep it going, because I think it's a topic that everyone could use some counseling on, including myself.
1/22/15, 02:46 PM
#97
What in earth does this remotely have to do with the topic at hand. This is not a financial services thread or economics class. Good grief peeps. Spend your money however you like too. Spend on wine, woman and song I say.
Last edited by 2011 Kona Blue; 1/22/15 at 04:07 PM.
1/22/15, 03:14 PM
#98
I agree completely. I also agree with just about everything FlyTexas has said in this thread. I've tried to tell people the same things before but I usually get the same responses he has and I say "screw it, let them stay where they are" and I shut up.
Last edited by Rather B.Blown; 1/22/15 at 03:16 PM.
1/22/15, 03:37 PM
#99
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1/22/15, 03:38 PM
#100
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