Post # 62
No I don’t. And the thing is I certainly could, but I just choose not to. Sometimes I want something that I can clearly afford and catch myself saying things like “oh, I’ll just wait til I get paid.” I have no clue why I do that. That said, I do not use credit cards ever. My only open debt is my mortgage and my student loan.
Post # 63
No! With that mentality, that’s how people get into more debt!
Post # 64
I think these threads are always skewed toward the people with no debt because the people with debt are embarrassed and know they’ll be judged. We have debt – I’m not proud of it but we’re paying it off.
Post # 65
@foreverthine: I’m wondering how you all do it. My Dear Fiance and I don’t make a lot of money each, he never will and I’m just starting out in my career. We barely have a life, we just can’t afford it. He has high prescription bills, and when we get clothes once every 6 months it is a stretch. I just calculated and our living expenses are 70% of our net income. Is this abnormally high? We have quite cheap rent for where we live, and 8 months ago we even cut our cable to save money.
n my previous marriage, I was lucky if I saved $1000 by the end of the year. And my ex always somehow talked me into spending it all on something new for him (bike, skis, etc). Things are different now, but I wanted to say I totally know what you mean by “how do all these people do it?”
I don’t think there’s enough info to tell whether or not 70% of your income is a lot or not. You could be saving the same percentage as other people, but when you take a percentage of a different income, that leads to all sorts of numbers.
Post # 66
No. That would make me very uncomfortable. I need a buffer zone, I don’t want to ever get close to spending all that we have. If we do, it will be a true emergency.
We plan to make as large a downpayment as possible when we buy our home but we’ll still almost certainly have to carry a (small) mortgage, and I hate that. I hope that will be the only time I feel I’m spending beyond my current means.
Post # 67
I get what you’re saying. We’re getting at the same thing. This thread wasn’t asking about good and bad debt, it was asking about spending cash you have on hand vs cash you do not have.
I get that, but that’s not mentioned in the poll. It only talks about spending cash you have vs cash you do not have. Even if it’s “good debt”, it’s not cash you have and thus the poll is misleading.
And I also don’t think “good debt” and “bad debt” can be that easily defined. It may be good to take out a student loan for certain programmes with job opportunities for certain people, but is it still good debt if you took out tens of thousands for a programme and have very few job prospects in that career and now have debt for decades? It could easily be bad debt in my opinion. Same with mortgages. You’ll pretty much always have to pay to live somewhere, but depending on your situation getting a mortgage may not be the best idea, and thus it would be bad debt.
Post # 68
At this point, only 40% of respondents say they pay-in-full for everything, which doesn’t match the theme of a lot of these posts. I’m guessing a number of bees are staying quiet.
Fiance never, ever had any debt other than his mortgage. Bought his cards in cash. Only used credit cards for the points, etc. When I met him, I had been unemployed/temping on and off for a few years and seriously would return my soda bottles to get spending money. So yes, I used my CCs and prayed that I wouldn’t get sick or be unable to work. When you’re not really bringing anything in, your definition of “big” expenses changes. I did bank on the money that I expected to come in every week, either unemployment (capped at $350/week pre-tax) or temping (which was better, depending on the job). For example, sometimes you live in an apartment where it costs more to break a lease than it would be to pay more each month — especially if you don’t have access to chunks of money, etc. I kept up with my payments, but it was hard to get ahead.
Fiance doesn’t understand this (nor the concept of layaway). I have been working full-time for years now and making more money, so I’m not in the same place mentally or financially. Based ONLY on my interactions with him, it seems like some people who’ve never had to worry about debt don’t understand what it’s like to worry about debt. There can definitely be a psychological aspect and “art” of balancing to it that is trickier than just not spending anything until the cash is in hand. It’s not always that easy or logical.
Post # 69
Other than our mortgage — never. If we can’t afford it we don’t spend it.