Kelly • 9 years ago
Some of you points are logical, sound advice. Unfortunately some are not so logical or sound.
Most self made millionaires in the US buy used cars (pick-up trucks for that matter.) And not only is a high cable bill sucking the money out of your bank account, co sider what sitting on your butt and watching that TV is taking you away from in other aspects of your life!
But I disagree with encouraging peoe to be underinsured as a way to save money, or driving miles out of the way to save a few cents per gallon on their gas. When you calculate the cost per mile driven, not to mention lost time, it usually doesn't pay off.
Otherwise, I'd like to have a beer with you. My treat :)
Steve • 10 years ago
I thought it was a good article, until I got to #4. Once I saw that advice I couldn't take this serious anymore.
Dumbest_advice_ever • 9 years ago
I know right get in debt with yourself to get in even more debt all while in no way benefitting your credit score and robbing yourself of compounding interest on your future retirement...Makes perfect sense. But hey you get a down payment for a house that you totally can't afford!
Kelly • 9 years ago
“Those who understand compound interest are destined to collect it.
Those who don’t are doomed to pay it.“
Advising to tap into the 401k is only good advice for the mortgage broker and real estate agent, not so much for the home owner. Who wrote this article? Ohh, that's right...
Guest • 9 years ago
Nice, interesting write-up.
Thomas Watson • 9 years ago
It is really one of the biggest hurdles in owning a house. So thanks for the great tips.
What's wrong with renting??
People should save their money until they have 20% or more. Cash only is ideal! Learn from the past people!
Of course they look at me like I'm crazy when I suggest they cut a $100+ a month cable bill. Or drive a car that is 3 years old. Or only fill up their tank from the cheapest place according to GasBuddy. Or get $25/month budget car insurance from Insurance Panda. Or cook their own food instead of spending a hundred a week on restaurant food (or far more if they like the bar).
You live exactly like people did in the 1970's, and suddenly there's tons of money. Usually moderate earners can save $500 a month on these types of luxuries. May not seem like much, but it's usually the difference between being in financial trouble, and at least not losing ground.
My point is that it's so odd that people seem to forget all the little things we have, buy, use - that they didn't in the "better" times. That stuff isn't free.