A drastic change from people born before 1985 compared to people born after 1985...

[trebuchet03]

ACT YOUR WAGE!!!

Bumper Stickered

[Peakster]

I've heard about this Dave Ramsay guy. Appearantly he used to own a boat-load of property by the age of 26 and then lost it all. I recollect him saying that he only put his Jaguar up for sale just hours before it was repossessed!

[steensn]

http://www.daveramsey.com/

That is his website.

Want a window sticker of "Act Your Wage"

http://www.daveramsey.com/shop/Windo...ge_P356C76.cfm

While I may not be supporting the economy right this very minute... I'll be one of the few keeping the economy a little less bubbly like in 5 years so some people can fall into another morgage crisis and we not go into a recession... you are welcome

The BEST way to put it into persepctive is to read all the "Stupid Tax" stories people fall into because they want to live like everyone else:

Our Monthly Car Payments Are Over $1,000

By Kerri in MO
The question for us should be, "What stupid thing HAVEN'T you done with your money?" However, our car situation is probably the biggest problem we are facing right now.

My husband used to work for a major auto company. We could get financed for ANY car we wanted because they took the payments out of his check. Well, we traded cars about every year or so. We started with a small car and worked our way through a mini-van and 2 Explorers before ending on a King Ranch Expedition.

Every time we traded, we were upside down. So by the time we financed the Expedition, we financed over $50,000. We still had an Explorer, so we were paying $2,000 a month on cars. We decided to trade the big cars in when we couldn't afford the gas. They talked us into trading both cars for TWO smaller cars so we could "divide the negative equity between the two."

We now owe $50,000 on two cars that are probably worth $25,000 at the most! We now pay $1,200 a month for a Focus and Fusion and have no way to get out of them since we owe so much. We are going to be paying our stupid tax for the next 4 1/2 years!

Read on!!!

http://www.daveramsey.com/etc/stupid...t&intCatID=116

[steensn]

Originally Posted by Peakster

I've heard about this Dave Ramsay guy. Appearantly he used to own a boat-load of property by the age of 26 and then lost it all. I recollect him saying that he only put his Jaguar up for sale just hours before it was repossessed!

He was actually a millionare twice before he starting "living like no one else." Now he is a millionare again, but not on borrowed money. If we were to go into a depression... he wouldn't have to change a thing about his life.

Why would you want to be in any other situatio right?

[Gone4]

Originally Posted by steensn

Man, I am an '82er and I def don't fit into the '85 or before crowd then. I do own a house, very cheap starter house. I do own two cars, both mpayed for with cash.

I think that is actually half of it: pay for everything with cash, except the house. I admire my grandfather for his fiscal responsibility, and paying for cars with cash was one of his biggest secrets for success. Put car payments into some safe account and collect interest rather than pay interest out to a company.

[LostCause]

For the things you can't pay with cash, pay off the debt as quickly as possible. Isn't usury a sin in the bible...

Debt is a sticky issue. The American economy has almost become a Ponzi scheme.

- LostCause

[JohnnyGrey]

Debt is a sticky issue. The American economy has almost become a Ponzi scheme.

It's been one since 1913.

[diesel_john]

i have bought 15 vehicles since 1966. 12 used. 2 demo's. 1 new. Paid cash for all. 4 were diesels. Still own 7 of them. All run. Still use 4 of them on the highway. All but 2 have over 130k miles. i have never made a car payment.
And i have no cars with collision insurance. Out of the 15, i have had collision insurance only twice.
So, not only do you save on interest but you don't have a bank telling you what insurance to buy.
Kidsdonottrythisathome, yourmileagemayvary.

[Tony Raine]

I just sat down and read this entire thread. Great read!

I was born in 1983 and I don't really fit in with most people I know, close to my age. I have always been good with money. I think it was because I was raised on a farm. When i had my first job (off the farm), half of each check went into savings. my first vehicle was dug out of a pasture with a tractor when i was 12 (84 Bronco II), and i still own it at 25.

i've only had 2 vehicles since then, and i still have one of those, too. both of my present vehicles are small, ford suv's (i traded a 98 ranger for the 01 explorer sport, neither were bought new). sure they aren't the best on gas, but the explorer was paid off back when gas prices were reasonable. i've always owned small trucks/suv's because it was a necessity on a farm. right now i spend around $250 a month on gas, but thats about to be cut in half. no payments, and insurance is pretty cheap.

when my buddies in high school were paying huge amounts of money to play sports, party, or "pimp" their "rides", i drove a cheap rig (left me stranded a few times, but walking is good for your health, haha), and took pleasure in more simple recreations like hiking and camping.

when my buddies in college were doing pretty much the same as the high schoolers, i continued to save money. i've had 3 rigs, some of my friends have had 10+. i lived in apartments until i realized i was wasting my money by renting.

after i got married, i moved right outside of city limits and found a smaller home on a decent chunk of land (to satisfy the farm-boy in me). going outside city limits got me a cheaper house than a similar one in-town, no "mortgage insurance", and a lower interest rate. i didn't need anyone to tell me that "adjustable rate" mortgages were a bad idea, common sense told me that.

now i 100% own 3 vehicles (counting my wife's car). i own a home paying less in mortgage than i ever did in rent. my wife has a college degree, i'm working on mine. And I really don't make that much money. less than 20,000, actually. besides mortgage, i have 0 debt.

one of my close friends is 30,000 in credit card debt

[adam728]

The problem with the comparison of pre and post 1985's are where these people are in their lives.

When I was 23 I was still in college, living on $7/hr, sharing a house with 3 other guys, eating Ramen and Little Tony's Pizza's. After getting a "real" job and making 3 times as much money I did what most (stupid) people do. Move out on your own and pay twice as much in rent, buy a new (used) vehicle, buy some toys (motorcycles, electronics, etc), and suddenly I am as broke as I was before, just with a ton more stuff.

Has nothing to do with what year I was born, just where I am at in life. Jeep's almost paid for, and I haven't bought any pointless extras in over a year now. Just paying rent (yuck, but temporarily living in this state), Jeep payment, and student loan.