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Thread: The real reason a lot of people are broke

  1. #1
    TC
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    The real reason a lot of people are broke


  2. #2
    Vulture of The Western World Eric's Avatar
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    Re: The real reason a lot of people are broke

    I've said so myself!

    Cars are money pits; and here's a clue for the world to ponder: I know dozens of guys who, like me, write about new cars for a living. Guess what? Most of us NEVER buy new cars - or fancy cars. We tend to buy older machines - and if we spend money on vehicles, it is usually on a hobby car (which, unlike a new car, might even turn out to be an investment - provided it ain't British, of course).

    My current vehicle is a '98 Nissan pick-up; bought it with appx. 65k on the clock - for $7,000 cash on the barrelhead. I intend to drive it for at least another three or four years before slapping "farm" tags on it - and then will use it for another five-plus years to haul wood, etc. around the property. It will thus have cost me afew hundred bucks annually over the time I've owned.

    I could, like most people, afford something newer, something fancier.

    But I'd rather live debt-free and have cash in the bank!


  3. #3
    DonTom
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    Re: The real reason a lot of people are broke


    But I'd rather live debt-free and have cash in the bank!


    Why live debt free? And why have cash in the bank? There are many MUCH better investments.

    The best bet for the middle income class to make a lot of money is to owe a lot of money on stuff such as real property.

    But you're right, new cars are a very bad investment. I have only bought one new car in my life and it was rather junky (1981 Capri, 2.3L). I have purchased many used cars that have lasted me more than twice the mileage.

    OTOH, every motorcycle I ever bought I purchased new. How about you?

    -Don-



  4. #4
    Vulture of The Western World Eric's Avatar
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    Re: The real reason a lot of people are broke

    "Why live debt free? "

    So that I am able to work because I want to - not because I have to; I don't owe anyone a damn penny; the house is paid for. So is everything else. We have money in the bank, too. In my book, that's as close to being genuinely free in this screwed-up country as one can be!

    " And why have cash in the bank?"

    To pay as I go; so that I never owe a shyster credit card company or bank a single damn penny in interest!

    " There are many MUCH better investments.""

    Such as?

    "The best bet for the middle income class to make a lot of money is to owe a lot of money on stuff such as real property."

    Big risk there; not my cup of coffee at all. When I buy more land - as I intend to - it will be cash on the barrelhead, chief!

    "OTOH, every motorcycle I ever bought I purchased new. How about you?"

    New sport bikes; lots of older bikes, dirt bikes, etc.

    But bikes are pretty cheap; $10k or so at the outside for a top-of-the-line 1,000 cc-plus sport bike... or about the cost of a 2-3 year-old Corolla!

  5. #5
    TC
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    Re: The real reason a lot of people are broke

    Quote Originally Posted by Eric
    I've said so myself!

    Cars are money pits; and here's a clue for the world to ponder: I know dozens of guys who, like me, write about new cars for a living. Guess what? Most of us NEVER buy new cars - or fancy cars. We tend to buy older machines - and if we spend money on vehicles, it is usually on a hobby car (which, unlike a new car, might even turn out to be an investment - provided it ain't British, of course).

    My current vehicle is a '98 Nissan pick-up; bought it with appx. 65k on the clock - for $7,000 cash on the barrelhead. I intend to drive it for at least another three or four years before slapping "farm" tags on it - and then will use it for another five-plus years to haul wood, etc. around the property. It will thus have cost me afew hundred bucks annually over the time I've owned.

    I could, like most people, afford something newer, something fancier.

    But I'd rather live debt-free and have cash in the bank!

    I too, have only ever bought one new car and that was a British disaster back in 1976.
    I presently have a 99 Honda Accord which has done 55,000 miles and I now don't have the need or inclination to drive very far anyway.

  6. #6
    Vulture of The Western World Eric's Avatar
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    Re: The real reason a lot of people are broke

    "I too, have only ever bought one new car and that was a British disaster back in 1976.
    I presently have a 99 Honda Accord which has done 55,000 miles and I now don't have the need or inclination to drive very far anyway."

    Welcome to the sane (and smart) minority! We have escaped the agit-prop of our consumerist society....

  7. #7
    DonTom
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    Re: The real reason a lot of people are broke

    "Why live debt free? "

    So that I am able to work because I want to - not because I have to; I don't owe anyone a damn penny; the house is paid for. So is everything else. We have money in the bank, too. In my book, that's as close to being genuinely free in this screwed-up country as one can be!

    This house was once paid off too. Because of having no deductions, I bought the other house in Reno, just so I could pay some interest and more property tax. This reduced my federal and state income tax by almost $9,000.00 per year and besides that, the Reno home went up in value at least one hundred thousand dollars since I bough it less than four years ago (and that's after the ten percent decrease in Reno property values during the last year). I am glad to know that I am paying $9,000 less per year for Iraq than I would be otherwise.

    " There are many MUCH better investments.""


    Such as?

    Real property, if you hold on to it for a while. And Tom has done very well with rare currency in the last few years.


    I never owe a shyster credit card company or bank a single damn penny in interest!

    Same with me. I only pay mortgage interest, which is deductible.



    So that I am able to work because I want to - not because I have to;

    I don't mind going to "work" since my job is a true sinecure and I watch TV, movies and play around on-line and etc. And I only have to be there three nights per week. Tom has been retired for a couple of years and is getting a bit bored with it, especially the few nights I am at work.

    Yesterday, we (Tom, me and the doggies) drove the convertible down the coast. It was a very nice sunny warm day.

    I have to go to "work" tonight. I may not ever retire. I plan for it, but set no date.

    -Don-


  8. #8
    Vulture of The Western World Eric's Avatar
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    Re: The real reason a lot of people are broke

    I think we are pretty much on the same page!

    We could invest in real estate, etc. - but we are financially secure and have enough money as it is to completely cover all our expenses, with ample left over - so why mess with it?

    I have reduced my income by about $50k to get us into a lower tax bracket; because of that, we pay a helluva lot less in federal/FICA taxes than we used to in DC - an amount equal to whatever tax deduction we'd get from mortgage interest - and then some!

    I'm pretty comfortable with what we have/where we are in life; I am basically a pretty simple guy - as you can see from my attitude toward cell phones and computers!)

  9. #9
    DonTom
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    Re: The real reason a lot of people are broke

    I'm pretty comfortable with what we have/where we are in life; I am basically a pretty simple guy - as you can see from my attitude toward cell phones and computers!)

    Yesterday was one of those very rare days we needed to use the cell phone. Tom was bringing some old watches to be repaired, to a guy he knows in "Carmel-by- the- Sea" (where Clint Eastwood lives). He does this for a hobby, I doubt he needs the few dollars he earns from repairing old Rolex watches.

    There are no street address numbers down there! We've been to this guy's home before, but it was many years ago. And one five million dollar house looks just like the other to us <g>. We had to use the cell phone to get directions to his home.

    We did notice one small dumpy house for sale there. The price was $3,865,000.00. That must have been the smallest house anywhere near that area. Only 3,450 SF on a 11,000 SF lot. There are many houses in San Francisco that sell for a lot more than that!

    -Don-




  10. #10
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    Re: The real reason a lot of people are broke

    You know, I can't tell red from green. How about using some other color changes to indicate quotations, or better yet, use the quote feature of the software to show us what is quoted material?

    Quote Originally Posted by DonTom
    I'm pretty comfortable with what we have/where we are in life; I am basically a pretty simple guy - as you can see from my attitude toward cell phones and computers!)

    Yesterday was one of those very rare days we needed to use the cell phone. Tom was bringing some old watches to be repaired, to a guy he knows in "Carmel-by- the- Sea" (where Clint Eastwood lives). He does this for a hobby, I doubt he needs the few dollars he earns from repairing old Rolex watches.

    There are no street address numbers down there! We've been to this guy's home before, but it was many years ago. And one five million dollar house looks just like the other to us <g>. We had to use the cell phone to get directions to his home.

    We did notice one small dumpy house for sale there. The price was $3,865,000.00. That must have been the smallest house anywhere near that area. Only 3,450 SF on a 11,000 SF lot. There are many houses in San Francisco that sell for a lot more than that!

    -Don-




  11. #11
    DonTom
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    Re: The real reason a lot of people are broke

    "You know, I can't tell red from green."

    Then how did you know it was red and green? BTW, I often cannot tell blue from purple or violet. I used to think they were all the same colors

    Do traffic lights give you a problem too?

    -Don-

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    Re: The real reason a lot of people are broke

    Quote Originally Posted by DonTom
    "You know, I can't tell red from green."

    Then how did you know it was red and green? BTW, I often cannot tell blue from purple or violet. I used to think they were all the same colors

    Do traffic lights give you a problem too?
    I can tell blue and yellow, so the colors I can't tell apart must be red and green.

    Traffic lights are obvious: the red is at the top. And the red contains a lot of yellow (I find red and amber look a lot alike from a distance), and the green contains a lot of blue. And (as I said already) I can tell blue from yellow.

    I worked for the US Army once, at New Cumberland, PA. On the depot, all of the building signs were dark green with red lettering. I couldn't read any of them from the street. It was possible to tell that the green was darker than the red, but they just bled into each other, otherwise.

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    Senior Member misterdecibel's Avatar
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    Re: The real reason a lot of people are broke

    Quote Originally Posted by Eric
    I know dozens of guys who, like me, write about new cars for a living. Guess what? Most of us NEVER buy new cars - or fancy cars.
    Of course not, as long as you have access to test cars...

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    Re: The real reason a lot of people are broke

    >>Of course not, as long as you have access to test cars... <<

    There are some folks who can well afford a new car once in a while and still live very comfortably out of debt! Granted, a used car is a better value, but nothing beats NEW, no matter what the product is!



  15. #15
    DonTom
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    Re: The real reason a lot of people are broke

    "but nothing beats NEW"

    I only purchased one new car in my life, a 1981 Mercury Capri, purchased in 1981. It fell apart a lot faster than most of the used cars I have owned.

    I still remember it's first problem. At about 20,000 miles, I could not shift into reverse (manual tranny). Some bolt in the tranny came lose. After that, it was one thing after the other.

    But the timing belt did last a few hundred miles past the 60K change before it broke and left me stuck. At least it was not an interference engine.

    BTW, it's obvious these cars were junky because for a while, it seemed to be the most common car on the road. A few years later, there seemed to be none.

    -Don-.



  16. #16
    Vulture of The Western World Eric's Avatar
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    Re: The real reason a lot of people are broke

    Quote Originally Posted by misterdecibel
    Quote Originally Posted by Eric
    I know dozens of guys who, like me, write about new cars for a living. Guess what? Most of us NEVER buy new cars - or fancy cars.
    Of course not, as long as you have access to test cars...
    I didn't buy new before I had access to press vehicles; and in all seriousness, I would not change my habits one bit even if I didn't get press cars to drive. I own a '98 Nissan pick-up with 100k-plus miles; it's a great truck, it's paid-for (long ago) and I am quite happy with it. I intend to keep driving it for at least another five years. And when I get another vehicle, it will probably be something like an old VW Thing, F100 pick-up.. or maybe another used Nissan pick-up!

  17. #17
    Vulture of The Western World Eric's Avatar
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    Re: The real reason a lot of people are broke

    Quote Originally Posted by Jim Rose
    >>Of course not, as long as you have access to test cars... <<

    There are some folks who can well afford a new car once in a while and still live very comfortably out of debt! Granted, a used car is a better value, but nothing beats NEW, no matter what the product is!
    A year or three-year-old used car sure does! Someone else ate the (massive) depreciation - and the slightly used car will likely look, drive and in just about every respect be just like a brand-new car.

    I could afford to buy a new car if I chose to - I just choose not to!

  18. #18
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    Re: The real reason a lot of people are broke

    >>I only purchased one new car in my life, <<

    That's like saying that I tried sex once in my life and the experience was bad---

  19. #19
    Vulture of The Western World Eric's Avatar
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    Re: The real reason a lot of people are broke

    Quote Originally Posted by Jim Rose
    >>I only purchased one new car in my life, <<

    That's like saying that I tried sex once in my life and the experience was bad---
    Now when it comes to sport bikes, I do like to buy new as they tend to get thrashed by whoever rides them first.. and I want that person to be me!

  20. #20
    mrblanche
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    Re: The real reason a lot of people are broke

    The Car Guys have a basic rule: Never buy a used sports car or pickup truck, because you never know how they were treated in their previous life, and mistreatment can show up later.

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