take my money.
- Thread starter fiver
- Start date
smokeywolf
Well-Known Member
Only place I've run into in the last couple of decades that doesn't take cash is at the fuel pumps at Costco.
A little something I found out about banks: If you deposit $1000 in a savings account they can then loan out up to $16,000 dollars. I was talking to a banker once and was asking him about it. He said "We don't do that at this bank, we only loan out 8 times the money". I guess that just amplifies the problem when they have a run on a bank. It also shows why banks can make so much money on interest.
F
freebullet
Guest
Well...dang.
Fiver
I bet my bank would let you pay that cash onto my mortgage
. Let me know if you wanna try.
We go beyond cards, checks, & cash. We've accepted lead, brass, guns, vehicles, & other trade goods for payment. Cash would get you the best discount though.
Fiver
I bet my bank would let you pay that cash onto my mortgage
. Let me know if you wanna try.We go beyond cards, checks, & cash. We've accepted lead, brass, guns, vehicles, & other trade goods for payment. Cash would get you the best discount though.
fiver
Well-Known Member
I made the trip down to my local bank, and wired them the money.
it looks like with everything going through and their fee's it'll be cheaper than this months interest.
I don't think they like me taking that amount of money out of my account.
and I know the loan company isn't too happy with me paying the house off in just over 6 years.
now if someone will just buy my property down in Utah..
it looks like with everything going through and their fee's it'll be cheaper than this months interest.
I don't think they like me taking that amount of money out of my account.
and I know the loan company isn't too happy with me paying the house off in just over 6 years.
now if someone will just buy my property down in Utah..
Pistolero
Well-Known Member
I totally get the 'debt free' thing, and paid off my previous house in 15 years and lived totally
debt free for decades. This new house in the country, with insanely low interest rates, changed
my thinking on that loan.
I have everything paid off except the new property in the country. My investments are steadily
returning 6-9% or a few even better, some years a bunch better, so decided that rather than paying cash
for the new place, got a 3.75% loan for 30 yrs. No intent to pay that off early. I can do it any time I
get nervous, but I got a 5+% gain on the money in investments over the loan, and paying back with steadily
inflating dollars. Periodically consider paying that off, and have zero other debt, pay cash for
cars, etc. but that is a big chunk of income to give up. For every 50K still staying in investments rather
than the house, I can earn at least $2,500/yr and some years triple that, and there are a significant number
of those "50Ks" in the house loan. Can't see giving up many thousands of bucks per year for 30 years to pay
off that loan early.
This is TOTALLY at odds with my thinking when I had a 12% loan and little money in investments and little
knowledge how to do good, safe investing. Then I was working as hard as I could, paying extra to get that
loan finished off in 15 yrs rather than 30.
Bill
debt free for decades. This new house in the country, with insanely low interest rates, changed
my thinking on that loan.
I have everything paid off except the new property in the country. My investments are steadily
returning 6-9% or a few even better, some years a bunch better, so decided that rather than paying cash
for the new place, got a 3.75% loan for 30 yrs. No intent to pay that off early. I can do it any time I
get nervous, but I got a 5+% gain on the money in investments over the loan, and paying back with steadily
inflating dollars. Periodically consider paying that off, and have zero other debt, pay cash for
cars, etc. but that is a big chunk of income to give up. For every 50K still staying in investments rather
than the house, I can earn at least $2,500/yr and some years triple that, and there are a significant number
of those "50Ks" in the house loan. Can't see giving up many thousands of bucks per year for 30 years to pay
off that loan early.
This is TOTALLY at odds with my thinking when I had a 12% loan and little money in investments and little
knowledge how to do good, safe investing. Then I was working as hard as I could, paying extra to get that
loan finished off in 15 yrs rather than 30.
Bill
fiver
Well-Known Member
not really to good at handing out money.
I figure at this point if I get back to work my pre and post tax money gets to actually do something without a bunch of outgoing cash each month.
I can fully max out any pre-tax savings, and still have the ability to lay some aside again.
I probably should have just done this back in April since my interest coming in and my interest going out was barely keeping pace with each other.
I figure at this point if I get back to work my pre and post tax money gets to actually do something without a bunch of outgoing cash each month.
I can fully max out any pre-tax savings, and still have the ability to lay some aside again.
I probably should have just done this back in April since my interest coming in and my interest going out was barely keeping pace with each other.
KHornet
Well-Known Member
I worked for the FDIC during the Farm Crisis, (Post Jima Carter). I ran a property management section, and that included inspection of collateral, repossession, and sale of collateral via auction, etc.
It was a difficult period for a lot of people. People had to learn that all bankers were not Gods, and that many of them had clay feet. Helped close a few banks! Learned that the old weather worn
saying amongst loan officers was "I never made a bad loan, just made good loans that went bad". Bankers and loan officers are the friends of no one but the financial institutions. They will push the
unsuspecting loan applicant into taking out a loan twice or more than the applicant want's or needs. Over extension of loans is in my opinion a major cause of being driven into bankruptcy.
Paul
It was a difficult period for a lot of people. People had to learn that all bankers were not Gods, and that many of them had clay feet. Helped close a few banks! Learned that the old weather worn
saying amongst loan officers was "I never made a bad loan, just made good loans that went bad". Bankers and loan officers are the friends of no one but the financial institutions. They will push the
unsuspecting loan applicant into taking out a loan twice or more than the applicant want's or needs. Over extension of loans is in my opinion a major cause of being driven into bankruptcy.
Paul
RicinYakima
High Steppes of Eastern Washington
It is really wonderful to read about how you folks are handling finances! Everyone has to be comfortable with their decisions.
Pistolero, I understand your situation, but my house was on a 10.5% loan, and after living here 40+ years with a shop full of 40+ years of accumulations, I ain't never moving!
Fiver, my folks were young married during the Great Depression and debt is worse than sin! You can't pay cash for it, you don't need it. Go hungry and get another job!!!
KHornet, I still live in an agricultural area, and they still push loans more than needed. Farm land is not being made anymore! It will always have value as long as people want to eat.
The Greenback is only good because people have faith in the government, but the government gets to decide what that greenback is worth.
Pistolero, I understand your situation, but my house was on a 10.5% loan, and after living here 40+ years with a shop full of 40+ years of accumulations, I ain't never moving!
Fiver, my folks were young married during the Great Depression and debt is worse than sin! You can't pay cash for it, you don't need it. Go hungry and get another job!!!
KHornet, I still live in an agricultural area, and they still push loans more than needed. Farm land is not being made anymore! It will always have value as long as people want to eat.
The Greenback is only good because people have faith in the government, but the government gets to decide what that greenback is worth.
Chris
Well-Known Member
That is dead certain truth.
What I do: I got out of debt and I'm staying out. Had to do it when we were younger but never again.
fiver
Well-Known Member
Littlegirl and her husband went in to get a VA loan and when it come back they had been approved for 250-K
I just looked at them and said no chance.
they were both working, but just making 8-9$ an hour each.
their interest rate is outstanding at about 2.7% or so, but how they were going to make payments on that much money was beyond my figuring.
someone in the office had to be crunching some numbers somewhere that had to involve some Obama math.
her hubby was starting to look at some places in the 180+ range and she shut him down right quick.
she knew it was/is a sellers market where they were looking and quickly shifted to a less aggressive market.
this gave her time to assess each place on it's merits and negotiate the selling price.
I guess treating kids like adults and showing them stuff actually pays off at some point down the road.
I just looked at them and said no chance.
they were both working, but just making 8-9$ an hour each.
their interest rate is outstanding at about 2.7% or so, but how they were going to make payments on that much money was beyond my figuring.
someone in the office had to be crunching some numbers somewhere that had to involve some Obama math.
her hubby was starting to look at some places in the 180+ range and she shut him down right quick.
she knew it was/is a sellers market where they were looking and quickly shifted to a less aggressive market.
this gave her time to assess each place on it's merits and negotiate the selling price.
I guess treating kids like adults and showing them stuff actually pays off at some point down the road.
Pistolero
Well-Known Member
Holy Cow, fiver. Either $180 or 250K monthly payments, even at that low interest, would be pretty
healthy for that income level. Better to trade up in a few years that get swamped if someone loses a
job. Also, if they start saving and investing now, they can secure their retirement. Sounds like littlegirl
is using her head.
Our first home cost $67K, and my rule was to not take on a house price which I couldn't safely pay on my
salary not including my wife and my wife was working at about 80% of mine. This is why we could pay
it off in 15 yrs. We put away 25% or more of our gross salaries for many decades, alwas scared of being
poor in my retirement, always have lived well below my means. Friends had new cars every couple of years,
bought our first new car when we hit 35, drove it for 12 yrs, did all my own work, still do unless it is something
really crazy or AC where I don't have a the vacuum pump.
RicinYakima - my loan was refinanced from 12% down to 9.5% after 4 or 5 years, and we still worked
to pay it off ASAP. There is no way to reliably make enough on investments to sensibly stay ahead of
a 9.5% loan. I wanted OUT of debt. Today, with a great financial advisor, I know I can beat the 3.75% loan by
enough to make it worthwhile, but it still took me a long time to convince myself, after 35 yrs of "debt is always
bad" to do this deal. I still may just pay that loan off one day if I get itchy.
healthy for that income level. Better to trade up in a few years that get swamped if someone loses a
job. Also, if they start saving and investing now, they can secure their retirement. Sounds like littlegirl
is using her head.
Our first home cost $67K, and my rule was to not take on a house price which I couldn't safely pay on my
salary not including my wife and my wife was working at about 80% of mine. This is why we could pay
it off in 15 yrs. We put away 25% or more of our gross salaries for many decades, alwas scared of being
poor in my retirement, always have lived well below my means. Friends had new cars every couple of years,
bought our first new car when we hit 35, drove it for 12 yrs, did all my own work, still do unless it is something
really crazy or AC where I don't have a the vacuum pump.
RicinYakima - my loan was refinanced from 12% down to 9.5% after 4 or 5 years, and we still worked
to pay it off ASAP. There is no way to reliably make enough on investments to sensibly stay ahead of
a 9.5% loan. I wanted OUT of debt. Today, with a great financial advisor, I know I can beat the 3.75% loan by
enough to make it worthwhile, but it still took me a long time to convince myself, after 35 yrs of "debt is always
bad" to do this deal. I still may just pay that loan off one day if I get itchy.
fiver
Well-Known Member
they settled in a 4 bed 2 bath place for about 112-K.
I explained how any extra payment now brings down the amount of money they would have to pay in the long term.
I was really surprised at the interest rate, which is actually the higher of the two options they had.
I have no idea what the wife does with her money, but the words or spend wisely save is not in her vocabulary.
I explained how any extra payment now brings down the amount of money they would have to pay in the long term.
I was really surprised at the interest rate, which is actually the higher of the two options they had.
I have no idea what the wife does with her money, but the words or spend wisely save is not in her vocabulary.
Pistolero
Well-Known Member
Just figuring the difference in total dollars spent over a 30 yr vs a 15 yr loan is usually eye opening. I did
mine years ago and realized that I could save a real $100K in total cost by adding around $200/month
to my house payment and stopping it at 15 years. AND THEN, I get the whole $1000+ a month to invest
for 15 years! That was a real eye opener for me, super glad I worked it out. This was before it was easy
to plug it into a spreadsheet and figure it out. Had to do some difficult math, dig out my engineering
economics textbook and remember how to do mortgage series calculations.
Well said, Brad. I was tight as a tick until I retired. Now that I am absolutely certain that I can make it
work, I can relax a little bit and I realize that nobody lives forever, so buying some tools and toys, within limits,
of course. Stuff that I denied myself when putting every spare buck into retirement savings. Which is why I had a
$700 lathe and $800 mill until I retired.
Bill
mine years ago and realized that I could save a real $100K in total cost by adding around $200/month
to my house payment and stopping it at 15 years. AND THEN, I get the whole $1000+ a month to invest
for 15 years! That was a real eye opener for me, super glad I worked it out. This was before it was easy
to plug it into a spreadsheet and figure it out. Had to do some difficult math, dig out my engineering
economics textbook and remember how to do mortgage series calculations.
Well said, Brad. I was tight as a tick until I retired. Now that I am absolutely certain that I can make it
work, I can relax a little bit and I realize that nobody lives forever, so buying some tools and toys, within limits,
of course. Stuff that I denied myself when putting every spare buck into retirement savings. Which is why I had a
$700 lathe and $800 mill until I retired.
Bill
RicinYakima
High Steppes of Eastern Washington
You guys have it figured out, that is for sure! The last ten years I saved nickels and dimes; bought a nice Atlas 6" by 32" lathe and a Chinese mill. Didn't eat out at restaurants for lunch, didn't have $4 lattes and didn't stop at the bar on the way home. Also had enough cash to buy a custom C. Sharps Arms 40/50 SS and 50/70 all on 20 to 30 dollars a week I put back. Live poor while you're working and live well when you retire. Now I make two 4000 mile trips shooting benchrest each year, and don't have to scrimp.
Pistolero
Well-Known Member
Yep, I agree. Sounds like you did it smart, Ric. My father had a good USN pension, but I knew I wouldn't have that. It made me think.
I was always worried about being OK financially in retirement, and spent almost 40 yrs saving and investing. I saw my Dad investing, when I was young.
I had a very good friend who is a financial advisor, has made me a more successful investor than I ever could have
imagined, way more than I could have done on my own. He is retiring this month, but most of his work is done, and he has trained
a team to his methods who will take over managing his and my money in retirement. Lived tight to make sure I could retire comfortably.
He taught me in the early 80s that his very well off clients were often very ordinary people who had saved and invested
steadily over many years. He taught me to do it, and fortunately I am blessed with a really smart wife who agrees totally.
I never trusted that Soc Sec would be there for me, always planned that it very well might not, it never
looked like it could work, basically a Ponzi scheme with bad demographic trends. Do have it, so
it makes my retirement easier.
It is good to hear of younger folks like fiver and his littlegirl also working to get out of debt and save money, or at least keep
the debt at a reasonable level. So many today seem to spend all they get and more with no idea in the world about saving
for retirement or a health emergency. Paying off a mortgage early is such an amazing, huge savings, yet it seems like few
are willing to go for it. Fiver is doing himself a huge favor. Without a house payment, there is so much extra money available, it is easy to
save at least a big part of it. So many put all the money they get in to house and car payments, nothing left. But they have nice houses and cars!
Bill
I was always worried about being OK financially in retirement, and spent almost 40 yrs saving and investing. I saw my Dad investing, when I was young.
I had a very good friend who is a financial advisor, has made me a more successful investor than I ever could have
imagined, way more than I could have done on my own. He is retiring this month, but most of his work is done, and he has trained
a team to his methods who will take over managing his and my money in retirement. Lived tight to make sure I could retire comfortably.
He taught me in the early 80s that his very well off clients were often very ordinary people who had saved and invested
steadily over many years. He taught me to do it, and fortunately I am blessed with a really smart wife who agrees totally.
I never trusted that Soc Sec would be there for me, always planned that it very well might not, it never
looked like it could work, basically a Ponzi scheme with bad demographic trends. Do have it, so
it makes my retirement easier.
It is good to hear of younger folks like fiver and his littlegirl also working to get out of debt and save money, or at least keep
the debt at a reasonable level. So many today seem to spend all they get and more with no idea in the world about saving
for retirement or a health emergency. Paying off a mortgage early is such an amazing, huge savings, yet it seems like few
are willing to go for it. Fiver is doing himself a huge favor. Without a house payment, there is so much extra money available, it is easy to
save at least a big part of it. So many put all the money they get in to house and car payments, nothing left. But they have nice houses and cars!
Bill
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