Widely Accepted Financial Habits That Make You Cringe

>>1872696
>using credit cards as an "emergency fund" instead of saving up one

I don't understand this. I guess most people don't have an emergency fund in the first place. Why are people so dumb?

>>1872696
Never understood the whole financing new cars thing

You're basically renting someone else's Merc and pissing money down the drain just to look cool and wealthier than you actually are

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>>1872696
My mother is from a poor country and even after living here for 20 years she cant get out of the habit of stockpiling meat/veggies in the freezer when there are deals in costco or the supermarket.
Its literally just her and my father in 1 house hut the refirgerator, freezer + large additionalfreezer all remain perpetually full of frozen chicken/beef/pork

She bluntly told me it was a mental issue from living in that sort of country but for some reason that annoyed me. Like it was unsolvable and a fact of life

>>1872710
t. Honda Civic driver

>>1872696
>majoring in civil engineering

>buying crypto

>reading Dave Ramsey

>>1872696
>thirty year old woman who buy 300 bucks worth of make up every month

>>1872713
Only a /biz/poster could criticise somebody who works to save money.

>>1872696
>>Financing new cars

This is actually good logic.

Not sure about 0 percent anymore, but you can get car loans for 1% if you have decent credit.

As long as you can earn more than 1% on your savings, financing a car under low interest makes perfect sense.

>>1872710

Again... what's hard to get? Honda still gives you 1 or 2% financing and many other auto dealers will match something close...

If you can finance something for less interest than you can earn, why wouldn't you?

>be me in college

>literally EVERYONE I talk to has shit financial skills

>"lol i'm so broke! it's fine tho, i'm living on ramen. i don't have time for a job haha" like they're proud of it

>>1872780
When they say they're broke, ask if a broke person owns a $2000 phone and computer. Then ask them what kind of iPhone and MacBook they own

Rekt

Whenever it's payday, normies squander all their money.

>>1872696
I don't understand how so many of my friends are "poor". I swear they all are. And by poor, I mean they just waste their money on stupid shit. I swear to God, children don't grow up, they just become adults with an income.

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>>1872737
>If you can afford to rent a house instead of buying a mortgage, why wouldn't you?

Because you don't own shit and you're pissing money down the drain to perpetuate the farce of being wealthy.

Everyone wants to be a rich Hollywood celebrity and they're prepared to waste all of their money role-playing

>>1872817
My roommate makes $60K a year but blows most of it on in game purchases in mobile app games. I guarantee you he's spent at least $5,000 on Clash of Clans.

My Brother is the same exact way. He makes around $40K a year. Not bad and could live on his on, but he still lives with our Dad and spends his income on putting stupid shit in his beat up car. Just spent $1,600 on a touchscreen head unit when his car probably has a KBB value of $1,200.

>>1872877
KEK. Why is this so common? Are we really that brainwashed by the media. Do we really have to keep up with the Jones? That's why when I hear about how little savings the avg. American has I just laugh it off.

>>1872696
>Uses leftover student loan money to buy laptops, clothes, cars, etc.

Kek, I'm guilty of this years ago, I've paid it all off. My friend was even worse though, he bought stocks and lost big on student loan money.

>>1872825
I think you're stuck on the concept of ownership.
The guy gives a good example, if you can finance the honda for 1%, and use the money you would have used to buy it outright to make more than 1%, then you come out ahead. Ownership is a "feel", while money talks.

>>1872825
>what is the time value of money

>>1872902
Nah ownership is actually a legal construct that has value. Look at anyone who gets evicted or has had a vehicle repoed for falling behind on payments for whatever reason and tell them ownership is worthless.

Maybe it's not the most financially 'optimum' thing to do but I'm a firm believer that outright ownership of a vehicle and a shelter is a financial priority because I've seen too many people left with nothing when their investments tanked and they lost their job.

>>1872825
If you're talking about people that can't afford BMW's and financing them as the alternative, you're correct.

But even if you can afford a new BMW for example, its still a smarter choice to financing it rather than buying it out right.

Same goes if your financing a civic, with low interest rates, its smarter to finance it. No one tosses 20,000 out right on a car to save 2% interest unless you're retarded.

>>1872813

You can't truly understand poor people until you've lived around them.

Beer, cigarettes, and weed are the first line items on their budget on payday, before they ever even begin to think about food, rent, utilities.

Poor people buying food is an anomaly of nature. They only buy overpriced processed food, such as little debbie, frozen dinners, and frozen pizzas. The concept of vegetables is a joke.

They could buy half a years worth of healthier foods in bulk instead of spending it all on junk food, but they refuse to cook or meal prep

Their poor nutrition causes them to have horrible health, which leads to them requiring expensive health care.

Poverty is as close to perpetual motion as you can get.

The left has convinced them that the evil business owner's are the reason they keep losing ground.

>>1872825

I'm talking about the people that can afford cash. You still finance. The math in the example I gave is pretty simple.

Dude, rich people all leverage up the ass... that's a part of why they're rich.

It's just ignorant to assume all debt or financing is bad.

>>1872877
I make $120k, literally twice as much, and wouldn't even spend past $100 on Clash of Clans.

>>1872696
>>1872696

Paying for streaming music and video services when piracy is free and second hand movies and cds are inexpensive and work out cheaper for the average consumer.

>>1872971
>Beer, cigarettes, and weed are the first line items on their budget on payday, before they ever even begin to think about food, rent, utilities.

So true. If you have liberal ideas about how poor people act you are wrong. Poor people know they will be able to eat somehow some way, they know they will be able to sleep somewhere. But hey the liquor store closes.

>>1872797
>Thinkpad from Christmas 2012
>iphone 4 I got for free because the screen was chipped and put a Tracfone card in it.

Nope, still broke.

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>>1872877
>My roommate makes $60K a year but blows most of it on in game purchases in mobile app games. I guarantee you he's spent at least $5,000 on Clash of Clans.
wtf

>buy shitbox
>friend teaches me how to wrench
>never again cursed with the shitbox meme

>Refusing to open an account with a bank, rather dealing with cash anywhere and everywhere even for wire transfers, racking up massive handling fees, losing overview, inevitably getting their wallet stolen with their money for the whole month

>Being poor and having pets. Not *a* pet, multiple pets, usually dogs and exotic animals, and feeding them all with expensive canned food.

>Buying furniture, electronics and cars on financing/installments, not realizing they're easily paying 20-40% more over the course of a few months.

>Having debt and booking expensive exotic holidays at least once a year.

>Buying the shittiest products available (clothing especially) which last only a fraction of a slightly more expensive quality product.

>Spending big on entertainment (cable tv, tickets to some sporting team they're a die-hard fan of)

>Gambling.

Does it show that I'm a landlord in the bad part of town? It's fucking tough. With a little financial literacy you can literally *see* how they could pull themselves out of the slum. The money's there, they're just pissing it away, literally taking every opportunity they can to pay additional fees, not getting discounts, paying in installments, never buying in bulk, etc. I can see for a lot of people how it's a hamster wheel, how once they start, they can't quit living paycheck to paycheck. They're already beyond redemption before they start falling victim to payday loans or paw shops.

>>1873106
To each their own.
His freedom is the same as anyone making 60k.

>>1872702
Well goy, it's because all those poor people are working their minimum wage jobs. I mean, to create an emergency fund, they'd have to cut their NFL unlimited access package or stop going out to eat once a week. We can't ask them to do that. It'll be much better for our investors..err... I mean the common worker if they just get a credit card that puts them deeper in debt.

>>1872780
Same here. Holy fuck normies are retarded.

>classmate complains about not being able to save money efficiently
>he is hungry so I tell him to buy something cheap but healthy
>DOESNT LISTEN
>'I guess I'll buy a muffin instead :D!'
>piece of chocolate shit is overpriced
>'damn I wonder why do I fail to save money:('

Jesus Christ it's not even that hard. Same goes when they tip more than they should

>>1872877
My friends waste their money stupidly on LoL DLCs and weed.

But wasting your cash in Clash of Clans is pure stupidity.

>>1873177
>>Refusing to open an account with a bank, rather dealing with cash anywhere and everywhere even for wire transfers, racking up massive handling fees, losing overview, inevitably getting their wallet stolen with their money for the whole month
im 19 and i see adults do this
seriously wtf, some banks dont even require a deposit, and if they do its like 50 bucks.

>>1872696
>investing into any crypto, espetially russian scam that is etehreum

It sucks being poor, or close to being poor actually. My family lives from paycheck to paycheck and I blame my mother for the most part. She takes loans and buys useless shit, she's retired now and my father works his ass off and is overworked and getting sick because of it. I'm not sure how she's able to get loans anymore even. I think the total sum of debt is around 90 000€-110 000€. I'm planning to sell off their house when they die to pay off the debts. It should cover the debt and leave some over for me too.
Currently I only have about 10 000€ to my name thanks to grandparents putting some money into funds. That money is for when I enroll at a university. I've been investing a part of the money I have in stocks. It's too early to tell if my investments have gone well since most of my investments are on long term.

Anyways sorry for the long text. What can I do in this situation I'm in? I believe this situation is not too uncommon.

>>1872723

>fat women who buy makeup

You can slather on all the cover girl you want. It isn't going to hide your fupa and it isn't going to make any man want to fuck you. they'd be better served to carry flasks of vodka and give them out for free if they wanted a man to find them attractive.

>>1872733

>buying a rapidly depreciating asset brand new
>not waiting for the depreciation dip in the lifecycle

What a retard. Doesn't matter if it's financed or not, new cars are for morons.

>>1872813

I never understood living paycheck to paycheck. And I make well below the poverty line. Like just manage to save up one week's worth of paycheck, bam, problem solved forever. Personally I have 6 months of living expenses saved.

>>1872971

This. Poor people deserve to be poor, 100%. It blows my fucking mind... We never had food when I was a kid, or money to turn the heater on, because my fuckwit parents bought cigs, booze, movie tickets, lottery tickets, and impulse buys instead.

>>1873177
>multiple pets

Every poor person has like 3 cats and 2 dogs. Not to mention the inevitable vet bills that come "so sudden and unexpected! Who knew this old-as-balls cat would get ill!" and bankrupt them.

>Buying the shittiest products available (clothing especially) which last only a fraction of a slightly more expensive quality product.

Feels bad. This is my dad. He has roughly 35 flashlights and none of them work. He does this shit with everything. He even bought shitty walmart knives. I was using one and the blade separated from the handle and flew back at me, impaling into the floor next to my feet. I could have died. That was years ago and I'm still salty about it. Some things are worth spending slightly more money on, jesus christ.

>>1872727
It is only a saving if you actually end up eating it.

Frozen food does still have a shelf life, so there is a risk of significant waste. Also, one power outage and she could lose both freezers worth of food.

She could very easily end up losing more money than she is "saving".

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>>1873483
>I'm planning to sell off their house when they die to pay off the debts. It should cover the debt and leave some over for me too

debt is not inheritable in first world countries
You might need to move
Or keep a cash stash that you don't tell either parent

Pic unrelated

>>1873434
Can't get it taken by the Feds if it never hits the bank.

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>>1873676
Enjoy your wage garnishment and/or federal prison courtesy of the IRS

The only way for that to be true is you get paid "under the table", and the IRS does not fuck around with their tax revenue

Then again that shortsighted way of thinking is why many become/stay poor

>>1873089

Agreed, a poor person who isn't a complete fucking idiot won't be poor for long.

>>1872713
I was born in the USA, in a rich family and I still do this.

Bet your mom's Asian or indian

>>1873704
when I got my first job I thought my pay was pretty high because of how easy it was to make my budget work, but I calculated it and I was wayyy under the poverty line. most people there probably dont even make a budget.

>fresh outta college boys who have to buy a new car from the showroom, instead of buying low miles used and saving heaps
>people who have a morning coffee, bug breakfast and lunch, spends $40 on food at work
>new phones
>new clothes

I really dont get peoples obession with just buying new shit. Like new clothes. you should know what clotehs you have and what you need. Wtf going to the shops and just buying shit cos your bored

>>1874105
Not that guy but my mom is Asian and does this. It's very annoying. I even let her know I'll never eat that meat when I can walk to the store and get fresh meat.

>>1874279
I guess my impatience makes it hard to see the big picture. I see a new thing and I want it now right now I can not wait. I am starting to learn to be patient and if you don't have it in cash you can't afford it idea.

>>1872696

> Doing anything but buying a car in cash
> Buying a new car (unless you have "fuck you" money in which case, buy away

> making anything over $50k a year and still living paycheck to paycheck
> always assuming there will be another job so you just spend what you have

> Still using a debit card, when we now have 2% back credit cards, like hello people it's free fucking money.

>>1872696

> going to college and getting anything other than a rock solid job ready degree

i only started getting somewhat financially responsible when i got into my early 30's. before that i blew everything on booze and shit cars.

i think a lot of it is a maturity thing, unfortunately it took me a long time to grow up. i also moved cities, which i think gave me a new start.

saving is like working out - easy to do once youve already got a year's worth of results and are keen to see more. starting sucks and its just so much easier not to

>>1872713
That's a redpilled activity though.

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>>1872696
>buying the latest smartmemephone because it has X new feature than the last one
>costs $2000 instead of $1200 last model

>Buying and hoarding $500 sneakers for the hype
>yfw not realizing you're getting jewed for thin layers of fucking foam and Chinese child labor

>eating any fast-food
>ever

>watching shitty generic AAA movies at the theatre at release
>At the fanciest theatre and fanciest IMAX display too and falling for the 3D meme

>buying a brand new car and only having it serviced at the dealership
>getting jewed for tires and shitty Mexican handiwork in the back

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>>1874544
>buying the latest smartmemephone because it has X new feature than the last one
>costs $2000 instead of $1200 last model

>eating any fast-food
>ever

>watching shitty generic AAA movies at the theatre at release
>At the fanciest theatre and fanciest IMAX display too and falling for the 3D meme

Holy shit I can not emphasize how much I have seen this shit happening.
And the thing that really gets me is when they see you as the weird one when you don't do any of that shit because you know it's not a good idea.

>>1872696
>>1872710
>hurr durr I don't care what car I drive, as long as it gets you from A to B

I HATE people like you, looking down upon people who try to make their morning commute a little more fun. Here's a thought for you:

Life is also just going from A to B, you go from birth to death. That doesn't mean you can make the journey a little more fun.

>>1874693
There are ton of things you can spend money on that make life more fun that either hold their value or appreciate in value.

All expensive cars (that you drive constantly) do is become worthless over time. Also this isn't the board that caters to the mentality your referencing, which shouldn't come as a shock.

>>1874693
You can buy a car that you will enjoy without buying a new car. Equally buying a new car is not always a bad financial decision.

Spending extra on a car can be ok, provided you can afford it. Going into debt over a car is a poor decision.

Do people really cash their student loan refunds?

I always let that shit rot until it expires then the school emails me saying they're returning the money. Rather pay now than later if I'm not investing that money.

>>1874693
How does buying a new mercedes make commuting more 'fun'?

Are you really so insecure?

>>1873580
Sales come often enough that they are wasting money on the electricity running multiple freezers, especially with only two old people. Fuck, if they just dedicated the rest of their lives to exhausting the stockpile they might still not make it.

>>1873701
Nigger they work a side job for cash or they cash checks at Big Frank's money for nuttin Ghetto Emporium while collecting welfare. The IRS thinks they're broke, the court system thinks they're broke, but in reality they smoke $50 of weed everyday and get their meals delivered by federal workers.

Banks are just another snitch.

>>1872696
Brand new cars in general. There is no reason to get one at all, buy one at 3 years old and let someone else take the massive depreciation hit while enjoying a pretty nice new car that will last for years if you buy sensibly and keep up with routine maintenance.

>"my 3 year old car is getting unreliable, it needed tyres and brakes. Better get shot of it and get a new one"

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>>1874544
Reminder that if you don't consume 24/7,
buy cars and $1000 phones on credit,
you're a virgin loser who will never get laid,
and American Jesus hates you too

>>1874704
It doesn't get to become worthless over time, because after 2/3 years the dealership offers you a new car, in Britain at least.

>>1874912
I have no idea how that system works, so I won't comment on it. There is no such thing here though.

I live in New York, make 28K a year (at my full time job) but I more than double that working 80 hours a week, I invest in the stock market and work on the side buying and selling cars, I own my own house and I'm 21. Being poor now is almost not even about how much you make, it's how you use it. Every single person I know thinks I make over 125k a year, but I dont. I rent the basement of my house out, I use that wrapify shut around my commuter car for an extra 600 a month, I day trade (sort of) through Robin hood. I buy cool shit that I like for much less than it'd worth, and sell it for more if the time arises. I make shifty click bait YouTube videos, the house I bought was cash only, where I lied, took out a personal loan, fixed that shit up on my own time with materials from my place of work. Being poor is a choice. It really is.

>>1874306

They don't exist. No degree is career-assured. In today's world, it all depends on bullshit like networking/contacts, relevant work experience, work placement/internships, grades, extracurricular engagement, university attended and so on.

>>1874923
Basically you lease car a car and after a few years they offer you an upgrade, so you get a newer car for the same cost or a better car for a little bit more. You never own a car but you always have a new/ish car, and the dealerships happy because they're getting revenue forever

>>1874976
Used cars are cheaper in the long run.
Never buy a car less than 2-3 years old.

>>1874976
The point is, you don't need to keep upgrading to a newer car after a few years. (The same is true of iphones, TVs etc - it's all a con to keep you spending).

You would be better off buying a used car and keeping it until it dies.

>>1872825
>If you can afford to rent a house instead of buying a mortgage, why wouldn't you?

Are you fucking retarded? Financing a car means you own it at the end of the loan, just like a house with a mortgage. Sounds to me like you have no idea what you're talking about.

>>1874750
Have you ever driven a new merc? Its an entirely new experience compared to driving a beater my guy. Its more relaxing, less noise, overall just a better drive.

>>1874931
Fraud and theft? Well done mate


(Fraud lying to get the personal loan and theft robbing from your work)

>>1875162
You cant grt Personal contract hire, business contract hire or hire ourchase on houses m8. 'On finance' could be any of those three

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>>1872714
>mfw my 2002 Honda Civic only has 2 doors

>>1875196
Leasing a car and financing aren't entirely the same thing. When someone says "finance" a car it is generally assumed that they signed a contract for an installment loan to pay off the car. If they leased it then they would just say they leased it.

I've only heard of it being called contract hire in the UK, I think in the US we just call it a lease.

>>1872971
the middle class west is fucking finished. Stuck between retard gibs below them and globalist elites above them. No wonder it's being hollowed out.

>>1874285
"fresh"
Its been in storage freezers, then truck freezers, then store freezers, its around as fresh as the one your mom stores you ungrateful fuck

>>1874704
Who are you to tell someone what is or isn't fun for him? Remember that a lot of people a car isn't a means to an end, the car IS the end. Buying a nice, expensive car is for a lot of men THE incentive to make money.

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>>1874750
Who the hell said anything about a Mercedes?

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>friend wants to buy $900 gold grillz
>mfw

It's fucking mind blowing to think about how people just blow money on useless shit

>>1876335
fuck your friend in the ass

>>1872935
>worrying about being such a fuckwit that you can't pay on time

>financial priority

I think your financial priority should be a vasectomy you retard.

>>1872696
>live in Sweden
>you can't rent apartments here (except second hand)
>people buy condos in the middle of a bubble
>"but it's an investment! the prices can only go up, people need somewhere to live, just think of all the immigrants!"
>mortgage rates at 1,7%
>if they go up by 1%, we will have a major financial crisis
>meanwhile, people don't want to invest in the stock market or any other funds than bonds, because, "it's risky, what if it goes down"

>>1872696

>Paying for a data plan.
Just live off the free wifi you get around every corner.
>Buying every new product from X company
>Just straight up buying a new car that will lose 50% of its original value in a year

>>1874693
Lol no having a nice car is good. Its people who are idiots are fall for the NEW THINGS impluse decisions and dumbasses who think buying on credit is good

>drive a ford fiesta ST
>cost $17000
>retails new at $28000
>bought it with 3000Kms on the clock
>flew to a different state to get it
>friend on same salary
>buys a brand new BMW 2 series
>one fianace $300 a week
>car is like $40K retail new
>dropped 5K just because it new and he gotta pic the interior colours
>my car is faster in a straight line, faster around corners and has more room
>BUT MINES NEW AND HAS A SHINY BMW BADGE

>>1876811
>Ford Fiesta ST
>$28,000 new

What a fucking rip off.

>>1874990
>The point is, you don't need to keep upgrading to a newer car after a few years. (The same is true of iphones, TVs etc - it's all a con to keep you spending).

I disagree. The lifespan of a well maintained car is like 20 years. The lifespan of a phone is like 3-4 years. You do not need to upgrade your phone every year, but it is definitely worthwhile to do it every 3 or so years. Just the same with a car, you don't need to always buy brand new, but upgrading every 5-10 years can keep you in a far better vehicle for a relatively minimal extra spend.

Marginal utility is a more useful concept than absolute cost.

>>1876811
enjoy your garbage stiff-suspension that takes years off your life by adding stress to your commute while he lives longer and gets the pretty girl in his cushy ride

>Insurance

Because if you got out more than you put in then insurance companies wouldn't be for-profit, you're literally taking a gamble that Statisticians and Actuaries with PhDs are trying to make the slimmest chance possible

Insurance is only good as forced savings if you have no willpower

>>1878160
Firstly insurance companies typically operate like banks, in that the money that they take from customers is reinvested with the intention of deriving profit. You are not necessarily paying more than the value you receive because the insurance company can in all likelihood manage that capital for a greater return than you could manage on your own.

You buy insurance to protect against a significant negative downside. It is like an inverse lotto ticket, where you are guaranteed that you won't lose big.

>>1873654

> debt is not inheritable

Errrr, many countries have laws where you can choose to inherit.
If you choose to inherit you get both assets and debts

>>1872717
whats wrong with civil engineering?

Graduating in May and have job line up in subdivision site design

>>1872710
>just to look cool and wealthier than you actually are

Welcome to how the vast majority of people think. Fucking morons the lot of them

>>1878177
Why would you ever choose to inherent if the estate debt was greater than the assets?

>>1878170
Generating higher returns than you could on your own inclusive of the salaries they're paying out to their employees?

I don't think so anon, not even bringing into it them declining claims

>>1878240
E M O T I O N S

value is subjective
Maybe grandpa has a really nice old timer but 50k of debt.

>>1874304
Literally admitting they "don't have enough self control" to have a credit card because they are hurr durr so evil and I'll stay out of debt if I don't have one, ignoring the discount on literally everything plus other rewards.

>>1872717
TOP TEIR KEK M8.

>cut up your credit cards.
>flys to shows amd rebts cars with credit card to go tell people to cut them up.

Like seriously what the actual fuck. I love my credit cards.

All fucking 8 of them.

750 credit score and climbing

>>1878281
>choose not to inherit
>grandpa's timer gets auctioned off to cover debts
>buy timer back from whoever wins the auction
Do I win?
>>1878348
Don't get me wrong, I love my credit cards as well, but what exactly is the purpose of having 8 of them?

>>1873056
Why would you spend any money at all on clash of clans?

Why do people spend money on mobile games/in app purchases? I honestly don't understand.

>>1872710

Mercs are money pits when it comes to maintenance.

>>1874693

Agreed. But a decked out Honda can land you same results. For instance driving a decked out Toyota is awesome sauce. You really don't know why people pay 20k for a car until you have heated seats, heated steering wheel, sunroof/moonroof, Bose, push to start, and remote start. Do you faggots know how nice it is to remote start your car while getting ready? Jumping in 20 mins later to have your ass heated and hands warm while driving? Yes. I'd say it's worth it.

It's like those chimps that have never driven or ridden in a hummer, but will talk shit about them. Ask why they're worth it and go on about how they're a waste. Trust. You won't be saying that after you go on a long ride in one. Much comfy.

>>1878348
>Have 3 (Visa, Discover,AE)
>Pay 90% with discover card
>Making +2K back every year funneling all my bills through discover.
>in 10 years only had to pay $20 in interest
>830 credit score

I really have no idea why the hate against credit cards when the return rate on them is higher than most of our robinhood accounts.

>>1874105
>>1874285
>Have one chest freezer full of fish/fowl
>Have one chest freezer full of venison/pork/beef
>Have one chest freezer full of vegetables
>Have one stand up freezer for "regular" frozen food

Nearly all fob asians and /out/ do this, just double freezer vacuum pack them and they'll be good for a year.
t. /out/ asian

>>1872723
they are investing in getting a husband to leech off from

>>1874713
>Going into debt over a car is a poor decision

Not really, it's called leverage. Let's do some math.

Let's say you were looking at a new car in 2012, and settled on a Toyota Camry. You buy the car, it costs you $25k out the door (not a great deal, but you're not getting totally screwed either). Let's say you have the money to buy it outright, but could also finance the vehicle at 0% interest (in 2012, dealerships were begging for business so 0% isn't unreasonable).

Now comes the math.

If you finance the car with, say, 10% down ($2500), you're left with $22500 to invest/do whatever you please with (assuming you can afford the monthly payment without dipping into savinge). Let's say you invest that $22500 in VTSAX, a large, broad-market Vanguard fund with low fees. VTSAX has had an annualized return of 14.62% per year, for the past 5 years. That $22500 would be worth $44,512.76 right now (using the standard TVM calculation, with PV=22500, PMT=0,Rate=14.62,Periods=5). In addition, you have a solid, reliable vehicle with ~60,000 miles on it that's worth ~$13,000 (according to NADA/KBB).

Even with the $12k depreciation hit, you're coming out with (44512+13000)=$57,512 in assets at the end of those five years.

By comparison, let's assume you pay for the car up-front, and instead invest the money you would have spent on payments on that same VTSAX fund. If we do the math on that loan, you'd be paying $375 per month for the loan. Working the TVM calculation (PV=0, PMT=375,Rate=14.62/12,Periods=60), you come up with a FV of $23,187.31.

So, if you buy the car outright, 5 years on you have a car worth $13k and an investment account worth $23,187.31, for a total asset value of $36,187.31.

If you buy the car in cash rather than using leverage on good credit, you're essentially costing yourself $20,000 over the course of 5 years.

If you're smart, can afford the payments, and like not being poor, buy large-value assets on credit. Simple as that.

>>1873177
>financial literacy you can literally *see* how they could pull themselves out of the slum. The money's there, they're just pissing it away, literally taking every opportunity they can to pay additional fees, not getting discounts, paying in installments, never buying in bulk, etc. I can see for a lot of people how it's a hamster wheel, how once they start, they can't quit living paycheck to paycheck. They're already beyond redemption before they start falling

Not just poorfags. I work with a guy who makes about 120k/year, and I was astonished when our new employer opted to pay us net-30. He was expecting a bi-weekly paycheck and said if he he had to wait longer than 2 weeks he'd need to pull money out of his home refi to pay the bills. Living paycheck to paycheck at 120k a year. I don't get it.

>>1878691
Thanks for the information

Any other breakdowns you could do for me?

eg. house, monthly costs, other general real life scenarios where people usually steer wrong.

>>1878730
Dude, this stuff is really simple. Download a financial calculator off the google play and/or apple store, and run the numbers yourself. It's really not hard, and most of those apps will provide you with tutorials/example calculations you can run in the app.

If you want to know what realistic long-term returns are, google it (quick tip - average lifetime returns of most index funds hover around 8%, so use that as a starting point for most "how much would investing in the stock market earn me" questions).

I enjoy this stuff and have nothing to do today at work, so if you want to give me some more specific scenarios to work from, I can run the numbers for you.

>>1878714
>Living paycheck to paycheck at 120k a year. I don't get it.
Jesus fucking Christ, yeah, that's mindboggling.

Although I had one similar case on /biz/ before. OP complained about a similar change in payment scheme from 14 days to monthy salary. Only the the delay they had would mean on the transition month he'd receive the last 14 day payment around the middle of the month and the first monthly payment at the end. He was convinced it would be a horrible deal for him, that due to him being paid by the hour and working odd days he would "lose" on salary (which would of course be compensated in the previous or next month) and complained how bad it was how he now would have to budget money for the whole month, etc. It was truly bizarre. There was no reasoning with him that he would actually get his money faster now and wouldn't miss out on anything.

I guess some people are just bad with money.

>>1878777
Yeah that'd be cool if you have any other examples like the car breakdown.

I'm going to check out the youtube videos that explain it.

Could you give us some help for those of us that have massive cash income but don't seem to save much?

>>1878801
I make $120k annual.

I have several coworkers who are living paycheck to paycheck; I know because we went from a "paid to current" to a "paid in arrears" model, and half my department was worried that the switch would mean they can't make their car/house payment.

I was annoyed, but that's mainly because it meant I had to change around some of my automatic deductions so it would match my new payment schedule. A minor nuisance, not a real challenge.

>>1878816
Build a budget.

What is your take-home? I can rough one up for you based on what I'd spend it on, if you'd like.

>>1878833
3k a month take home roughly.

My main expense is redbull & weed at roughly $20-$30 per day.

Moved back home till I got enough to downpay a condo so no rent. Car is $200 a month, $100 gas I think.

200 month for student loan.

What would you do in my situation?
Also I make 50usd an hour freelance if you'd relocate to a cheaper area, all I need is internet to make that.

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>>1878852
Here you go. I threw in $150 so you can go out once a week or buy a couple video games or whatever you're into.

You should be able to save about $1k per month toward your future (whether that be housing, paying down debt, whatever).

In order to know what I'd do, I want to know your total student debt and an approximate interest rate on that debt. I can run the numbers on the payments and see if it makes sense for you to pay it down ASAP or pay it off at the minimum payment level.

Pic related is what I'd expect your basic current budget to be, along with your savings. If you're not saving at approximately that rate, you need to figure out what you're spending money on and decide what you can choose not to spend money on.

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>>1879160
For reference, here's my version for our household.

My wife has student debt as well, but we're paying the minimum on that with the expectation that it'll be forgiven after 20 years (that may change, but based on her current income we don't make enough for it to make sense to refinance and pay it down quickly). I've been rolling that expense into the housing budget (because it's an automatic withdrawal on a monthly basis, made on the same day as our mortgage).

>>1874704
I can tell you aren't a car guy. If you knew anything then you'd understand. instead you're just spouting out random shit you've read without actually thinking.

>>1878691
Good breakdown, and good point.

I concede if you manage things well you can come out in front if you buy on credit. Realistically though, most people who buy on credit will not have the cash available on hand, or know how to invest it.

>>1878356
Rataing them every few months and credit building. Admitedly tho like 4 of them are secured cards i got a few years ago that need closed after i break 800.

>>1878691
>>1879617
Furthermore, a lot of people buying on credit are unlikely to obtain a 0% loan. In Australia for instance given someone with an age of 25 and fairly standard employment status you are looking at a loan of 5-8%, which is in line with the performance of our stock market over the last 5 years.

You can come out ahead buying on credit. Realistically most people will not though.

>>1878533
Well, ive cut mine up before. It takes some control that most people dont have.

And peoppe like me with shit credit 10 years ago are just dumb. I jist up and quit paying bills one day. Big fucking mistake. Lol

>>1872702

>what is time value of money

Couple off the top of my head:
1) People who have no idea how much/what they spend. If you look at an amazon charge a week ago and have no idea what it's for after thinking about it for 10 seconds, how are you functioning adult?

2) People who keep throwing out the phrase "depreciating asset" to sound smart. Very few things in life isn't a depreciating asset. Also, in reference to cars, the depreciation between years 0-3 isn't that much anymore.

3) Speaking of cars, people that get a new one every 3-4 years. Just lighting money on fire.

4) Not doing credit card sign up bonuses. Literally free money.

>>1876811
>Ford Fiesta
lol enjoy your fag box

>>1878801
Multiple payments a month is actually better; its basic time value of money. A dollar today is worth more then a dollar tomorrow. (people should still suck at budgeting though)

>>1878691

Your calculation is fine, however it only works if you have all the money available up front to invest in. Poorfags usually take a loan to buy a new car because they lack the money in the first place, so they won't be able to put anything into a fund.

>>1879642
Well, a 0% loan is basically impossible unless you're financing through the dealer on some kind of promotion these days, but back in 2012-2015 you could pick up a car with 0% financing pretty much anytime, if you had decent credit.

I actually did this with my Toyota Camry which I bought in 2014.

Also, yeah you're right the average schlub doesn't have $25k to kick around, but I do; if I made my financial decisions based on what the average idiot on the street does, I'd have 2 $40k cars a $400k house and debt up to my eyeballs.

>>1876811
Buying things on credit IS good, if you 1) have good credit, and 2) are using the leverage to enable you to invest your capital in appreciating assets.

#1 rule to capital: Don't use it inefficiently. See >>1878691 as an example.

>>1879903
You're moving the goalposts here. I'm responding to a post about buying cars in full, rather than using favorable financing terms to buy the car over time.

You're right, most people are stupid and buy things they can't afford. But that doesn't change the fact that IF YOU HAVE THE MONEY IN THE BANK, don't spend more of that money than you have to on depreciating assets; let good credit work in your favor.

>>1878348
>>flys to shows amd rebts cars with credit card to go tell people to cut them up.

This is the absolute shittest criticism ever. He can afford to do those things and is in fact doing those things to make even more money. He isnt living paycheck to paycheck up to his eyeballs in debt and STILL piling up the credit card bill.

>>1876425
>you can't rent apartments here (except second hand)

Wtf does this even mean?

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>>1872717
It's funny because it's all true.

>be me
>work 50+ hours a week
>only buy food that's on sale
>usually cereal that's like "buy 4 boxes for $8"
>live with 7 other dudes
>almost all my money goes to bills
>don't go to movies, eat fast food, or any other activity that involves money
>can't save up fast enough to pay for school
These fags who spend their money recklessly make people think I'm lazy or not frugal.

>>1880216
It's illegal to rent out an apartment for more than a certain amount of money per square meter ($10/m2/month), since it's not profitable to do so with our housing prices nobody wants to rent out. (Real price would be $18/m2/month) There are some apartments being rented though, so you can swap contracts with someone else or rent second hand. There's also a housing queue for anything new that gets built/when someone cancels their contract. Most young people buy condos (hugely overvalued) for $100k-300k and claim there's no housing bubble.

>>1880259
>Libtards in America want this

Stay in your cuck shack and let Ahmed take over your dwelling

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>>1876425
dude, your whole monetary policy is centered around this bubble. I don't know why but ever since the japanese asset price bubble did burst in the late 1980s countries have done this shit all over the world to stimulate economic growth - and everytime so far the result was a lot of blood in the streets.
according to statistics most swedish households are indebted almost two times their disposable income. you people are already fucked. there's no comeback from there. expect socialist revolution and comrade jamal butt fucking you any time.

>>1880242

>what do you do
>what are your bills

Sounds like such a shitty situation

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>>1880272
>he unironically believes in the Ahmed meme

>>1872733
You're paying much more than it's worth anyway.

>>1879160

>1000 for weed and red bull

Anyway.

Do you live at home? No rent? Fuck dude. I couldn't do that no matter how much I save.

My financial situation is very similar to yours, borrow the RB and weed shit you have. Try to give it up, man. See it as a side job that pays $1000 a month.

Tfw have a friend (also a student) who gives me shit for eating beans and rice while he eats expensive foods.Yet I have more money and am in much better shape

>>1879160
>930 for weed and red bull, is red bull code for cocaine cous holly shit dude.

>>1878147
>hey guys look how cool i am i have osteoporosis at 28 and a gold digger gf

>>1879642
>performance of our stock market over the last 5 years.

Just FYI you don't have to stick with your own country's stock market. For example weighting equities internationally by market cap (~50% US, ~50% non-US) is one way to spread your risk around.

>>1872877
>My roommate makes $60K a year

Why would you share a room? WTF is this?

>Refinances on their mortgage for "free" money.

does any honest to god home owner think this?

>>1880728
Suppose rooming saves $500 a month. That's $6,000 a year. After tax.

So consider it like a $9,000 raise just for living like a college student.

>>1880740
Also, you're probably not living in the same room. Just sharing a living space.

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>>1880765
I mean, you can save even more if you're willing to share a 1 bedroom...

Or 1 bed...

>>1872737
Because they want you to forget about having to pay full insurance. That is the main financial reason not to finance or lease cars.

>>1872935
This anon has it right. You -might- make a better return on your investment by financing something, but you -might- also get double fucked. Investment carries risk, and security has real monetary value that differs from investor to investor.

That and there's just the principle of never doing business with someone who only profits from your failure.

>>1872902
youre forgetting having to pay full insurance. Totally a waste of money!

>>1880810
Unpopular opinion: For a new or almost new (<5 years old) car, full coverage is a good idea.

>fight me

i seriously don't understand why noone has talked about comprehensive vs liability insurance. If you wanna save money you get liability and you can't get that unless you own the car. otherwise they make you pay comprehensive.

>>1880813
That is ridiculous until you hit maybe the $30,000 mark. What are you, planning to wrap your brand new civic around a tree? Even then frame straightening and bodywork will cost around $3,000 plus airbags so maybe 5000 or 6000

>>1880739
my aunt desu

>>1872696
>not investing student loan on stocks
> buying houses with property taxes

>>1880197
Mutherfucker how u think he rents a car.

Whatever.

Fuck you and your shitlord Dave Ramsey. I'm going to take another Rich dad class and laugh at u noobs who follow cringefags like that.

>>1880861
I just don't understand, the amount of shit you have to pay for just to get a mortgage, why would someone think it would be any different to refi

>>1879700
Lel 0-100 in 6.5 secs straight 2 da fag store!

>>1879387
Yeah. Most people aren't car people around here. My luxury spending is the odd video game. Probably the same can be said for most anon's.
Just don't be an idiot by making your car an impulse purchase. If that's ok for your luxury budget, it's fine. Just don't confuse that car with a necessity. (where a used car would fit that role)

While were on the topic of smart debt vs dumb debt can someone suggest reading material on how to using credit cards to boost credit score?

Current situation;
$0 debt
$10K savings and investments
70K/y income
1 credit card with $1K limit
Low credit score because I was dumb with credit cards when I turned 18, fully paid off and lived within my means for 3+ years.

I need someone to school me on how to boost my credit score without wasting money.

>>1881787
sorry, AUD btw

>>1880272
Yeah, the migration office gets a lot of the (low-priced) housing contracts too and give them away to immigrants.
>>1880351
It's just a way to dump the state's debt on private individuals, that's how we handled 2008. Our former minister of finance (who was responsible for this situation) himself said it'll crash in 2018. Is there any way to short the Swedish housing market? I have my eye on some companies with large exposure towards overvalued properties, but can you do it directly, like shorting a REIT?

>>1874693
This holy shit. Let people have some fun.
>muh depreciating asset
>muh A to B
Who gives a shit, I'm sure half the people saying this are wasting money on furry suits or some shit.

>Spending your neetbux on cocaine

>>1881857
>Is there any way to short the Swedish housing market?

I don't know. I'm just a poorfag who can't afford such fancy financial instruments. I would have gone with shorting the Swedish Krona anyway. Because the next step in this game usually is taking away buying power from the poorest so that those who can afford being poorer can pay off their debts cheaper. (the alternative is cutting social spending, to ameliorate tax burden, but therebuy you're going to increase your gini-coefficient, introducing more crime, violence ind instability to your society. just like with the other way.)

letters from norway published coincidally an article about the very same topic yesterday:

http://lettersfromnorway.com/central-bank-shell-game-what-swedens-negative-interest-rates-do-to-consumers/

>>1881966
I'm already short against SEK more or less, since only ~30% my portfolio is the domestic market. I could probably buy MINISHRT NDA though, they have large exposure towards housing market

>>1879691

>20% loss of value off the lot

I can't think of any item that depreciates more. Maybe electronics or food and clothing.

>>1881787
>>1881790

Unless you're buying a house or taking out a big car loan in the next year, don't worry about maxing out your credit score. Be responsible and, if the Aussie FICO is like the American FICO, using your credit card(s) up to ~20% of their limit and paying off in full each month is enough.

>>1880259

>muh housing bubble.

our generation is going to be like the great depression generation that fear banks.

>>1880242
I don't believe you.

Even if you are working the (legally) lowest wage job in the country, you're making $362/week
If you live in California (highest possible income tax) you're bringing home $312/week
You bring home $1,248/4 weeks.

You split your bills between 7 people and that's your biggest expense?
So you're telling me that the monthly bills for your place is nearly $8,000?

I do not believe you even for a second.

>>1872696

>>Financing new cars because used cars are all lemons. Trust me even though I can't even change my own oil you NEED a $30K car to get back and forth to work.

m8 this is sort of true, there are a lot of moneypit shitheaps on the road

>>1882981

Except you don't need a 30k car. I got a 2006 Toyota Rav4 for 15k. That was back in 2011 and still runs good.

>>1883035

Yes, the car was used with 60k miles.

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>>1881443
>don't be an idiot by making your car an impulse purchase.

No. I do whatever the fuck i want. Kek.

1200 well spent yo

>>1878691
you are assuming no cash discount, and returns on investment in a 0% rate market.

buy me a car, oh wait you are just LARP

>>1873391
>tipping to begin with

enjoying furthering a toxic relationship with a customer cause of muh 2.50 an hour.

t. former waiter who got well off due to suckers

>>1874304
what credit cards are you talking about?

>>1880880
>I'm going to take another Rich dad class and laugh at u noobs

Funniest post of the week.

>/o/ triggered that they got called out on their shit hobby

Driving on a track is fun but 99% of driving on the road is fucking boring.

>>1883154
No one thinks you're cool; the fact your fishing for attention on 4chan just shows what a fucking loser you are.

>>1872717
>reading Dave Ramsey
Oh, god. I have a coworker who won't shut up about that guy. I do my best to ignore him, because all of the advice is either retardedly obvious or stupid as fuck.

>>1878714
I have a friend who makes about 70 percent more than me, even before the overtime he always gets, who is so wasteful with money that he basically lives paycheck to paycheck. He isn't a complete financial fuckup, because at least he knows he's bad with money, so he always puts money into a separate account for essential bills first.

He says he does it because his job is so soulcrushing that he blowing money is basically his way of coping.

But if he went the opposite way, saving and investing a lot of the money he makes, he could pretty quickly be set up where he could take a job that isn't soul-crushing.

I've never personally known someone who so badly needs a money manager. He has the income, but he does such a poor job managing it.

>>1873085
>secondhand movies and cd's
do you want to listen to anything made in the past 3 years?

>piracy is free
not until you get those fines slapped on you, inb4 "but muh VPN/Tor"

>>1874750
kek

>>1876811
yeah right your shit ass st would get roasted by a a stock 228i lmao,

>>1876425
>"but it's an investment! the prices can only go up, people need somewhere to live, just think of all the immigrants!"
>mortgage rates at 1,7%
>if they go up by 1%, we will have a major financial crisis
>meanwhile, people don't want to invest in the stock market or any other funds than bonds, because, "it's risky, what if it goes down"

Literally exactly what's happening in Australia, right down to the rate increase.

>>1885388
I'm starting to see why societies used to abolish all debt every 7 years.

>>1879185
>My wife has student debt as well
>but (((we're))) paying

HAH! Nice one

>>1885388
>>1876425
was about to say this,fucking australia right now especially the baby boomers who buy second and third properties refinancing their homes and everything,because we're live in such a ridiculous fucking bubble over here atm right now.Median house price in sydney is over $1.1 million ,not in the richer parts or anything but for the whole city holy shit us millenials are fucked

>>1878691
super LARP, whats worse than dumb posts are dumb posts that think they're smart

>>1884842
>>1873391

I used to have a group of extremely financially illiterate friends that would play a game of who could tip the most when we went out to eat.

All of them made minimum wage and were in debt, but they just gave the waitress $20 each

Then they complain about capitalism and how greedy bankers are keeping them down.

They could have bought a twenty pound bag of rice with that money

>>1873177

In Germany, it is illegal for an employer to hand out the salary in cash, so everyone is forced to have at least one bank account. I never really wondered why that rule is in place. Now I know that it's there to protect morons from themselves.

>>1872710
t. busrider

>>1888226
It's there to help Jewish banks

Can't have the goys hoarding money outside of the banks. It's for their own good that they deposit it into our banks!

>>1872971
>Beer, cigarettes, and weed
Let me add tattoos to this list

>>1874285
yeah but when you see Turkey for $0.33 a lb, it seems dumb not to buy it.
The good kind of second freezers are the kind that DO NOT DEFROST. A freezer with a defroster destroys food in 6-12 weeks, the old kind that allows build of ice keep the food great for up to 6 months.

>>1885608
I am so glad the bubble burst in America. How the fuck can't they see this? At least as an American I can buy a home in a decent neighborhood in a decent suburb of a decent city for a decent price. That is absolutely fucked.

>having a girlfriend
> thinking there is nothing wrong with having a girlfriend

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>>1872817
>children don't grow up, they just become adults
This. I've cut back after a 60y/o started talking about his Christmas toys. It's all just plastic crap. Spend your money where it matters and stop buying toys.

My favorite is buying things with credit to build credit. These fags are doomed.

>>1874304
>credit card
>free money
Stop shitposting, Bergenstein.

>>1872717
Dave Ramsey is 90% just common sense. He's not generally wrong however, and many idiots could learn a lot form him.

>>1885130
i think hes pretty cool, anon

>>1876811
bmw>>>>audi>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>.ford>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>ford fiesta

>>1888465
What about having a boyfriend? Is that cool with you, Anon?

>>1872710
that's leasing you dumbfuck.

>>1872696
>>using credit cards as an "emergency fund" instead of saving up one
OK I'll give you that
>>Financing new cars because used cars are all lemons. Trust me even though I can't even change my own oil you NEED a $30K car to get back and forth to work.
New cars don't start at $30k, that's a modest new car. This decision can be quite rational
>>Refinances on their mortgage for "free" money.
This can be a totally rational decision
>>Uses leftover student loan money to buy laptops, clothes, cars, etc.
This can also be quite rational.

>>1873177
>>Refusing to open an account with a bank, rather dealing with cash anywhere and everywhere even for wire transfers, racking up massive handling fees, losing overview, inevitably getting their wallet stolen with their money for the whole month
This got to me when I worked in a bank. People would come in to cash checks, bitch about the $8 fee and when I comment that they should just open a fucking account so it's free, they'd scoff and say banks are evil hurr durr

>>1888255

Forgot to take your antipsychotics again?

>>1876425
>mortgage rates at 1,7%
>if they go up by 1%, we will have a major financial crisis

You mean if people have variable interest rates?

Debt is a good thing.
Put money in a mutual fund and let it sit for 50 years.
Penny stocks are the riskiest investments of all.
6 years of college with a $200k debt is a smart move.
Healthcare should be super expensive.

>>1889723
Ausfag here, can confirm most people here will be variable, it's not possible to fix for the life of the loan, generally would be up to 5 years.

>>1889789
>it's not possible to fix for the life of the loan
Really?

I'm about to buy a house at 2.1% fixed for 25 years.

Variable was about 1.35%, which could at the most double to 2.7% after three years.

>>1889805
Belgium btw.

>>1872696
>Refinances on their mortgage for "free" money.

Doesn't refinance just lower your monthly payment though? What's the catch?

>>1889814
Lucky boy. In Australia a 5 year fixed comes in at 7.75% and our median price is 500k

>>1874553
>And the thing that really gets me is when they see you as the weird one when you don't do any of that shit because you know it's not a good idea.
>i feel those feels

>>1874755
at least you dont have to buy food for your whole life lol

>>1889913
>5 year fixed comes in at 7.75%
Does that mean the rate can change after 5 years?

Also, 7.75%?
What is this, the 90s?

>>1889723
2 years is the max here. They don't go up right now thanks to our insane federal reserve, their current interest rate is -0.5%.

>>1889934
So most mortgages are variable every two years?

Is there a maximum to this?
In Belgium, most variable rates can only double compared to the original rate.

>>1889964
Most mortgages are variable every three months. There's no maximum for how much they can go up.

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I have a coworker who makes the same amount of money as me.

In the past year he:
>bought a brand new car
>bought 2 motorcycles for some fucking reason
>had a baby
>got a condo he can't afford with 5% down and a 30-year mortgage
>borrowed money to get the 5% down

He also has student loans. I have no idea how he convinced a bank to lend him so much money. I really hope things work out for him, but damn.

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>>1889971
Crikey.

>>1889993
I happen to think downpayments are a meme.

If you pay a load of money up front, you likely have no buffer and will have to sell your house as soon as you hit a financial snag.

If you pay as little as possible up front, you'll have a much better chance of having some financial buffer to tide you over until you get a new, decent job.

If you ask me, downpayments are just a scheme banks use to get more liquidity, especially now that the interest rates are shit.

Feel free to disagree with me.

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>>1889563

To be fair, you were charging them an hours pay to do something that took maybe thirty seconds. I mean, I don't even give a shit, I have a bank account and I don't really care, but it's not like you are doing them a favor by them getting a 'free' account, as we know what is done with the money they deposit, and that's before we even get to shit like late fees, overdrafts and bounced bills.

Obviously those of us with accounts shrug and accept this stuff, I've had my account since I was a kid and my mum gave me £1 to deposit, but I can respect the choice not to deal with them.


To answer the OP, and it scares me for their sake more than annoys me, is how the elderly folk where I live collect their pensions in cash at the post office. It's like clockwork; bank opens on payday, and a half dozen graytops all get handed thick wads of cash, which you can watch being counted out in front of them. I'm surprised more of them don't get mugged. Dangerous as fuck.

>>1890015
It's not quite that simple because they front load the interest, but I do agree with you somewhat.

In this case though the 5% down was his entire savings so he has no buffer regardless.

>>1890015
The issue isn't the downpayment, it is people eating into their financial buffer.

If you have $80k cash, you shouldn't make an $80k downpayment. Better off making sure you have at least 6 months worth of living expenses left in cash.

In that scenario a $60k downpayment and keeping $20k in cash is better in my opinion than taking on a much larger loan and having a larger buffer.

It is just an exercise in risk management. 6 months worth of living expenses should give you enough money to tide you through most difficulties.

>>1890073
Well as a self-employed Euro it's different I guess.

I can easily make monthly payments for large houses if I deduct a large part of it as business area, but it's almost impossible to save up large sums of money as long as I cannot make huge deductions because taxes are so high.

It's a catch-22, and the only way forward is negotiating my downpayment waaaaay down with the bank.

>>1888226
From my experience these rules are more against scamming and tax evasion. These kinds of people usually make a lot of money on the side, undocumented. Leaving no paper-trail is their way of dodging tax and social security payments. How else are you getting all those nice payments and subsidies from the state on top of your salary?

Some industries basically run on black labor. Construction and hospitality/gastronomy would be mostly impossible to be profitable while paying their employees legally. Think about your closest rundown tiny café or pub. How can they afford paying a waitress, a cook and maybe some more helpers with crazy working hours (whole day, night shifts, weekends, etc). Especially in European countries you'd be paying premiums out your ass, plus roughly 100% in taxes and social security on top.

Some of my tenants literally cannot put their money into a bank account or they'd lose all their benefits.

>>1874750
>he doesen't know what a twin turbo v8 rwd can do.
Fucking car normies maan.

>>1872733
With a bank? Unlikely.
And if you do financing with a dealership, you are essentially missing out on the cash discount if you bought the car outright.

Low financing rates are all a scam. The interest costs you save are just rolled into the initial invoice price.

>>1878691
>Let's say you buy a $5000 car that's comfy, reliable, and runs for 10 years
> You invest 20,000
Oh look, you aren't a retard!

You're stupid fucking math assumes they have $25k for a car - which if they did they wouldn't be poor. You completely missed the point.

>not buying DOPE coin

>>1872710
>>1874304
>buh buh but credit cards are the most evil thing! Credit cards are the hitler genociding your financial independance
Canbizian here and while the wealthy barber returns is good his thoughts on credit cards only apply to financially irresponsible ie probably not people reading his fucking book

>>1879160
Imagine if you stopped taking weed/red bull everyday you'd have $36000 more in 3 years.

>>1873563
fuck you buddy, a lot of poor people spend frugally and are still poor

>>1874693
a lot of people don't find driving fun in the first place, so why would they care?

>>1874279
My GF refuses to shop at century 21 cause she says those clothes were already tried on and she wants something fresh from the factory."

As if noone tries on Abercrombie...

>>1872780
some people look at it as a "starving artist" sort of situation, and others see it as a challenge, and there's some other drives going on
to be fair, if you can survive on student loans and student mooching and so on, you can probably survive on just about anything

>>1878240
you wouldn't?

>>1873089
then why are there so many homeless people who can't sleep anywhere but on the street and sometimes can't eat nohow no way?

>>1876811
>fiesta ST
>not even a focus RS

laughing at you right now kid, don't you ever brag about your poverty assets on this forum ever again

>>1878691
>leverage is good when used wisely

no fucking shit
the issue and the point of this thread is 99.99% of the population do not use it wisely