Millennials largest debt not from student loa

[Gromdor]

2 minutes ago, Dark_Grey said:

"Cash is king". My old man repeated that mantra until we were all sick of hearing it. Your friend with no debt won the game - he beat the system because he never owed money to the banks. That's the secret. We are sold a lie that a posh lifestyle means you are a winner but the true winner is the man who outright owns everything he has, even if it's modest.

I dunno.  Take Madoff for instance.  You can live like a billionaire your entire life off someone else's money if you play it right.  Of course his world came crashing down, but I know more than a few that knowingly live well beyond their means on other peoples money.  Bankruptcy is their big friend.

[+Desertrat56]

6 minutes ago, Dark_Grey said:

"Cash is king". My old man repeated that mantra until we were all sick of hearing it. Your friend with no debt won the game - he beat the system because he never owed money to the banks. That's the secret. We are sold a lie that a posh lifestyle means you are a winner but the true winner is the man who outright owns everything he has, even if it's modest.

Right, learn to cook so you don't feel like you need fast food or dinners out.  When you want something, spend some time thinking "is this a luxury or a need", if you think it is a need then go through the exercise of imagining if you did not get that thing now what would happen.  Would you die, starve, go barefoot, etc.  Then you will know if it is a need or a want.  If you have the money get it, if you don't wait.  

There is another psycological thing to this though.  Always buying the off brand or shopping at the dollar store. If you hate that then you will hate what ever you bought.  My friend, who at the time, was having financial issues, told me "when you go to the store to buy soup and you don't like the store brand, it is not worth the 5 or 10 cents you save by buying the store brand because it puts you in a mindset that your life is crap, when it is not, but you feel it.  Buy the name brand soup.  If you find store brand items that are less expensive but just as good buy them."

 

[Dark_Grey]

5 minutes ago, Gromdor said:

I dunno.  Take Madoff for instance.  You can live like a billionaire your entire life off someone else's money if you play it right.  Of course his world came crashing down, but I know more than a few that knowingly live well beyond their means on other peoples money.  Bankruptcy is their big friend.

There's two ways to "win" the game. I was referring to a more honest approach but if you have the skills to live off other's money (AKA a stock broker, fund manager, etc) then all the power to you.

[Dark_Grey]

2 minutes ago, Desertrat56 said:

Right, learn to cook so you don't feel like you need fast food or dinners out.  When you want something, spend some time thinking "is this a luxury or a need", if you think it is a need then go through the exercise of imagining if you did not get that thing now what would happen.  Would you die, starve, go barefoot, etc.  Then you will know if it is a need or a want.  If you have the money get it, if you don't wait.  

There is another psycological thing to this though.  Always buying the off brand or shopping at the dollar store. If you hate that then you will hate what ever you bought.  My friend, who at the time, was having financial issues, told me "when you go to the store to buy soup and you don't like the store brand, it is not worth the 5 or 10 cents you save by buying the store brand because it puts you in a mindset that your life is crap, when it is not, but you feel it.  Buy the name brand soup.  If you find store brand items that are less expensive but just as good buy them."

I weight those kinds of purchases on a case by cases basis. If it's something I need to last, such as tools, I'll usually spend the extra few bucks and get quality. If it's something less consequential, like a t-shirt, I'll look at the price first and usually go off-brand. "Off-brand" is often made in the same factory as the brand stuff anyway

[spartan max2]

You generally need a credit card to buy anything online though.

It's more secure then using a direct bank transfer.

You also don't lose your change and cents plus get free money from reward points.

Credit cards also build up your credit score. You just have to treat it like cash and not spend what you don't have.

[aztek]

so they take student loans, pick a politically correct major, "liberal arts for example, but can't find jobs,  then they spend money they do not have, getting into more debt, and now they want to redistribute wealth of the rich, and blame everyone around for their failures, wow, what a bright future ahead of us. effing deadwood generation, for the most part . i wonder what kind of kids will they raise

Edited September 19, 2019 by aztek

[+Desertrat56]

33 minutes ago, spartan max2 said:

You generally need a credit card to buy anything online though.

It's more secure then using a direct bank transfer.

You also don't lose your change and cents plus get free money from reward points.

Credit cards also build up your credit score. You just have to treat it like cash and not spend what you don't have.

I use my debit card to buy things on line.  If you need credit you do need a credit score over 650, and a credit card can give you that if you are careful with it.

[Kaikou]

1 hour ago, Desertrat56 said:

Yep.  And the sooner most of us cut up the credit cards or at least don't keep them in our wallets, mine stays in the drawer, the better off we can be.  It is a trap and like someone else said, you have to have a credit score and in order to get one you have to have debt (a credit card or something else).  The system is rigged.  I have known only one person who never had debt.  He is my age and he saved up and bought a mobile home with cash.  Then saved up, sold the mobile home and bought a house with cash.  He had no kids or wife so it was easier to do it, but his parents taught him "if you don't have the money, you don't buy it." 

I was lucky enough to have parents who taught me that, admittedly it hasn't worked out so great for me so far, because I'm kind of stuck paying off the things that they neglected when they were alive (home maintenence issues).
That being said, I don't have any credit card debts, I pay my bills on time and I always make sure to put aside money when I can. I buy the cheapest of clothes and don't need to have the latest phone (Mine is three years old, pre-owned with no contract).

The scary thing is to realise just how many people out there are dealing with debt. Sure I can understand education debts, but over the last couple of years, I found myself working with people who were DROWNING in debt and it wasn't for any real good reason.
These were people between the ages of 18 and 50 and it was the same story every month. Newest model car, new phone, brand name clothes, festival tickets, drugs, alcohol etc, etc.
Before you knew it, payday was here again and within three days they had no money.

You would think that after awhile, they would have a realisation but it just continued to get worse. Next thing you know one of them walks in and says "guess who's gonna be a dad!"
Why would you take the risk of raising kids in that envoronment? Especially when you can't even look after yourself.

[F3SS]

Financial illiteracy isn't a millennial issue. It's an issue that spans the ages. I kick myself in the ass everyday once when I wake up and once before I go to bed for the money I've wasted. I always knew some of the things I was doing wasn't smart but man I couldnt have known how disappointed my 40 year old self with 2 kids would be. I always disregarded good advice along with my inner voice and more than anything I way overcomplicated the idea finances and investing. I'm not in the worst place but it's certainly perpetual though I'm getting better and as of right now I have a glimmer of hope that I might not have to work until I die.

[spartan max2]

38 minutes ago, F3SS said:

Financial illiteracy isn't a millennial issue. It's an issue that spans the ages. I kick myself in the ass everyday once when I wake up and once before I go to bed for the money I've wasted. I always knew some of the things I was doing wasn't smart but man I couldnt have known how disappointed my 40 year old self with 2 kids would be. I always disregarded good advice along with my inner voice and more than anything I way overcomplicated the idea finances and investing. I'm not in the worst place but it's certainly perpetual though I'm getting better and as of right now I have a glimmer of hope that I might not have to work until I die.

What were some of the bad financial decisions you speak of?

[F3SS]

15 minutes ago, spartan max2 said:

What were some of the bad financial decisions you speak of?

Cars. Mostly cars lol. I dropped more cash on cars than anything. Hindsight kills me. Had I put that money into Netflix, Amazon and or Google instead during those times I'd actually have a real net worth. Seriously I'd have a million by now. 

[aztek]

12 hours ago, F3SS said:

Financial illiteracy isn't a millennial issue. ,,,,

it is much more than that.  entitlement is the biggest one