How do you afford this sport?

Quinc

Quinc

Buy a Superjet
Location
California
Balduccimoto said:
I think what is most important is not to over extend your expenditures. Here is how I view it:

Average Life Expectancy is 71 years.
Average Median Income in USA is $72,671

You decide to buy a home at $300,000 at 4.5% and foolish enough to take a 30 yr loan with no effort to pay off sooner. (You probably can't at median income)
Amortization schedule determines you will pay $247,000 in interest alone. That is 182.3% of the sticker price.
It will take 7.5 years of your life to pay that house off. Or 10.6% your life expectancy.

Go ahead and consider all of the other material goods and you will find that our lives are dedicated to consuming goods. Now I understand that alot of things are a necessity. I'm just saying that the only way of reclaiming your life is to make wise investments. Expensive toys aren't one of them. I think it's difficult to judge your financial progress when you constantly look to see what everyone else has. They are paying for that in one way or the other. The single most valuable resource on this planet is your time. No amount of money could ever get those years back that you worked for the latest and greatest.
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If you make 1 extra payment a year it knocks a few years off the loan as well.

Only thinking of yourself seems to be the American way. Traveling across Europe I met a lot of people that where planning for there children's and grandchildren's futures. Buying up businesses and property in high tourist areas knowing they would spend the rest of their lives working to pay it off, but that there children would inherit the property debt free.
 
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Balduccimoto

Balduccimoto

Location
NYC/Long Island
Quinc said:
If you make 1 extra payment a year it knocks a few years off the loan as well.

Only thinking of yourself seems to be the American way. Traveling across Europe I meant a lot of people that where planning for there children's and grandchildren's futures. Buying up businesses and property in high tourist areas knowing they would spend the rest of their lives working to pay it off, but that there children would inherit the property debt free.
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I agree with both statements. My previous post supports buying real estate for investment purposes. I was trying to get across the point that it is important to scrutinize purchases and adjust in such a way that allows money to work for yourself rather than against yourself. I think when it comes to purchasing expensive toys, there is a point of diminishing returns when you consider the dollar-per-enjoyment factor. Economics has a term for this, but I can't think of it right now.

EDIT: It's called "Utility", measure of satisfaction. If you had 10 jetski, and bought 11, then the utility of the 11th wasn't as high utility as the first. I think the same can be said if you bought a $10k jet ski compared to a $25k jet ski (for the majority)
 
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BruceSki

BruceSki

Formerly Motoman25
Location
Long Island
Quinc said:
Speaking of Mortgage, anyone have luck getting there bank to drop PMI without refinancing?
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Just looked into getting rid of mine. Going to take a few more years. We put 10% down on a 408,000 house. I'm now at 87% loan to value. Need to reach 78% loan to value to get out of PMI.

I looked into refinancing since I'm at 4.625. Rates were 3.625. Would have saved $200 a month and PMI would have went down $20 or so.

I didn't think it was worth it for 13,000 in closing costs and starting over again. I'll just keep paying extra and knock some time off the loan to get out of the PMI.
 
Lumpy

Lumpy

Location
Iowa
Can some of you guys talk some sense into my girl? She seems to think I need to take out a 200k loan to build a house (on land that I own free and clear) instead of waiting a couple years and saving 50k to throw down on it.
 
makejetskiinggreatagain

makejetskiinggreatagain

Brandon
BruceSki said:
Just looked into getting rid of mine. Going to take a few more years. We put 10% down on a 408,000 house. I'm now at 87% loan to value. Need to reach 78% loan to value to get out of PMI.

I looked into refinancing since I'm at 4.625. Rates were 3.625. Would have saved $200 a month and PMI would have went down $20 or so.

I didn't think it was worth it for 13,000 in closing costs and starting over again. I'll just keep paying extra and knock some time off the loan to get out of the PMI.
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They have new loans that have lender paid mortgage insurance (LMI). Basically the lender tacks on .125% interest on the rate. We just put 10% down on our new house and the monthly payment was something crazy like 250 bucks less monthly with the LMI than if I had gone with the PMI. Obviously this is because the LMI is for the life of the loan....We just plan to refinance later on. I hope rates stay low lol.
 
Mike W

Mike W

Infidel
Location
North Florida
Lumpy said:
Can some of you guys talk some sense into my girl? She seems to think I need to take out a 200k loan to build a house (on land that I own free and clear) instead of waiting a couple years and saving 50k to throw down on it.
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I just built my house. I got a loan for X amount thinking it would be enough. I went over budget by $30k and we were very smart with the contractors we hired as well as getting the best prices we could. I also owned my land free and clear. You just get nickel and dimed to death with permits, inspections, soil tests etc.
 
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Lumpy

Lumpy

Location
Iowa
Mike W said:
I just built my house. I got a loan for X amount thinking it would be enough. I went over budget by $30k and we were very smart with the contractors we hired as well as getting the best prices we could. I also owned my land free and clear. You just get nickel and dimed to death with permits, inspections, soil tests etc.
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I have the advantage of building houses for a living so she thinks I can just poop one on any given day. That's easy to do when it's on someone else's dime.
 
hawk2989

hawk2989

Location
Greenville, SC
I have been keeping up with this thread for awhile, and to me it parallels the "trivial complaints" and "today was a good day" threads. Some one over there said they once heard that if you couldn't support your lifestyle working 40 hours a week you were in the wrong career... To me as a 28 year old, I have always been told the opposite... That you couldn't afford to not work 40+ hours a week to make it in this world. I know the old adage that you do not have to work harder to work smarter, but still.. I am also in a pretty different field than most as I am in public accounting - tax. I get to see the good's and bad's of other people's financial lives on a daily basis...
 
hawk2989

hawk2989

Location
Greenville, SC
Haha let me rephrase--- I have always been told to make it in this world you must work harder. Basically "The 40 hour work week is dead." My bad about the double negative. My brain hurts from staring at taxes all morning.
 
kevbo

kevbo

Location
dfw
hawk2989 said:
Haha let me rephrase--- I have always been told to make it in this world you must work harder. Basically "The 40 hour work week is dead." My bad about the double negative. My brain hurts from staring at taxes all morning.
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Not wanting to sound too negative BUT, citizens of the USA, are nothing but livestock to wealthy farmers. You have been told you must work harder and longer because it ultimately benefits them.
 
aytee

aytee

Location
south dakota
kevbo said:
Not wanting to sound too negative BUT, citizens of the USA, are nothing but livestock to wealthy farmers. You have been told you must work harder and longer because it ultimately benefits them.
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I don't follow... How does me working harder have anything to do with wealthy farmers??

sent from inside a beer can
 
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