July 23, 201313 yr For my generation, it isn't going to be as easy as they think. A college education means about as much as a high school diploma did in the 70's. Now, you have to go Post-Grad to stand out. The problem, obviously, is that it takes a lot of money to finish 6-8 years of post High School education. Many students will take out considerable amounts of loans. For the most diligent, they'll live below their means post-education and pay off their loans. They are the vast minority. Most students will take the full 10 years. In that time many, A. Marry, B. Buy a house, C. have kids. Their disposable income is sucked dry. On top of that, there are all of the lines of credit that they take out for cars, TVs, stereos....etc. I don't see my generation, or the majority, retiring early and riding off into the sunset.
July 23, 201313 yr For my generation, it isn't going to be as easy as they think. A college education means about as much as a high school diploma did in the 70's. Now, you have to go Post-Grad to stand out. The problem, obviously, is that it takes a lot of money to finish 6-8 years of post High School education. Many students will take out considerable amounts of loans. For the most diligent, they'll live below their means post-education and pay off their loans. They are the vast minority. Most students will take the full 10 years. In that time many, A. Marry, B. Buy a house, C. have kids. Their disposable income is sucked dry. On top of that, there are all of the lines of credit that they take out for cars, TVs, stereos....etc. I don't see my generation, or the majority, retiring early and riding off into the sunset. Those are excuses. I have 4 boys (age 20 - 26) and I am aware of their stuggles, and their struggles no more than mine were. This is the one commitment that you have to make. The earlier you start, the more powerful your investment. For most people it's simply cut out going out one night a week. Heck, I work with people who smoke a pack or more a day, but say they can't afford to contribute to the 401K. If you never see it, you will never miss it. It comes out pre tax, your take home pay does not drop by 6%.
July 23, 201313 yr I don't see it as an excuse. I see it as reality. Disposable income carries much less now than it did in the 70's. Levels of debt are astronomically higher. You add into that the major problem, we are a generation of entitled brats, and you have a recipe for retirement disaster. You have far more people who will take on credit to buy a brand new TV than people who are willing to give up cable to pay off loans. It is how my generation is, and it scares the heck out of me.
July 23, 201313 yr I don't see it as an excuse. I see it as reality. Disposable income carries much less now than it did in the 70's. Levels of debt are astronomically higher. You add into that the major problem, we are a generation of entitled brats, and you have a recipe for retirement disaster. You have far more people who will take on credit to buy a brand new TV than people who are willing to give up cable to pay off loans. It is how my generation is, and it scares the heck out of me. Break the mold my friend. You'll be glad you did.
July 23, 201313 yr I don't see it as an excuse. I see it as reality. Disposable income carries much less now than it did in the 70's. Levels of debt are astronomically higher. You add into that the major problem, we are a generation of entitled brats, and you have a recipe for retirement disaster. You have far more people who will take on credit to buy a brand new TV than people who are willing to give up cable to pay off loans. It is how my generation is, and it scares the heck out of me. You only get in Debt if you choose to go in it.
July 23, 201313 yr Break the mold my friend. You'll be glad you did. I have. I interviewed at a few places that sold annuities when I returned home from Mexico, so compound interest grabbed my attention pretty early. I'm better off than 99% of the people my age, especially when it comes to retirement, barring a complete collapse of the stock market. I am saying that my generation, being entitled, will attempt to push the envelope of the retirement age. I see a TON of people in my group going into further debt during retirement.
July 23, 201313 yr You only get in Debt if you choose to go in it. Correct. However, the more willing people are to borrow for something, the higher the price for the goods become. The housing market didn't go crazy in the late '90s/early 2000's b/c people all of a sudden brought home 2xs the amount of money. It skyrocketed because people were willing to risk their financial health to overreach for a house, and banks couldn't wait to lend the money. I prefer to live frugally, but you don't live in a vacuum economy. The terrible spending habits of others directly affects the price of major purchases for others.
July 23, 201313 yr You only get in Debt if you choose to go in it. True, haven't had a car payment since 1997, pay cash for my cars now and let the previous owner take the beating on the depreciation. Haven't had a credit card since 1999, pay cash for everything. It's amazing how much money you safe when you don't have payments every month, no matter your income. Little known fact.....when spending with credit cards people on average spend 18% more than instead of using cash.
July 23, 201313 yr True, haven't had a car payment since 1997, pay cash for my cars now and let the previous owner take the beating on the depreciation. Haven't had a credit card since 1999, pay cash for everything. It's amazing how much money you safe when you don't have payments every month, no matter your income. Little known fact.....when spending with credit cards people on average spend 18% more than instead of using cash. We have credit cards, but pay them off every month. You have to be disciplined and actually do that, but there are great rewards that you can get. For example: get a United Airlines credit card. You get 30,000 miles. That's a continental US round trip ticket. First year is no fee. Use your ticket to go somewhere nice, then you can cancel if you want to. Your wife/girlfriend can get her own, she gets 30,000 too. Do Delta the next year. Southwest the next.
July 23, 201313 yr We have credit cards, but pay them off every month. You have to be disciplined and actually do that, but there are great rewards that you can get. For example: get a United Airlines credit card. You get 30,000 miles. That's a continental US round trip ticket. First year is no fee. Use your ticket to go somewhere nice, then you can cancel if you want to. Your wife/girlfriend can get her own, she gets 30,000 too. Do Delta the next year. Southwest the next. Credit card in my wife's hand, and probably most wives hands = debt.
July 23, 201313 yr We have credit cards, but pay them off every month. You have to be disciplined and actually do that, but there are great rewards that you can get. For example: get a United Airlines credit card. You get 30,000 miles. That's a continental US round trip ticket. First year is no fee. Use your ticket to go somewhere nice, then you can cancel if you want to. Your wife/girlfriend can get her own, she gets 30,000 to. Do Delta the next year. Southwest the next. Play with snakes long enough you'll get bit.
July 23, 201313 yr Play with snakes long enough you'll get bit. I'm 52, been at it a long time. It's discipline. Period! No excuses.
July 23, 201313 yr Look. Bad things do happen to good people, that's a fact. But, most people who get in trouble, simply have no discipline and spend beyond their means. Personal debt, outside of car (you really should try to pay one off and keep it for a while with no payment) and house should never be more than 1 month salary. If a purchase will take you beyond that, then you don't need to buy it. JUST WAIT A MONTH!! The reason for that is all you have to do is suck it up for 2 months and your out of your hole. Personal debt should reach zero once every quarter. Interest on debt will destroy you. The best thing that most folks can do for themselves is pay off your car. Drive it for several years beyond that. Use that money to pay off personal debt, or, if you have no debt, save it to pay cash for the next one. Some one earlier said a very valuable thing. Most people blow 18% on interest and fees. Imagine what you can do for yourself with that 18%!!
July 23, 201313 yr Look. Bad things do happen to good people, that's a fact. But, most people who get in trouble, simply have no discipline and spend beyond their means. Personal debt, outside of car (you really should try to pay one off and keep it for a while with no payment) and house should never be more than 1 month salary. If a purchase will take you beyond that, then you don't need to buy it. JUST WAIT A MONTH!! The reason for that is all you have to do is suck it up for 2 months and your out of your hole. Personal debt should reach zero once every quarter. Interest on debt will destroy you. The best thing that most folks can do for themselves is pay off your car. Drive it for several years beyond that. Use that money to pay off personal debt, or, if you have no debt, save it to pay cash for the next one. Some one earlier said a very valuable thing. Most people blow 18% on interest and fees. Imagine what you can do for yourself with that 18%!! NM.
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