Household Expenditures

[dartsndeacs]

That's because I still live in a small southern town and its not a destination point but its where my business is, so I won't be leaving until retirement.

I also still drive a 1997 F-150 and my wife in a 2000 Jetta. We haven't had a car payment in 15 years. All the extra dough goes to retirement and I sure hope I am here for it.

It just feels like everything all of a sudden is 20% higher than it was 5 years ago. Food is the main killer IMHO as it seems everything is $1 or more per item at the grocery store. Hell even a lime was a buck today and yes I know about the shortage.

Well the government has been dropping money from the skies to try to inflate the prices of everything to juice the economy for 5 years straight and we're a few years away from the great depression act II, so yeah.... things are more expensive now. When suburban folks notice ya know its really gonna be a doosy

 

[Say Hey Deac]

Palma, I'm not the board historian, so I won't go back and review your old posts, but I feel like you've been warning about the imminent collapse of our economy for like 3 years.

 

[bigdoublezero]

Any economy that forces him out of the poker room and into the working world with the hoi polloi spells t-r-o-u-b-l-e.

 

[TownieDeac]

Palma, I'm not the board historian, so I won't go back and review your old posts, but I feel like you've been warning about the imminent collapse of our economy for like 3 years.

longer than that

 

[Brangus]

Lay off the strippers and hookers. Worked for me.

 

[DeaconCav06]

My firm pays for my phone. Rent and utilities/cable/internet are about $1500.

 

[TARDAWG]

I do not understand how people afford to raise a family while renting. I had some friends hit hard when the bubble burst, most were in real-estate in some form, they were killing it and now have regular jobs and can’t get loans, so they are forced to rent. Making less money than before and paying another’s mortgage is a tough up hill battle.

Young posters out there, NEVER let your credit get fucked.

A 1200sqft house rents for more than that. You've got it good.

 

[bigdoublezero]

I do not understand how people afford to raise a family while renting.

First step is shifting your paradigm into a major metropolitan area.

 

[deacphan]

i don't understand where people find $400k for a down payment.

 

[lbE08]

i don't understand where people find $400k for a down payment.

trust fund/inheritance? that would be my first guess... and beyond that, i know some pretty serious savers. $400K is a lot, though.

 

[Stan Gable]

i don't understand where people find $400k for a down payment.

That's why its so difficult to buy in NYC. Most co ops require 20-25% down plus having 1+ years worth of liquid assets in the bank as a safety buffer. I rented for years wasting about 4k a month bc I couldn't afford the nut to put down for a 2 br, 2 bth apt.

 

[faxmachineanthem]

I do not understand how people afford to raise a family while renting. I had some friends hit hard when the bubble burst, most were in real-estate in some form, they were killing it and now have regular jobs and can’t get loans, so they are forced to rent. Making less money than before and paying another’s mortgage is a tough up hill battle.

I think your example shows when renting can be a good idea. Your friends wouldn't have gotten hit hard if they didn't own real estate in the first place. The rent versus buy calculation almost always tilts in favor of renting unless real estate is appreciating.

I got married in 2002. Fortunately I believed the real estate bubble theory, so we didn't buy a home until 10 years after marriage. We had no problem saving for a mortgage because we didn't have to pay real estate taxes or maintenance on a home. My friends who were first time buyers in the mid-2000's are still digging out of that financial hole.

 

[bmoneydeac]

I do not understand how people afford to raise a family while renting. I had some friends hit hard when the bubble burst, most were in real-estate in some form, they were killing it and now have regular jobs and can’t get loans, so they are forced to rent. Making less money than before and paying another’s mortgage is a tough up hill battle.

Young posters out there, NEVER let your credit get fucked.

From a month to month cash flow perspective renting isn't all that different from owning. You lose out on long term appreciation and the equity you put in but that's not realized until you sell the house (which carries significant expenses also). There is a reason why many people fall on either side of a rent vs. own calculation when you take in consideration all aspects of it.

 

[bmoneydeac]

I think your example shows when renting can be a good idea. Your friends wouldn't have gotten hit hard if they didn't own real estate in the first place. The rent versus buy calculation almost always tilts in favor of renting unless real estate is appreciating.

I got married in 2002. Fortunately I believed the real estate bubble theory, so we didn't buy a home until 10 years after marriage. We had no problem saving for a mortgage because we didn't have to pay real estate taxes or maintenance on a home. My friends who were first time buyers in the mid-2000's are still digging out of that financial hole.

I bought my first house in 2006 and just sold it for about a 10% gain. However, I probably had close to 40,000 of improvements I made to it which coupled with the cost of selling the house (realtors, small repairs, etc.) meant that it was absolutely a bad decision to buy at the time. You live and you learn, I guess.

 

[PhDeac]

My pastor has four kids age 9-17 and he has rented at least 3 different homes in the 5+ years he's been here. The rental market has been good and he has the flexibility to get what his family needs and can afford. He's gone bigger as his kids have gotten older.

On the flip side, a year ago my wife and I bought what we could afford but more house than we need right now with two small boys thinking ahead to what we will need going forward and how our options may be more limited if the market rebounds. We both hate to move and want to be somewhere long term.

Both approaches are fine for a family.

 

[dartsndeacs]

Palma, I'm not the board historian, so I won't go back and review your old posts, but I feel like you've been warning about the imminent collapse of our economy for like 3 years.

about 6 or so. nothings changed, just getting worse. granted I was like that before the crash too, mind you. I read the bob stack bunker blogs.

 

[WFU Lurker]

I somehow managed to spend $1k pretty much every month, excluding rent. Single person who lives on an expense account 3.5 days a week. Not sure how I do it.

 

[DeaconCav06]

My pastor has four kids age 9-17 and he has rented at least 3 different homes in the 5+ years he's been here. The rental market has been good and he has the flexibility to get what his family needs and can afford. He's gone bigger as his kids have gotten older.

On the flip side, a year ago my wife and I bought what we could afford but more house than we need right now with two small boys thinking ahead to what we will need going forward and how our options may be more limited if the market rebounds. We both hate to move and want to be somewhere long term.

Both approaches are fine for a family.

Pastor likely gets a huge tax deduction for his living expenses.

 

[Dkin]

I'm generally pretty tight with spending, but I'm getting killed by Stella Brew.

 

[DeacWatcher]

I somehow managed to spend $1k pretty much every month, excluding rent. Single person who lives on an expense account 3.5 days a week. Not sure how I do it.

It like faxmachinanthem said, unless you take the time to examine every purchase (using MINT or examining your checking statement online) and who has the time for that, money just disappears if you can afford to replenish it. Now if you are strapped for cash, that's another story.