SoCal General Chat

[mcr_driver]

While it is attainable is it really feasible when there are so many ways to maximize a weakening dollar by taking advantage of good credit, 0% interest programs and investing strategies?

[thatphysicsguy]

Yeah having a zero-debt goal is admirable, but prepare to be fucked very hard when you go to apply for a mortgage and have ZERO credit history.

If you get a credit card, you don't have to use it like an idiot, you can just use it as a tool to build your credit history and get a good credit score. That shit pays dividends and you play the banks instead of having the banks play you. You just have to use it like your debit card.

Also sometimes a loan will actually let you make more money.

Let me explain: Say you have $20k and are looking to buy a new car. That 20k is in an investment making a 7% rate of return. To buy the car, you can also get a great rate of 5% on a loan because you (hopefully) have been strategically building your credit score.
Do you pull out your savings to pay cash, then lose your investment income?
Or do you take the loan and still make 2% on that money sitting in the investment after you pay your bills?

In situations like this, you can use these things to your advantage, but you have to be smart when you play the game. what gives debt a bad name is idiots getting a card and immediately going ass-deep into debt buying stupid shit they don't need.
If only for getting a good mortgage rate, you should get a credit card, and maybe just use it instead of your debit card from time to time, so you actually have a credit history when you apply for a mortgage.

Unless you want to save up 500 grand. Have fun house shopping when you're 70

[jaywood]

Have some self control with the credit card and it's a win win situation. No reason to not get one.

[2mAn]

Ahh to be 18 again....

You can have a credit card AND live within your means. The problem in America (and especially california) is that people want to portray a certain lifestyle. or seem successful and spend way beyond their means.

If you use the credit card as if it were cash and you pay the balance off every month then ZERO interest is charged AND, if you can get a good credit card, you can earn a reward back in the form of cash or other stuff depending on the card. This will build an excellent credit score and you have zero debt. WIN WIN.

Im getting sick of people getting all excited about Mr Ramseys classes and getting on their high horse. If you dont believe in credit you shouldnt even believe in cash. Do you even know what CASH is?? You should be mining for gold

[JinormusJ]

SoCal General Chat

Saving money is easy
Especially if you're a cheap POS

Don't buy stuff you don't need
Don't go overboard with spending
Splurge on yourself every few months to get it out of your system
Pay your entire bill at the end of the month
Invest money into stuff that doesn't depreciate or is a growing investment
Prepare/eat at home

The only thing I can see myself going into debt for are student loans and a house; both of which are growing investments

[thatphysicsguy]

^Preach it!
The investments are the real dealmaker. Nobody gets rich off a salary, the reason the 1% is up there, is because of investments (or inheritance).

[mkcman17]

I have two CCs, one VISA and one MC. I use them on a regular basis and pay them off regularly as well. I got my first CC at 16 or 17 with a tiny limit. Everything I own, I own.

Also international travel is much more stressful/inconvenient without a decent CC.

I still think the worst thing you can do for yourself financially is rent....but here I am renting.

[2mAn]

I still think the worst thing you can do for yourself financially is rent....but here I am renting.

True, in a sense you're just wasting money/ paying someone elses mortgage, but you also dont have the headache of fixing stuff that breaks and other stuff to deal with (HOAs). That said, Im trying to buy something ASAP, though I wont do it until I am totally ready. Thats a big chunk of debt and I have to make sure I will be in that area for at least 3-5 years.

[phreshkid]

I like credit. How else can you buy a $100,000 tractor and lease it out for $1000 profit a month?

[mkcman17]

True, in a sense you're just wasting money/ paying someone elses mortgage, but you also dont have the headache of fixing stuff that breaks and other stuff to deal with (HOAs). That said, Im trying to buy something ASAP, though I wont do it until I am totally ready. Thats a big chunk of debt and I have to make sure I will be in that area for at least 3-5 years.

Same could be said about leasing a car, but in the end you've still accrued no equity and leave flat on your ass. When I had my house in Phoenix I could never figure out why someone would pay me $200 above my mortgage to live there...and I only had maybe $15k out of pocket to purchase.

[accident]

True, in a sense you're just wasting money/ paying someone elses mortgage, but you also dont have the headache of fixing stuff that breaks and other stuff to deal with (HOAs).

If you rent a house in an HOA neighborhood you still have to deal with the HOA.

[2mAn]

Dealing with the HOA, yes, but paying an additional fee to the HOA, no. FUCK HOAs!! haha I need to avoid them like the plague

[QUKBMER]

I have two CCs, one VISA and one MC. I use them on a regular basis and pay them off regularly as well. I got my first CC at 16 or 17 with a tiny limit. Everything I own, I own.

Also international travel is much more stressful/inconvenient without a decent CC.

I still think the worst thing you can do for yourself financially is rent....but here I am renting.

This ^^^^

[accident]

Dealing with the HOA, yes, but paying an additional fee to the HOA, no. FUCK HOAs!! haha I need to avoid them like the plague

I guarantee you that the HOA fee is included in your rent lol

[2mAn]

The last place I rented, it wasnt, but that place also got foreclosed lol