Detailed market commentary at The Market Ticker and Ticker Classics
(The Year 2012 In Review)
Donations accepted; we offer GOLD ACCESS for enhanced privileges. T-Shirts, caps, coffee mugs? Click here.
BlogTalkRadio - Mondays at 3:30 Central - Yes, TickerGuy has a radio show (kinda)
RSS available You are not signed on; if you are a visitor please register for a free account!
|MarketTicker Forums Single Post Display (Show in context)||
User: Not logged on
|User Info||'Affordable' debt still bad?; entered at 2010-06-04 18:47:23|
Registered: 2008-04-01 He's cute, but he can't swim
1) Debt on a depreciating asset is dumb. This includes cars, motorcycles, boats, etc.
It used to not include houses but things are different now.
2) People spend too much time looking at the monthly payment, and not what total item cost is. There's no sense of VALUE anymore. Sure that ****box car only costs you 250/a month for 6 years but is it really worth the 20K you'll end up paying for it?
3) A friend once told me her dads rule of thumb was, of your net income, 25% to housing, 25% to car, 25% to living expenses and 25% in the bank.
Now, housing has gotten more expensive and having it equate to the cost of your car is silly and not possible, but the 75-25 spending to saving rule still makes a lot of sense, even if you divvy it up a little differently.
4) Debt used to increase the worth of something or to better your situation makes sense, within reason. Education (though this is truly outrageous in cost these days), expanding a business, buying a house that will increase in value (in the old days) etc.
Just my $.02.