Appearance Of Money

[oneshot]

I was just thinking of my Grandparents and Mom.

Looking at pictures of my Grandparents and knowing my Mom it was always Upper Crust.

Had to go to my Moms one time took a neighbor woman with me. Her eyes lit up looking at all the stuff. I told her settle down it’s all on paper.

I just wonder how many give the appearance of money but don’t have a Dime?

Had to laugh one time our Son asked his Mom why sometimes we have all kinds of money and sometimes we are broker than broke .

oneshot

[rps]

When I was still lawyering, I often represented bankruptcy trustees. From that I developed a additional area of expertise -> bankruptcies and Chapter 13 or Chapter 11 reorganizations for those who had financial complications not suitable for a bankruptcy mill.

I can tell you definitively that what one sees is not often reality. The house, the car, the boat, the country club membership? They are all on payments. Everything else is on a credit card or three.

[fishinwrench]

When you are living above your means it only takes one little hic-cup...one bad day.... to kick you right off the edge of the cliff.  

I was fully insured in '06 when the tornado hit, but that didn't save me.  By the time I got the mess cleaned up and the shop rebuilt (built the shop first so that I could get back to work) I had maxed out 9 credit cards, so all the money allowed for personal belongings and home content had to go to pay off credit cards, some even had legal judgements on them by then.  The stress related to all of that then resulted in a really nasty divorce which also cost me a ton, and partially injured me for life. 

It took 11 years of hard work and finaggling to get "right" again, and currently I operate 100% debt free and don't even have a credit account at all anymore.  I can't even tell you how good that feels.  If I can't afford to pay outright for something then I wait and save until I can.  

[rps]

21 minutes ago, fishinwrench said:

When you are living above your means it only takes one little hic-cup...one bad day.... to kick you right off the edge of the cliff.  

I was fully insured in '06 when the tornado hit, but that didn't save me.  By the time I got the mess cleaned up and the shop rebuilt (built the shop first so that I could get back to work) I had maxed out 9 credit cards, so all the money allowed for personal belongings and home content had to go to pay off credit cards, some even had legal judgements on them by then.  The stress related to all of that then resulted in a really nasty divorce which also cost me a ton, and partially injured me for life. 

It took 11 years of hard work and finaggling to get "right" again, and currently I operate 100% debt free and don't even have a credit account at all anymore.  I can't even tell you how good that feels.  If I can't afford to pay outright for something then I wait and save until I can.  

I approve this message.

The 1982 Penn Square bank failure and the oil and gas recession it triggered that then forced bank closures all over bit me in the posterior. A month before it started, I closed the final loan on a small law building I built. The final appraisal said I had created a substantial equity. A very few months later my lending bank failed and was closed by FDIC. They sold the loan to another bank who immediately classified all purchased loans as troubled. That triggered a ridiculous interest rate. I had to sell, but by then the real estate market had tanked. When I finally sold the building, I had to take $40,000 (borrowed) to the closing. Darn near went under, the rest of the 80's were lean, and I still bless my wife for what she put up with. Do business and life as if they will call all you owe due tomorrow.

Edit: I love Phil's bad language blocker. Really.

[snagged in outlet 3]

I hired into GM in 85.  First of many layoffs was in 87.  I had the usual house, car and credit card payments.  Credit cards weren't ridiculous but it killed me.  Never again....  I refuse to carry debt.

[FishnDave]

[Mitch f]

3 minutes ago, FishnDave said:

The Notorious!

[Terrierman]

It depends.  I owed serious money in the late 1980's and early 90's.  But had good businesses that the debt allowed to expand and increase cash flow and profits.  A couple of guys from Texas showed up one day and wanted to own what I had.  Eventually, they did.  Paid everything off and put serious money in the bank. Have always had zero personal debt ever since but still carry business debt.  Could write a check for it tomorrow but taxes say don't do it.

I do totally agree with the live beneath your means and pay cash for what you buy.  Has served me well over my lifetime.