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Do we spend money poorly?


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#1 BSLRobShields

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Posted 20 August 2019 - 02:51 PM

Been thinking about this a lot lately and I am curious on the thoughts of you guys.

 

In this country, we (generally speaking we) value homes, cars, etc...material things.

 

Do you think thats wrong?  

 

I have been thinking about stuff like this lately and have come to the conclusion that I think we spend money on dumb things.  Now, not everyone does this of course.  Even people with the capabilities of spending money on dumb stuff don't do it.

 

But do we really need an expensive car?  A big house?  Etc...?

 

How important are those things to you and if you have them, do you think its a good use of your money?


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#2 Pedro Cerrano

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Posted 20 August 2019 - 02:53 PM

I spend most of my money on booze and trips.

 

So yea, I spend poorly and don't save as much as I should (not having kids helps with that).

 

I will say I live in a nice condo, but nothing lavish and I drive a 2011 Cherokee that is paid for and will keep until it simply can't run anymore.  Not having a car bill is nice.


There is baseball, and occasionally there are other things of note

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#3 BSLRobShields

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Posted 20 August 2019 - 02:55 PM

I spend most of my money on booze and trips.

 

So yea, I spend poorly and don't save as much as I should (not having kids helps with that).

 

I will say I live in a nice condo, but nothing lavish and I drive a 2011 Cherokee that is paid for and will keep until it simply can't run anymore.  Not having a car bill is nice.

But you do get experiences in life out of this.  You aren't strapped down to a mortgage or something like that. You go out and live life.  I don't think that's a bad thing at all.


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#4 Pedro Cerrano

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Posted 20 August 2019 - 03:05 PM

Yea but my trips are mostly to cities I've been to to watch sporting events. I am going to Wrigley Field later this week for like the 5th time lol.

 

I'm not going to Greece or anything.

 

But yea, it's fun. I don't mind it. 


There is baseball, and occasionally there are other things of note

"Now OPS sucks.  Got it."

"Making his own olive brine is peak Mackus."

"I'm too hungover to watch a loss." - McNulty

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#5 McNulty

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Posted 20 August 2019 - 03:16 PM

When I go home, almost every conversation turns into a rundown of what they've bought lately, who has Ravens tickets, some familiy member bought a condo down the ocean hon.  Its a ranking system for success.  

 

I don't know if its in response and/or trying to compete in a way with the things going on my life.  

 

What I can say is that when I bring up the places I've visited, the international friends I've made, etc, Baltimore people *completely* tune out.  Its not singular to Baltimore, because other ex-pats have the same experiences, but I'm more sensitive to it when I go home.  Perhaps its because I could've easily ended up in the same place; which is overvaluing possessions (and possessions specific to the Baltimore eco-system) instead of experiences.

 

If I had an infinite supply of money, I would buy a sailboat and cruise the world.  I often google the infamous 51 things I own blog post from a few years back, and hope that I can one day get under that number.  If I have to own a car to survive in a place, I don't want to live there.

 

So yes, we own too much shit.  Way too much.  


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#6 BSLRobShields

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Posted 20 August 2019 - 03:40 PM

For me, I see less issues with owning things but more of an issue of what level it has to be on.

For example, is it dumb to spend 500+K on a house? You can’t be happy with a 350k house?

Or a 25k car isn’t enough? It has to be 50+K?

That type of thing.

I get where McNulty is coming from but I also feel that is more extreme. I’m kind of wondering about the middle ground I guess.
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#7 McNulty

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Posted 20 August 2019 - 03:43 PM

Oh yea I'm on the extreme, for sure.  

 

Your larger point is a good one.  Buy what you need.  Why buy a BMW when the Honda will get you where you need to go, reliably?


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#8 BSLRobShields

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Posted 20 August 2019 - 03:49 PM

Oh yea I'm on the extreme, for sure.

Your larger point is a good one. Buy what you need. Why buy a BMW when the Honda will get you where you need to go, reliably?

Btw, please don’t take that extreme comment as me bashing you or anything. I don’t/didn’t mean it that way.

I look at you and someone like my older brother as 2 people on opposite ends. You are more of a minimalist and he has big extravagant taste.

I don’t think either is wrong but I just find it interesting to think about.

And your last point is spot on and kind of what I’m talking about.
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#9 BSLChrisStoner

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Posted 20 August 2019 - 04:22 PM

You should buy what you want and live how you want (minimal or extravagant). 

But you should live within your means. 

There is a lot of pressure in this society to have X to impress Y, which is pretty silly. 
It's a bunch of people unhappy with themselves hoping the next thing will make them happy.  


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#10 BSLRobShields

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Posted 20 August 2019 - 04:58 PM

You should buy what you want and live how you want (minimal or extravagant).

But you should live within your means.

There is a lot of pressure in this society to have X to impress Y, which is pretty silly.
It's a bunch of people unhappy with themselves hoping the next thing will make them happy.


I agree with your first line. It still comes down to what you want.

I just wonder if what we value is dumb? I guess dumb isn’t the right word if it’s what you want but I wonder if how many people go to their death bed saying, I wish I had bought that BMW vs I wish I had experienced more things?
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#11 BSLMichaelWeber

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Posted 20 August 2019 - 06:06 PM

I'm pretty much with McNulty here although I'm not trying to sail around the world. I value experiences over material possessions.

#12 BSLRobShields

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Posted 20 August 2019 - 07:13 PM

I'm pretty much with McNulty here although I'm not trying to sail around the world. I value experiences over material possessions.

Do you ever foresee yourself buying a house?

I’m sure your rent isn’t “cheap” but you also don’t have to come up with a down payment, closing costs, etc....and that money could go towards the experiences you guys like to do.
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#13 BSLMichaelWeber

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Posted 20 August 2019 - 08:10 PM

Do you ever foresee yourself buying a house?

I’m sure your rent isn’t “cheap” but you also don’t have to come up with a down payment, closing costs, etc....and that money could go towards the experiences you guys like to do.


Our rent actually is pretty cheap.

We'll probably buy a home at some point in the next couple years, but something that is not that expensive relative to what we make.

#14 BSLRobShields

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Posted 20 August 2019 - 08:42 PM

We'll probably buy a home at some point in the next couple years, but something that is not that expensive relative to what we make.


That’s what I thought you might say...and that goes with what I’m talking about.

It’s also interesting how these things can change once you have kids. What you start to value, what you will sacrifice, etc..
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#15 BSLMichaelWeber

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Posted 20 August 2019 - 10:33 PM

That’s what I thought you might say...and that goes with what I’m talking about.

It’s also interesting how these things can change once you have kids. What you start to value, what you will sacrifice, etc..


Well we won't have to worry about kids impacting spending.

#16 BSLRobShields

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Posted 20 August 2019 - 10:41 PM

Well we won't have to worry about kids impacting spending.


I quoted you on that but that was more of a general comment on the topic.
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#17 BSLMikeRandall

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Posted 21 August 2019 - 12:04 AM

I’m wondering if homes are the investment that it once was for our parents/grandparents. For example my grandparents first home they bought in 1953 in Hampstead was something like $28K. Nothing special. Not a ton of land or a big house by any means. They sold it in 2004 I think, for $295k. So in 50 years it went up over 10 fold.

I can’t think my house in Parkville of roughly the same size being worth $1.9M 45 years from now. In fact my dads house he built in 1980 cost $140k. Appraised a few years ago at $260k. So in going on 40 years, it hasn’t even doubled in value whereas my grandparents home would have been up 6, 7 times the purchase price by then.
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#18 BSLMichaelWeber

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Posted 21 August 2019 - 12:14 AM

I’m wondering if homes are the investment that it once was for our parents/grandparents. For example my grandparents first home they bought in 1953 in Hampstead was something like $28K. Nothing special. Not a ton of land or a big house by any means. They sold it in 2004 I think, for $295k. So in 50 years it went up over 10 fold.

I can’t think my house in Parkville of roughly the same size being worth $1.9M 45 years from now. In fact my dads house he built in 1980 cost $140k. Appraised a few years ago at $260k. So in going on 40 years, it hasn’t even doubled in value whereas my grandparents home would have been up 6, 7 times the purchase price by then.


I think you're likely right about this.

The affordability of houses, much like with college, is much worse than it was decades ago, and the payoff tends to be lesser than it was.
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#19 BSLRobShields

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Posted 21 August 2019 - 10:58 AM

I’m wondering if homes are the investment that it once was for our parents/grandparents. For example my grandparents first home they bought in 1953 in Hampstead was something like $28K. Nothing special. Not a ton of land or a big house by any means. They sold it in 2004 I think, for $295k. So in 50 years it went up over 10 fold.

I can’t think my house in Parkville of roughly the same size being worth $1.9M 45 years from now. In fact my dads house he built in 1980 cost $140k. Appraised a few years ago at $260k. So in going on 40 years, it hasn’t even doubled in value whereas my grandparents home would have been up 6, 7 times the purchase price by then.


They aren’t investments unless you buy at the right time, buy a foreclosure or things like that.

I could sell my house and make money on it. Most people can’t do that anymore.

New construction is the biggest screw job of all. Don’t ever do that.
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#20 BSLRobShields

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Posted 21 August 2019 - 11:01 AM

I think you're likely right about this.

The affordability of houses, much like with college, is much worse than it was decades ago, and the payoff tends to be lesser than it was.


If you are a family of 4, desire to be in a good area with good schools, etc...and you want a house of decent size (say 2500ish sq ft), you would be hard pressed to spend like than 500k and if you do, the house probably needs updating, finish the basement, etc...

Housing is stupid expensive in our area because we live in a rich state.
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