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conmoto · 02-03-2014, 09:14 PM

That is interesting that you took 750K of working capital and put it all into a depreciating asset. It is great you are able to do it and best wishes!

U-2 Pilot · 02-04-2014, 03:25 AM

GOD BLESS AMERICA AND THANK GOODNESS FOR CAPITALISM

In the early 80's I came across a book titled "Money Dynamics For The Eighties". After reading the book I realized that if I was to ever become financially independent I would have to make some drastic changes in the way we handled our money. I sat down with my DW and we charted out a course that we felt would help us financially through the rest of our lives. Without boring you the following are some of the principles that have seemed to be most valuable to us.

1. Be grateful for America.
2. Tithing
3. Capitalism
4. Giving to the poor and needy
5. Pay yourself first
6. Compound interest
7. Dollar cost averaging
8. Get out of debt as soon as possible
9. Discipline & Sacrifice
10. Diversification
11. Study
12. Understand and apply the work ethic in all you do
13. Patience with long term investing and avoiding "get rich quick" schemes
14. Be prepared for a rainy day with not only emergency monies but also food, clothing, and other necessities (No, I'm not a extreme survivalist)
15. Honesty

Well it's now several decades latter and what do we have to show for it? The answer:
Debt free with interest income (no principle used) paying for, among other things, two homes, college for three of children, weddings for four children, church missions for two boys, three cars, a cabin, four snowmobiles, two quads, an Argo, and if all goes well a motorhome in June or July of this year. THE IMPORTANT CONCEPT IS, ONCE AGAIN, THIS HAS ALL BEEN PURCHASED WITH INTEREST INCOME WITH NOT A PENNY OF PRINCIPLE BEING USED. In other-words America and capitalism has provided that financial independence that we sought for.

Please know I'm not trying to be a smart alec or showing off. We feel extremely blessed and express gratitude each day for these blessing. At the same time it took a lot of hard work and going without to get us to this position. Its also important to understand that we accomplished this on Air Force pay which was certainly not a six figure income. We just hope that we will now be able to enjoy it.

palehorse89 · 02-04-2014, 03:44 AM

Quote:

Originally Posted by conmoto

That is interesting that you took 750K of working capital and put it all into a depreciating asset. It is great you are able to do it and best wishes!

Maybe for some(A lot people in our world today) it does not need to be a investment
There is a large amount of working capital for some, glad you brought this up, it just backs up what this thread is about!
Imagine being one of the folks that go and drop 1.8 m on a new Newell, without batting a eye......
And the another time we could talk about their 200' yacht that the Coach is parked in front of. God bless em! I for one sure enjoy looking at all the equipment that people have

bbeane · 02-04-2014, 04:11 AM

Some folk have good credit, some folk have been very lucky, others have worked hard and saved for what they want. Most of us working folks can't wrap our arms around how people can afford "that kind of money", but in the real world there are a lot of people with a bunch of $$ just ride around the coast here in Florida. Multi million dollar homes with big boats out back. In the end you buy what you can afford and enjoy it, weather it's small popup or a 2M bus it's all good.

GWDawg1 · 02-04-2014, 06:04 AM

Quote:

Originally Posted by bbeane

Some folk have good credit, some folk have been very lucky, others have worked hard and saved for what they want. Most of us working folks can't wrap our arms around how people can afford "that kind of money", but in the real world there are a lot of people with a bunch of $$ that just ride around the coast here in Florida. Multi million dollar homes with big boats out back. In the end you buy what you can afford and enjoy it, whether it's small popup or a 2M bus it's all good.

There you go.

conmoto · 02-04-2014, 08:01 AM

I agree with you palehorse, good for them and enjoy whatever your blessed with!

GWDawg1 · 02-04-2014, 08:40 AM

Quote:

Originally Posted by conmoto

I agree with you palehorse, good for them and enjoy whatever your blessed with!

Me too!!! Palehorse, I really enjoy looking at other RVs, regardless of size, etc., dreaming of having some of those I see. Years ago we were at Topsail SP in Destin and J.B. Hunt's Prevost bus came pulling in. I also knew a guy who helped design acoustics in Newell coaches. (He was known all over the country for his work.) Guess what he was driving as payment?

gbburgess · 02-04-2014, 09:58 AM

You know I worked for 40 years - early in and late out. I traveled 2 million miles on planes. We took any company matched funds and then made sure we saved 15% of our gross salaries. DW had a good job and we did what we could on what we had while raising 2 boys. Now the 2 pensions and SS check pay our way. I will purchase a new Tuscany this spring and I will not pay cash. However, I will finance it for a lower interest rate than my investments are making and pay it off in less than 10 years. I guess that is my cost for fun and travel. Yes, at times I will grump about the costs or the weather or the poor parks but on the whole this is better than watching the grass grow from the back deck of my home.

nforus · 02-04-2014, 10:19 AM

Congratulations Ed and Barb!!!
You're going to have a lot of fun out there this Summer in a new Tuscany!!! We can't wait for it to warm up so we can get out on the road, but from the looks of this weather, it's going to be a while.

HHg · 02-04-2014, 10:27 AM

Wealth or "financial means" is not distributed, it is earned. I've worked for almost 45 years with never more than a few weeks off. In the last few years, I've started to take more time to enjoy whatever I have accumulated. I really get pixxed when people talk about distributing the wealth. If you want some of what I have, earn it yourself!! Now, about my first sentence....there are many who are doing everything in their power to redirect what I've earned !! My RV is probably one of the few extravagances I've ever allowed myself.....

Hhg

nforus · 02-04-2014, 10:49 AM

Quote:

Originally Posted by HHg

Wealth or "financial means" is not distributed, it is earned. I've worked for almost 45 years with never more than a few weeks off. In the last few years, I've started to take more time to enjoy whatever I have accumulated. I really get pixxed when people talk about distributing the wealth. If you want some of what I have, earn it yourself!! Now, about my first sentence....there are many who are doing everything in their power to redirect what I've earned !! My RV is probably one of the few extravagances I've ever allowed myself.....

Hhg

Excellent!! I also have a hard time with the term "Wealth distribution" nobody distributed anything to us, but by the virtue of the huge taxes that we pay, we've got to be distributing to someone else. Those that would like to extract gains from the demonization of financial success are winning, and there is a growing resentment as a result. We grew up in an America where you strove hard to get a piece of the "American Dream" and you cheered for others who got there ,including those who went way farther that you, that just meant that the opportunities were out there. The greedy Wall Street types, Enron folks, etc did a huge disservice to the average person who just made their way one day at a time.

Redridge · 02-04-2014, 10:55 AM

Life's to short... enjoy life to the fullest. Thats all I know, the rest I make up along the way.

smiller · 02-04-2014, 12:06 PM

Quote:

Originally Posted by GWDawg1

One of my favorite sayings is - "If you have to ask the mileage, then you can't afford it".

No, you should care about what the mileage is even if you can afford it. That's one of the most important things to understand about acquiring wealth.

MRUSA14 · 02-04-2014, 12:49 PM

Quote:

Originally Posted by nforus

We have one of those blinged out >750k coaches that so many seem to be resentful of, it's paid for with cash!! and it cost a lot more than our house!! We think it's funny that folks think we buy these to say "look at me" yet we spent our whole careers living in less house than we could afford, driving less car than we could afford, saving our incomes, not showing them off. But now we've changed and are all about showing off??? It also helps to always have been the first one to work each day and the last one to leave, that gets noticed and rewarded.

Reminds me of a story told to me by a friend who lived in a very modest neighborhood. On day he came home with a brand new car. All the neighbors crowded around and one said "Boy, are you lucky!"

He turned to him and said "It's funny, the harder I work the luckier I get".