Affordability discussion (split from Iran thread)

#376
#376
ButchPlz said:
Perhaps you're special, but for a lot of kids, that type of pressure isn't so easy to overcome. Especially when you're convinced it's the only way to have success in life.
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As others have suggested I think a large part of it is what kind of influence you have as a kid and how your parents raised you. Both of my parents instilled into me from a young age that debt in general should be avoided. Yea, you probably have to finance a house purchase or maybe something smaller for a vehicle, but that should be within reason and when you can make a good downpayment to offset some of the cost. If you can you should save up money to buy a used/new car completely with cash. Live within your means. Don't spend frivolously. Keep track of your money, where it's going, and how much. Neither of them were well off growing up. My dad, when a kid in the 40s/50s, would have been considered poor. I imagine that contributed to their view of income and how one should manage their finances.

I expected I would go to college after high school as my brother and sister did, but my parents also told us they weren't going to pay for it. My sister took student loans in the 80s and eventually paid them back after she graduated. I think it took about 10-15 years. My brother worked through college to pay for it. I went for 2 years then quit and went to aircraft maintenance school because college felt more like a scam to me at that point. I didn't see a reason for having to spend $400 per class to take pe, health, and 40 hours of electives that no employer would really care about when looking at me as a candidate. College felt more like a money grab. But that was the point went tuition really started getting stupid I think.
 
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#377
#377
85SugarVol said:
I went and looked, the average car note for Gen Z is actually greater than $500 per month.

So yea, not a “crisis” in the slightest. Those with a $600 car payment, complaining they can’t buy the house they “want”, are in a position only themselves put them in.
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Ok, you’re obviously buffering on this. Get stuck on details even though I said “$350 per month if you want to go cheap”. I’m interested in the larger picture.
 
#378
#378
McDad said:
Were you so inclined, your living expenses could have been reduced with a room mate. I know it is a hassle, but it is another viable way to facilitate home ownership.
I am not making light of the challenges. I am the first to admit wages have not rebounded as quickly as they have in the past wrt inflation. But I am not ready to classify things as a crisis.
More young adults appear to be moving back in with parents which, if they're responsible, can fast track their savings growth.
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you definitely have seen more single people look to alternate options. roommates, renting houses with multiple people, renting someone's basement, moving back in, its all there and being tried.

I was able to avoid it, but the roommate situation doesn't save all that much when I looked into it. pretty much everywhere I lived a 2bedroom more often than not 2x the cost of a single. I just checked my old apartments and the best savings I could find was 1,400 for a single and 2,500 for a double. so about 150 plus splitting utilities.

the only real benefit to a roommate is splitting utilities and if you like them. otherwise you are only going to save only a little. and if you have an issue with the roommate that 150 isn't worth it at all.

also have to be really careful with the roommate and how the apartment does rent/the lease. Most atlanta apartments can hold one roommate responsible if the other doesn't pay.
 
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#380
#380
hog88 said:
Speaking of your 3 letter designation. I was on the phone with one a little earlier:

MDA: I see that you're company has declined to submit a quote for our RFQ
Me: That's correct
MDA: Our companies have been doing business for a number of years, why would you elect to end that relationship
Me: You have gone to a 90 day pay that in reality turns to 120 and XYZ is just not a big enough piece of our business to finance your operations
MDA: You are not offering financing to our company
Me: When we have to pay our vendors in 30-45 days and you don't pay us for 90-120 we are financing your operations and we simply elect not to do that anymore
MDA: You cannot look at the business relationship like that, this is a 3 year contract so you should negotiate with your vendors to match our payment terms
Me: I'm not even going to try and it's not a 3 year contract, the reality is it's a 30 day contract since it has a 30 day out for either party and our current 3 year contract was terminated after a little over a year when XYZ decided to change payment terms and hired a 3rd party management/payment company
MDA: I don't think you understand how cashflow works
Me: I do understand how it works and that's why we declined to submit a quote
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I do screen printing and signs on the side (almost 25 years)

For established clients, big businesses, schools, government agencies, and politicians I would do Net 15 and 30 and everyone else 50% down.

Everyone now wants 90-120 days. It’s insane.

My vendors give me 30 days.

Now I only give terms to schools and government agencies and everyone else 100% upfront. ( I will make exceptions for established clients who have to submit a PO. Net 15 and 5% for Net 30 )

I grew tired of helping finance other businesses cash flow at 0% interest.

In case you’re wondering. The hardest clients to collect from are politicians. Especially if they don’t win the election.
 
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#381
#381
OHvol40 said:
Ok, you’re obviously buffering on this. Get stuck on details even though I said “$350 per month if you want to go cheap”. I’m interested in the larger picture.
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You actually said “dirt cheap”. $350 a month on a car payment, while complaining about affordability, isn’t even close to “dirt cheap”.

$3500 cash - now that’s cheap. And will position someone, who’s serious about home ownership and building wealth, for success.

The devil’s in the details, and your details paint a picture of an individual that makes poor decisions and traffics in entitled attitude.

But sure, let’s talk big picture - what is the solution to this “crisis” young people find themselves hopelessly mired in? I bet I can guess.
 
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#382
#382
hog88 said:
Speaking of your 3 letter designation. I was on the phone with one a little earlier:

MDA: I see that you're company has declined to submit a quote for our RFQ
Me: That's correct
MDA: Our companies have been doing business for a number of years, why would you elect to end that relationship
Me: You have gone to a 90 day pay that in reality turns to 120 and XYZ is just not a big enough piece of our business to finance your operations
MDA: You are not offering financing to our company
Me: When we have to pay our vendors in 30-45 days and you don't pay us for 90-120 we are financing your operations and we simply elect not to do that anymore
MDA: You cannot look at the business relationship like that, this is a 3 year contract so you should negotiate with your vendors to match our payment terms
Me: I'm not even going to try and it's not a 3 year contract, the reality is it's a 30 day contract since it has a 30 day out for either party and our current 3 year contract was terminated after a little over a year when XYZ decided to change payment terms and hired a 3rd party management/payment company
MDA: I don't think you understand how cashflow works
Me: I do understand how it works and that's why we declined to submit a quote
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MDA

Master of Dumb Ass’dness?
 
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#384
#384
LouderVol said:
you definitely have seen more single people look to alternate options. roommates, renting houses with multiple people, renting someone's basement, moving back in, its all there and being tried.

I was able to avoid it, but the roommate sit doesn't scaleituation doesn't save all that much when I looked into it. pretty much everywhere I lived a 2bedroom more often than not 2x the cost of a single. I just checked my old apartments and the best savings I could find was 1,400 for a single and 2,500 for a double. so about 150 plus splitting utilities.

the only real benefit to a roommate is splitting utilities and if you like them. otherwise you are only going to save only a little. and if you have an issue with the roommate that 150 isn't worth it at all.

also have to be really careful with the roommate and how the apartment does rent/the lease. Most atlanta apartments can hold one roommate responsible if the other doesn't pay.
Click to expand...

Rent doesnt scale here like it does in ATL. Ive never heard of that structure before...even when I was renting.
A br is only going to add a couple hundred or so to rent.
 
#389
#389
85SugarVol said:
You actually said “dirt cheap”. $350 a month on a car payment, while complaining about affordability, isn’t even close to “dirt cheap”.

$3500 cash - now that’s cheap. And will position someone, who’s serious about home ownership and building wealth, for success.

The devil’s in the details, and your details paint a picture of an individual that makes poor decisions and traffics in entitled attitude.

But sure, let’s talk big picture - what is the solution to this “crisis” young people find themselves hopelessly mired in? I bet I can guess.
Click to expand...
Lol well, if you have a guess, then by all means fire away.
 
#395
#395
85SugarVol said:
You actually said “dirt cheap”. $350 a month on a car payment, while complaining about affordability, isn’t even close to “dirt cheap”.

$3500 cash - now that’s cheap. And will position someone, who’s serious about home ownership and building wealth, for success.

The devil’s in the details, and your details paint a picture of an individual that makes poor decisions and traffics in entitled attitude.

But sure, let’s talk big picture - what is the solution to this “crisis” young people find themselves hopelessly mired in? I bet I can guess.
Click to expand...
I don't think I could have afforded a lump sum 3500 payment until I have worked and saved for 2 years or more. certainly wasn't able to put that much down as my down payment on the car.

a lot of poor people can't afford to put down cash payments like that. kinda like boot analogy/story; it often costs more to be poor than it does to be rich.

took me 5 years to save up 10k as a rainy day fund, most of that was back loaded on the 5 years. again I wasn't out there traveling, buying avocado toast or starbucks.
 
#396
#396
McDad said:
Rent doesnt scale here like it does in ATL. Ive never heard of that structure before...even when I was renting.
A br is only going to add a couple hundred or so to rent.
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a bedroom down here is at least a grand.

I think eventually Georgia passed a law about the rent delinquencies being passed on. it was a major problem. one of my coworkers was shafted by a room mate who didn't pay for like 5 months. my coworkers options were to either pay the 5 months missing, or get kicked out that friday. she paid, and then refused to have a room mate again.
 
#397
#397
LouderVol said:
I don't think I could have afforded a lump sum 3500 payment until I have worked and saved for 2 years or more. certainly wasn't able to put that much down as my down payment on the car.

a lot of poor people can't afford to put down cash payments like that. kinda like boot analogy/story; it often costs more to be poor than it does to be rich.

took me 5 years to save up 10k as a rainy day fund, most of that was back loaded on the 5 years. again I wasn't out there traveling, buying avocado toast or starbucks.
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Did you ever work or consider a second job in the lean years?
 
#398
#398
LouderVol said:
a bedroom down here is at least a grand.

I think eventually Georgia passed a law about the rent delinquencies being passed on. it was a major problem. one of my coworkers was shafted by a room mate who didn't pay for like 5 months. my coworkers options were to either pay the 5 months missing, or get kicked out that friday. she paid, and then refused to have a room mate again.
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Yeah it is the inherent risk if they are on the lease with me. The way we did it was rent a br out and that person paid the leasing person directly.
There is risk in everything.
 
#400
#400
McDad said:
Did you ever work or consider a second job in the lean years?
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never a real part time with a W9. did some cash jobs, nothing related with my field. at the time I felt lucky to have one actual job, I know the CFA, target, and publix across the street weren't hiring for any shifts I could have pulled.

with the commutes I had weekends were the only way I could have worked more, but the places I talked to didn't want any weekend-only workers.
 
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