chroot

Hey Hugo,

It was not the unemployment that caused my horrible situation -- it was my complete failure to plan ahead, live within my means, and prepare for periods of unemployment. Companies change and jobs come and go; if you're living from paycheck to paycheck you are living on the very edge of disaster. It will happen sooner or later. You absolutely must plan for these things.

Why wasn't I planning ahead and saving? Because I was throwing an enormous part of every paycheck into an expensive car. THAT is the real indication that I couldn't really afford it. Making the payments is probably 20% of what it really means to "afford" something.

- Warren

HGL1668

So its not really the S2000 that caused, but instead the failure to plan ahead and buying parts with most of your paychecks.

Say if you got a Brand New 20k Honda Accord instead. You might still run into the problem. You might spend all those money into something else because you lacked to plan.

When I got my S2000, I thought I shouldn't have gotten it too. Because as you said, I am living on the very edge of disaster. But luckily if, if anything goes wrong, I will have help. However, I am starting to stop relying on my parents.

What I hear from people is that your car payment should only be 1/10 of your paycheck of something, in order for you to say you can afford it. It kinda true if you have everything to worry about.

Peace
Hugo-

sahtt

chroot, thanks for sharing that with us. There is a lot to learn within this thread, perhaps more important than how our stocks do for the rest of the week no matter how good/bad it gets.

There are many times I thank God for giving me the rough times he did. I learned the value of a dollar [back when a Euro only bought .77 dollars] and soon after the time value of a dollar. It also enabled me to have a huge amount of a certain kind of respect for people working hard labor jobs every week for their entire lives.

My friends either thought or probably thought I was crazy regarding how I understood and controlled my finances, and do until this day. However, like chroot I had no support to fall back on so that "if you #### up you may not have food to eat" thought was always in the back of my mind.

I'm still in my early 20's and have a long way to go, but my level of financial knowledge compared to the average person has gone from greatly satisfying to more or less depressing. Most people are so clueless it makes me worry about our country as whole as education deteriorates and savings are non-existent. The richer have immense discipline when they do not "need" to, while the middle class has debt equal to their income for the first time in history.

Banks have P L E N T Y of money, don't give them anymore and invest it instead.

chroot

Hugo,

Having your parents to help means you can try just about anything once.

You should just try to arrange your finances so that you're able to consistently save 10-15% of your earnings every month. In my opinion, if you can't save 10% of your earnings every month, you are living beyond your means. If you can do this, you'll be ahead of 99% of Americans financially, and you will eventually reap the rewards. Life is all about delayed gratification.

There's just a mentality in the US that living beyond your means via debt is normal, perhaps even "the American way." It's holding a lot of people back and making the banks rich.

- Warren

HGL1668

I have been spoiled my entire life. And having to live in a rich city in LA, a.k.a. Car Status City, it does not help when all my friends have way nicer cars. I am trying to save up 10 bucks everyday. Seems easy, but very hard. LOL

chroot

Hugo,

I know what you mean. I have an S2000, but I ride a bicycle to work twice a week, for about twenty different reasons that I won't go into here. It happens to be quite a nice bike, but most people have no idea what nice bikes are or what they cost.

I was riding it home the other day, and pulled up alongside an old man in a 1992-ish Toyota at a left turn light. He looks at me, laughs, and says, "What, you couldn't afford the payments, eh?"

My response? "My bike is worth more than your car." And it probably is, and not just monetarily.

This country is absolutely obsessed with cars. I know it's ironic to have this discussion on a car forum, but really, it needs to be said. The auto industry has marketed itself so successfully that many people believe the automobile is a symbol of American independence. That's incredibly ironic, considering that most Americans buy them under crushing debt, fuel them with gasoline that tethers our economy to the middle east, and sit for hours every day in grid-locked traffic.

Yet, you're right -- for some reason cars are an enduring status symbol. I have to admit, though, that my car was never much good at attracting women or friends. It was always much more effective at attracting high-school boys.

Just keep track of your savings, and make sure you always have a little extra each month. You're gonna do great man. I mean it. Kudos to you for putting up with us all beating on you with such grace.

- Warren

HGL1668

Warren,

I like this. It was nice to talk about these matters sometimes. It helps to re-think the situation I am in.

I go to school in Davis, and Davis is one of the biggest bike town in the US, hence, I know bikes can cost a lot. I was very tempt to put that Specialized Elite Triple on my Credit Card a month ago, after getting two of my bikes stolen previously, but hold that off.

Anyway, S2000 is a nice car to drive. Hit Vtec and forget the bad past.

Have Fun,
Hugo-

SD_S2K

this might be the dumbest statement I have ever seen. Explain to me please, how a bank "knows" you can pay them off. You are just some kid with a car loan, another statistic. You can default just like the next guy. Give me a break


Every person with loans and debt thinks "they planned it out" and then they wake up one day up to their ears, and then file bankruptcy.

This is where I end any more replies to your posts.

Third year in college, two vehicles worth $30k apiece, and you are going to buy property? Guess what that means? Your parents are loaded and throw money at you, or something very, very similar to that. Congrats to you bro.

Which means we are all wasting our breath with you man. Money means nothing since it can be replaced. No kid in college with cars like that and the ability to buy property earned it with a college job. Please, tell me in detail I am wrong.

GL buddy ...

SD_S2K

Warren, you da man. I don't know you, but I like you. Great line!!!

HGL1668

SD S2K,

Good Job, you are right. I think we got that establish already, that I am wrong, but thanks for reminding me.

Hugo-