Yes, many choose to "look" successful rather than trying to "be" successful.
I'm sure many of us are guilty of this as well from one time or another, it's just when it becomes a lifestyle you know you'll never get out of it..
COVID and the housing market
- Thread starter mimico_polak
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I'm sure many of us are guilty of this as well from one time or another, it's just when it becomes a lifestyle you know you'll never get out of it..
Was there ever a time where the masses did not live pay-check to pay-check? Most of my friends, my friends parents, etc. basically did until the mortgage was paid off. Others never did anything but rent so they stayed that way.
With the crazy run-up in real estate, it worked for quite a while. People were spending well above the cashflow allowed by income but by borrowing against appreciation in house they could overspend and still have increasing (or at least neutral) net worth.
Mad Mike
Well-known member
It's not the first time that happened... there was a big real estate runup from 86 to 90. You could buy a 12'sq new build in Stoufville or Holland Landing for $120K. Starting mid 96, those houses appreciated 5% each month for about 3-1/2 years. Banks started pumping Helocs, like the last few years lots of regular folks tried their hand at speculation. Me included.
The market crashed the early 90s, prices fell by 35% in the GTA, dumb money speculators got punished. Me included.
I don't expect that to happen now, the crash in the 90s was exacerbated by deep recession, an inept provincial government, and massive losses in jobs and GDP for Ontario. Were on firmer ground today.
A friend's logic was "I write cheques each month for hydro, water, heat, phone, etc. A car payment is just another cheque.
Silly me just buying 3 year old used cars outright and keeping them for a decade+. Guess I'm missing out, but I sleep well at night.
my unconventional upbringing made it hard to understand "how it works" , my parents owned a couple houses , but never had a mortgage, dad bought a new car every three years , he and mom had rotating turns, always cash, he never had a credit card or bank loan. My first three cars were financed by Bank of Mom. Later in life she began to invest in the stock market and did ok , but dad would never invest in anything except a bank term deposit , debentures . talking about money for years was bad manners. Figuring out how the real world worked was hard.
That is the funny thing, many of those drowning in debt, sleep very well, they don't see it as a problem, they see it as "normal"
Are they psychopaths?
I'm going with blissfully unaware. The budget will balance itself. Sometimes I am jealous of stupid people and their blissful ignorance.
Likewise. Perfect example, today...
group is going to the Caribbean for March Break and the group chat gets buzzing.
We're out as we have a big trip planned.
'What do you mean you're out? You've got a good job, you can afford it! Just put it on the LOC and let's effing go!!!!!!'
We're not going. But always a hard discussion with the wife and kids as to why we're not going.
That's a group I'm glad to not be a part of.
I wouldn’t trade that group for the world.
100%. But it’s only an extra $50/month to them so all good.
Although sometimes I wish I had that attitude, I can’t stomach the debt hanging over my head.
I have the other problem , in my circle I’m not on the lowest ladder rung, but I’m not at the top . They don’t want to put the holiday on a LOC , but if I say let’s rent a villa in Portugal for a week , 5 bds , split 5 couples , it somehow turns into a 5 cabin giant catamaran off the coast of Greece. The argument is , well it’s only another hour on a plane . No it’s the other 3k per couple …..
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That's about where we are...middle ground. We can afford the LOC...we just won't put a trip on the LOC.
I put away a few hundred monthly for a trip from year to year. It would make a nice dent in the LOC for the reno and car...but that vacation is important enough for me to just ride the LOC down slower. I try to fit the trip within 5k.
The latest offering was $5k on the dot to the DR, but we'll pass.
Good plan, you have to have balance in life, this year we've sunk all our money into our property and home. If you were to look at it you'd say nothing has been done as it's not a new kitchen / bathroom remodel. We're dealing with someone else's neglect. It's good because this being our last home we want it secure from external issues, but on the flip side, we're broke, no money for personal enjoyment. This is typically not a big deal but when you have to put something off for years at my age, those years count as I'll never get them back.
Long story short, if you have the means to add some enjoyment to yours and your families life, do it sooner than later. As long as the spending during the sooner doesn't create debt in the later...
He bought nice two year old cars and kept them for two years. He figured someone else took the heavy depreciation hit.
One time he traded in an Olds for a newer Buick and the Buick had a warranty issue so they took his trade in off the lot, giving it back to him as a loaner. Cruising along he glanced at the odometer and noticed it was down 15,000 miles.
We only get 1 turn around in this lifetime. I learned my lesson that I need to enjoy that time with the family, those that I care for, and for myself.
I’m alright with splurging once in a while, but Poland is going to cost me 10-15k next year so…
