What do you mean by 'afford it'? Seriously..

[twooley2]

Didn't you know here at the Dis, EVERYONE pays their cc off monthly. NOONE carries a balance, lol.

Afford to me means we bring in more than we spend each month. I do not insist on having cash for a vacation that may cost $5K or more. If it takes me several months or even a year to pay it off, so what? We have stable jobs, plenty of savings for retirement, an emergency savings acct of 3 months' income. How I choose to pay for my vacations doesn't impact anybody but me (my family) so why does it matter?

This made me laugh about everyone paying off their cc each month. If that were so I dont think the economy would be what it is now.

 

[jodifla]

I would love to be debt free, but not willing to make the sacrafice. My kids are 6 and 8 If I were to eat "rice and Beans" like dave likes to say for the next 10 years to pay off my mortgage. I may have a great retirement but my kids would have a really crappy childhood. Not to mention I woud miss out on some great vacation memories with my kids. Definetly not worth it. You gotta enjoy life just not go to overboard.

Exactly! ITA!

And it's a fallacy that's its all one or the other. Either saving to the point of having no life, or spending like a drunken sailor. Plenty of us manage to strike a balance.

We do sometimes finance luxuries....one at a time. That's worked for us.

 

[dvcgirl]

I would love to be debt free, but not willing to make the sacrafice. My kids are 6 and 8 If I were to eat "rice and Beans" like dave likes to say for the next 10 years to pay off my mortgage. I may have a great retirement but my kids would have a really crappy childhood. Not to mention I woud miss out on some great vacation memories with my kids. Definetly not worth it. You gotta enjoy life just not go to overboard.

Well, I don't think Dave Ramsey says that you need to be eating "rice and beans" until you pay the house off. He says that you need to do that until you pay off consumer debt and student loans. Once you have a fully funded emergency fund (baby step 3), then people complete baby steps 4 (retirement), 5 (college) and 6 (house) at the same time while also enjoying life a bit more. He claims that most people who follow his plan pay off the house with a 30 year mortgage in about 7 years.

I will say that sometimes a caller will outline their debts and have six figures or more of student loan debt and he still tells them to keep that in baby step two....which is when you're still supposed to be on "beans and rice". I understand his point and think that's a fine plan if that caller is a physician and can pay off the debt in a few years. But some kids today are coming out of private schools with six figure debt and a liberal arts degree. There's no way that person is having a life at all for at least ten years following DR's plan.

 

[natenapril]

The problem with the budget board is you don't get the broad range of answers here for a question like yours. People here are very focused on the "never any debt" angle. The average American just doesn't live like this...most people use credit at least some of the time.

For us, we make make sure we have substantial retirement savings, college savings, an emergency fund of about 8 months. We drive our cars 10 years or more. Our current cars have 14 and 15 years on them; we are just in the process of buying a newer car to replace one of them.

But we don't dip into savings to pay cash for cars, for example. We get good financing and simple interest loans. Our last car loan was at 2.9 percent. Yes, it's costing us a bit in interest, but we got a great deal on the car, and we'd rather have the liquid cash on hand.

We did pay cash for our boats. And today, we pay cash for most of our trips, using frequent flier miles and credit card rewards for our airplane tickets and free baggage.

But if we had a great opportunity, but didn't have the cash saved up -- we'd use credit for the trip. We believe in living life now. You don't really know if you have tomorrow.

I did rack up some debt a few years ago with very frequent trips to see my dying father. There was no putting off those trips -- it was now or never. It took awhile to pay them off, but I wouldn't change a thing.

To me, moderation is the key...and you don't find a lot of moderation on the budget board.

You have stated what I couldn't put into words. Thank you. Sometimes is gets old how many people here act as if they are doing things btter by living the "rice and beans" lifestyle if others choose not to. By no means so I think anyway should go out and rack up thousands of dollars worth of CC debt but if something is charged with a plan to pay it off the world will not end.

 

[padawans]

Well, I don't think Dave Ramsey says that you need to be eating "rice and beans" until you pay the house off. He says that you need to do that until you pay off consumer debt and student loans. Once you have a fully funded emergency fund (baby step 3), then people complete baby steps 4 (retirement), 5 (college) and 6 (house) at the same time while also enjoying life a bit more. He claims that most people who follow his plan pay off the house with a 30 year mortgage in about 7 years.

I will say that sometimes a caller will outline their debts and have six figures or more of student loan debt and he still tells them to keep that in baby step two....which is when you're still supposed to be on "beans and rice". I understand his point and think that's a fine plan if that caller is a physician and can pay off the debt in a few years. But some kids today are coming out of private schools with six figure debt and a liberal arts degree. There's no way that person is having a life at all for at least ten years following DR's plan.

Steps 1-5 no problem already there but to pay off my house in 7 years. I'd be eating rice and beans from the dollar store three times a day.

 

[tinker&belle]

Well, I don't think Dave Ramsey says that you need to be eating "rice and beans" until you pay the house off. He says that you need to do that until you pay off consumer debt and student loans. Once you have a fully funded emergency fund (baby step 3), then people complete baby steps 4 (retirement), 5 (college) and 6 (house) at the same time while also enjoying life a bit more. He claims that most people who follow his plan pay off the house with a 30 year mortgage in about 7 years.

I will say that sometimes a caller will outline their debts and have six figures or more of student loan debt and he still tells them to keep that in baby step two....which is when you're still supposed to be on "beans and rice". I understand his point and think that's a fine plan if that caller is a physician and can pay off the debt in a few years. But some kids today are coming out of private schools with six figure debt and a liberal arts degree. There's no way that person is having a life at all for at least ten years following DR's plan.

We have had great success with DR's plan, but we are breaking rank when it comes to student loans. We have paid off the cc debt prior to starting the plan, and gotten rid of car loans. Now we have some home repairs to catch up on then we are funding our EF. THEN we will move on to 4,5,6 while enjoying life too.

Paying off the student loans would take 2.5 years more with rice and beans and we have been doing DR for about 1.5 years now and our gazelle is getting tired. Once the EF is set we will be ready to take vacations again (maybe even buy a SMALL dvc contract) and be funding our retirement, some college and paying off the house. I know Dave wouldn't agree 100% and I'm okay with that. We had a lot of medical expense come up through our journey and it definately lengthened the process and wore us down.

 

[inkedupmomma]

prolly gonna get flamed, BUT...

I consider my WDW vacation an essential! It is for my mental well being! I won't go without food, or paying bills, and I don't even own a CC, but Disney is a priority and is treated as a bill each month. No, I don't have all the wonderful savings/retirement accounts you all seem to have (and kudos to you!) and I don't even own a home. So sure, I should (says who? idk..just thats what you're supposed to do ) save my money for emergency savings, etc.. but I need my WDW trips.

Don't flame too bad

 

[natenapril]

prolly gonna get flamed, BUT...

I consider my WDW vacation an essential! It is for my mental well being! I won't go without food, or paying bills, and I don't even own a CC, but Disney is a priority and is treated as a bill each month. No, I don't have all the wonderful savings/retirement accounts you all seem to have (and kudos to you!) and I don't even own a home. So sure, I should (says who? idk..just thats what you're supposed to do ) save my money for emergency savings, etc.. but I need my WDW trips.

Don't flame too bad

RUN!!

 

[inkedupmomma]

I love reading this board for great ideas on how to save. And like many posters said my family vacations were down at the jersey shore. We went to Disney twice. Here is where my conflict lies, a Disney vacation for me is thousands of dollars. I live in PA so I am not close. Inorder for me to do this type of vacation, I need to have budgeted the thousands of dollars. When did Disney become an annual or frequent place for everyone? If you live by there, that is a completely different story. For me it is like Avalon(down the jersey shore) I live close, can drive there, and have a place to stay. Now if you were coming from Florida, you would need to find a place to stay, get there etc... I don't know, if you have the money great, go for it! But if you don't save until you can and enjoy the places around where you live!!

are you kidding me?? I am right by you in bucks county pa! have you priced a week at the shore lately? even a day down in ocean city nj is ridiculously expensive..try staying the week! for what I would pay for a week in OCNJ, I could do a week in WDW including the gas money to get there and back!

 

[dvcgirl]

Steps 1-5 no problem already there but to pay off my house in 7 years. I'd be eating rice and beans from the dollar store three times a day.

I hear ya. And I agree with you....if you're doing steps 1-5, or even 1-4 successfully, then just pay off the house in time if you're comfortable doing that. With some of these rates today, as long as the house payment isn't a huge portion of your net income...then why not. Full disclosure...we're debt free, but we didn't sacrifice to pay off the house, we got a lump sum from some stock options my DH held with his company years ago.

Sure, we have remained debt free since then, but it's not like we ate beans and rice for a number of years to get there. We have been pretty smart about living well beneath our means since becoming debt free years ago, but we earn a lot compared to most Americans (but we're average in our area).

 

[inkedupmomma]

RUN!!

meh, I have a thick layer of tough skin from being on these boards for so long. I know i'll get flamed, but at least I am honest and not sitting on some sort of high horse.

If I die tomorrow, I will die a VERY happy lady, so I'm good with my decisions

 

[Skatermom23]

We have struggled with balance all our adult lives. How do we give our kids a nice childhood while providing for their future. It has been tough but we choose to only have a few big vacations and instead save for college. Believe it or not, my kids have only been to Disney twice!! They are now 17 and 19.

Last night DS called me...he is now at college (his first year) and thanked me for paying for his tuition. He was surprised at how many of his new friends were having to foot the bill alone. My kids had a great childhood and we had plenty of great memories, but that phone call thanking me for saving for his future was Priceless!

 

[padawans]

meh, I have a thick layer of tough skin from being on these boards for so long. I know i'll get flamed, but at least I am honest and not sitting on some sort of high horse.

If I die tomorrow, I will die a VERY happy lady, so I'm good with my decisions

No flaming from me. Yeah my house payment is less tha 20% of income, low car payment nocc debt lots of savings etc. Home ownership is expensive something is always breaking, needing repair, needing replaced. Sometimes I really envy people that rent. I should be spending money on my house, but vacations are a must for me without them I would go crazy.

 

[inkedupmomma]

No flaming from me. Yeah my house payment is less tha 20% of income, low car payment nocc debt lots of savings etc. Home ownership is expensive something is always breaking, needing repair, needing replaced. Sometimes I really envy people that rent. I should be spending money on my house, but vacations are a must for me without them I would go crazy.

Sadly I have NO vacation for this year, and I truly feel like I might go crazy! BUT, I have one planned for next September...so it's something to look forward too!

 

[punkin]

We have struggled with balance all our adult lives. How do we give our kids a nice childhood while providing for their future. It has been tough but we choose to only have a few big vacations and instead save for college. Believe it or not, my kids have only been to Disney twice!! They are now 17 and 19.

Last night DS called me...he is now at college (his first year) and thanked me for paying for his tuition. He was surprised at how many of his new friends were having to foot the bill alone. My kids had a great childhood and we had plenty of great memories, but that phone call thanking me for saving for his future was Priceless!

I have to agree that paying for college is a definite priority over Disney trips (I know, sacrilege).

 

[Virgderon]

I have to agree that paying for college is a definite priority over Disney trips (I know, sacrilege).

This has nothing to do with Disney, but buying into your states pre-paid tuition plan when the kids are very young goes a long way toward paying for college. I started when my kids were 11 and 6, and wish I would have done it sooner and got it over with. I did it, $540 a month for 5 years, and that is all I saved for their college, but it was a big help.

I do think the kids should have some skin in the game- it's ok to expect them to take out the minimum student loan each year in their own name.

I have seen too many kids completely fall apart at college and leave their parents with the burden of an education not completed that needs to be paid for. I know, my stepson is one of them.

 

[crisi]

This has nothing to do with Disney, but buying into your states pre-paid tuition plan when the kids are very young goes a long way toward paying for college. I started when my kids were 11 and 6, and wish I would have done it sooner and got it over with. I did it, $540 a month for 5 years, and that is all I saved for their college, but it was a big help.

I do think the kids should have some skin in the game- it's ok to expect them to take out the minimum student loan each year in their own name.

I have seen too many kids completely fall apart at college and leave their parents with the burden of an education not completed that needs to be paid for. I know, my stepson is one of them.

Hopefully, that's an education that WAS paid for. Not needs to be. Because ideally, you saved throughout their childhood and chose a college that was affordable without loans - even if that is community college.

For me, the maximum "skin in the game" is living expenses, plus the difference between what I've saved and what they choose. If I save for the University of North Dakota and they decide to go to Notre Dame, they'll have a lot of skin in the game.

And some college on a resume is still better than no college on a resume. Both my husband and I got through 20 years worth of careers with "educations not completed." In my case, all that "education not completed" counted when I went back 20 years later and finished up.

 

[LovableGluttons]

I don't think I'm fortunate at all. I think I made a decision about 20 years ago to save money and not give it to the banks in the form of interest. Oh that and I worked my rear off. It's very easy to do, just have to get used to delaying purchases until you have the money.

Personally, I would never have a car payment. But if I did, I most likely would not take an expensive vacation. I would make our vacation be a trip to grandma's house at the beach, a cheap tent camping trip, etc. I would use the money I saved to pay down the car loan. But that's just me.

If you have never been debt free as an adult you should try it. It's the most awesome feeling in the world and the freedom it gives you is unbelievable. The freedom to take awesome vacations, pay cash for big ticket items, send your kids to college and save money for retirement.

I am 45 years young and I plan on being a millionaire when I retire. It's actually very easy to do. Don't believe me, listen to Dave Ramsey (he's on the web and you can listen to his archived shows for free). I started making wise decision 20 years ago and only recently started listening to him. Finally, someone else that thinks like I do!

We don't have huge 6 figure incomes, we live in a fairly simple 3 bedroom house, my DH's truck is 10 years old, mine is 8 years old. We just bought our DD a new car last year that is fully paid for and we are cash flowing $17,000 per year for her college (yep, no student loans!). Last weekend we bought a brand new travel trailer that we are paying cash for. Instead of paying interest to banks we delayed our purchases. We use the money we save on interest to pay cash for our next big purchase. We always live below our means and we take awesome vacations...cruises, carribean, wdw, dl. And to think it all started because I decided I didn't want to have car payments!

This sounds like DH and I, we are just a bit younger. Millionaires aren't only people with seven figure annual salaries but regular people who sacrifice early, save, invest, budget, and plan. We had no windfalls, no lottery winnings, no inheritance, no life insurance or lawsuit checks. We aren't just lucky. No handouts, just hard work and planning.

I am on my way home from a weekend in Disney with DH as our kids had other plans. We have a monthly vacation budget we use to "afford" it. No credit cards because we have no credit cards at all.

 

[crisi]

This sounds like DH and I, we are just a bit younger. Millionaires aren't only people with seven figure annual salaries but regular people who sacrifice early, save, invest, budget, and plan. We had no windfalls, no lottery winnings, no inheritance, no life insurance or lawsuit checks. We aren't just lucky. No handouts, just hard work and planning.

I am on my way home from a weekend in Disney with DH as our kids had other plans. We have a monthly vacation budget we use to "afford" it. No credit cards because we have no credit cards at all.

There is a certain amount of luck involved. Its more than just hard work and frugality. You have to be lucky enough to no be unlucky. A house growing mold that needs mold abatement, an illness that sets you back $50k in out of pocket expenses, a job loss that leaves you unemployed and unable to even find work as a pizza delivery person, a needed job relocation when you have to sell your house at a loss.

And, while I'm a huge fan of financial security, I wouldn't deprive myself in order to "be a millionaire." Nor would I work two jobs in order to do it. You need to have balance in your life.

 

[LovableGluttons]

There is a certain amount of luck involved. Its more than just hard work and frugality. You have to be lucky enough to no be unlucky. A house growing mold that needs mold abatement, an illness that sets you back $50k in out of pocket expenses, a job loss that leaves you unemployed and unable to even find work as a pizza delivery person, a needed job relocation when you have to sell your house at a loss.

And, while I'm a huge fan of financial security, I wouldn't deprive myself in order to "be a millionaire." Nor would I work two jobs in order to do it. You need to have balance in your life.

I think many of us on this board have varying opinions on what would constitute luck, what would the definition of financial security is. Also, what level of sacrifice would be worth ittoachieve those goals.

Ultimately, for me, I needed to be one who was the hunter as well as the gatherer to feel like I earned it. I was important to my self esteem (ego).