kenmac
Super Member
- Joined
- Feb 13, 2005
- Messages
- 9,702
- Location
- The Heart of Dixie
- Tractor
- McCormick CX105 Kubota MX 5100 HST, Kubota ZD1021, Kawsaki Mule 4010 trans 4x4
Well, I am only 70 but I have been retired from working for someone else for 8 years.
While I was working for a company I build up a rental real estate business. I used credit (mortgages) for this and would not have the business if I hadn't used credit. To me, the key was to use credit in moderation. Every house DW and I bought, we analyzed what would happen if the bottom dropped out of the market and we couldn't rent it, and we never bought anything we could not afford if one, or even two bad things happened. Loss of a job, serious injury, etc.
In general, especially while starting out, which is where the OP is, do not use credit to buy an asset which will depreciate over time. Cars, tractors, whatever. Especially a non-essential asset like a tractor which is not part of a business. We knew that over long periods real estate would appreciate, even if there were short term losses, holding on for the long haul would bring rewards.
This may not be what the OP wants to hear, but he certainly needs to hear it.
At this point, we are in a position like PILOON. We have kept our cars almost until the wheels fell off, and endured many, many years of living below our means. But, the people who looked down their noses at our vehicles and houses are now pretty insecure, while we are not. We still have mortgages, both on our primary residence and rentals, but they are all fixed rate. Our assured income is more than sufficient to pay them.
Very well said Dave,,, I have always lived this way ...
I have to replace service trucks at times, but they are used.. There is a place that buys Trucks with all types of bed styles from utility companies that have been retired ,and sold.. I get really good deals fro the guy ,because I always buy from him when I need Truck..
When the economy was booming, I knew guys that bought all new trucks.. They were buying 1 for what I could buy 2 for.. They always ragged me for buying used.. They used that same song ,and dance about writing everything off..
That is, until the economy fell like a rock !
They lost those new trucks,and more, when they weren't pay those payments they thought they would always get to write off on their taxes
I see those ex business owners from time to time.. I never say a word about when they use to rag me about my used trucks ,etc.. All they ask me now is When you gonna give it up ? I just smile ,and say any day now..
The only way to maintain a high FICO score is to stay in debt..