Overheard conversation!!!!

[Code54]

Reading everyones posts made me think of mentioning this.
We use a credit card for EVERYTHING - if I can use the card and not pay extra to do it, I put it on there. I pay it all off and just get a lot of points for our normal spending. The other advantage I didn't see mentioned is that a lot of the "better" cards offer warranty extensions - some cases doubling an items warranty if purchased using the card. You also have the ability of disputing a charge if you have a problem in the future and the company wont help. I had to only do it once in 20 years but it allowed me to get my money back on a several 100 dollar item that was defective that the company would not stand behind. If I paid cash or with a check I would have had a real problem and never got my money back.
If you use credit cards properly (well too your advantage) they are a great way to make purchases and even help you make a little extra every year.....

 

[Redlands Okie]

I wouldn't say ALL the younger generation. My wife and I are nearly the opposite. Not quite to the extreme of a Dave Ramsey, but we are the "if I do a couple extra side jobs and bust a few more hours, I can pick up that junker on the side of the road and drive it till there is nothing left of it" or "I can buy that broke don car and fix it and drive it for a while and sell it for something with a/c." We are still young, but I refuse to open a credit card. She finally talked me into it and I set a limit to where I can pay it off in one pay check if something happens. Finally getting it through to her that a great credit score just means you are good at being in debt.

Keep in mind that quite often now your insurance rates for car, home, even some health policies, etc is affected by your credit score. Type of billing and deposits amounts required (prepay or pay at end of month) for your utilities are often affected by your credit score. Lots of things are affected by your credit score.

 

[goeduck]

Keep in mind that quite often now your insurance rates for car, home, even some health policies, etc is affected by your credit score. Type of billing and deposits amounts required (prepay or pay at end of month) for your utilities are often affected by your credit score. Lots of things are affected by your credit score.

Such a shame. I pay cash for everything and to think that I pay MORE for my insurance because I don’t have a credit score is nuts. Not disagreeing that it might be this way, but that is nuts.

 

[MossRoad]

This is how we handle ours, too. One credit card is strictly for auto-related stuff (fuel, repairs, etc.), and the other is for general stuff. Both get paid off monthly. One is through Amazon, so we earn reward points there as well with it's use anywhere.

Yup, not rocket science at all. Just don't buy what you can't afford.

The only financial advice my folks gave me was don't spend more than you make. :laughing:

 

[MossRoad]

....but they always turn out better if the owner is there to make decisions, adjust the details and oversee the work.....

Uh, no! Changes during the construction are the bane of most contractors. They add considerable costs, time, and most home owners don't know doo-doo about home construction.

 

[Raspy]

Uh, no! Changes during the construction are the bane of most contractors. They add considerable costs, time, and most home owners don't know doo-doo about home construction.

Yeah, you're right. But in this case there were a number of mistakes that were fairly serious and I caught them. And since the contractors were working by the hour, the additional cost was always on me.

My house has a heavy red iron steel frame. After I found the footings set incorrectly I sent my contractor on his way and hired the next guy. We worked together to adapt the design to conventional framing and finish it out. A great project and a very rugged house. It's built roof first, then slab and then finished from the top down.

I would never just hand a contractor a set of plans and then come back when the house was done. That is a recipe for disaster, or at least, you end up with what someone else thought was right. This is not about someone getting done as quickly or as cheaply as possible. And as I stated before, a contractor must get paid for their work, so no, this is definitely not a problem for them. It only is if they give a finished price and the owner wants extras for free.

I've been a contractor for 40 years and know the process. But building this house took more than the usual techniques.

 

[Bird]

Reading everyones posts made me think of mentioning this.
We use a credit card for EVERYTHING - if I can use the card and not pay extra to do it, I put it on there. I pay it all off and just get a lot of points for our normal spending. The other advantage I didn't see mentioned is that a lot of the "better" cards offer warranty extensions - some cases doubling an items warranty if purchased using the card. You also have the ability of disputing a charge if you have a problem in the future and the company wont help. I had to only do it once in 20 years but it allowed me to get my money back on a several 100 dollar item that was defective that the company would not stand behind. If I paid cash or with a check I would have had a real problem and never got my money back.
If you use credit cards properly (well too your advantage) they are a great way to make purchases and even help you make a little extra every year.....

That's the same thing we do, and have been doing for several years. But we have an 88 year old neighbor next door, barely gets around with a walker, and I take him to Walmart about once a month to do his grocery shopping and he's the exact opposite; has no credit cards and doesn't want any; pays cash for everything. I know he has a bank account because I've taken him there more than once to the drive in window to make a deposit or to withdraw cash.

 

[ultrarunner]

Oldest daughter is a teacher. Last year the people from the state came around talking to each school's staff about retirement planning and 401Ks. Said the little guy got her in the office and got her numbers while going thru his sales pitch. As her information came up he stopped and said something like 'Holy Smokes'. He sat there and looked at her information a little more then asked her, 'Most people your age have no savings at all and yet you have invested enough that you will have a great retirement even without your pension. How come you started saving for retirement as soon as you started work?' My 35-year old daughter said she didn't miss a beat and told him, "My Daddy made me!"

One of my prouder moments.

I preached to my daughters about the miracle or compounding interest and saving as soon as they were old enough to understand anything about money. I have a set speech that I gave to all their friends thru high school and college. I still give it to some of the kids at church when I can. Simple, if a 401K is available get in it. If your employer matches any of it max it out. If not put in at least 6%. If no 401K available put 4-6% yearly in an IRA in growth mutual funds. Do this and you can retire before 60. Don't do this and you may never retire.

RSKY

I got my nieces and nephews set up with the credit union which offered 7% special interest for minors on the first $1000 plus incentives for regular deposits...

The kids were 6 to 11 at the time and the 6 year old had no problem grasping interest and saving... she said they are paying me rent on my money... OK... she was almost 7 at the time.

3 of the 5 are little saving machines... and the other 2 are not bad either.

As a side benefit the account comes with full credit union membership and they actually look forward to seeing their savings grow.

 

[ultrarunner]

Oh, Man - if I have to "tiptoe thru the tulips" with Tiny Tim one more time - I'm 'a gonna puke.........

I met Tim once... he was as strange in person as you would imagine... did get a free Tiptoe through the Tulips Album ;-)

 

[ultrarunner]

You got all that cash back, but you'll never get your time back trying to explain it! :laughing:

The old adage about leading a horse to water comes to mind.

My wife and I purchase pretty much everything on our card, yet carry no balance, so never pay interest on it, and reap the rewards.

Some of these folks seem to think you should have carried that $75K in your pocket to pay for that stuff. You lose cash, and its gone forever. There's protection with a credit card.

We just think of ours as a plastic check book. No different. If you can balance a checkbook, you can use a credit card responsibly. Save up the money to purchase things, pay with the credit card, get the perks of travel points or cash back, and pay it off before the bill comes due. It isn't rocket science.

I see a common theme here which does not fit the typical consumer mold... TBN posters use plastic but abhor carrying debt...