1. Leased a BMW 6 series for $1250/month for three years and then immediately hopped into another BMW lease for $1050/month. After 6 years I had nothing to show for it.
[Read more…] about 14 People Reveal Their Worst Financial Decision
Finances
You Need To Avoid The “I Deserve It” Trap
It’s easy to fall into the “I deserve it” mentality with our finances. After a long week of work, it’s tempting to rationalize splurging on an expensive meal, new clothes, or the latest gadget.
But this mindset can seriously damage our financial health if we’re not careful. Let’s delve into what this mentality is, why it’s harmful, and how to combat it.
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Financial Math of the Day
Which auto loan option is better?
2023 Mazda CX 30 select
About $27,000
$5,400 (20%) downpayment
2.9% 36mo loan vs 4.9% 60mo loan (manufacturer promo rates)
So it would be about $620 vs $400 monthly payment
I’d be paying nearly 3 times the amount in interest at the end of the day with the 60mo loan. But if I invested what I’d be saving with the lower monthly payment, would that outweigh the additional total interest paid over the life of the loan?
I know it’s possible that the market could go down while paying the car loan instead is a “guaranteed return” but I feel like a 5 year time span is likely to get a positive return?
Why Aren’t Student Loans Bankruptable
Student loans are generally not dischargeable through bankruptcy in the United States for several reasons:
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Public Policy Concerns: The idea behind making student loans non-dischargeable is to protect the federal student loan program. If students could easily discharge their loans through bankruptcy, it might jeopardize the availability and terms of future loans for other students. The government wants to ensure that funds are available for future students to borrow.
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Potential for Abuse: There’s a concern that if student loans were easily dischargeable, some individuals might take advantage of the system. For instance, a student could theoretically borrow a large sum of money, earn a degree, and then immediately file for bankruptcy to have the debt wiped out, all without ever intending to repay the loans.
What is Stealth Wealth?
In the world of personal finance, there’s a concept that’s been gaining traction over the years, known as “Stealth Wealth.” At its core, Stealth Wealth is the practice of keeping one’s wealth hidden from the public eye. It’s about living a life that doesn’t scream “I’m rich!” even if one’s bank account tells a different story. But why would someone choose to live this way, and what are the benefits of such an approach?
Stealth Wealth is not about being stingy or miserly. Instead, it’s about making conscious choices that prioritize long-term financial health over short-term displays of affluence. It’s the millionaire next door driving a decade-old car, or the successful entrepreneur who chooses to live in a modest home rather than a mansion. These individuals understand that the true value of wealth is not in its display, but in the freedom and security it provides.
Why Do We Buy Stuff to Impress People We Don’t Even Know?
The desire to impress others, even those we don’t personally know, is a complex behavior rooted in psychology, sociology, and evolutionary biology. Here are some reasons why individuals might purchase items to impress strangers:
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Evolutionary Perspective: From an evolutionary standpoint, humans have always engaged in behaviors to increase their social standing and attractiveness to potential mates. Displaying wealth or resources can be seen as a way to signal one’s “fitness” or desirability as a partner.
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Awful Financial Decision Maker of the Day
In December 2019 I financed a brand new Charger Scat Pack. This was right before inflation really took off so they were cheaper than they are now. Sticker price was only 36k. After the dealer added a warranty, “paint protection plan”, dealer fees, taxes, etc, I ended up financing 51k!
At the time I didn’t know ANYTHING about cars, the only reason I even bought the car was because my v6 2011 camaro that was paid off started having transmission trouble. Replaced it twice and it still wasn’t driving properly, so I bought the scat pack.
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Financial Decision of the Day
Why I’ve decided to pay off my $55k balance as soon as possible. No 10-20 years of payments. No more hoping “the government” will come through for me.
I graduated from grad school with $105K in student loans. Say what you will about Dave Ramsey. He is right about paying off debt fast. I was only in the workforce for a couple years before the pandemic hit. During that time, I was binging Dave Ramsey videos and realized he’s right about debt. Decided to pay as much as possible toward my student loans. I managed to get them down to $55k in about 2 years. My income was about $65k fresh out of school.
Financial Quandary of the Day
So I’ve been looking to buy a Porsche 718 Cayman Base, found a 2020 model with 18k miles on it with a price tag of 67k. Porsche CPO and such.
I grew up in a not so well off family and so when I ever ask them for advice there answers are usually along the lines of “no it costs too much blablabla”.
How Does One Accrue Over $1 Million in Student Loan Debt?
I went to dental school and did a residency. I have about $200k of debt from college, $500k from dental school and about $300k from my residency.
I make $105,000 / year. I don’t have any other loans. My rent is $900/month (with utilities). Food costs about $500 / month.
I have a car and that costs about $400/month for the insurance and to lease it from the dealer. I should have mentioned this earlier but I am NOT a full time endodontist.
Dental School Tuition at New York University:
