Quote:
Originally Posted by Parker
Just because people live in those big houses doesn't mean they can afford them. We have so many friends that live in big brand new houses and drive two brand new cars and make quite a bit less per month then my wife and I do. We can't figure out how they do it.
It must be debt stacked on top of debt, consolidation loan after cosolidation loan. It will catch up with them all in the end. I don't have the nicest house, but I've done some work to it over the years to get it there. I don't have the nicest cars, Focus Wagon and a Corolla but they are paid for.
Too many people try to live outside of their means, no wonder there's an economic crisis these days.
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This!
I drive old cars, my newest is 1999 and my oldest is 1980. I only carry a mortgage and usually no debt. I do my own housework, and I shop around for the best prices. Anything I buy, from groceries, to my tank build is done in cash. I save for big purchases, and am mindful of the big costs throughout the year; holidays, insurance, glasses, etc. Still though it blows my mind to see some people spending all the time.
I also have friends like those that are mentioned above; bigger house then ours, new cars, new furniture, top of the line everything, and they're always travelling, shopping, etc. They way their lifestyle works is that they assume they will always carry debt and assume the cost of carrying it is a fact of life.
I also have friends who've worked and worked, and are just thrilled to put away $100 a month into an RSP.
We chose to buy our house because a) we couldn't handle renting anymore b) the house we bought was a bit less then the monthly cost of renting something similar, c) our financials were in the right place, and d) we found a house that fit our needs almost perfectly. In the end I think our mortgage is a money hungry beast, but I love my house and its ultra slow renovations. For us buying works for us, but we bought with the intention to stay in our home for the next 20 some years.