The American Dream: Tales of a High-Income Earner Who Has No Money

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HerrBerlin wrote: Fri Apr 30, 2021 12:24 pm
Detroit wrote: Fri Apr 30, 2021 12:21 pm
Same here. I have a friend that refuses to get a credit card because he's worried about over extending himself. I tell him to think of it as a debit card, but that just doesn't sink in. "I have $10k to spend" or whatever. I remind him to ignore the credit limits to which he says "but then how do you know how much you have left?" "ONLY SPEND LIKE YOU'RE PAYING CASH"

Worse is he needs to build his credit up, but he doesn't want to incur debt to do so. I told him a simple credit card with some monthly spending on it that you pay off each month would really help. Then he went on about how that doesn't help your credit if you don't carry a balance :bs:

The lack of education and amount of misunderstanding out there regarding responsible credit use and money management is :impressive: but moreso :disgust:
It blows my mind how many people actually believe this. There are people out there intentionally paying interest because they think it will help them. :mindblown:
Yea, I don't quite know where this came from, but it's so wrong... :lolol: Just check your credit report, it reports whatever your outstanding balance is at the time, even if you're paying it off at the due date and not paying interest. My buddy is concerned that he has to pay interest to boost his credit, I told him he doesn't and and he told me that I don't know what it's like building up from poor credit and this is how it is for people.

Yep, I got an 815 credit score by not knowing how credit works. I've never once paid CC interest.
Desertbreh wrote: Tue Oct 10, 2017 6:40 pm My guess would be that Chris took some time off because he has read the dialogue on this page 1,345 times and decided to spend some of his free time doing something besides beating a horse to death.
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Irish wrote: Fri Apr 30, 2021 12:28 pm We made pretty decent money on our first two house sales but on the 3rd we got hammered (2008 housing bubble popped in SoFla). It took us 10 years to fully recover. He is either really savvy or he got extremely lucky.
The market in the areas he lives in simply do not go down, at least over the last ~20 years.

A day of reckoning will come, but it still seems a ways off.
Desertbreh wrote: Tue Oct 10, 2017 6:40 pm My guess would be that Chris took some time off because he has read the dialogue on this page 1,345 times and decided to spend some of his free time doing something besides beating a horse to death.
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Detroit wrote: Fri Apr 30, 2021 12:29 pm
HerrBerlin wrote: Fri Apr 30, 2021 12:24 pm

It blows my mind how many people actually believe this. There are people out there intentionally paying interest because they think it will help them. :mindblown:
Yea, I don't quite know where this came from, but it's so wrong... :lolol: Just check your credit report, it reports whatever your outstanding balance is at the time, even if you're paying it off at the due date and not paying interest. My buddy is concerned that he has to pay interest to boost his credit, I told him he doesn't and and he told me that I don't know what it's like building up from poor credit and this is how it is for people.

Yep, I got an 815 credit score by not knowing how credit works. I've never once paid CC interest.
I think people mix up not using it at all with using it and paying it off each month. Not using it at all, actually can hurt your score if you carry too much available credit.
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Irish wrote: Fri Apr 30, 2021 12:31 pm
Detroit wrote: Fri Apr 30, 2021 12:29 pm
Yea, I don't quite know where this came from, but it's so wrong... :lolol: Just check your credit report, it reports whatever your outstanding balance is at the time, even if you're paying it off at the due date and not paying interest. My buddy is concerned that he has to pay interest to boost his credit, I told him he doesn't and and he told me that I don't know what it's like building up from poor credit and this is how it is for people.

Yep, I got an 815 credit score by not knowing how credit works. I've never once paid CC interest.
I think people mix up not using it at all with using it and paying it off each month. Not using it at all, actually can hurt your score if you carry too much available credit.
My score has dropped ~10 pts recently because I've reduced debt (cheaper house) and don't use as much credit.

Amazing, but whatever.
Desertbreh wrote: Tue Oct 10, 2017 6:40 pm My guess would be that Chris took some time off because he has read the dialogue on this page 1,345 times and decided to spend some of his free time doing something besides beating a horse to death.
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Detroit wrote: Fri Apr 30, 2021 12:30 pm
Irish wrote: Fri Apr 30, 2021 12:28 pm We made pretty decent money on our first two house sales but on the 3rd we got hammered (2008 housing bubble popped in SoFla). It took us 10 years to fully recover. He is either really savvy or he got extremely lucky.
The market in the areas he lives in simply do not go down, at least over the last ~20 years.

A day of reckoning will come, but it still seems a ways off.
:dat:

The market there has only ever gone rapidly up. Those same houses he sold are both worth $1.2-1.3 million these days.
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My score has been dropping precipitously since I sold my car and was down to zero debt whatsoever. I assume it'll go back up once they figure out that I bought a :haus: and owe $280k on it.
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Detroit wrote: Fri Apr 30, 2021 12:00 pm
troyguitar wrote: Fri Apr 30, 2021 11:33 am I'm still struggling with living in a tiny house with 2 people and hobbies. No idea how to lay this thing out yet. Apparently the garage is not going to hold the car. :doomed:
Making rooms multi-purpose and versatile is key.

Our living room replaced 2 rooms in the last house...the formal living room and the "theater room". We installed a projector and motorized roll-up screen so when we want the formal living room thing, it feels like that. Movie time, drop the screen, fire up the projector, and it feels like a theater.

Our 2nd bedroom is the most versatile...office, guest room, and workout room.

I took the closet doors off the closet and put my desk in the closet so the "office" doesn't take up any room space. We bought ikea stackable beds to make the room more usable when not being used as a bedroom, which leaves plenty of space for some free weights and a rowing machine (a great full-body workout tool that stands on its end and stores in the corner).

https://www.ikea.com/us/en/p/utaker-sta ... A7EALw_wcB

It's all about being creative with what little space you have. Once figured out, I find it immensely gratifying to use every sq inch of space vs before with rooms I barely went in.
Yeah 1100 sq. ft. for the two of us is perfect, although the :doge: did make it seem a bit cramped. My biggest issue is storage for hobby/yard shit. I have three bikes, wife has one, a bunch of tools/fluids/jacks and stands/other car shit, yard tools, kayaks, cornhole boards, extra house stuff like paint/hardware... that all adds up a bit. So while we have room for everything in the house, I would love to have an additional 25'x30' garage to park in and make a car/bike storage work shop type deal. Then the existing shed could be for yard shit and the little utility room just for our patio stuff (folding chairs/table, outside :doge: bed, covers for the furniture/cushions that we put away when it's rainy).
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Detroit wrote: Fri Apr 30, 2021 12:29 pm
HerrBerlin wrote: Fri Apr 30, 2021 12:24 pm

It blows my mind how many people actually believe this. There are people out there intentionally paying interest because they think it will help them. :mindblown:
Yea, I don't quite know where this came from, but it's so wrong... :lolol: Just check your credit report, it reports whatever your outstanding balance is at the time, even if you're paying it off at the due date and not paying interest. My buddy is concerned that he has to pay interest to boost his credit, I told him he doesn't and and he told me that I don't know what it's like building up from poor credit and this is how it is for people.

Yep, I got an 815 credit score by not knowing how credit works. I've never once paid CC interest.
I was :mindblown: when :waxer: (RIP) actually made this claim on the forum a year or two ago whilst bragging about carrying CC debt between months to "boost his credit". The idea of paying CC interest as someone making over a mill a year is just nuts.
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D Griff wrote: Fri Apr 30, 2021 12:39 pm
Detroit wrote: Fri Apr 30, 2021 12:29 pm
Yea, I don't quite know where this came from, but it's so wrong... :lolol: Just check your credit report, it reports whatever your outstanding balance is at the time, even if you're paying it off at the due date and not paying interest. My buddy is concerned that he has to pay interest to boost his credit, I told him he doesn't and and he told me that I don't know what it's like building up from poor credit and this is how it is for people.

Yep, I got an 815 credit score by not knowing how credit works. I've never once paid CC interest.
I was :mindblown: when :waxer: (RIP) actually made this claim on the forum a year or two ago whilst bragging about carrying CC debt between months to "boost his credit". The idea of paying CC interest as someone making over a mill a year is just nuts.
Did he? Wow :mindblown: I don't remember that!
Desertbreh wrote: Tue Oct 10, 2017 6:40 pm My guess would be that Chris took some time off because he has read the dialogue on this page 1,345 times and decided to spend some of his free time doing something besides beating a horse to death.
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D Griff wrote: Fri Apr 30, 2021 12:37 pm
Detroit wrote: Fri Apr 30, 2021 12:00 pm
Making rooms multi-purpose and versatile is key.

Our living room replaced 2 rooms in the last house...the formal living room and the "theater room". We installed a projector and motorized roll-up screen so when we want the formal living room thing, it feels like that. Movie time, drop the screen, fire up the projector, and it feels like a theater.

Our 2nd bedroom is the most versatile...office, guest room, and workout room.

I took the closet doors off the closet and put my desk in the closet so the "office" doesn't take up any room space. We bought ikea stackable beds to make the room more usable when not being used as a bedroom, which leaves plenty of space for some free weights and a rowing machine (a great full-body workout tool that stands on its end and stores in the corner).

https://www.ikea.com/us/en/p/utaker-sta ... A7EALw_wcB

It's all about being creative with what little space you have. Once figured out, I find it immensely gratifying to use every sq inch of space vs before with rooms I barely went in.
Yeah 1100 sq. ft. for the two of us is perfect, although the :doge: did make it seem a bit cramped. My biggest issue is storage for hobby/yard shit. I have three bikes, wife has one, a bunch of tools/fluids/jacks and stands/other car shit, yard tools, kayaks, cornhole boards, extra house stuff like paint/hardware... that all adds up a bit. So while we have room for everything in the house, I would love to have an additional 25'x30' garage to park in and make a car/bike storage work shop type deal. Then the existing shed could be for yard shit and the little utility room just for our patio stuff (folding chairs/table, outside :doge: bed, covers for the furniture/cushions that we put away when it's rainy).
We have an oversized 2 car with a storage room built off the back of it. We wouldn't be able to make our current house work without it.
Desertbreh wrote: Tue Oct 10, 2017 6:40 pm My guess would be that Chris took some time off because he has read the dialogue on this page 1,345 times and decided to spend some of his free time doing something besides beating a horse to death.
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So my credit score drops under 800 every time I carry more than 35% of my CC limit on my most widely used card that I pay off every month. It makes me :rage: since I am usually close to 850

Like my score moved 40-50 points when my balance went to 15k for 30 days even though I paid it off that very month, my limit is around 40k on said card. The whole "pay interest" is just a complete :fullretard: mindset. Carrying no debt is key.
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Dplac, your buddy should open a cash secured card. Small limit of $500 or something that he puts up cash collateral for first. Use it and pay it off, worst that happens is the company uses his cash to pay it off.
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max225 wrote: Fri Apr 30, 2021 1:01 pm So my credit score drops under 800 every time I carry more than 35% of my CC limit on my most widely used card that I pay off every month. It makes me :rage: since I am usually close to 850

Like my score moved 40-50 points when my balance went to 15k for 30 days even though I paid it off that very month, my limit is around 40k on said card. The whole "pay interest" is just a complete :fullretard: mindset. Carrying no debt is key.
I've noticed this as well, especially with big house purchases going on the cards.

Mostly :aintcare: because I won't really be using credit for the foreseeable future. Even if there's another car transaction it'll likely be cash.
Desertbreh wrote: Tue Oct 10, 2017 6:40 pm My guess would be that Chris took some time off because he has read the dialogue on this page 1,345 times and decided to spend some of his free time doing something besides beating a horse to death.
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Apex wrote: Fri Apr 30, 2021 1:11 pm Dplac, your buddy should open a cash secured card. Small limit of $500 or something that he puts up cash collateral for first. Use it and pay it off, worst that happens is the company uses his cash to pay it off.
Oh, that's a thing? I'll look into this and suggest it to him.
Desertbreh wrote: Tue Oct 10, 2017 6:40 pm My guess would be that Chris took some time off because he has read the dialogue on this page 1,345 times and decided to spend some of his free time doing something besides beating a horse to death.
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Detroit wrote:
Apex wrote: Fri Apr 30, 2021 1:11 pm Dplac, your buddy should open a cash secured card. Small limit of $500 or something that he puts up cash collateral for first. Use it and pay it off, worst that happens is the company uses his cash to pay it off.
Oh, that's a thing? I'll look into this and suggest it to him.
Yeah it's almost like a debit card but you do get credit for it.
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Detroit wrote: Fri Apr 30, 2021 1:19 pm
Apex wrote: Fri Apr 30, 2021 1:11 pm Dplac, your buddy should open a cash secured card. Small limit of $500 or something that he puts up cash collateral for first. Use it and pay it off, worst that happens is the company uses his cash to pay it off.
Oh, that's a thing? I'll look into this and suggest it to him.
:illuminati: :lol:
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Huckleberry wrote: Thu Apr 29, 2021 8:18 pm
HerrBerlin wrote: Thu Apr 29, 2021 7:29 pm

:lolol:

Did we grow up in the same family? I have vivid memories of my family going out to eat and my mom calling different CC companies to see which card had enough room on it for dinner while driving to whatever restaurant.

Unfortunately I don't see my dad ever getting it under control.
My mom's card strategy was having a card for each department store and for specific activities, like dining. So, the Sears card was used at Sears, Macy's at Macy's, and so on. I remember her standing at the register fanning through her cards like a damn magician.
That's what I do too. I use my Bank of America for food, dining, bar, etc. (which I get 3% money back for it to redeem for), use my best buy card for anything I can buy at best buy (where i will buy all my tech needs, including phone), clothes/retail for my discover card, my paypal is self explanatory, parkmobile (for dc parking) and gas, the chase (aka i got from amazon prime) card for anything else and amazon/perhaps if I ran out of limit.

I have been in debt before and after a while you get charged for it, it does suck, but not again.
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Detroit wrote: Fri Apr 30, 2021 1:18 pm
max225 wrote: Fri Apr 30, 2021 1:01 pm So my credit score drops under 800 every time I carry more than 35% of my CC limit on my most widely used card that I pay off every month. It makes me :rage: since I am usually close to 850

Like my score moved 40-50 points when my balance went to 15k for 30 days even though I paid it off that very month, my limit is around 40k on said card. The whole "pay interest" is just a complete :fullretard: mindset. Carrying no debt is key.
I've noticed this as well, especially with big house purchases going on the cards.

Mostly :aintcare: because I won't really be using credit for the foreseeable future. Even if there's another car transaction it'll likely be cash.
Credit card is epic for me, I booked nearly my entire honey moon on points including $800 a night hotels... and I didn’t pay $1 in interest in the last 10 years. free benefits the way I see it.
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max225 wrote: Fri Apr 30, 2021 1:40 pm
Detroit wrote: Fri Apr 30, 2021 1:18 pm
I've noticed this as well, especially with big house purchases going on the cards.

Mostly :aintcare: because I won't really be using credit for the foreseeable future. Even if there's another car transaction it'll likely be cash.
Credit card is epic for me, I booked nearly my entire honey moon on points including $800 a night hotels... and I didn’t pay $1 in interest in the last 10 years. free benefits the way I see it.
Yea, I have all cash back cards, and it's an annual 4 figure return with all the spending, all for free because I've never paid interest. Getting paid to spend money is 5/7, especially since I HATE spending money.
Desertbreh wrote: Tue Oct 10, 2017 6:40 pm My guess would be that Chris took some time off because he has read the dialogue on this page 1,345 times and decided to spend some of his free time doing something besides beating a horse to death.
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I put 99% of purchases on CCs. I typically pay them off every week but with house moving expenses I just haven't been able to pay them down completely, but have kept utilization under 10%.

:poorvette: shop bill is gonna be RIP.
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Detroit wrote: Fri Apr 30, 2021 1:43 pm
max225 wrote: Fri Apr 30, 2021 1:40 pm

Credit card is epic for me, I booked nearly my entire honey moon on points including $800 a night hotels... and I didn’t pay $1 in interest in the last 10 years. free benefits the way I see it.
Yea, I have all cash back cards, and it's an annual 4 figure return with all the spending, all for free because I've never paid interest. Getting paid to spend money is 5/7, especially since I HATE spending money.
It’s all about points. I’ll post up later what I’m redeeming mine for at the moment. But its a complicated game to play
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max225 wrote: Sat May 08, 2021 6:59 pm
Detroit wrote: Fri Apr 30, 2021 1:43 pm
Yea, I have all cash back cards, and it's an annual 4 figure return with all the spending, all for free because I've never paid interest. Getting paid to spend money is 5/7, especially since I HATE spending money.
It’s all about points. I’ll post up later what I’m redeeming mine for at the moment. But its a complicated game to play
Please give us a primer..... We always had an United Airlines Card but we haven't flown since 'Nam. We have a cash back card now through our bank... but its point based and I'm not even sure how it works as wife unit handles it.....
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Irish wrote: Sun May 09, 2021 11:55 am
max225 wrote: Sat May 08, 2021 6:59 pm

It’s all about points. I’ll post up later what I’m redeeming mine for at the moment. But its a complicated game to play
Please give us a primer..... We always had an United Airlines Card but we haven't flown since 'Nam. We have a cash back card now through our bank... but its point based and I'm not even sure how it works as wife unit handles it.....
:wat:
:wap: Where are these mangos?
Detroit wrote: Fri Apr 16, 2021 1:19 pm I don't understand anything anymore.
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wap wrote: Sun May 09, 2021 9:31 pm
Irish wrote: Sun May 09, 2021 11:55 am

Please give us a primer..... We always had an United Airlines Card but we haven't flown since 'Nam. We have a cash back card now through our bank... but its point based and I'm not even sure how it works as wife unit handles it.....
:wat:
PTSD Ron.
Detroit wrote:Buy 911s instead of diamonds.
Johnny_P wrote: Thu Feb 09, 2023 3:21 pm Earn it and burn it, Val.
max225 wrote: Mon May 01, 2023 5:35 pm Yes it's a cool car. But prepare the lube/sawdust.
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wap wrote: Sun May 09, 2021 9:31 pm
Irish wrote: Sun May 09, 2021 11:55 am

Please give us a primer..... We always had an United Airlines Card but we haven't flown since 'Nam. We have a cash back card now through our bank... but its point based and I'm not even sure how it works as wife unit handles it.....
:wat:
An idiom Grand Fappy ..... sort of like saying that you haven't rode chariot since the Peloponnesian War...

When everyone knows you weren't born until 70 years before Jesus ...

thanks for being there BTW...... the world can use more Wise men)
Last edited by Irish on Mon May 10, 2021 11:31 am, edited 1 time in total.
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