My Opinions About Money

[mousegunner]

Who cares what mousegunner thinks, right? Sure!

But I will spout off anyway....just because I feel like it...

The Bible says that "the love of money is the root of all evil." I believe the Bible is right. Look around the world at all the political problems, economic problems, morality problems, family problems, and so on. Nearly always, the love of money is at the root of what has gone wrong. Money itself is not evil. Money is like a power saw. You can use it well, and build great things. Or you can use it carelessly, and get damaged. The following statements are things I have learned about money and wealth over my six decades of life.

• 1. I cannot predict the ups and downs of the stock market. It makes little sense to me.
  
• 2. In a similar vein, if you need your money for retirement in the next five years, get it out of the stock market, and keep in in a savings account. You may miss a large bonanza, true. On the other hand, you risk losing 3/4 of all you have in the market.
  
• 3. I heard this about the stock market and I think it is true: Bears make money; Bulls make money; Pigs get slaughtered.
  
• 4. Everyone should have an emergency fund saved up for a rainy day. Enough money to carry you through for six months is good. Enough in savings for a year would be better.
  
• 5. You should not be stingy with your money. If a needy person asks for help, give it.
  
• 6. Don't loan money to people in need. Give it, or don't give it, but don't loan it. This holds true ESPECIALLY for your family members.
  
• 7. Don't spend more money than you earn, and you will come out OK.
  
• 8. It's OK to have credit cards. BUT, always pay them off before they come due in 28 days.
  
• 9. Don't buy stuff you don't need.
  
• 10. Don't buy luxury items. Don't buy a $500 dollar suit, if you can get a good one at WalMart for $100. Don't buy a $20 tie, if you can get a nice one at the Good Will store for $2.00. Don't buy genuine Oreo cookies if you can get the "store-brand" cookie for half the price.
  
• 11. If you need more income, get a second job. Don't lie around watching TV. Work 80 hours a week instead of 40.
  
• 12. Don't pretend to be richer than you are to impress ANYONE.
  
• 13. Money is hard to save up, and easy to spend. Money makes itself wings, and flies away; unless you tie it down.
  
• 14. Get rich quick schemes are bogus. Those who get ahead in life are those who are steady workers, and steady savers.
  
• 15. You make money in business, and you preserve money in real-estate.
  
• 16. Remember, you can't take it with you. "What will it profit a man to gain the whole world, yet lose his own soul."
  
• 17. Make a will, and make it very specific; or your children will fight with each other over what you leave behind.
  
• 18. Speaking of leaving money after you die...if you have a lot of money, don't leave it all to your children. Leave it to some charities who will use your money to do good things for lots of people.
  
• 19. Don't think you need to live in a mansion, or drive a fancy car. A reasonably nice house is OK. And a Ford will get you there just as well as a Mercedes.
  
• 20. If there is something you want to do with your life, use your money to do it before you get too old and feeble.
  
• 21. Quit smoking and drinking in excess...you might as well flush the money down the toilet.
  

Edited July 16, 2009 by mousegunner

[brooksjr]

i agree except for the credit cards. i haven't had one in over 10 years and don't see a need for them.

[Garufa]

Wise words. Luckily, I have the sense to behave with many of those tenets in mind.

[DavidCBaker]

Money makes itself wings, and flies away; unless you tie it down.

So you'd be okay if I had an airplane? Just checking.

[Guest gcrookston]

Over-all I can't disagree... but, #10... I don't think so. One fine quality $500+ suit will last 10 times longer than a pos Walmart $100. suit. I know, I wore suits every day to work for 15 years... Don't confuse Luxury with Quality.

[Guest canynracer]

Speaking of money..I gotta go pay da bills....be right back

[56FordGuy]

I agree with a lot of that, my only differences are #8 and #10. I don't have a credit card anymore, and don't see a need. A debit card will do everything a credit card will do, except get you into debt. On #10, I agree to a point. While you don't 'need' a lot of luxury items, I think they are okay to buy so long as you keep it in check. When you're financially secure and doing well, it's okay to buy a 'luxury' item once in a while. Luxury items can be different things to different people, too. When I was broke and getting out of debt, I kept a really tight budget. Really tight. My 'luxury' item was whatever I wanted it to be, so long as it only cost me $2.50 a week. I usually took got a burger or a milkshake every other week. Now that I'm out of debt and doing a bit better, I'm going to buy a .22 pistol in the next few days. I guess it's a luxury item because I don't really need it, but I want it and have the cash to pay for it.

As Dave Ramsey says, there are only three things you can do with money. Save it, spend it, and give it away. I believe people need to be doing a little bit of all three all the time.

Good post, man.

[deerslayer]

9. Don't buy stuff you don't need.

How many guns do you own?

[Guest 3pugguy]

especially on the concept of living within one's means. A lot of the current mess started with people getting waaaaaaaay over extended in pursuit of some elusive standard.

So I agree with most of your thoughts and 'preciate you sharing them (and hey, your opinion is yours to share and if we don't like it, we can just read sumpin' else, eh?)

Edited July 17, 2009 by 3pugguy
spellin'

[PackinMama]

How many guns do you own?

LOL That's exactly what I was thinking when I read that!

[res308]

How many guns do you own?

Hey now! Guns are a NEED! We all know that on here, right?

P.S. If you disagree with that, just don't tell my wife, she might think someone's on her side.

[Guest RemedyCNC]

My wife decided back in December she didn't need me anymore. Until things get resolved, I have been living in a rented room with only a weeks worth of clothes. Everything else I own is in another state.

This experience has taught me a lot. Things are just things. Material possessions do not make you who you are and are unimportant. Friends and family are important. Money is somewhat unimportant if you have no reason to spend it.

And, yes, I have guns. Bought a couple from this board. But owning them doesn't make me who I am or make me happy. Well, I do get a bit giddy when I get to squeeze off a few rounds.

Guess it is true, having money won't make you happy.

[Rightwinger]

With a handle like mine, how could I disagree? LOL

[Farman]

Cash back credit cards +1. Payed off each month and get cash back at the end of the year.

Guns?... yeah, that's the ticket. Investment. Better value then the stock market.

[mousegunner]

Well, sure, I NEED all my guns because....well....hmmmm....I'm sure I can think of a reason eventually!

The fact is: sometimes I find it hard to live by my own good advice!

[Sheepdog]

Regarding #2: Getting the hell out of the stock market is, I think, a great idea. Keeping the cash in a savings account? Not so much.

Stock values are likely to go down in the long term as the economy continues its downward spiral.

Dollar values are likely to go down in the long term (and probably, the short term) as inflation/deflation kicks in.

I'd put my money in tangibles that are unlikely to lose value, and are certain to never lose all their value: Gold, silver, lead and steel.

Got a lot of guns and ammo? I don't consider them luxuries. I consider them, at worst, a hedge against inflation and a bear market; optimistically, a form of illiquid savings; and possibly a moderately-performing investment.

[oldogy]

Who cares what mousegunner thinks, right? Sure!

But I will spout off anyway....just because I feel like it...

Well, Doc, I am a little older than you, have lived a great life thus far so I'll throw my comments fwtw. My ideals are much like yours. On some, we agree but we could discuss others.

oldogy

• 1. I cannot predict the ups and downs of the stock market. It makes little sense to me.
  
• So long as the US operated within a free market atmosphere it was prudent to have some investments in the market.
  
• 2. In a similar vein, if you need your money for retirement in the next five years, get it out of the stock market, and keep in in a savings account. You may miss a large bonanza, true. On the other hand, you risk losing 3/4 of all you have in the market.
  
• I saw this breakdown coming and got out. Still had some losses. The old saying about not being able to time the market is bunk. IMO, timing is everything.
  
• 3. I heard this about the stock market and I think it is true: Bears make money; Bulls make money; Pigs get slaughtered.
  
• To a point, bad decisions can hurt even in good times.
  
• 4. Everyone should have an emergency fund saved up for a rainy day. Enough money to carry you through for six months is good. Enough in savings for a year would be better.
  
• Yes
  
• 5. You should not be stingy with your money. If a needy person asks for help, give it.
  
• I have to look at the individual. Did this individual bring his problems on him/herself. There, I am being judgemental.
  
• 6. Don't loan money to people in need. Give it, or don't give it, but don't loan it. This holds true ESPECIALLY for your family members.
  
• See above comment. Gifting is good.
  
• 7. Don't spend more money than you earn, and you will come out OK.
  
• Exactly right. Borrowing for a home I can go along with only if there is a reasonable chance you can pay for it.
  
• 8. It's OK to have credit cards. BUT, always pay them off before they come due in 28 days.
  
• Again, exactly right. A credit card is a tool. Like any tool, know how to use it or don't use it. IMO, a credit card is a must have today. But, again, know how to use it!!!!!!
  
• 9. Don't buy stuff you don't need.
  
• Right again
  
• 10. Don't buy luxury items. Don't buy a $500 dollar suit, if you can get a good one at WalMart for $100. Don't buy a $20 tie, if you can get a nice one at the Good Will store for $2.00. Don't buy genuine Oreo cookies if you can get the "store-brand" cookie for half the price.
  
• Quality is worth paying for in many situations. Our discussion might go on for a long time on this one.
  
• 11. If you need more income, get a second job. Don't lie around watching TV. Work 80 hours a week instead of 40.
  
• Good advice -------if jobs are available.
  
• 12. Don't pretend to be richer than you are to impress ANYONE.
  
• Agree completely
  
• 13. Money is hard to save up, and easy to spend. Money makes itself wings, and flies away; unless you tie it down.
  
• True, no matter how much or little you have, make it work for you.
  
• 14. Get rich quick schemes are bogus. Those who get ahead in life are those who are steady workers, and steady savers.
  
• No argument here.
  
• 15. You make money in business, and you preserve money in real-estate.
  
• If you are savy you can make money in RE too.
  
• 16. Remember, you can't take it with you. "What will it profit a man to gain the whole world, yet lose his own soul."
  
• Now you are sounding like a preacher
  
• 17. Make a will, and make it very specific; or your children will fight with each other over what you leave behind.
  
• Yes
  
• 18. Speaking of leaving money after you die...if you have a lot of money, don't leave it all to your children. Leave it to some charities who will use your money to do good things for lots of people.
  
• I look at charities with great scrutiny. I consider the government a charity to which I have no choice but to give.
  
• 19. Don't think you need to live in a mansion, or drive a fancy car. A reasonably nice house is OK. And a Ford will get you there just as well as a Mercedes.
  
• Yeah, I can go along with that to a point.
  
• 20. If there is something you want to do with your life, use your money to do it before you get too old and feeble.
  
• Yes, I am trying to do that.
  
• 21. Quit smoking and drinking in excess...you might as well flush the money down the toilet.
  
• I will add forgoing the tats and piercings. IMO, they are sophomoric and make a person look stupid. I've never met an older person with tats who was proud of his or her tats.
  

Edited July 17, 2009 by oldogy

[Guest db99wj]

Regarding #2: Getting the hell out of the stock market is, I think, a great idea. Keeping the cash in a savings account? Not so much.

Stock values are likely to go down in the long term as the economy continues its downward spiral.

Dollar values are likely to go down in the long term (and probably, the short term) as inflation/deflation kicks in.

I'd put my money in tangibles that are unlikely to lose value, and are certain to never lose all their value: Gold, silver, lead and steel.

Got a lot of guns and ammo? I don't consider them luxuries. I consider them, at worst, a hedge against inflation and a bear market; optimistically, a form of illiquid savings; and possibly a moderately-performing investment.

Sorry, disagree with that one totally. The stock market will go back up, Stock values will go up in the long run, down in the short. Dollar values will go back up as well.

The economy, stock market etc are cyclical. There are periods of up times, there are periods of down times, this has been true since economies were formed. This cycle is a bad cycle, one of the worst ever, but it will recover. Key to investing for the future is to be diversified. You can't have all technology stocks, you can't have all bonds, you can't have all CD's. You need to be diversified, and invested in a manner that is appropriate to your time frame of needing the money. (Older you get, the more cash heavy you get, the younger you are, the more invested in long term instruments). Having investments in the tangilbles is a good idea as well, just don't have all your money in one basket.

Also, I agree about the suit thing, I don't believe you have to spend a grand on an italian suit, but a Walmart/Target suit is not going to hold up. If you are buying one for a wedding or funeral, or Easter, than yes, but if you are wearing them everyday, then you need to spend some more money, a $500 suit will last you for years.

Credit cards are great for purchases from unknown entities, IMO. As long as you can pay them off, that is key. If I buy something from an unknown person or entity like online, I want it on my credit card, I don't, can't afford to tie up my checking account if there is a fraud issue.

Charitable giving, I think is important, however, I have taken the stance that I will give to who I want to and who I contact. If you call me or send me an email, or send me a letter, you will not get anything. Sorry to many scams. I chose who to give my money to on my terms.

Save money/rainey day fund...that is a tough one. Sometimes life throws curve balls, you got to do what you got to do, but you still need to get that money in there for when it hits the fan.

[nightrunner]

i agree with most of it.

as far as spending more to get quality, most times it is necessary, but then there is the law of diminishing returns. my surefire backup pocket flashlight is still going strong and my dad got a pocket pen flashlight at the same time (no name brand) his quit working in about a month, granted mine cost about 10x as much but i dont have to keep buying one all the time.

also, nearly everbody has at least one hobby. most of us on here it is guns, for some it is cars or other things. for some it is more than just getting from point a to point b,its how you get there, but that falls under luxury items too

[strickj]

Well, sure, I NEED all my guns because....well....hmmmm....I'm sure I can think of a reason eventually!

The fact is: sometimes I find it hard to live by my own good advice!

I have very good reasons for my guns when friends ask why so many.

"Well,this one I carry. This one is in case I cant carry that one. This one is shiny.This one is pretty. This one is just to ugly to not have. This one,well who shouldn't have one of those....

Edited July 17, 2009 by strickj

[Guest SUNTZU]

I very good reasons for my purses when friends ask why so many.

"Well,this one I carry. This one is in case I cant carry that one. This one is shiny.This one is pretty. This one is just to ugly to not have. This one,well,who cant have one of those....

Fixed that for you.

[Oh Shoot]

i agree except for the credit cards. i haven't had one in over 10 years and don't see a need for them.

I profit about $150-300 per year by using one.

Universal Card kickback.

- OS

[deerslayer]

I profit about $150-300 per year by using one.

Universal Card kickback.

- OS

+1

[Guest grimel]

As Dave Ramsey says, there are only three things you can do with money. Save it, spend it, and give it away. I believe people need to be doing a little bit of all three all the time.

Dave Ramsey needs to think a little sometimes before he speaks. You can also invest it to make more money.

Number 10, my $200 cowboy boots lasted 12 years, find a $30 Wal-Mart pair that will come close to being <$20 a year. Yes, a Ford might get you place to place like a Benz, but, the Benz will do so in better comfort and be working better 200,000 miles from now.

[56FordGuy]

Dave Ramsey needs to think a little sometimes before he speaks. You can also invest it to make more money.

I consider that saving, personally.