No. of Recommendations: 5
This was in today's Dallas paper :

http://www.adn.com/business/story/0,2641,179732,00.html


Definitely the polar opposite to LBYM !

Keep in the cool,

p
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No. of Recommendations: 2
$461,000 in credit card debt - Yes, read the article over coffee this morning, and totally amazed how anyone could build up a mountain (an Everest size mountain at that ) of debt!......When their minimum credit card payments exceeded their total income, the end was near - oh well......and this went on for 20years -

As Scott Burns (www.scottburns.com) notes, it is NET WORTH that counts. You can be earning a million, spending 1.3 million, have humongous debt, and be in the poor house with no savings and a net worth of minus ten million. Many athletes easily fall into this trap when they suddenly find themselves with 10 million dollar contracts, and no financical experience to handle the sudden wealth. It often disappears as fast as it came. Many people think of them as 'millionaires'...they are foolish millionaires. (and not the Motley fool types, either)

As to the spending habits of 'millionaires' (defined as people with a NET worth of more than a million), the book, The Millionaire Next Door, is great reading - go borrow a copy from the library and read it. Millionaires don't drive fancy sports cars, or have a stable of them. They don't buy $1000 shoes, or go on $10,000 shopping sprees.

In fact, many of the folks on this board hope to be millionaires, so they can retire and take 4-5% withdrawals and live comfortably. I'm sure not many of us drive a Ford Expedition, top end Lexus, BMW, etc. Your $35,000 car(BMW, Lexus, Expedition, Suburban, Infiniti, Jag, Corvette, etc) at age 25 is going to cost to the better part of a half million by the time you are 65....if you had bought a$$17,000 car instead.
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telegraph wrote:
In fact, many of the folks on this board hope to be millionaires, so they can retire and take 4-5% withdrawals and live comfortably. I'm sure not many of us drive a Ford Expedition, top end Lexus, BMW, etc. Your $35,000 car(BMW, Lexus, Expedition, Suburban, Infiniti, Jag, Corvette, etc) at age 25 is going to cost to the better part of a half million by the time
you are 65....if you had bought a$$17,000 car instead.


I drive a 1986 Chevy Nova. My wife drives a 1990 Safari minivan (we have 4 kids).
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It just boggles me that people bringing home $6,000 a month could have debt like that. What kind of home did they buy? What kind of furnishings? I'm amazed!!

Love
Loving
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