Re: Am I being wise, or stupid???

Posted by T_Bone on November 18, 2006 at 11:13:47 from (4.240.90.39):

In Reply to: Am I being wise, or stupid??? posted by Luke S on November 18, 2006 at 07:34:25:

Hi Luke,

Since you asked, here's my comments on what you posted.

First, I'm very impressed at your age of how well you've done, congrats to you and yours, however one sentance bothers me.
" and I can borrow it against my farm." I would give this statment a very long look before jumping on that idea for any reason. Never put your "home" at risk to make money.

Your getting close to having a heavy expense, the new baby, before the new "expected" income is actualy earned. $9k sounds like alot but boy do baby's cost. Most just figure we will afford them somehow and we do. If we knew what we know now, none of us could afford to have children. lol
Will the wife still be working after the new baby arrives?

You stated both you and the wife work with only the mortage as debt. Can and why haven't you been living on one income and banking the other pay check? I'm not looking for answers but just putting questions out there for you to answer to yourself.

Example:
We've been totaly debt free for 35yrs but yet my monthly expense for replacement of vehicles, tires, Insurance, tags, house repair, appliance replacement (includes carpets and such), gifts, and property taxes runs us $1050/mth. Most of the expenses are a yearly one time cost.

The "kitty" at 3yrs old for the above items stands current at about $19k in savings, (mutual fund earning about $42/mth). Due to inflation, that will now have to be $1150/mth come 1/1/07. I figure replacing a car at 10yrs and my pick-up at 15 to 20yrs since were retired.

The other most single important item that helped us was to buy a puter money manager program. I like Quicken Basic but MsMoney is also a good one. I track every nickle that we spend. Not that I'm a penny pincher but it helps knowing just how much I'm wasting and what on or how come I'm short. If you've never done this, you will be shocked on where you've spent your money and how much you spent on stupid stuff.

The next best thing I did in the past 10yrs is get BOA on-line banking with bill-pay. I really don't know how I ever got along without those two items :)

BTW, finance markets are saying in most places realestate prices will drop by 20% in the next couple years.

T_Bone

Replies:

Add a Reply Name: E-Mail: Subject: Comments: Optional Link URL: Link Title: Optional Image URL: Email Notification: If you check this box, email will be sent to you whenever someone replies to this message. Your email address must be entered above to receive notification. This notification will be cancelled automatically after 2 weeks.

TRACTOR PARTS	TRACTOR MANUALS

We sell tractor parts!  We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]