Bad financial decisions

🦈💜 said:
- "Barely survive" due to no time off / little sleep / no schedule flexibility.
- It's not a plane, but it's in the same category of "bad financial decision"
- Escape route.

(I couldn't afford a plane unless it was a lifestyle.)
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So what kind of boat are you buying? Sailing around the Bay, or speed boat for Lake Havasu?
 
USMCmech said:
I'm doing just fine financially.

Actually it was a Dave Ramsey clip that made me buy the first plane. He's had multiple callers phone in with a nice net worth and asking permission to buy a motorcycle, go on a cruise, repair the kitchen when they could easily set that amount of money on fire and be fine. So, yeah my financials are fundamentally sound and if the hangar burned down I would be sad but wouldn't miss the modest amount of money I've spent on these airplanes. The ROI of fun I've had is more than worth it.



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I finally got her home to my local airport today.
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That is a nice looking S1. What motor? How do you like the flying qualities of the Pitts? Bud Davisson just got the okay to distribute the plans for the prototype Pitts that was powered by the 65hp Lycoming. Nobody would us the small Lyc (weak - the 65hp really put out 55hp at best) so small O-200' or less Continentals would be the choice. From his pirep it flies like a clipped Cub but retains Pitts characteristics. Betty Skelton did amazing shows in her 85hp Pitts which was, I think, the third or fourth one built.

You've really stepped in it now - I'm going to be a total pest asking you about your machine.
 
Cherokee_Cruiser said:
Honestly I don’t think it’s bad advice.

Emergency fund. Pay off debt. Save for retirement. Pay off your home. College fund for kids if you can.
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You missed his obsession with eliminating debt. He would rather you pay off the remaining $50k on a $300k low interest mortgage instead of using that $50k as a down payment on an income-producing property that could immediately generate positive cash flow.

He also plays dime store psychologist having folks pay off their smallest balance account versus the account with the highest interest rate.

If I recall correctly, he has prioritized debt reduction over establishing an emergency fund.

He also commonly advises single moms to sell moderately-priced financed vehicles when they are upside-down instead of riding it out. He commonly says you can get a reliable $5k vehicle, which is true if you have the skills to evaluate such a vehicle. The issue is he underestimates the value of cash preservation if you’re living on the edge. He also underestimates the value of reliable transportation with a warranty for a single mom. Let’s say a caller has a financed car that is $10k upside down. He would encourage the caller to sell the car, pay off the note, and buy a $5k car. He would be okay with the caller blowing their last $15k to get rid of the car payment.
 
Roger Roger said:
I’ve said before and I’ll say it again… Dave is a bit of a religious nut job, and some (a lot?) of his advice is objectively bad…BUT… in a world where you can finance your DoorDash order, I do think there’s a place for people who preach about how dangerous debt is.
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His advice does not stand up well, at all, on a purely financial basis, but his home-grown psychology actually does a half-way decent job of getting financially illiterate people turned around and changing self-destructive behaviors that they weren’t even aware of. He gets kudos from me for that.
 
SteveC said:
His advice does not stand up well, at all, on a purely financial basis, but his home-grown psychology actually does a half-way decent job of getting financially illiterate people turned around and changing self-destructive behaviors that they weren’t even aware of. He gets kudos from me for that.
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Agreed. For the most part, he offers pretty good advice to financial train wrecks. It does bug me how he bullies single mom’s into dumping reliable transportation and burning through their cash, all in the name of debt reduction.
 
I don't know. He's big on paid off real estate. I'm up a mil on appreciation going that route on 4 properties in 10 years. Perhaps during that same time I'd have done better in stocks or other investments. All the properties I had I did enjoy some time in, even if it was only a few days a month or a place in Hawaii. You can't live in a stock. But, certainly, there were other investments that beat Ramsey. I just think the tag line that a paid off mortgage is the way to go is huge. One could do better on paper, I suppose, on stock funds vs mortgage rates. But if that's your train wreck then so be it....
 
Roger Roger said:
I’ve said before and I’ll say it again… Dave is a bit of a religious nut job, and some (a lot?) of his advice is objectively bad…BUT… in a world where you can finance your DoorDash order, I do think there’s a place for people who preach about how dangerous debt is.
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Kinda curious. Are all religious people nut jobs to you? Sort of a rude thing to say.
 
Pilot Fighter said:
You missed his obsession with eliminating debt. He would rather you pay off the remaining $50k on a $300k low interest mortgage instead of using that $50k as a down payment on an income-producing property that could immediately generate positive cash flow.
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Until your tenant doesn’t pay rent. I’ve gone through this. 3 times to court. Only insta and TikTokkers with zero rental experience thinks this is easy breezy as a landlord.


Pilot Fighter said:
He also plays dime store psychologist having folks pay off their smallest balance account versus the account with the highest interest rate.
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True, with debt snowball. Though if one wants to payoff a higher debt account because it has a higher interest rate, knock yourself out.


Pilot Fighter said:
If I recall correctly, he has prioritized debt reduction over establishing an emergency fund.
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$1000 first, and then the 3-6 month after debt snowball. I would agree you can save for an emer fund first if you’d like.



Pilot Fighter said:
He also commonly advises single moms to sell moderately-priced financed vehicles when they are upside-down instead of riding it out. He commonly says you can get a reliable $5k vehicle, which is true if you have the skills to evaluate such a vehicle. The issue is he underestimates the value of cash preservation if you’re living on the edge. He also underestimates the value of reliable transportation with a warranty for a single mom. Let’s say a caller has a financed car that is $10k upside down. He would encourage the caller to sell the car, pay off the note, and buy a $5k car. He would be okay with the caller blowing their last $15k to get rid of the car payment.
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Should never have gotten that car payment in the first place. No one needs to show off. People should know when they can’t afford it.
 
Cherokee_Cruiser said:
Until your tenant doesn’t pay rent. I’ve gone through this. 3 times to court. Only insta and TikTokkers with zero rental experience thinks this is easy breezy as a landlord.



True, with debt snowball. Though if one wants to payoff a higher debt account because it has a higher interest rate, knock yourself out.



$1000 first, and then the 3-6 month after debt snowball. I would agree you can save for an emer fund first if you’d like.





Should never have gotten that car payment in the first place. No one needs to show off. People should know when they can’t afford it.
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In another thread, I give a primer on being a landlord. You might benefit from my sage advice.

I only do 6 month leases that go to month-to-month after six months. If rent is late twice in the first six months, it goes to month-to-month earlier. I’ve told crappy tenants that they won’t have month-to-month option after 6 months. This addresses the courts respecting a longer lease term even when they aren’t paying.

I have a financial deposit of 1.5x rent and security deposit of 1x rent. I also do a monthly inspection. The last item has caused the most pushback with potential renters walking away but I don’t care. A three minute inspection is not crazy.


People make bad decisions, what you do after a bad decision matters.
 
DE727UPS said:
Kinda curious. Are all religious people nut jobs to you? Sort of a rude thing to say.
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I grew up going to church every time the doors were open, and as an adult I was a deacon in a non-denominational evangelical church for like 6-8 years. I’d say most of them, yes. Especially today. This isn’t really the thread to discuss that.

But you can look for some of the special stories about Dave, he’s definitely a level above average.
 
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Pilot Fighter said:
In another thread, I give a primer on being a landlord. You might benefit from my sage advice.

I only do 6 month leases that go to month-to-month after six months. If rent is late twice in the first six months, it goes to month-to-month earlier. I’ve told crappy tenants that they won’t have month-to-month option after 6 months. This addresses the courts respecting a longer lease term even when they aren’t paying.

I have a financial deposit of 1.5x rent and security deposit of 1x rent. I also do a monthly inspection. The last item has caused the most pushback with potential renters walking away but I don’t care. A three minute inspection is not crazy.


People make bad decisions, what you do after a bad decision matters.
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On the 3rd trip to court, she didn’t show up. I got the judgement of possession.


Still took about a month for the police to process and show up to evict them. Property manager there, locksmith, and Officer.

Evicted out, locks changed. My property gets new keys.



About 3 hrs later a court personnel called me and said she’s paid all her back due rent, you must allow her in by tonight. 30 minutes later, my lawyer calls from the firm, and informs the same thing. That she posted all due money and she must be allowed in tonight.





That’s my NJ experience.


Where’s your rental, what state?
 
Cherokee_Cruiser said:
On the 3rd trip to court, she didn’t show up. I got the judgement of possession.


Still took about a month for the police to process and show up to evict them. Property manager there, locksmith, and Officer.

Evicted out, locks changed. My property gets new keys.



About 3 hrs later a court personnel called me and said she’s paid all her back due rent, you must allow her in by tonight. 30 minutes later, my lawyer calls from the firm, and informs the same thing. That she posted all due money and she must be allowed in tonight.





That’s my NJ experience.


Where’s your rental, what state?
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TN and KY.

I’d write a new lease and pay a cop to move in with the squatters.
 
Cherokee_Cruiser said:
On the 3rd trip to court, she didn’t show up. I got the judgement of possession.


Still took about a month for the police to process and show up to evict them. Property manager there, locksmith, and Officer.

Evicted out, locks changed. My property gets new keys.



About 3 hrs later a court personnel called me and said she’s paid all her back due rent, you must allow her in by tonight. 30 minutes later, my lawyer calls from the firm, and informs the same thing. That she posted all due money and she must be allowed in tonight.





That’s my NJ experience.


Where’s your rental, what state?
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TN and KY.


If a lease contract is void, I’d write a new lease and pay a cop to move in with the squatters.

Month-to-month lease status can really help a landlord. Time remaining on a lease benefits the renter, even when they aren’t paying. Holding 2.5 months in deposits and tenants in a month-to-month status is the best situation. If they don’t pay their rent within 7 days, I immediately give 30 day notice. If rent isn’t received within 14 days, I file for eviction. Landlords are too patient. Here’s the carrot, I’ll give them back their 2.5 months deposit, minus rent if they vacate. Otherwise, I keep the money, pursue eviction, obtain judgement for rent, lost rent, legal fees, publish notice in local paper.

Crazy how the courts ignore contract law and refuse to recognize and respect a broken contract.
 
WacoFan said:
That is a nice looking S1. What motor? How do you like the flying qualities of the Pitts? Bud Davisson just got the okay to distribute the plans for the prototype Pitts that was powered by the 65hp Lycoming. Nobody would us the small Lyc (weak - the 65hp really put out 55hp at best) so small O-200' or less Continentals would be the choice. From his pirep it flies like a clipped Cub but retains Pitts characteristics. Betty Skelton did amazing shows in her 85hp Pitts which was, I think, the third or fourth one built.

You've really stepped in it now - I'm going to be a total pest asking you about your machine.
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It's got an IO-360 putting out 180hp. After flying acro in a 118hp 7ECA this thing is a rocketship. The open cockpit is loud but I love it.

I'm still focused on mastering the landing in this airplane and just Monday finally landed it at my home airport with a 45 ft wide runway. I'm almost completely blind in the flare, but centerline is centerline no matter how wide the runway is.
 
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