As I am trying very hard to catch up on my blog reading... I came across a post by Homefront Six that I thought it would be fun to answer.

Unfortunately keeping yourself out of debt means that you generally can't have what you want when you want it. Since few people want to wait and work for something - there are many people living under huge clouds of debt. As usual the solution to money problems is to know what you can afford - and just don't buy more than that.

1. Your credit card bill is paid in full each month with never a penny in interest incurred.
Absolutely - one of my biggest aversions is to pay out interest on just about anything. If I can't pay off the credit card bill each month - I don't buy it! When we didn't have much money - we had one credit card and kept a running tab of how much had been spent each month - on the refrigerator in plain site. When it got to our imposed limit of what we could pay... we didn't use the card until the next billing cycle. In 26 years we have never carried a credit card bill to the next month.

2. You understand that the variable annuity in which your neighbor just invested will prove to be a sad mistake.
Yes.

3. Despite orchestrated furor by the media, you recognize that the $30 it costs to fill your vehicle’s gas tank is cheaper in today’s dollar that the $15 it cost 20 years ago.
Yes, because I have been filling my gas tank myself since the OPEC Oil Embargo of the 70's - I know the dollars are not comparable!

4. You enjoy financial talk shows for their entertainment value while knowing that 95% of what’s said is nonsense.
Yes, and for the most part I don't even find them entertaining.

5. The only type of life insurance that you’d ever consider purchasing is a term policy.
Yes! Even though I've had numerous people over the years tell me what a good deal they're getting on a Whole Life policy. (the same people who use their taxes as a windfall at the end of the year and think that's a good thing cause now they can pay off bills... sheesh!)

6. You’re not tempted to invest in something because of a hot tip you get from a friend or relative.
Do people really get hot tips from others? I never have.

7. You have serious doubts that the 3-unit course in basic English composition offered at Eleganté University for $900 is any better than a similar course conducted at Midtown Community College for $60.
This can be a bit tricky - because much depends on the school involved on the low end. There are some Community Colleges that are wonderful and others that are awful... so basically you could say that a good Community College English class will be just as good as one at a very expensive university... as long as the Community College is up to standard.

8. You are sufficiently sophisticated in real estate to know that the worst house in the best neighborhood beats the best house in the worst neighborhood.
Another tricky question. The basic answer is Yes... In other words buy low in a good neighborhood... BUT do realize that a house requiring thousands in work to make it livable will mean your investment in the neighborhood may not pay off as much as you think. (remember "least expensive" is NOT at all comparable to "worst"!!!)

9. You owe nothing on the vehicle you drive.
Currently - no we don't. Although with the prices of vehicles today - it's nearly impossible to buy outright unless you get a piece of junk. So, get the smallest loan time you can get - and pay off as quickly as possible if you are unable to pay outright.

10. You have a pretty good idea by mid-November how much your income tax obligation for the current year will be.
No not really - I don't pay attention too much to that. I realize that I should, but I don't. Some years we pay out other years we get money back. We try to work with the woman who does our taxes to make any paybacks as small as possible. I would rather owe at the end of the year than let the government have my money and give me no interest.

11. When hearing that the S&P 500 Index just hit an all-time high, you are not inclined to call your broker with a buy order.
Don't have a broker - don't want one either... but I still wouldn't do it even if I could - it makes no sense to buy at the all-time high!

12. It’s beyond your comprehension why anyone not certifiably insane would purchase a timeshare property.
Absolutely! I have never ever understood why anyone would buy a timeshare. A money sink if I ever saw it!

13. Your checking account balance never drops below the minimum limit that triggers a monthly service charge.
No - never get that low. Although I don't know that my checking account has a service charge... hmmm. Well, I don't care - if the balance were to get that low - it would be because someone is stealing my money!

14. You’re aware that an option to pay your auto insurance premium in two installments, with a "modest convenience fee" instead of a single payment, probably works out as a loan at about a 25% interest rate.
Well yes - any sort of service charge is "interest" on money. I wonder why there isn't a similar question about ATM charges in this list or right here at this question. How many people will pay a bank $1 to $3 to get hold of $20???

15. Although you thoroughly enjoy the home in which you live, it’s considerably less expensive than you can afford.
We've been home owners for 22 years. We ALWAYS make sure to go well below what anyone would lend us as a mortgage. We would be bankrupt if we had taken the mortgages that were waved in our faces when we were trying to buy!

16. You know practically nothing about the option market—and intend to keep it that way.
Option Market? I know what it is - have zero interest in gambling my money away.

17. You feel instinctively that every dollar you contribute in FICA taxes to the Social Security system is a dollar lost to you forever.
Well, even if I see a tiny bit of that money... it won't be enough to live on. Personally I don't think I'll ever see a dime of it back.

18. Whenever you’re negotiating a purchase and qualify to receive a discount, you do not hesitate to ask for it.
I don't remember the last discount I was eligible to receive, but if it was available I'd ask for it.

19. You entertain no illusions that a financial advisor will provide sound counsel merely because of the Certified Financial Planner (CFP) designation held.
I don't trust many people when it comes to money advice - they'd have to prove to me they aren't just out for a commission...

20. You make the maximum possible contribution to your retirement funds.
Yes - and sometimes I could really have used that money... like when darling daughter was in college!

21. Whether your choice of wristwatch is a top-of-the-line Rolex, a fashionable Cartier, a respectable Bulova, or an economy Timex, you recognize that all are battery-operated, with a similar quartz movement, and none fail to keep excellent time.
This is an affordability issue. I don't wear a watch, but if I wanted to buy one I would buy one I could afford and would like to look at. There is a quality difference in materials between high and low end. I like nice things - so even if a Timex will run as well as a Cartier - if I liked the Cartier and could afford it without going broke - that's what I would get. Wearing something cheap is only necessary when you need to save the money for something else otherwise it's just being cheap.

22. You find it baffling why anyone would buy a lottery ticket.
I will buy them for grins every once in a while - but only $3 - $5 worth tops

23. You cannot remember when you last borrowed money for an unexpected emergency.
We haven't - but that doesn't always make it wrong. Sometimes bad things happen that can't be handled and you need help.

24. The newspaper advertisement offering a half-pound silver commemorative medallion from The Perfidious Mint, at the "special advance price of only 139 dollars," forces you to suppress a laugh.
I suppose people must buy that garbage... or they wouldn't still be selling it. But yeah it makes me laugh.

25. You have no confidence in the concept of "Investor Confidence."
I always want to know - who are the "investors" and what is their "confidence" (or lack thereof) in? They never tell you that... plus they always make up bogus statements about why "confidence" is up or down...

Well - there it is. How do you rate on these questions?

Posted by: Teresa in Money, Money at 11:52 AM | Comments (5) | Add Comment
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