86 year old Steam boiler!

MilanD

I am on my 3rd car ever. Stick, smaller and economical. We have a kid hauler, also used and wayy way less paid than the new one would be, 3 year old when purchased. My smart phone is also my 3rd ever, from ebay, at half cost in store... Only after the other cars/phones died did I in fact, upgrade, to a used car/ebay phone at significant savings, out of necessity. But I also own 3 apt. buildings, run an arts center, and have started from $0.

Problem is that 1. people are paid less in real terms today than 20 years ago, 2. are not taught to manage finances nor distinguish between needs and wants, and 3. have no clue how anything works. Not even basic concepts in economy, politics, mechanics, personal finances... Nothing. And unless you happen to seek it yourself, aint getting it in school either. Lucky if your parents teach it to you, but that too is less likely (as in 2/3 are broke to begin with)...

Consumerism is pushed and hipsters are in with trunk-clubs and dollar shaver clubs... BTW, I also mend my jeans with $5 pack of 15 iron-on patches, bc I love them old jeans. I also grew up a little hungry and a little cold.

So, yes - it does come to personal choices. But, when the knowledge-deck is stacked against you, from the get go and early age, you don't know what you don't know.

Everyone should read Kiosaki books, and the "Millionaire Next Door" to gain some perspective and understanding. Then, some biographies of the founding fathers, and perhaps also of Edison, Pupin, Tesla, Carnegie, Westinghouse...

Then get out there and work. Become that guy you now envy. It's not rocket science.

PMJ

Fred said:

On top of the lack of home equity and a lack of ability to manage one's own pension planning, banks/lending institutions have made unsecured loans with huge interest rates commonplace and people use it to buy all the "cool" junk which means they are paying anywhere from 25% to 50% more than that junk wasn't worth when they bought it. Not to mention the fact that they are still paying for it long after they have thrown it away, in favor of more "cool" junk upgrades! AND, we've made sure those poor planners have access to home equity loans so they can ensure they tap every penny (and often more) of equity they might have built, out of their homes.

What you say is true. I must stress, however, that the big change is that not long ago the average guy never was allowed to get his hands on a lot of what technically was his money as he is now. He couldn't borrow much against his house, and his pension contribution was removed before he got his check. These two things combined made for one hell of a lot of structure. What is happening to the masses now without this structure really shouldn't surprise anyone.

Truly "free" trade even domestically results in all the money ending up in a very small number of hands. Somehow banks and corporations used to effectively provide a lot more protection for the little guy.They did it by placing some pretty severe limits on what freedoms he had to effectively just give his money away. They saw to it that he ended up actually owning his house and had a steady income at 65. Since the structure has been removed he has next to nothing.

BobC

A lot of this can be explained by kids not getting an education that prepares them for life and parents who are too busy to teach them when the schools don't. My folks both lived through the depression, they knew how important it was to have a little money on hand when things went sideways. The family made sure all us kids understood that.

I have a high school diploma and I managed to live below my income level my whole life. I always fixed what broke, bought used or refurbished when I could and I was always willing to pay a little extra for quality but nothing more than I had to for bells and whistles.

I haven't paid a penny in finance charges in over 20 years (mortgage was paid of in '95) , if I can't pay cash i wait till I can pay cash. Although I don't have a college education I can read, reading taught me how important it was to save a little from every paycheck. I started doing that right after getting out of the army. At first it was $10 a week but I put at least half of any raise I got into savings and within a decade it was $100 a week. Reading also taught me how to invest for my retirement and to not panic when the market falls through it's ****.

Now I'm retired, I still fix most of what breaks and if I have to hire something out I don't worry, I just write the check. I am not wealthy by any means but I can afford anything I want and that is because there really isn't much i want.

If you do nothing else for your kids make sure they understand money and how important it is not to pay any more finance charges than they have to. They have to understand that early or they will fall into the trap that impoverishes millions of consumers.

Bob

dean_20

Interesting post. I agree with Fred, BobC, MilanD. I have a Cannon AE-1 Program with lenses that is still perfectly good after 33 years. Now I had to replace a rotted out Burnham Independence PV4 in 2013 after only eight years with a new one. I only replaced it with the same thing because I got a deal I couldn't refuse. The original boiler the Burnham replaced lasted from 1932 to 2005 only 73 years. Unfortunately I don't have much new "cool" stuff just functional old stuff. All the whistles and bells don't mean much if your roof leaks, your plumbing doesn't work, and your heating system doesn't heat.

jumper

Eight years is bad. It may be worth treating make up water to make it last longer. On the other hand I had commercial clients where all steam went to waste and they just kept replacing whenever.

Koan

I am a Financial Planner by profession, and cannot agree more with @BobC . There is such a void with education about money, and such strong marketing forces to consume things one cannot afford. Geometric math works against you with debt and for you with investing. Both can be very powerful.

PMJ

Koan said:

I am a Financial Planner by profession, and cannot agree more with @BobC . There is such a void with education about money, and such strong marketing forces to consume things one cannot afford. Geometric math works against you with debt and for you with investing. Both can be very powerful.

But the banks didn't even allow you to take equity out of your house and buy stuff with it as you neared retirement like they will now. This was the more powerful force keeping average folks solvent wasn't it?

MilanD

Guys, if you haven't watched it - watch 'The Big Short'. We consume. When I was a kid, my dad used it as a derogatory term (in a different language, but derogatory nonetheless - as in 'don't be a consumer'!). I now see he saw it before anyone else...

Jamie Hall

One has to wonder what ever happened to "If it ain't broke, don't fix [or replace] it" and "use it up, wear it out, make it do or do without". When I was a kid -- a very long time ago -- that was the way we operated, and given the income (or lack of it!) I still have, it's the way my family still operates.

I can't afford to have something around the place that I can't fix. Although there are a few things like that. And if someone calls me a consumer, they're likely to suffer an injury.

PinkTavo

There is a duplex "territorial style" (flat roof, brick with parapet) on my way to work that was likely built in about 1910-15...that has a swastika as decoration on the parapet. I think it is the opposite direction from the Nazi type. I heard it was for good luck back then....sort of like the horseshoe above a door. This is in Denver.

RomanGK_26986764589

Swastika on the wall of a pre war house in NJ.