Old Ways vs. New Ways

 

 

Today has been particularly challenging. It's also served as a great learning experience. As I've mentioned before, I'm subscribing to the Dave Ramsey school of thought.

 

Debt isn't a good idea, it never has been.

 

It can certainly be a tool, but it's a matter of an "old vs. new" way of thinking. I'll explain:

 

Our grandparents knew how to save money. "Save that money for a rainy day, you never know when it'll hit." It seemed like such archaic advice, I never seemed to listen to it.

 

Do I regret it?

 

Sure a little.

 

What I do know is that we cannot get away from spending money in our day to day lives. You almost have to try and patch up a dam with chewing gum. What can change is your habits. When you learn to save instead of spend, it's incredibly powerful. Try starting with $1,000. Ten $100 bills. Do it in cash. Hold it in your hands. Then...

 

Freeze it in plastic bag in a block of ice so you can't get to it without thinking twice.

 

I've done it and I've forgotten I had it from time to time. When I needed a new motor mount and serpentine belt for my car, you better believe I had it ready to go. I bought a few tools, some dinner, and had a friend teach me (with a little help from YouTube) how to replace them. Everyone's got "a guy for that", and most of them are nice enough to help you if you're willing to learn. I saved about $500 by learning and doing it myself.

 

It's easy enough to just run it over to the mechanic and have them do it, but for the money, is it worth it? I felt a sense of pride knowing that I added just a couple more "quick quality fixes" to my arsenal, and I have some ownership in that car besides the cash I've put into it.

 

So what's the lesson here?

 

There's a reward in all of that work. The "old way" of doing things is valuable. It creates and maintains tradition, roots, and bloodlines for people. It creates quality and culture. Things need not be so disposable, provided we can be able to learn how to work to maintain them.

 

 Our lives have become far too simple, too quick, too much of an easy solution to modern living. We have ideas pitched and ads thrown at us every single day. Try and go a day without seeing an ad trying to sell you something. The ads aren't the point, and they certainly aren't to blame.

 

Your habits are.

 

I recently had a telephone meeting with a woman that is going to help us with financing our mortgage for the home and land we'd like to buy. The house is perfect, the land is just right, the area is great. We can't find a damn thing wrong with this house! As the process went on, she gathered all the requisite paperwork and credit scores, bank statements, you name it. The result was the most ridiculous thing I'd ever heard:

 

"You make too much money to qualify for any of the first time homebuyer programs to put minimal money down. It's really not the worst problem to have, you know." She said, laughing to ease the inevitable tension.

 

"Too much money? How's that possible? I'm a firefighter, not some investment banker. This house is only $400k. I'm blown away by this." I stood there in shock, feeling like a toddler who didn't get his toy at the grocery store. I was about 30 seconds away from throwing a gigantic hissy fit about "GOVERNMENT PROGRAMS THIS, MIDDLE CLASS THAT!!! I WORK TOO DAMN HARD TO BE SCREWED OUT OF ANY OF THIS!!!! I DESERVE THIS!!!"

 

I held my tongue. Politics had no place here, and I certainly have learned to think before I act or speak.

 

"Well, I've worked every angle, and the only thing I can do is an FHA loan with 3.5 and..."

 

As she rattled off the details, I had a moment of clarity. This isn't anyone's fault but my own. Of course, I could've saved a couple hundred bucks from every paycheck I've earned and I'd have $200,000 to put down on some ridiculous house that I've always dreamed of, but I didn't.

 

If you find that kid or any teenager, let me know.

 

Then feel free to stuff him in a dumpster. I kid, of course. I'd be envious of that kid. In fact, now that I'm rambling, I'm going to have my children put that money aside to put a down payment on a house. Maybe some extra health insurance or longer jiu jitsu classes to keep them out of the inevitable dumpster they're gonna get stuffed in or the swirlie hey could get.

 

What I also realized is that I should be looking forward to the ability to achieve this goal. When I put it into perspective, I have a chance to make a horrible or really great financial decision that could set us up for the rest of our lives.

 

The home buying process, I realized, can absolutely be an impulse buy. A $400,000 impulse buy, let that sink in for a little bit.

 

Has it hit you? It will.

 

Remember the car I told you about? The one I just did the repairs on? Well, as it happens, that was an impulse buy. I had completed baby step one, and my old Isuzu Trooper blew a push rod, effectively ruining the engine, totaling the car. I scrapped the car, took my cash from my emergency fund for what I THOUGHT was an emergency, and went to the dealership. I purchased the car thinking I NEEDED the car. I just had to have transportation. Never mind the fact that I was 6 miles away from work, spending less money without the car, and I sure didn't want to ride the bus anymore.

 

Or did I?

 

The bus wasn't that bad, and honestly, it was nice to be able to read a book on my way into work. The other option was to ride my bike into work, an the 6 miles was a fun ride, even in the AZ heat.

 

Looking back on it, I should've never gotten the car. I should have waited, saved up enough money to pay cash for a car. It was the definition of a toxic car loan. 16.75% interest is a really good way to whip yourself into shape on paying off a debt really quickly. The day that car has the final payment made and I get that title is the day it starts making money for me. I'm going to drive it until the wheels fall off.

 

In a way, the car and it's purchase is a lot like the purchase of the house. The chance at an impulse buy, the possibility of biting off more than you can chew, the fact that it's so easily obtainable, and the fact that it's advertised as so much more than the American Dream to so many people who shouldn't be taking part in it just yet (think the housing crash of 2008).

 

That car and its maintenance also has an important point to be taken away from it as well. Taking ownership of something is important. It's a responsibility, and the more work you put into it, the more of a connection you have to it. It means more because you're responsible for your own work. Put in the work, be humble, and be willing to learn, you'll reap the rewards.

 

The whole thing comes down to something simple:

 

Old ways vs. New ways.

 

It comes down to habits. You have to make the decision to live well within your means.

 

So, as I wrap this one up, it's back to the drawing board. Only this time, I'm not going to be in such a bad position. I have a plan. Each step I accomplish is another temptation, but I realize that I can be in a really good position, financially speaking, to have the homestead and make things work the way they should, benefitting the family Andrea and I have planned.

 

Stay tuned, because this is going to get really interesting.