Have fun and be in debt, or less fun no debt?

To each his own. I could be driving a cheaper car, but I bought the car I currently drive because I wanted to enjoy driving every day. Driving is a big part of my everyday life, and is more of a life "experience" for me than anything else other than the home in which I live. So I went for the nice car with the powerful engine, sporty ride and nice leather seats. Now instead of my commute being a drudgery, I enjoy it everyday. Road trips are much, much more enjoyable.

For some people it's more important to have a cheap car with great mileage. But don't knock having a nice car -- it can be absolutely worth it. I'd buy my car all over again if I had to do it today.

And on a broader scale -- "stuff" versus "experiences" is a question of personal taste. Not everyone necessarily loves to travel the world, for instance. If you happen to be a die hard Texans fan and you spend a large part of your income acquiring Texans memorabilia, it makes you happy. Another person may see it as needless "stuff", but to you it's what you enjoy doing. I am a gadget enthusiast. I don't spend a lot of money on gadgets, but I certainly don't mind buying a toy or two once in a while just to play with it and possibly hack into it. It's fun. I really love music, so I spend money on music. Spend your disposable income on what fulfills you.

 

Here's a story to think about.
My friend Teshorn was in college and decided to live Debt free for the rest of his life. He began by refusing to use any more student loans. He worked full time while in college, paid off the student loans he had, and paid cash (out of his own pockets - he grew up a poor preachers kid) for the rest of college. True, he didn't graduate college until he was 26, but he graduated debt free, and already owning a house. True, they sat on lawn chairs for the first year until they could pay cash for the furniture, but now they have NICE furniture in a nice home. So now he's 30, has zero debt except a small mortgage, they have 6 months worth of expenses in a money market account for emergencies (because they don't use credit cards), and they pay CASH for a VACATION EVERY YEAR, SOMETIMES TWICE A YEAR. Since he had the savings, he was able to quit his job at an architect firm and turn his photography hobby into a career. Since all his equipment was bought with CASH, he has no debt on his business and therefore was prospering from the start.
He's living a greater life at 30 than most will ever live - low stress due to being financially secure, and happy because he could afford the career that he greatly enjoys.

Because he took his time with his finances, now he's more secure and having more fun than most people will ever be able to do.

 

I agree, with the amount of driving we do here in Houston owning a car that provides a maximum of comfort and safety is worth spending some money on. We look for a luxury class car just coming off a 2 or 3 year lease. The last time, 3 years ago, we got a car that would have been over $50K new for $27K. For all intents and purposes (other than the odometer) it was mint new. I can feel safer that my wife and the grankids will survive the 'all to possible' crash event they face here.

 

There's definitely something to be said about taking your time with college. For as much as it costs now, it is better to wait until you know for sure what you want to do before diving in. Otherwise you risk either having a career you hate, not being able to get a job, and/or having to get another degree. And being able to go slow and stay out of debt is a huge bonus.

On the car thing- I don't knock anyone who wants to drive a luxury car, but I think it's dumb to finance a car every time you get a new one, even if you are getting a good price. If Americans were pouring less money into car payments and the insurance to cover expensive cars and instead investing at a higher rate, the economy might be in much better shape (not to mention having more money than you know what to do with at retirement, and passing it on to future generations which can even further benefit our economy long-term so that China doesn't eat us alive one day). Instead, you have people "investing" 20-40% of their income into their rapidly depreciating rides because they just don't know any different.

 

With cars, the problem is people trading them in every few years. That is a financial killer.

 

It's funny how in the D&D that anything political or about the deficit will spur hundreds of posts, yet a thread related to personal finance goes relatively silent.

Our culture spends money and consumes just as poorly as our government, just on a smaller scale, yet everyone shakes their head at the government. Believe it or not, it would take a huge strain off of our economy if a larger percentage of people that make decent to good salaries lived below their means and built up some personal net worth (cars and a house full of expensive furniture and gadgets do not count for much in net worth).