3 sad signs that you are middle class and always will be

I think Dave wrote a very condescending post. So when you refer to "haters" I am not sure to whom you are referring.

The Way Of The LRCer wrote:

Dave Ramsey wrote:

1. You have a car payment and think that's normal

2. You live from Thank-God-It's-Friday to Oh-God-It's-Monday

3. You use a credit card to get "points" and "miles" (haha, so cute!)

Any more?

Dave:

It's amazing how LRCers either attack the person in the thread or the person

who made the thread. There are just so many haters on here it's almost funny!

By the way Happy Holidays to everyone!

It definitely doesn’t work like this in the US.

So are you saying that in the UK you can’t go to your own private bank, get a loan to buy a car, have your bank pay the car dealer the entire amount in cash, get the cash discount and make the payments to your bank? Really?

I didn't say that at all. I just said it's better to pay cash. It's up to you how you get the cash.

I paid cash without getting a loan for my car though. You need to pay interest on a loan and it's going to be more than you can get in investments.

Of course getting s loan & buying car discounted may be cheaper than the 0% deal at full price. But I bet you've got savings & you are better off using your savings making f all in interest (unless you are flagpole) than paying the interest on a loan

Having grown up very poor, there is nothing particularly sad about those three things from my perspective, other than desire for more than most of us really need.

IF you qualify for a super low interest rate financing a car, you're better off financing and investing the money elsewhere such as stock market where you can earn 7% on average or back into your own business. This is finance 101 time value of money

The OP used to falsely identify himself as a CFA charterholder, but perhaps the CFA institute went after him?

You always do what your spouse tells you.

You always do what your parents tell you.

You always do what your boss tells you.

I have a Fidelity visa. No annual fee and 2% back on everything. The only limitation is that the money goes into a Fidelity account. Then you can move the money wherever you want. ( I already had a Fidelity brokerage account, so I just leave it there.)

Also, I'm in the don't take out car loans camp.

Gotta give it to ya, your posts are petty, but they inspire debate. What you, me and all others on their wonderful journey to the middle need to recognize is that we've already hit the lottery. It's only $ man; you can't take it with ya.

Have $ and want something? Spend it. Take that trip, buy that ride, get that new pair of shoes.

Don't have $ and need $. Make more of it. Stop complaining about your station in life when you've done little or nothing to effectuate a change. Sound simple? It really is. Maybe not at 1st, but ultimately, it's a cake walk.

Happy new year all.

Old Timey Guy wrote:So are you saying that in the UK you can’t go to your own private bank, get a loan to buy a car, have your bank pay the car dealer the entire amount in cash, get the cash discount and make the payments to your bank? Really?

You can, but your private bank isn't going to give you an interest-free loan.

maffeboner wrote:

verty wrote:

Wealthy people don't need a 401K. If most of your income comes from your salary you are middle class.

that's only true of old money and the one-off entrepreneur. from senior managers making 500K to execs making 5 mil: they all are W2 employees and they all have 401Ks.

I would argue those people are still middle class - especially with respect to their lifestyle. For most top executives most of their compensation comes from stock and option awards.

You are also middle class if...

you fly commercial - even if you get upgraded once in a while

you have to drive yourself to work and sit in traffic (or take public transit in Manhattan or the SF financial district)

you brag about the great benefits of your credit card

you brag that you could pay cash for a new car but it's better to get a 0% loan and put that money towards a higher return

These are not concerns or inconveniences of the truly wealthy. Also, tools like 401Ks, 529s, and IRAs are designed for the middle class not the wealthy. That's why there are restrictions on income and limits on contribution amounts.

I would say if you can't afford to max out your 401K or contribute to your child's college expenses you are not middle class - you are poor.

I'll tell you what I'd do with a million dollars, man.

Two chicks at the same time, man.

Chicks dig dudes with money. At least the type of chicks who'd double up on a dude like me.

I know more than a few people who have generational wealth. Some of them are the cheapest SOB’s you will ever meet. They still will do embarrassing things including all that was mentioned to save a buck.

L L wrote:

Now, a dealer that offers 0% financing gets money from a financing company affiliated with the auto company.

Yes, there is a cost to that financing but that is put into their overall marketing budget or cost of doing business.

It doesn't change the profit margin on a per car basis.

You think they just eat the cost?! LOL!!!! Sucker. They are adding to the cost to make up for financing. Nobody is taking away from their profits. I used to work in sales...

I cringe every time someone says, "I got 0% financing!". No you didn't. You got shammed. HAHAHA!

The Way Of The LRCer wrote:

Dave Ramsey wrote:

1. You have a car payment and think that's normal

2. You live from Thank-God-It's-Friday to Oh-God-It's-Monday

3. You use a credit card to get "points" and "miles" (haha, so cute!)

Any more?

Dave:

It's amazing how LRCers either attack the person in the thread or the person

who made the thread. There are just so many haters on here it's almost funny!

By the way Happy Holidays to everyone!

Right on! Insults versus facts. Merry Christmas, Happy New Year, and Happy Holidays brother!

Real Lyfe Nobodee wrote:

L L wrote:

Now, a dealer that offers 0% financing gets money from a financing company affiliated with the auto company.

Yes, there is a cost to that financing but that is put into their overall marketing budget or cost of doing business.

It doesn't change the profit margin on a per car basis.

You think they just eat the cost?! LOL!!!! Sucker. They are adding to the cost to make up for financing. Nobody is taking away from their profits. I used to work in sales...

I cringe every time someone says, "I got 0% financing!". No you didn't. You got shammed. HAHAHA!

Me too. Car dealers are great at making everybody THINK they got a good deal. No, you didn't get a "fleet sale." No, you didn't get the "special backdoor deal." Hah!

Dave Ramsey wrote:

Real Lyfe Nobodee wrote:

You think they just eat the cost?! LOL!!!! Sucker. They are adding to the cost to make up for financing. Nobody is taking away from their profits. I used to work in sales...

I cringe every time someone says, "I got 0% financing!". No you didn't. You got shammed. HAHAHA!

Me too. Car dealers are great at making everybody THINK they got a good deal. No, you didn't get a "fleet sale." No, you didn't get the "special backdoor deal." Hah!

Is this a metaphor for trump?

I don't get this discussion at all.

I am middle class by choice. I have wealth that puts me in the top 5% of the U.S., but live way below my means, and wouldn't have it any other way. I could retire today easily but won't (age 59). I drive a modest car and live in a modest home (though admittedly in an expensive city, which i love). I pinch pennies like the next guy and don't waste. I do all those things like getting cash back on my credit card, shop at Costco sometimes, etc.

Why? Why not buy up and spend it?

I'll tell you and this is the honest answer. There is so freakin' much poverty and wanting these days, from the family living in a van at the end of the street to the whole third world countries full of the destitute. I have everything I need and more. Why should I waste any of it on things I don't really need?

Yes, I am middle class by choice. And I question why someone would waste money on expensive cars, homes, etc. In my opinion, for whatever reason, some of us got it good - at least have enough decorum to not flaunt it when so many others are in need.

FWIW, I found it necessary to say this because the original poster was out of line in saying the markers of the middle class are "sad": "3 sad signs that you are middle class and always will be".

I could say a little more about what i think drives people in their pursuit of money, but save that for another time. It's not what drives some of us, and let's leave it at that.

Dave Ramsey wrote:

1. You have a car payment and think that's normal

2. You live from Thank-God-It's-Friday to Oh-God-It's-Monday

3. You use a credit card to get "points" and "miles" (haha, so cute!)

Any more?

Using a credit card is way better than debit or cash. Way more secure and most credit card companies do a good job protecting you believe it or not. If you lose your wallet it's easy to cancel your card, getting cash back, not going to happen. And if I can get pts or cash back on money I'll spend anyways more power to me.

Now if you said you carry a credit card balance each month you may have a valid point. But those who always pay their card and never overspend due to their plastic money are fine. Most very rich people use credit cards.