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  #1  
Old 02-05-2002, 11:04 AM
lawnperfections lawnperfections is offline
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Join Date: Jul 2001
Location: Jacksonville,FL
Posts: 63
Personal and Business Financial Philosophies

Recently, I got hammered for a blunt comment I made " If you can't buy it for cash don't buy it". Below are some of my philosophies on money both Personal and Business. I would like to see if there are more weirdos like me. What are yours thoughts on money?

I can see that my "pay cash" comment was a little too blunt for the more "sensitive" members of the site(my bad), so I will expound on my comment. I would hope that part of your business plan would include setting aside money for emergencies and future equipment purchases, if its not, it should be. The crap advise that you are receiving from bigjames and others are the reason there are so many bankruptcies now. Bigjames's plan is obviously working for him, i.e. "I got some real bad stuff on my credit". You wouldn't take lawn care advise from someone with a dump for a yard so DON'T TAKE FINANCIAL ADVISE FROM BROKE PEOPLE. It was Dave Ramsey that said "A child does what feels good. An adult however, delays pleasure, formulates a plan and sticks to it. Using credit is a childish way to fix an adult situation." Buy used equipment if necessary, sell some stuff you don't use, have a garage sale, whatever. Formulate a plan (that doesn't include credit) and stick to it. If you fail to plan then plan to fail.

And

Your right credit is normal. The average American has over $8000 on a number of card and that doesn't include the other money pit "cars". Yes, that's normal. Who wants to be normal, I would rather be weird.

Weird is:

Being debt free

Having 3 to 6 months of expenses in an emergency fund

Investing in retirement accounts - 5% of income in company match 403b and 10% or 3k a year in a Roth IRA for me and the same for my wife

Planning for your childs future - Educational IRA's, UTTMA's or a Mutual fund so if they don't want to go to college they have money to pursue their passion - like maybe a Lawn Business

Paying of the house in 5 to 7 years and not 15 or 30

Making over 95k but living on 50k to 60.

Most of all weird is "Living on LESS than you make" so that you can do all of the above.

Your intelligent comments are welcomed.
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  #2  
Old 02-05-2002, 11:12 AM
Chuck Sinclair Chuck Sinclair is offline
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Location: Sacramento, Ca
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I'm with you if i can't pay cash i DON'T need it I am preety much debt free just one truck payment and i like it like that.
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  #3  
Old 02-05-2002, 11:13 AM
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1MajorTom 1MajorTom is online now
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This is a good thread, but I am going to move it over to the elements of business forum.

I do believe credit cards can be very evil. When I grew up, my parents never bought anything with the exception of their car on credit. They always paid cash for everything.

We are very close to being debt free. I imagine we will be debt free by the end of this season, besides the house. It will be a good feeling.
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  #4  
Old 02-05-2002, 11:14 AM
LAWNS AND MOWER LAWNS AND MOWER is offline
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Location: Spine of the Blue Ridge Mountains, NC
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What's the over/under on this thread getting moved to Elements of Business????

LAWNS AND MOWER
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  #5  
Old 02-05-2002, 11:15 AM
bruces bruces is offline
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Location: Independence, MO
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I don't agree with the "cash only" philosophy. If I followed that I wouldn't have been able to get started in the business.

Prudent use of credit is a good business tool. I will strive to be debt free from a business standpoint when I get to a certain level.

I also will strive to set back funds for equipment replacement so that I will be able to pay cash for replacements.

If I can do that I will get closer to being debt free. If I have the opportunity to take on more work that might pay me 1,000 per month, but I need a 10,000 mower to do it that I can't afford, I'll borrow the money and pay 300 per month for 3 years so that I can take on that work and make more money. I won't say, oh, I can't afford that, I'll pass on that job.

It is all about what people feel comfortable with. Credit cards, especially, have gotten a lot of people in financial difficulty.

On the other hand, proper use of credit can be very beneficial.

You have to do what you can live with.
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Old 02-05-2002, 11:20 AM
Scraper Scraper is offline
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Location: SE Pennsylvania
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What the HELL? I spend 10 minutes typing a response while in the meantime it gets relocated...now my post is lost?


To sum up my response...I disagree...in a perfect world a business can survive on income generated. If you want to grow...that 21" is going to get quite a workout until you can afford to buy a 52" so you can take on bigger accounts. Where do you think all your 401(k) or mutual fund $$$$ is going? To big businesses so they can afford what they need.

P.S. I'll pat your back for you, because that's all your post represents.

Bruces has said primarily what I said. Lawnperfections...from your profile I see you are part time...so I guess your Full time job paid for the equipment in cash? Not all have that option.

Last edited by Scraper; 02-05-2002 at 11:28 AM.
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Old 02-05-2002, 11:42 AM
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1MajorTom 1MajorTom is online now
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Quote: What the HELL? I spend 10 minutes typing a response while in the meantime it gets relocated...now my post is lost?

The thread was relocated because if I didn't try to relocate at least some of the misplaced threads, the whole forum would end up being a debacle. I try my best to keep some assemblance of order, so it easier to check out each forum for all the members.

Relocating this thread wasn't done to inconvenience you.
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  #8  
Old 02-05-2002, 11:43 AM
Randy Scott Randy Scott is offline
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This is just like the Ford vs. Chevy debate. It's personal opinion and what works for each individual and what they're comfortable with is going to vary. To say one way or the other is the correct method is an ignorant statement. It all depends on what you want in life, where you want to go, and how you are going to get there. What works for one may not be good enough for the next. I know what side I lean towards but that is what works for me and what I'm happy with. It is taking me the direction I have in my vision. If you are happy with something that works for you, then stick with it.
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  #9  
Old 02-05-2002, 11:46 AM
lawnperfections lawnperfections is offline
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Location: Jacksonville,FL
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Chuck - It's nice to see there are other weird people like me. BTW nice site.

Jodi - Sorry about the mis-post. I'll bet your parents are enjoying retirment because of it. I'm happy to see that one of the people on this site whose advice I respect is on the right path.

bruces - what are you going to do when Murphy's Law comes to town and for whatever reason after a few months your contact is cancelled. Then you have more mower than you need and 2 1/2 more years of payments.


Scraper - actually, I started my business with my home equipment and a rider that my mother in law let me use as long as I did her yard every Saturday. Call me a scrub, whatever. That stuff lasted my first season, then at the start of my next I bought all new Sthil equipment, with cash and continued to use the Snapper until the middle of the summer when I decided to upgrade to a new 36, with cash.
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  #10  
Old 02-05-2002, 11:58 AM
beck beck is offline
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Join Date: Sep 2000
Location: St. Louis, Mo
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I don't mind buying on credit. Last year was my first full time year I had my trailer and a 36". I went from 15 customers to around 50. I decided it would be more beneficial if I had a ZTR so I checked over all of my numbers then went and bought one. I financed it over 3 yrs with no pre-payment penalties. After four months I paid it off. Yes I did pay $225 in interest but if I waited until I saved enough money it probably would of taken me closer to 8 months. The reason why is because I had 5-6 days worth of mowing solo cut to 3 days with a helper leaving two other days to do side jobs. So the extra time available to do side jobs produced income greater than the expense of financing the equipment.


They key is to not get carried away with credit. know your limits. Lawnperfections made some very good points.
I do put money into a Roth IRA, and will probably start a SEP this year.
The emergency fund is crucial. or possibly insurance on yourself if you cant work.
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