People Pulling Up to Pawnshops Today Are Driving Cadillacs and BMWs

WSJ ^ | 12/30/08 | GARY FIELDS

[WOBBLY BOB]

Princess on the steeple and all the pretty people
They’re drinkin’, thinkin’ that they got it made
Exchanging all kinds of precious gifts and things
But you’d better lift your diamond ring, you’d better pawn it babe
You used to be so amused
At Napoleon in rags and the language that he used
Go to him now, he calls you, you can’t refuse
When you got nothing, you got nothing to lose
You’re invisible now, you got no secrets to conceal.

How does it feel
How does it feel
To be on your own
With no direction home
Like a complete unknown
Like a rolling stone?

[OCCASparky]

Huh...guess we went to different schools of thought. I myself, being an ex-nuke and a child of Rickover's Funny Farm, ascribe more to his philosophy, which goes:

"Late to bed, early to rise, work like hell, and you'll be wise."

I know too many people who screwed off in their 20's and 30's and are killing themselves (literally) in their 40's and 50's just to make ends meet or ensure they have something left for that looming retirement. Had this guy taken all that "bling" money and stacked it away in bond funds or other safe investments between the ages of 21-30, he could have STOPPED contributing at his age and still have MORE money than had he started at age 30 and kept saving the same amount per check until age 65.

[OCCASparky]

What's his fascination with "stuff" in the first place? Why didn't he provide for his basic needs FIRST (i.e., set aside retirement/rainy day funds), then pay bills, and then play with what was left? You think he'd be selling a $5K watch if he had basic money management skills? Would he even have one in the first place?

I feel guilty from time to time because I have a $500 watch, which I bought 15 years ago. And I'm not afraid of losing any diamonds out of it, and it'll take a beating like nothing you've ever seen.

[blam]

Most engineers I know don’t like fancy watches, they like basics...maybe a ‘fancy watch attitude’ is why he’s laid off.

[Patriotic1]

So true! And it’s possible that the engineer did have savings, but has gone through it.

[Allegra]

Go to *welfare* neighborhoods and see the same. Caddies and Beamers in front of deteriorating shacks.

And big plasma or flat-screen TVs inside those shacks.

[CharlesWayneCT]

I don’t even have a watch. If I did, it would be a $5 watch.

But if nobody bought $5000 watches, think of all the unemployed overpriced-watch-makers there would be.

[Vaduz]

People Pulling Up to 99 cent stores Today Are Driving Cadillacs and BMWs

[radiohead]

You’re right, he should have saved for a rainy day. On the other hand, the guy is just 29.

We do a terrible job of teaching our young people about economics, both on the national and household level.

They don’t learn about history, especially if he was an engin major : ), so they don’t know that the economy can go down as well as up.

Our young military go to the payday loan sharks situated just outside the base gate, not understanding that the interest rates charged will have them in repayment for months, not just the next paycheck.

Teach your children, folks. And listen to Dave Ramsey. (free plug, Dave, you don’t owe me anything) : )

[OCCASparky]

We do learn history, or at least I did--and I was an Engineering major in college.

And as far as the military going to the loan sharks, most of those are E-1 through E-4, and trust me, I went through enough GMT sessions and lectures at every command I was stationed at way back when in the 80's and 90's to never, ever, EVER shop outside the gate, etc. (For the record, I was at Great Lakes not long after the "Great Snipe Riot".) They're smarter than you give them credit for, and far LESS likely to use predatory lenders than civilians their age.

[radiohead]

I hope you’re right, but the fact that the military has had to take a stand on these lenders tells me that more young GIs are using them than you may think.

http://usmilitary.about.com/od/millegislation/a/paydayloans.htm

I don’t think our military people are stupid, but youth and inexperience is youth and inexperience and there are lot of unintended consequences that can happen in your 20s if you don’t watch out.

[Vendome]

Exactly why I am unimpressed with those fancy cars. Most of the people live in on the east side and have cheap wannabe watches to go with the few label clothes they have. Other than that they live where there cars are really out of place.

My primary car is Ford, drive it all day everywhere, paid cash. Second car is my Porsche C4(there is no other) lease it and have zero intention of buying it.

Zero other debts except for the annoying state and IRS.

Even with the mortgage, Cell phone, elect and Porsche live on 30% of my take home. Have a budget of another 10% for whatever I want or want to do and will occasionally go as high as 20%.

Having everything I want, except more, I buy everything on sale. Clothes, watches, shoes, sporting equipment, etc. Some things are never on sale but most of what you want can be found on sale or at a discounter.

Oh, the biggest scam is vegetables and fruit at the Supermarket. The quality isn't always the best and the prices are outrageous. Best place to buy is at farmers markets and produce stands. 10-30% of what a supermarket charges. You get way more food for less.

The other 50% of my take home goes for money making and savings.