Interested…….

 Memorable Automobiles from The Past:

 I like this beauty in the desert.

For today:

Sherry & I were both raised and taught by parent examples, never spend more than you make. It was stressed, “Put a little back for a Rainy day!”

Americans as a rule live with ‘payments’. Payments include interest! When we got married, Sherry took her Christmas savings and paid off the $300 owed on our car, so we were debt free. Our salary $78 a month. I was a shade tree mechanic and kept our cars running until we could pay another one. Sherry made things last in the home. In the military when I received a promotion, I took out a US Savings Bond to be paid for by the increase. The First bond was the $25 bond.  The next promotion I increased the Bond to $50 then last $100.  They had a good interest rate and even continued to gain value after reaching their face value. We refused to cash the bonds. We lived debt free except for rent and utilities.

We learned early in the USAF from friends who lived in trailers. Lot rent was $8-$14 a month, where rent was $43-$80 a month. We bought an old 32x8 trailer.

We were in our mid 30’s when we realized we would never save enough to BUY a home, so we cashed $2000 in bonds for a down payment on a home and assumed a then standard 8% loan. (Cashing bonds was a task. To cash a bond you must fill in your present address and sign it on the back OF EACH BOND, that was 50 or 60 bonds!!)

When Sherry read the ‘end of year loan report’ she hit the ceiling. “Jack we have been paying $203 a month for this house and after 12 payments we have only paid $220 on the principle. Did you realize if I had made one extra payment last year I would have cut one year from out 20 yr loan?”

I checked and we could make extra payments directly on the principle, and yes it would cut the loan period.”  WE learned that the first few years of a loan 90% of the payment is interest. So in the first few years you REALIZE much gain if paying ahead.

When that house sold, Sherry had lowered the loan from a 20 yr loan to a 10 yr loan. Our equity actually paid for our new home.

NiteShipslog

PSa: Loans now are 2-3% so one would have to make 3 extra payments a year to drop a year.

PS: Dadgummit:

Just once, I want the username and password prompt to say, “Close enough.”