Don't forget the $20 per guy tip for the 3 guys that brought the tube TV in your house
(Those suckers were heavy.)
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29 year old with a MBA has $1 MILLION in debt
- Thread starter ManaByte
- Start date
Don't forget the $20 per guy tip for the 3 guys that brought the tube TV in your house
(Those suckers were heavy.)
Dural
Member
Don't forget the $20 per guy tip for the 3 guys that brought the tube TV in your house
Yeah it was ridiculous what they weighed. I have a 36" HD tube tv for classic consoles that I left at my moms from before I got married and still haven't picked it up after 10+ years due to the weight of it. I'll need a dolly and some help to get it out of there.
StreetsofBeige
Gold Member
I did MBA school and it's a total joke. You cant fail as long as you show up and do tests and group projects. You'll still get a C grade. At least that's how my school did it.
MBA content is just an extension on undergrad business and it's not even hard at all. Most of the stuff you do in MBA school are group projects except finance/accounting which are your typical individual tests.
The content is more about working with people (hence the group projects) and this giant skew to being open minded and learning (be an open minded manager). Also, the grades you get are highly scored based on writing style than content. My class had people from all kinds of backgrounds (many knew nothing about business). So while I used my undergrad and work experience to round out projects and tests, my coworkers wrote junk. I know because in our group we all helped each other out. My group who came from arts backgrounds all got A- kinds of scores since they were well written, while I got a B or B+ despite relevant content. I then asked them to edit my assignments for structure and got A- like them even though I talked business and they barely did.
Going into MBA school, I thought it was going to be hard and it's all 40+ year old experienced business people. It's really not. Half the class had zero business work or business class education.
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Ownage
Member
I didn't study for one day during MBA at a top 20 US school. Not one day. I ended up with with a 3.67. And, like I feared, the MBA doesn't help for shit in the working world. At least I had a half scholarship. Here's hoping Biden bucks and tuition forgiveness pay off the rest. Yeaaaa boy.
StreetsofBeige
Gold Member
So true.
Getting a masters is literally just getting a check mark on a resume, as well as some networking which is true. Made some good friends out of it too. But content wise it was a laugh.
It made no sense either. It's an MBA (Masters of Business Administration). Why are there people in my class with zero business work and education experience? Oh, let me guess. The tuition was big so it's a money grab.
If I applied to get into some chemistry or engineering masters program, would I get in with a business background? lol
You could. STEM programs have clear thresholds for admission. Programs like to include a few high scoring candidates from non traditional backgrounds for diversity. My mate had a business/finance undergrad, studied the MCAT for a year, and now is in a competitive med school.
Paltheos
Member
Everything I've heard about the MBA hasn't been very flattering in and of itself, to the point where I kind of give a side eye at professionals now who include the degree after their names in profiles (i.e. John Smith, MBA). It's just a degree, not a standardized professional certification like an MD, JD, or CPA. It smells of desperation more than a point of pride. Like, when I finally fill the experience requirements for CPA licensure in a few months (the last checkbox left for me to fill), I'll proudly list myself as 'Paltheos, CPA' because that shit's hard work and anybody in the know knows it.
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StreetsofBeige
Gold Member
In all honesty, I'd put zero worth in it. And I have one. Sounds kind of weird for me to say it, but tons of coworkers I know have it as it's dime a dozen. And trust me, most are not business savvy, but decided to do it to boost their resume.
When I did it, tuition was cheap. The entire program was only $20,000-ish. Now it's probably like double that or more(?). It's more of a "Hey, I can afford to pay for it, so hire me I got money".
And as I said above, the content isn't even meticulously hard case studies or something they really try to grill you with real life examples from the business world testing your skills at being a business professional. Just show up to do your tests and projects and be a good writer. Guaranteed graduation.
No joke. Getting a good score on the GMAT test is way harder. I think I got a 600 score which is decent but nothing special (it's out of 800 pts). I think I squeaked in as online said to get in you need an average of high 500s minimum. One part math, one part written. I did well on math, but my verbal/essay part was meh. Much harder than MBA content.
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Ownage
Member
I know ppl who have done this, or set up businesses which manufacturer illegal stuff in 3rd world territories. They go off the grid in Central America or whatnot and peace out. It can be done, but it's a shitty feeling to be looking over your shoulder for the rest of your life.
Have you looked around at a university lately? TONS of new construction with luxury gyms, fancy apartment like dorms, "organic farm to table free range biosustainable" dining options, a whole raft of "Diversity, Inclusion, and Equity" senior administrators, tons of "Safe spaces for segregat....errr celebrations of ethnic and cultural minorities", etc. Since the students are all just racking up loans without much thought as to the final cost, the colleges are now competing on "lifestyle" instead of the quality of the education given or the actual success of alumni.
It actually is. So I have a little bit left to pay on my student loan which I am going to pay off in full within the next couple of months. My credit score is pretty much as good as I can get it. 825 at last check. Because that student loan is my oldest open account for credit history as soon as it’s paid my average age of credit will decrease and I guarantee my score will drop like 10-15 points. The same would be true if I had an old credit card with zero balance if I closed the account.
StreetsofBeige
Gold Member
No doubt. When I did undergrad in the 90s and MBA in 2000s, my classes were in the old ass buildings which were probably around for 30 or 40 years. When I graduated each program, the schools were starting to build new slick business faculty buildings. After they were built, they are as nice as corporate office buildings. Dont look like school buildings at all.
That is my goal and it is achievable. Living below my means, 6 month emergency fund in place, only debt is a little left on the student loan then tackling the mortgage which is only another $145k. I have no dependents and am making decent money so I think I can have it paid off in 6-7 years without sacrificing much.
Raven117
Member
Hell yeah man. Good for you.
StreetsofBeige
Gold Member
Sounds good.
For me, I still got a mortgage, but I prefer to take my loose cash and invest in stocks and properties. So for me, paying off my mortgage too fast isnt good as it uses up my money. Although in recent times I am tempted to chip away at it due to high rates. I have no other debt.
Since I started working 25 years ago, my lifestyle has barely changed. Ya, I have a much better car and TV than back then and I dont give a shit if I eat out for dinner with friends and I blow $80 on food and parking. But I still buy reasonably priced stuff, look for deals and I have no problem telling people I shop at Walmart or Dollar stores if I need something cheap and it works good enough. Why buy a new pair of jeans at a department store for $90 when I can buy the same brand at Costco for $25? Basically the same shit.
Like you I got no dependents, but have no problem stockpiling my money. I'm one of those guys who will die with a stack of money and assets and just give it all to my nephews and nieces when I kick the bucket.
I can never understand how people who make good money can blow it all. But some people just love to spend. I know a good buddy who I used to work with who is the same age and makes more money than me by a bit. But he also gets bonus money as he gets a company car or car allowance. On paper he should have more money than me as he's not married with kids either.
The guy is half broke most of the time. When he goes out, he doesn't spend $30 at a pub. He'll spend $300 at a steakhouse with booze all night. One of those guys who in his younger days hung out at clubs every week blowing $100s and $100s on drinks and girls. Now that he's older he doesn't do that anymore, but never recovered building up his back account or retirement savings because he started too late. BUT, he doesn't care. He's one of those guys who even tells me he'll die at his grave with no money. "Why have it? You cant spend it when you're dead".
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Haint
Member
I'm fucking thankful that I've just gotten off that ride. Just paid off $36,000 in debt today and cancelled the cards (curious how it's going to effect my credit score). With my personal situation, there was no way I was going to be able to keep up with 15% interest on that and ever make a dent in the principle. And while I don't like the reason I was able to get $36k quickly, sometimes we just need to bite the bullet and do what we need to do.
Hell, going back to work to pay it off was on the table even if it meant fucking up my neck some more.
Glad a different opportunity opened up for a pretty decent job, once I learn all the stuff I need to do and how to do it.
For that woman, depending on how desperate she is to pay off that debt there's always OnlyFans. I honestly can't think of another way for her to get out of a million dollar debt without bankruptcy.
They make $230,000 a year and only have like $200,000 in short term high interest debt (i.e non mortgage and student loans). Stopping their bullshit spending and gross waste would pay off their actual "debt" in like a couple years. Nearly everyone has sky high mortgages and student loans, and 95% of them don't earn anywhere near $250,000 a year, so she's already infinitely better off than pretty much everyone. They bring home like $12,000 cash every single month. Their mortgage and student loan payments combined would be under $5,000 even if their SL's a 10 year term. Meaning they're burning far more than $7,000 cash every single month on food, groceries, and luxuries.
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NeonGhost
uses 'M$' - What year is it? Not 2002.
I don’t think you know what a assault rifle is
ReBurn
Gold Member
Depending on your interest rate the mortgage may be cheaper than cash right now. The only reason I haven't paid mine off is that I'm making more on the money in the investments it's in than I would save by paying off the mortgage.
daveonezero
Banned
it is highly subsidized by federal money
The federal government are the ones giving the loans to people and basically a blank check to the universities. They also give out the accreditation.
It is private in the profits but everything else about it is public institutions and funded.
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I am trying to play both sides a bit. Saving about half while dedicating half to paying extra towards the mortgage. With a little luck and assuming we don’t get hit with a big recession I am on pace to make about $115k this year and my current set monthly expenses top out at about only $1700 a month. I’m contributing to the 401k to get the full company match and will be putting every yearly raise going forward into it until I max that out. I’m not to well versed in investing but plan on doing some extra on the side going forward once I have more liquid cash saved.
Irobot82
Member
I look at this like the things government is heavily involved in vs. what it isn't.College loans, gotta love how college tuition and books have gone up over the years.
I've seen other graphs that go back to the 80s and it's even worse, people could pay for college on a part time job back then.
Unknown Soldier
Member
That's how they keep the masses sedated
Hoddi
Member
I recently learned that 'lifestyle creep' is thing. It's basically where you get a $500 wage increase but then increase your expenditures by $500, say, through a car loan. In practice, you're still stuck with your old wage except you now have a nicer car.
I'm glad I've always managed to avoid that. I still drive an old 1999 Corolla but instead I've almost paid off my entire mortgage and have almost zero debt. Why should I care about my credit score at that point?
I'm glad I've always managed to avoid that. I still drive an old 1999 Corolla but instead I've almost paid off my entire mortgage and have almost zero debt. Why should I care about my credit score at that point?
Needlecrash
Member
THIS.
Finances is predicated on debt. Because, that's how companies make money off of you. Have good credit and want a car? Having a VERY low APR means less money the bank gets from you. Shit credit? Bank is like, "I'm gonna charge you $200 Extra a MONTH to your car payment."
Having debt = Bank's ability to make money off of you. Got no debt? You're useless to these companies and if you pay your debts in full and early? DING. Your credit score goes down. It's so fucking stupid.
Ownage
Member
Babysitting.
ricardo_sousa11
Member
Such an american thing to do
So listening to the clip, the hubby with the MBA has over ONE HUNDRED GRAND in credit card debt? WTF? Def a guy who tried some sort of high risk high reward business venture foolishly using his own money that totally tanked. Like he tried to corner the market on Mario funkos or something and lost his shirt.
And she racked up 300 grand in student debt for a policy degree? WTF? Doesnt she know that ivy League stuff is fir trust fund kids and those who can earn a scholarship? Only suckers pay for that with loans!
And she racked up 300 grand in student debt for a policy degree? WTF? Doesnt she know that ivy League stuff is fir trust fund kids and those who can earn a scholarship? Only suckers pay for that with loans!
Batiman
Banned
I hate dealing with credit. The only dept I’ll ever have is my mortgage which I plan to pay off in about 5 years. Not sure how people sleep at night knowing they owe thousands to credit cards, car payments etc. Too many people don’t think of the future and are always present.
Vacations are what I see people even with lots of money get themselves in trouble. Travelling 2 times a year when it’s not in their budget.
I’m buying a car this month and these dealers trying to suck me into a 7 year car loan. I told them I’m paying cash and they weren’t too happy. They want that interest $. I’m not too happy to dish out that money but these interest rates are just insane now. Used car prices are ridiculous here as well so that wasn’t an option.
Vacations are what I see people even with lots of money get themselves in trouble. Travelling 2 times a year when it’s not in their budget.
I’m buying a car this month and these dealers trying to suck me into a 7 year car loan. I told them I’m paying cash and they weren’t too happy. They want that interest $. I’m not too happy to dish out that money but these interest rates are just insane now. Used car prices are ridiculous here as well so that wasn’t an option.
Days like these...
Have a Blessed Day
I hope you negotiated the price before telling them you were paying cash
StreetsofBeige
Gold Member
Totally.
That's why some people who make good money ae broke. They got a giant mortgage and BMW to pay off.
My first job out of university long time ago was an analyst. I was basically breaking even for years scraping by. My first big pay bump was about $18,000 as I switched companies. After tax that's maybe around $13,000 or 14,000. So hey, I'm clearing a good $1,000+ extra per month. For years, my lifestyle didn't change at all. I saved over the next couple years and bought an investment condo from the floor plan. When you buy stuff brand new, you got to put down deposits on it and wait for it to be built. So I had to save up safely (not blow it on stuff) about $30,000. That was 15 years ago.
Rinse and repeat buying properties, rent them out for a bit and sell them for good profit. I got another one right now where the tenant pays me $2500/mth. After rates drop in the future (hopefully), property prices will increase and I'll dump it. I estimate 3 years from now. Also, making good asset appreciation on buying a home to live in. Renting gets you nowhere unless you can figure out how to make more money investing and renting vs paying mortgage bills. Pending where someone lives, renting probably doesn't even cost much more than buying, so might as well buy.
As for credit score, it doesn't matter for anyone if they dont need to get approved for any more loans.
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Spyxos
Member
Ha, I have seen this video several times. Whenever I think my finances are bad I watch it and then the world looks much better again
Vestal
Junior Member
Not going to lie, I share a similar sentimentHa, I have seen this video several times. Whenever I think my finances are bad I watch it and then the world looks much better again
Fools idol
Banned
Personal finance 101. If you need to borrow money to buy it, you can't afford it.
If you are smart you don't need leverage and debt, and if you are stupid you shouldn't be using it.
If you are smart you don't need leverage and debt, and if you are stupid you shouldn't be using it.
chromhound
Member
Insane Metal
Member
Holy shitCollege loans, gotta love how college tuition and books have gone up over the years.
I've seen other graphs that go back to the 80s and it's even worse, people could pay for college on a part time job back then.
StreetsofBeige
Gold Member
I'd say for homes and cars it's okay. Pretty hard for anyone in life to peel out $400,000 for a home or $40,000 for a car in pure cash.
But for anything else, it cant be that hard to avoid it. Even if someone goes on debt for extra stuff (I did when I first moved out and needed to buy furniture), why the hell would anyone go on 20% credit card debt? Just use a line of credit for 6%, or take advantage of a store's no interest 12 or 24 month payment plan. I did and paid I think a $70 admin fee for like $2000 of stuff for 24 months no interest plan. That's 3% or 1.5% per year using the admin fee as an interest rate fee. When month 24 comes rolling around I went to the store to pay it off in full. Better than putting it on CC at 20% per year needing to chip it down as I go month by month. The rest of my starting gear when I moved out for the first time was cheap shit from Ikea. Someone can buy all their kitchen gear, pictures, cups and a shitty living room rug for probably $300 total. A wooden balcony table and chair set was like $79.
Problem is people dont use their head. And the first thing they do is pull out a credit card and letting bills pile up as if they never have to pay for it. Some people have sense and pull out a debit card so they pay only what they can afford.
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StreetsofBeige
Gold Member
I do the same. I use it for all company expenses too. I get back around $500-800/yr. I can use the company card if I want. No thanks. I'll handle it myself, get the dividend pay back and expense it all later. Been doing this for 10 years.
Most of the time I expense it before my credit card payment is even paid off. So the payables clerk who processes it all pays me back faster than I even pay it off. lol
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AmuroChan
Member
It's unfortunate that so many young people today feel that they must attend $80K a year private universities in order to succeed in the real world. I've interviewed hundreds of candidates at my company over the past decade, and I've never hired based on what colleges they attended. Their work experience and how they perform in the interview are far more important factors than where they got their diploma from.
RainblowDash
Gold Member
I’ve seen some on that show who went into Orthodontics for $1 million or more. For an MBA that’s just hopeless
Fools idol
Banned
I've owned cars over the $500k mark and let me tell you - dudes in that category of wealth rarely started out rich, myself included ! I always say the car loan thing is the worst situation to be in because cars are mostly depreciating assets unless you know what you are doing. For the average minimum wage or middle class salary worker, car payments and maintenance is the single largest expense blocking them from being wealthy via investing.
My first car was a 1995 toyota with 229,000 miles on the clock. I added another 50,000 over 6 years of ownership before it finally died. The money saved during that period alone was the seed money that would eventually start my business, and ultimately became the money I bought my Pista with.
People's main problem when it comes to personal finance is the inability to live within their means because they want to look wealthier than they are. Their peers opinion of them is more important than sleeping at night, while everything is borrowed and loaned.
I have lived both sides of the fence - when I was completely broke and homeless a $5 from a stranger could mean the difference between eating and starving for a whole week on the streets. I learned how to make money go a long way and how to buy things with value for less than they were worth, which set me up for later life.
Fools idol
Banned
indeed. I employ 24 staff across 2 companies and not a single one of them went to a prestigious school.