Re: Afford

My new jeans sure afford a great fit.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Secretia Green wrote:

This is not necessarily an alternative meaning to the use of "afford" in terms of wealth as "easy/comfortable to have" buying options and bears some relationship to the use of afford in terms of an easy fit, ie. no one had to use extraordinary means oir megagirdle to get into those jeans..
Consider the sentence "Can we afford it?" Usually, this discussion would be in terms of whether the budget could comfortably handle the loss of resources to have something. This has been perverted by lenders to mean , as Don pointed out eliptically, "How much debt can we talk you into assuming and taking into your future?" This is an invalid concept because it does not take into consideration stresses upon the budget that are unexpected but probable. Debt, I would suggest, is never comfortable.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
It was just a comment on my pants. That's all.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Secretia Green wrote:

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

URL?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Everyone has their own particular *misuse* of many words.
I've dealt with people who insisted that "words mean what they wanted them to mean" - and then turned around and whined and kvetched because "nobody understood them". Well, of course not - how can anyone understand a person who is eitehr too ignorant, or too pigheaded, to pay attention to the meaning of the words tehy use?
OK, that's prob a digression from your point, but it's a huge peeve I have ;)

It depends. Maybe they are making payments because they are also making payments on their posessions and payments into investment funds.
Personally, we sometimes pay for things on payments because of various reasons, including reasons such as maintaining a credit rating; being able to get a higher rate of return by investing teh surplus and paying down the item slowly; wanting to keep a goodly cushion o fliquid assest (read: cash); and so on.
If your old car dies and you need a new one - well, when interest rates are high, it can make sense to pay for your new car with one lump-sum check, but if you can get zero-percent financing, it makes mroe sense to make payments and continue investing as usual.

As above, "making payments" is not the same thing as being "in debt" or "unable to afford".

Again, not necessarily. It depends upon current interest rates, one's current level of investments, and what sort of return oneis getting on those investments. For example, last week, 4-week Treasurey bonds were yielding (IIRC) about 4.5%; this week, they're down to just barely over 2%.
All of those things have to be balanced. In some circumstances, making payments simply makes more financial sense.
As for "afford" - again, it's a matter of balance. It's one thing to be able to afford the payments on an item, and anotehr thing to afford to be able to buy it flat-out.
Most people are dependent upon payments and do no use them as part of a balanced financial plan, becaus ethey want to live well beyone their means. But that doesn't mean that "making payments" always and universally means that something cannot be afforded.
Also, there is the question of "sellables". What I mean is, if a person is paying on a $400+K house AND a new Lincoln Navigator AND a new Cadillac Escalade AND a new Blue-Ray Giganto-screen Home-THeater AND...well, you get the point, that does not mean that they couldn't *afford* a $250K house and a Mini Copper and a normal TV with a reasonable DVD player they get on sale.
Additionally, if it's a choice between medical care for a loved one, OR trading in one's mega-stuff for something a little more modest, well, there ya go. Maybe those people with the $43K medical bill could have paid it if they sold some of their stuff. Maybe they're making payments because they don't want to live like regular people. A great many people live way beyond their means. So what is and is not "affordable" is not so much a matter of necessity, as it is a matter of personal choice.
The people I feel sorry for are the ones who work/worked hard, do try to live within their means, but end up being devastated by health-care bills. My one sister, God bless her, lived in a trailer - not everyone can be a genius or a CEO; she was on disability (injured while working as a nurse, whcih she'd done for many years) and her hubby was a mover. When she died, he was left bankrupt - their property (trailer) was homesteaded so he at least had a place to live, but he'll prob be paying off the medical bills for the rest of his life.
I've read of (and even known) a great many people who do get good jobs, and make high salaries, yet nevertheless eagerly jump in, with both feet, way over their heads so as to live an "impressive" lifestyle, and sorry, but, to be honest, they made their choices, I assume they had their fun, and sorry, but I don't think I should have to pay for their carelessness.
Heck, I have a realtive who is screwing up a high-paying job - I won't even say she manages her money stupidly, because she doesn't manage it at all - just squanders it left and right. So, sorry, but if we've saved and lived reasonably and so so, so as to have a reasonable retirement, why the heck should we be in any way "obligated" to pay for her bills or whatever? She's making about the same salary (and for many years, was doing a lot better than we were), but has no savings - so she wouldn't be able to "afford" a $43K medical bill, but we could, even after having to play "catch up" with the savings/investments, because we haven't squandered as much.
IOW, "afford" is sometimes a matter of choice.
As I said above, everyone can't be a genius or a CEO or whatever, and I'm fine with reasonable charity to help people whose choices aer limited. But I don;t feel very charitable towards people who *do* have high incomes but don't bother to save anything at all and *choose* to instead spend every penny - and then turn around and do stuff like scam hospitals.
Part of the "affordability" question is merely personal choice.
THat is not to say that I think the current HMO system is any good - I think it sucks ebcause IMO, medical care should be a non-profit endeavor, not something run like a Chinese toy factory. But people also need to take some responsibility for their own choices.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

When debt is exceeded by the returns from investment made using the cash that would otherwise have gone towards the purchase, it's *better* than paying cash, because the loan is in that case being used to earn more money than one would have if one had given it all up-front.
The trick is just balancing and timing things so that money earned exceeds payments made. And, of course, making sure one has saved up enough liquid (or easily liquifiable) assets available to cover the loan, in case of emergency. In that case, the "debt" of which you speak is only on paper, as opposed to being a functional reality. In such instances, paying cash doesn't make much financial sense and is not at all the same exact thing as "affording".
It's like credit card use. I sue my cerdit card for convenience, and it gets paid in full every month. Nothing gets put onto it that cannot be covered - *unless* some sort of serious emergency might crop up. By using the credit card this way, one's credit rating remains very high, so that, *in case of aserious emergency*, wherein one cannot liquidate enough assets quickly enough, and covers the expense temporarily with credit.
Of course, that is not how the vast majority of people use credit, but that isn't the point - the point is that "paying cash" is not necessarily th eexact same thing as "affording", because one can use credit/loans to make more money than one would otherwise get by paying cash.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.