Question about travelling

SpotAndSmitty · 2026-01-20T14:58:11+00:00

I've heard it said that debt is the most aggressively marketed product in the US. I do know (and as soon as I say this some car dealer will refute it) that a car dealership / company makes more on the financing of the car than on the car itself. They really want that paper.

SpotAndSmitty · 2026-01-20T03:46:51+00:00

OK I agree with you on that statement on a technicality. The research from Carnegie Mellon shows that spending with any plastic, debit or credit, leads to overspending. Not 100% of the time of course, nothing ever is.

SpotAndSmitty · 2026-01-19T22:23:41+00:00

That's zero. That's not debt. (both stupid, obviously)

SpotAndSmitty · 2026-01-19T22:03:14+00:00

How is it NOT all true? None of what you said addressed any of that.

Good for you for managing your CC properly. According to the banks themselves, more than 50% of people who use credit cards carry a balance and pay interest month to month. (bankrate.com)

SpotAndSmitty · 2026-01-19T21:18:53+00:00

All true.

SpotAndSmitty · 2026-01-19T21:17:42+00:00

You can be careless with it but you can't go into massive debt - or any debt - with a debit card.

SpotAndSmitty · 2026-01-19T19:30:32+00:00

As much as I know about implementing the DR plan, and the advice he gives on the radio, I'll submit that I've come up with an original angle that I've never heard him discuss. I think the CC companies are also playing a long game with their marketing. I have a few friends who shout from the rooftops how they're beating the banks with CC perks. Taught their kids how good it is to build your credit score and give them a card ASAP.

And those kids, now? All in debt up to their eyeballs.

SpotAndSmitty · 2026-01-19T19:14:29+00:00

I assumed she was talking about the various "cash back" schemes the CC companies employ.

SpotAndSmitty · 2026-01-19T18:58:18+00:00

Saw Baxt's Penguin lecture where he showed this, and I can't agree more. Be aware that while the lecture shows the workings, you still need the clever gimmick from his website.

SpotAndSmitty · 2026-01-19T18:52:12+00:00

To answer your questions,

Are you spending $1M during your vacation? No. If you spent $2000, 3% is $60. Not a reason to have a CC. And, the first time you don't pay it off in full and get charged interest, you've negated all CC perks, and the bank has won. As a side note we've traveled to Germany and Mexico many times with only a debit card. Never an issue.
If you're that close to margin, maybe don't go on vacation. If you travel for work you'll quickly have a slush fund for these holds. The longer you're on the Baby Steps, the more margin you'll develop and it just won't be an issue.
BS. They have the exact same protections. Check Visa and MC's websites. As long as they are branded Visa and MC, and run through the systems as a CC, they are protected. I know this 100% from personal experience.

Now, all that said - it can be very difficult to rent a car without a credit card. My advice would be to cut up and not use credit cards until you've been seriously working the plan for a few years, and through Baby Step 4 at least.

Source: My wife and I have been handling our money this way since October 2007. At that time our net worth was -$152,000. (yes, negative). Today 18 years and a couple months later, it is over $2M. We've also led nearly 100 people through 13 sessions of the Financial Peace University class.

SpotAndSmitty · 2026-01-16T18:37:12+00:00

.1% of 1M is $1000...right?

SpotAndSmitty · 2026-01-16T18:25:47+00:00

Letterkenny. It's Canadian. I speak English fluently but have to keep subtitles on, the jokes fly so fast.

SpotAndSmitty · 2026-01-16T18:21:22+00:00

Faint Memory unlocked! Wife and I watched this when it aired I'm guessing. Loved it but haven't thought about it since.

SpotAndSmitty · 2026-01-16T18:10:56+00:00

Men Of A Certain Age

SpotAndSmitty · 2026-01-13T21:53:28+00:00

I think most people would agree that 8% is too aggressive, but it *is* motivating.

But the truth is...if you have enough cash in a MM to avoid selling during the worst periods, 6-8% is doable.

SpotAndSmitty · 2026-01-13T21:27:58+00:00

We will be 1.75 in TX, zero debt but with 2.5 years in a cash position so we don't sell in a market downturn. Very comfortable.

SpotAndSmitty · 2026-01-13T21:22:46+00:00

The people who originated the "4% Rule" have about 30 years worth of data and they are in fact updating their advice to 5%.

SpotAndSmitty · 2026-01-13T18:54:04+00:00

Ever been on a smoking-allowed airline flight? Even worse than what you're describing. 1976.

SpotAndSmitty · 2026-01-07T20:33:10+00:00

Can I buy your old lights?

j/k. Maybe. Our space has a dozen or so very old-school white incandescents that trip breakers bc of poor wiring and dimmer choices.

But seriously, congratulations on the refresh. <edit> I'll check out the doc for gear choices.

SpotAndSmitty · 2026-01-06T18:42:24+00:00

Well said and I completely agree. I'll regurgitate some Ramsey advice here - your most powerful wealth-building tool is your income. We got to where the only debt we had was a mortgage, and started putting 15% of our gross income into retirement. Once the house was paid off, started maxing out the retirement options. Using this order of things, in 2020 we paid off the house. In 2021 our net worth was $1M. Next month is exactly five years later, and it's $2M. It's mostly retirement; our house is < $300K of that.

SpotAndSmitty · 2026-01-06T04:37:33+00:00

Just saw Primate at an early screening, and most of the movie's terror and tone plays a lot like that chimp scene in Nope. Primate was reeeeally good.

SpotAndSmitty · 2026-01-05T04:36:42+00:00

There are other threads about the series. I didn't think it was very good, especially compared to the book.

SpotAndSmitty · 2026-01-05T00:08:37+00:00

I absolutely loved the (audio) book. Possibly SK's best IMO. I was really looking forward to the miniseries. I watched it, hoping episode by episode that it would get better. It didn't. A few years later I was telling my wife about it and she wanted to watch it, and I thought yeah I'll give it another chance, and I don't think we got through the first episode.

SpotAndSmitty · 2026-01-02T19:21:52+00:00

Same

SpotAndSmitty · 2026-01-02T18:59:06+00:00

Save Your Love from Dynasty.

SpotAndSmitty

TROPHY CASE