The perfect MP3 player

Dennis devel at
Mon Sep 19 10:14:37 MDT 2005

Grant Shipley wrote:

>On 9/18/05, Dave Smith <DavidSmith at> wrote:
>>Yeah, I guess we all have our weaknesses... I waste my money on Roth IRA
>>mutual funds, my 401(k), and paying down my house. I've never owned an
>>MP3 player, except the Cassiopeia e15 I bought for $90 on Yahoo Auctions
>>5 years ago, with 16Mb of RAM, and that only played in mono, and barely
>>at that. I should probably do a better job of contributing to the
>>economy by spending more on electronics.
>I hardly call putting money away in investments and savings a waste of
>money or a weakness.  However, it is very important that we save
>enough for our future (retirement) WHILE enjoying life now.  Call my
>crazy but lets say for example I had 2000 a month to save, I would
>rather save 1700 and budget in 100 a month for entertainment/toys and
>another 200 a month for vacations.  But -- I am the type of person who
>enjoys living in a 180k home and having extra money to spend while
>others enjoy living in 400k homes with no money to spend.  It all
>personal preference but please don't assume that because people buy
>things they enjoy that they are not saving.
>I am not a big fan of paying extra on my house every month.  Lets say
>a house payment was 1000.00 a month but you had 1500.00 a month you
>can spend on a house.  Wouldn't it be better to pay the 1000.00 and
>put the other 500.00 in a savings account?  At the end of three years
>you would have made your house payments and 18000k in a savings
>account.  Then, when you lose you job, you can make your house payment
>for 18 months (while looking for work) as opposed to owing a little
>less but not having the money to make payments with the possibility of
>losing your home.  When you have enough in your savings account to pay
>off your home, do it then.
Get a home equity line of credit (with a fixed interest rate) for 100%
of the value of your current mortgage.  Then use the equity line to pay
off your mortgage.  You now only have an equity credit line payment and
no mortgage.

Next, put all your money you would have saved in a savings account in
the mortgage.  Next, put all the rest of the money you wouldn't normally
pay on your mortgage in there too.  Now, when you need to buy something,
just take out the amount you need. 

This only works if you can live within your means.  If you do it
however, you'll save a lot of money.  The savings is realized by the
smaller interest you pay each month.

If you loose your job you can live for some time on the equity line. 
Getting close to paying off the line, you simply withdraw a sum of money
back to a savings account before you pay it off.


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