If and when you did win a jackpot...Would you ever finance anything ever again??Prev Topic Next Topic

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Shelby Mustang

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Feb 20, 2014, 1:23 pm

So you win a nice size jackpot. Let's say 100 million before taxes. do you see yourself ever financing anything ever again or would you just pay cash for everything there on out? Me personallly it depends on what it was and how big the part Im financing would be. I know there a billionaires who finance some particular purchases, so it doe happen, but would you do it? Why or why not?
bigbear29

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Feb 20, 2014, 1:39 pm

no, it's best just not to have any payments. Ex. look at hollywood stars and sports stars that don't payout off their stuff. You don't know what's going to happen in the future. Buy it pay it off.
jjtheprince

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Feb 20, 2014, 2:37 pm

Not just no, but HELL NO! Why make the banks richer & yourself poorer?
Pita Maha

SW Florida
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Feb 20, 2014, 4:26 pm

Even if I won 10 million before taxes, I'd not want to owe anyone anything. Billionaires who finance probably get tax write-offs or use the debt in ways they can make more money.
Toronto

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Feb 20, 2014, 6:09 pm

Yes, even Warren Buffett uses leverage.
rcbbuckeye

100

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Feb 20, 2014, 6:11 pm

Only same as cash finance. That way you are using someone else's money for free.

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CDanaT

Central TN
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Feb 20, 2014, 6:13 pm

If I was purchasing a new very expensive luxury auto and they offered interest free financing for 2-3-4 years ??

What ta heck...why not let my money grow interest and make the monthly payments. Only costing me a stamp a month if I mail the payments in.

Si vis pacem, para bellum.
sully16

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Ringleader

Michigan
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Feb 20, 2014, 6:14 pm

Quote: Originally posted by rcbbuckeye on Feb 20, 2014
Only same as cash finance. That way you are using someone else's money for free.
Coin Toss

Zeta Reticuli Star System
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Feb 20, 2014, 7:27 pm

No. Why pay for something three times or more when you can buy it outright.

Those who run the lotteries love it when players look for consistency in something that's designed not to have any. So many systems, so many theories, so few jackpot winners.

There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.
savagegoose

adelaide sa
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Feb 21, 2014, 3:21 am

i might lease a car to see if i like it. after all lease agreements include costs and maint. and a reg fee on lease is easier to baance the books with.

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helpmewin

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u$a
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Feb 21, 2014, 9:17 am

Quote: Originally posted by Toronto on Feb 20, 2014
Yes, even Warren Buffett uses leverage.
Mattapan

boston,ma
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December 15, 2013
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Feb 21, 2014, 9:37 am

Quote: Originally posted by bigbear29 on Feb 20, 2014
no, it's best just not to have any payments. Ex. look at hollywood stars and sports stars that don't payout off their stuff. You don't know what's going to happen in the future. Buy it pay it off.

This confuses the hell out of me all the time. You see all the hollywood stars who've made money, yet you still hear about how their houses are facing foreclosure!? Are you kidding me? If you make a couple of million per film, you can't buy a home in cash? (i.e. nick cage). I would never finance if I don't have to. I try to pay everything in cash now as I hate using credit cards/debit cards.
Jon D

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Feb 21, 2014, 9:55 am

Quote: Originally posted by Mattapan on Feb 21, 2014
This confuses the hell out of me all the time. You see all the hollywood stars who've made money, yet you still hear about how their houses are facing foreclosure!? Are you kidding me? If you make a couple of million per film, you can't buy a home in cash? (i.e. nick cage). I would never finance if I don't have to. I try to pay everything in cash now as I hate using credit cards/debit cards.

The reason is:

Talented people are often not good with money.

That's why celebrities and athletes need financial people around to protect them, often from themselves. Many times this fails. They often try to live beyond their means, living a lifestyle far and above their level of income.

That's part of the reason for the economic mess we're still recovering from now, people living beyond their means, using financing for houses, education, etc, far and above their level of income.

Rich people don't do that. The rich are frugal and live within their means. And like Toronto said, they typically only use financing as leverage for economic or business benefit, NOT to buy something for themselves far beyond their means.

Many lottery winners are poor people and carry their bad habits of living beyond their means after a big win. That's why so many go broke in a few years, no matter how many millions they've won.
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EUPHORIA.
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Feb 21, 2014, 8:25 pm

DEBT FREE...I like the way it sounds.

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KY Floyd

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Feb 22, 2014, 4:05 am

If I'm earning n% on an investment why on Earth would I withdraw it faster than necessary to pay for something I can finance for <n%?