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Late Payment Due To Death In Family?

 
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Old 04-12-2014, 12:06 AM   #41
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Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by TNTSERVICES View Post
In effect you are borrowing money for a cash reserve. It may make you feel warm and fuzzy but carrying more debt than you can cover is just bad business. Paying that debt of is smart.

If you have a year in cash reserve there is no reason not to pay off your debts. Just doesn't makes sense to accrue more interest when you have the money to pay it off.

I am not taking about capital loans and credit accounts, not investment loans or property.

No, I'm not borrowing money for my emergency reserves. We pay ourselves first.

We don't have much debt. Our shop is 100% paid for. Our tools are 100% paid for. My home & the 10 acres it sets on, is 100% paid for. My farm, which is worth $250K has 50% equity & the balance is locked in at 5% for the next 20 years. We carry no credit card debt. We've pretty much achieved what your championing.

What you're failing to understand, is if your work dries up for 3 months, you better have access to money to pay the bills that keep coming in.
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Old 04-12-2014, 12:39 AM   #42
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Re: Late Payment Due To Death In Family?


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Originally Posted by pinwheel View Post

No, I'm not borrowing money for my emergency reserves. We pay ourselves first.

We don't have much debt. Our shop is 100% paid for. Our tools are 100% paid for. My home & the 10 acres it sets on, is 100% paid for. My farm, which is worth $250K has 50% equity & the balance is locked in at 5% for the next 20 years. We carry no credit card debt. We've pretty much achieved what your championing.

What you're failing to understand, is if your work dries up for 3 months, you better have access to money to pay the bills that keep coming in.
How does me wanting to pay off my revolving debt before saving a cash reserve equal me not understanding that I need one.

And if work dries up for three months it's time to look for a new job well before the third month.

But if you have debt and a cash reserve you in essence are borrowing you reserve. Not literally but when you have debt abd savings but don't pay off your debt you are borrowing to keep the reserve.
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You ask for your money frequently, and you collect it quickly, else you stop working immediately.
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Old 04-12-2014, 06:10 AM   #43
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Re: Late Payment Due To Death In Family?


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Originally Posted by pinwheel View Post
No, I'm not borrowing money for my emergency reserves. We pay ourselves first.

We don't have much debt. Our shop is 100% paid for. Our tools are 100% paid for. My home & the 10 acres it sets on, is 100% paid for. My farm, which is worth $250K has 50% equity & the balance is locked in at 5% for the next 20 years. We carry no credit card debt. We've pretty much achieved what your championing.

What you're failing to understand, is if your work dries up for 3 months, you better have access to money to pay the bills that keep coming in.
you have to love the internet Pinwheel.

You own a beautifull shop-and it's 100% paid for, your equipment is paid for, your home and the 10 acres it sits on is paid for, you own a farm with 50% equity and the balance tied up in a very low interest loan--and you carry no credit card debt.

but Rob is gonna give YOU financial advice ,LOL

sounds like your affairs are in superb order.
Congrats!!!!
Stephen
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Old 04-12-2014, 06:12 AM   #44
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Re: Late Payment Due To Death In Family?


I know a couple of guys who think that money in their pocket is better than less debt. Looking at what they drive and own would make you think it works. But go out for beers with them and its a whole different matter. Tight as tight can be. One drives a Ferrari too and a nice one at that. Problem is they are in debt upto their eyeballs and struggle to make their monthly payments on everything and the cash in their pocket is what makes them feel rich but they don't spend it because its their "reserve fund" if they used some of that money to pay down their monthly payments they would be paying less interest and less payments each month which means even bigger reserve fund. Which means they might buy a round of beers one day lol
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Old 04-12-2014, 06:17 AM   #45
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Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by Stephen H
you have to love the internet Pinwheel. You own a beautifull shop-and it's 100% paid for, your equipment is paid for, your home and the 10 acres it sits on is paid for, you own a farm with 50% equity and the balance tied up in a very low interest loan--and you carry no credit card debt. but Rob is gonna give YOU financial advice ,LOL sounds like your affairs are in superb order. Congrats!!!! Stephen
What your saying makes Robs comment even more true. Pins in hardly any debt because he decided to pay it off over have a bunch of cash sitting in a account not doing a whole lot. If he reversed that and put all that cash he used to pay of that debt into an account instead he would have lots of debt and a fat bank account but be worse off each month. He has what he has because of paying off debt.
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Old 04-12-2014, 06:31 AM   #46
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Re: Late Payment Due To Death In Family?


"My contract, that he signed, said payment due upon completion. That was a month ago. The HO wanted me to touch some things up, then I'd get the remainder of the money 'right away', GC's words"

Are you working directly with the home owner? or for a GC? What's with "GC's words"?
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Old 04-12-2014, 07:10 AM   #47
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Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by TNTSERVICES View Post
How does me wanting to pay off my revolving debt before saving a cash reserve equal me not understanding that I need one.

And if work dries up for three months it's time to look for a new job well before the third month.

But if you have debt and a cash reserve you in essence are borrowing you reserve. Not literally but when you have debt abd savings but don't pay off your debt you are borrowing to keep the reserve.
I'm sorry I ever questioned the all Knowing TNT. I don't know **** about managing money. Thank you for taking time away from your busy schedule to educate me on my finances.
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Old 04-12-2014, 07:31 AM   #48
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Re: Late Payment Due To Death In Family?


I don't think TNT was commenting on your financial history personally, i think he was saying that if someone is taking money out of a line of credit @ say 5% and putting it in an "emergency account" that is paying them 1% then they are losing 4%. If you DON't have a cash reserve BUT you have access to funds why would you create debt? I think everyone is agreed that they need rainymonth money. 3 months is

And i think that most people here would love to be in your position of having no debt except your property which you are now paying off more principle than interest
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Old 04-12-2014, 08:03 AM   #49
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Re: Late Payment Due To Death In Family?


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Originally Posted by pinwheel View Post

I'm sorry I ever questioned the all Knowing TNT. I don't know **** about managing money. Thank you for taking time away from your busy schedule to educate me on my finances.
Ditto.
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You ask for your money frequently, and you collect it quickly, else you stop working immediately.
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Old 04-12-2014, 08:11 AM   #50
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Re: Late Payment Due To Death In Family?


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Originally Posted by Stephen H View Post

you have to love the internet Pinwheel.

You own a beautifull shop-and it's 100% paid for, your equipment is paid for, your home and the 10 acres it sits on is paid for, you own a farm with 50% equity and the balance tied up in a very low interest loan--and you carry no credit card debt.

but Rob is gonna give YOU financial advice ,LOL

sounds like your affairs are in superb order.
Congrats!!!!
Stephen
Well my advice to all is to be debt free with a cash reserve and to be debt free before worrying about a cash reserve. Sounds like, and by his own admission a few posts back, that is what he has done.

My advice was not directed at him BTW. I was simply responding directly to him.

What I love about the internet is: I say something, someone argues with me, telling me I am wrong, when what I am saying is exactly what they are doing, and low info guys like you make dumb comments like this.
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You ask for your money frequently, and you collect it quickly, else you stop working immediately.
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Old 04-12-2014, 08:20 AM   #51
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Re: Late Payment Due To Death In Family?


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Well my advice to all is to be debt free with a cash reserve and to be debt free before worrying about a cash reserve. Sounds like, and by his own admission a few posts back, that is what he has done.

My advice was not directed at him BTW. I was simply responding directly to him.

What I love about the internet is: I say something, someone argues with me, telling me I am wrong, when what I am saying is exactly what they are doing, and low info guys like you make dumb comments like this.
Funny how that only happens to you eh?
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Old 04-12-2014, 08:44 AM   #52
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Funny how that only happens to you eh?
It's what happens when you burn a bridge. Bitterness and grudges...
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You ask for your money frequently, and you collect it quickly, else you stop working immediately.
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Old 04-12-2014, 08:48 AM   #53
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It's what happens when you burn a bridge. Bitterness and grudges...
You bring it on yourself.
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Old 04-12-2014, 08:52 AM   #54
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Re: Late Payment Due To Death In Family?


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You bring it on yourself.
I know, putting people in their place has it's price...
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Old 04-12-2014, 12:21 PM   #55
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Re: Late Payment Due To Death In Family?


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I don't think TNT was commenting on your financial history personally, i think he was saying that if someone is taking money out of a line of credit @ say 5% and putting it in an "emergency account" that is paying them 1% then they are losing 4%. If you DON't have a cash reserve BUT you have access to funds why would you create debt? I think everyone is agreed that they need rainymonth money. 3 months is

And i think that most people here would love to be in your position of having no debt except your property which you are now paying off more principle than interest
I don't believe I said anywhere to borrow money when you already have available funds. I said make sure you've got emergency reserve, even if you've gotta borrow that money.

Emergencies don't usually give you advanced notice that they're coming. I need to be prepared for those emergencies.

We didn't get in the financial position we're in overnight, or by accident or inheritance. We got here through a lot of hard work & some good money decisions. One of those decisions initially took place years ago. That was not put our self in desperate financial situations. There were times we were going into winter without the emergency reserves in place & yes, we borrowed money before winter to insure those reserves were there when we had to have them. Like I said, emergencies don't give advanced notice they're coming. I can't afford to let a $5-6K no pay, or slow pay put my business or supply chain in jeopardy. If I can't afford to pay my suppliers on time, everytime, I'm not going to get premium pricing or timely service.

I know some guys believe debt is a dirty word. I'm not one of those guys. If I'm paying 5-10% interest, I expect those monies to make me 20-40%. More than once, I've borrowed money to take advantage of deals that turned substantial profit over the interest I paid on the borrowed monies & I suspect I'll do it again many times in the future.
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Old 04-12-2014, 01:02 PM   #56
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Re: Late Payment Due To Death In Family?


Last summer, I had the unfortunate circumstance of a family emergency – 1200 miles from home. This went on for 8 weeks until we were finally able to have a funeral service.

During that time, I had two projects that I had started and one that had given me a sizable deposit. All three customers were very understanding and I sincerely appreciated their understanding and compassion.

What comes around…
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Old 04-12-2014, 01:03 PM   #57
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Re: Late Payment Due To Death In Family?


Same here. All my clients were very understanding and insisted I take care of the family over their projects. None had given me deposits.
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Old 04-12-2014, 02:06 PM   #58
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Re: Late Payment Due To Death In Family?


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I don't believe I said anywhere to borrow money when you already have available funds. I said make sure you've got emergency reserve, even if you've gotta borrow that money.

Emergencies don't usually give you advanced notice that they're coming. I need to be prepared for those emergencies.

We didn't get in the financial position we're in overnight, or by accident or inheritance. We got here through a lot of hard work & some good money decisions. One of those decisions initially took place years ago. That was not put our self in desperate financial situations. There were times we were going into winter without the emergency reserves in place & yes, we borrowed money before winter to insure those reserves were there when we had to have them. Like I said, emergencies don't give advanced notice they're coming. I can't afford to let a $5-6K no pay, or slow pay put my business or supply chain in jeopardy. If I can't afford to pay my suppliers on time, everytime, I'm not going to get premium pricing or timely service.

I know some guys believe debt is a dirty word. I'm not one of those guys. If I'm paying 5-10% interest, I expect those monies to make me 20-40%. More than once, I've borrowed money to take advantage of deals that turned substantial profit over the interest I paid on the borrowed monies & I suspect I'll do it again many times in the future.
Would it not make more sense to have a line of credit? Say $10k-$100k or whatever and use it when you need it rather than taking out a loan and having all that money as liquid money. I'm not one to say that debt is bad...as you say if the debt that you incur is making more than it's costing it's great. But to me it doesn't make sense to take out a loan unless it's like a line of credit where you don't accumulate interest until you remove the funds. If that's what you're talking about then I agree 110%
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Old 04-12-2014, 03:12 PM   #59
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Re: Late Payment Due To Death In Family?


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Would it not make more sense to have a line of credit? Say $10k-$100k or whatever and use it when you need it rather than taking out a loan and having all that money as liquid money. I'm not one to say that debt is bad...as you say if the debt that you incur is making more than it's costing it's great. But to me it doesn't make sense to take out a loan unless it's like a line of credit where you don't accumulate interest until you remove the funds. If that's what you're talking about then I agree 110%


For us, yes, a line of credit because we've got the collateral to be able to take out a LOC. Not everyone, especially guys new to the business, have the collateral to develop a LOC.
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Old 04-12-2014, 05:19 PM   #60
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Re: Late Payment Due To Death In Family?


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"My contract, that he signed, said payment due upon completion. That was a month ago. The HO wanted me to touch some things up, then I'd get the remainder of the money 'right away', GC's words"

Are you working directly with the home owner? or for a GC? What's with "GC's words"?
Billing is going through the GC. The HO's wanted me to do the projects, concrete counters, and they got my info off my website.

HO told me what they wanted, I asked if they are hiring me directly or is GC, whom I did ONE other countertop job for. So I said ok, I'll write up the contract and send it to the GC. He signed it returned it with required %50 deposit.

The GC's words were, "after touch up work is done, and I hear from HO, I will pay you immediately" Great I figured. Called him on a Monday morning to find out if he talked to HO after I finished the touch up the Wednesday prior. GC says "HO is happy. I'll mail the check this week." Email Thursday later in the week because I havent gotten any money yet, and then he replied with the death in the family thing.

I sent an email back expressing my condolences, but that I also should have already had the money in my hand, and that I have to put bread on the table. That was a few days ago, havent heard back yet.

And Yes Pinwheel, in a perfect world I'd love to have a lot of cash cushion on hand. However I've had a slow late winter, and things are slow picking up here, and now weight limits are on the roads. I've got enough money to pay my bills for the month, but that doesnt mean I dont want to get paid on time.

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