Credit

Before I start, I'll reference (again) Joel Salatin's book "You Can Farm."  If you haven't read it, trust me, it is not a book on 'here is how to milk a cow,' or 'here is how to plant potatoes' - it's more philosophical...or something.  Just read it!

So, credit.  Is it a good idea to inform the readers (and the internet) of my financial status?  Heck yes - if I can make just one person second-guess taking on any form of loan or credit, I'll be happy.  Many years ago, in high school, I was lectured and lectured by tons of people I know - NEVER GET A CREDIT CARD!  I understood why, and firmly believed what they were saying, but after a while, things got tough.  Being in college and paying for it by myself wasn't easy.  I was going through some rough times with my family, and had moved out, and did not receive any support from them (as my choice).  So, one school loan here, a second there, then a credit card to pay for something, and another for this & that.  Eventually, between Katie and I, we probably had 15-20 loans/credit cards.  It was getting out of hand, and we knew it.  The way credit card companies operate, if you aren't aware, is to have you pay a minimum payment.  This minimum payment is the devil.  The minimum payment will keep your credit happy, sure.  Why wouldn't they be happy with you paying them a ton of extra money?  With the minimum due, you're paying primarily the interest that the account is generating per month.  If you're only paying interest - you'll never pay it off.

Now, the link.  We drove by a beautiful property that has been for sale for several years.  It's right across the street from our church, is in a good neighborhood, and actually borders a locally-famous farm here.  They have recently been cleaning it up and making it prettier, to sell it quicker.  On the new sign, they have offered financing for the property, and it started a conversation between Katie and I.

With financing a property to be used as a farm, you take on a different situation than financing a house (mortgage).  It would be nice if we could all pay cash for our homes, but if it's not possible (and for most people it is not), the owners work to pay off the house.  As they make payments, they lose money, but gain equity, so it's not really a loss, if it's paid off quickly.

Now, for a large property to be farmed, the income is derived from the farm.  If the property is not paid for, the income goes directly back to the bank, which then gains the owner equity.  Problem is, a lot of these properties are massively expensive.  The owners are then strapped down to the farm, and it becomes like a prison to them.

...now, a breather and an exclaimer:  This does not mean someone cannot finance a farm, and pay for it farming.  It doesn't mean they're going to feel locked in a prison.  These are just a few of the people I have talked to, who do things "the way we have always done them" simply because.  Heck, a lot of people think if you're making $200 per acre per year, you're making a good profit.  Insane.

The moral to all this is, and this is just as much for me as it is for the readers, is to be smart about your finances.  I don't claim to be any type of financial genius.  I just know, by the end of the year, we will have paid off another 3 credit cards.  We've taken, in less than 2 years, our total debt from around $217,000 to $166,000 (with most of that being debt actually being the mortgage).  A lot of people congratulate me on that, but honestly, I hate that.  It never should have been that bad.  We have come a long way, and I can only wonder how far we would be if we did not pay all the ugly interest that goes along with it.  I know that in some cases, it's absolutely necessary.  There's no way I could have gotten a job in my field without a degree.  But it sure makes me cringe every time I pay that bill.

With that, I'll end the rambling for the evening.  But, I'll mention this post might lead to another, dealing with leasing.  And chickens.  And cows.  Baby cows.  :-P

Goodnight all!