ADM Mitigation Strategies

[Melange_X3]

For those of you who paid ADMs and want to discuss ideas to mitigate then please post good ideas that others may take advantage of. Fair waring to any of you trolls I won't hesitate to flame you on this thread so if you don't have anything positive to add just go away.

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[kwpony]

For those of you who paid ADMs and want to discuss ideas to mitigate then please post good ideas that others may take advantage of. Fair waring to any of you trolls I won't hesitate to flame you on this thread so if you don't have anything positive to add just go away.

 

[Deviruchi]

Sunk cost fallacy, there is no mitigation.

 

[Tomster]

It's money lost, pure and simple. Yes you can save money by doing this and that to offset what you spent on an ADM, but had you done all those cost saving measures on top of buying at MSRP, you'd be 15K richer.

Now, I paid an ADM. I'm not going to say how much because it doesn't matter. That is money I spent on something that I wanted. It's like anything else, if you want it and can afford it, have it. Life is short man and you don't want to wind up being bitter trolls of the likes you will see because you kicked a hornets nest by starting this thread.

Be proud of who you are and your success. There is no shame in being able to afford something.

 

[Dunk812]

It's money lost, pure and simple. Yes you can save money by doing this and that to offset what you spent on an ADM, but had you done all those cost saving measures on top of buying at MSRP, you'd be 15K richer.

Now, I paid an ADM. I'm not going to say how much because it doesn't matter. That is money I spent on something that I wanted. It's like anything else, if you want it and can afford it, have it. Life is short man and you don't want to wind up being bitter trolls of the likes you will see because you kicked a hornets nest by starting this thread.

Be proud of who you are and your success. There is no shame in being able to afford something.

I agree with Tom it’s your money just like it’s Tom’s money and it’s my money how we spend it is up to us. If others don’t like how we spent our money I’m not sure how that effects us at all. I have lost zero sleep and they have not effected my life in the smallest amount. Be proud that we can afford it and not worry I’m sure all 3 of us have worked very hard for what we have. I’m an engineer as well and spent 25 years in the Navy the sacrifices I gave up spending years at sea and away from friends and family certainly has taught me live while we are here do what you can when you can within your means stashing millions away for when you die will not help you and really will not help your family either. I do agree financing the ADM compounds what you paid but I think most of us buying a 90K car (I rounded up and down) are not going to finance most of it anyways.

 

[jgruben1134]

I say to each their own, and while I don't agree that you are "mitigating" the ADM with any of these strategies, I think it's cool to see the ideas you've come up with to help yourself, or anyone else, find ways to make or save the extra money for a luxury they want. More power to you

 

[Melange_X3]

You can't mitigate it - as you spent the 15K - all you can do is accept it - and let it go. In five years - you won't even miss the money - unless you bought VTI stock with the 15K - you might have 20K then.

It is best to accept it - and perhaps delete this thread as there will be no comfort found in hearing folk's opinions. I wouldn't want to have spent the 15K and on top of that hear what people thought of it - I'd keep it to myself.

No I don’t accept it. Cost mitigation is a real strategy that businesses use project managers execute and contract managers track. Yes I spent the $15k on the ADM but doing so has changed my decision tree. If I didn’t plan on buying the car I would have paid contractors to do my landscaping and outdoor projects. If I didn’t pay the ADM I would be playing Candy Crush or watching TV while on the exercise bike in the gym instead of getting paid for taking surveys. You have to look at your finances as a whole. If my annual budget for example is a net of $10 what can I do to absorb an expenditure and stay on budget. Cost avoidance can make up the difference and creating an additional income stream without losing time can increase your budget.

 

[Melange_X3]

It's money lost, pure and simple. Yes you can save money by doing this and that to offset what you spent on an ADM, but had you done all those cost saving measures on top of buying at MSRP, you'd be 15K richer.

Now, I paid an ADM. I'm not going to say how much because it doesn't matter. That is money I spent on something that I wanted. It's like anything else, if you want it and can afford it, have it. Life is short man and you don't want to wind up being bitter trolls of the likes you will see because you kicked a hornets nest by starting this thread.

Be proud of who you are and your success. There is no shame in being able to afford something.

I disagree. It is not simply money lost. I would be $15k richer if all things remained equal and I didn’t buy the car but buying the car changes many of the decisions I made financially. I am not fearful of the trolls here they are cowards who hide in the anonymity of the internet. They would never board a flight and call someone a moron for paying the markup to fly first class so I don’t need to worry about them. I know there are at least a few people out there who will take interest on some innovative ideas to offset the cost of ADMs. Yes I openly admit I basically just took $15k and threw it out of the window but to just give up on it is two dimensional thinking. I am not Justifying it I am finding ways to balance out my bottom line through cost avoidance and cost mitigation.

 

[HoosierDaddy]

morons pay 15K ADMs.

So calling me a moron is being helpful?

While understandable to assume that, he didn't actually call you a moron. He said morons pay $15k ADM. Now if he had said ONLY morons pay a $15k ADM, you would a valid complaint.

That said... ONLY morons say "morons pay $15k ADMs" since it easily leads to misunderstandings.

 

[Melange_X3]

Another strategy we can use is rewards points on credit cards. I like to travel so I pay every regular cost possible with a credit card that rewards me with frequent flyer miles. This includes fuel, groceries, utility bills, subscriptions and everything you can that you have to spend anyway. Pay off the expenditures on the card to avoid interest charges. Other cards offer cash back that could be used to offset the cost of any ADMs. Anybody have other ideas that could be helpful instead of being Negative Nancy’s?

 

[jgruben1134]

Another strategy we can use is rewards points on credit cards. I like to travel so I pay every regular cost possible with a credit card that rewards me with frequent flyer miles. This includes fuel, groceries, utility bills, subscriptions and everything you can that you have to spend anyway. Pay off the expenditures on the card to avoid interest charges. Other cards offer cash back that could be used to offset the cost of any ADMs. Anybody have other ideas that could be helpful instead of being Negative Nancy’s?

I'm a big fan of reward points. I don't do all my expenses for them, but I certainly do all my large purchases that way. I put a significant amount of money down on my Mustang to buy the payment down, all on AMEX for the Delta miles. I paid the bill from my bank account before I left the dealer. Some reward programs are better than others, but I like to travel, so the miles are worth it to me.

 

[Tomster]

I disagree. It is not simply money lost. I would be $15k richer if all things remained equal and I didn’t buy the car but buying the car changes many of the decisions I made financially. I am not fearful of the trolls here they are cowards who hide in the anonymity of the internet. They would never board a flight and call someone a moron for paying the markup to fly first class so I don’t need to worry about them. I know there are at least a few people out there who will take interest on some innovative ideas to offset the cost of ADMs. Yes I openly admit I basically just took $15k and threw it out of the window but to just give up on it is two dimensional thinking. I am not Justifying it I am finding ways to balance out my bottom line through cost avoidance and cost mitigation.

Not to bicker, but I disagree. When you sell it (if you ever do), you will never recoup that money and it will be an expense that was paid that will have no resale value.

I don't ever plan to sell mine, so what I spent doesn't matter, but as a whole, it is lost money in terms of resale value.

 

[HoosierDaddy]

I am not fearful of the trolls here they are cowards who hide in the anonymity of the internet. They would never board a flight and call someone a moron for paying the markup to fly first class

Gonna go out on a limb here. To keep the analogy accurate, I'll bet they might if a 1st class passenger asked them how they could mitigate the money they spent on the 1st class ticket.

Seems to me that unless someone spends less than $15k to live for the time they own the car, ADM mitigation is a non sequitur. But maybe someone can explain how money saved elsewhere didn't really offset other expenses as opposed to the ADM.

 

[Melange_X3]

Not to bicker, but I disagree. When you sell it (if you ever do), you will never recoup that money and it will be an expense that was paid that will have no resale value.

I don't ever plan to sell mine, so what I spent doesn't matter, but as a whole, it is lost money in terms of resale value.

It is not about whether I keep or sell the car. It is about where can I avoid other costs or make additional money by changing habits or making different decisions that will lessen the impact of spending the $15k extra on the car. I am not trying to recoup the money through selling the car or justify the $15K by saying the car will be worth anything later down the road. To make things simple just think of it as I $15k put it in a pile, doused it with lighter fluid and set it on fire. What kind of things can I do that will reduce the impact on my overal budget over a period of five years?

 

[Tomster]

It is not about whether I keep or sell the car. It is about where can I avoid other costs or make additional money by changing habits or making different decisions that will lessen the impact of spending the $15k extra on the car. I am not trying to recoup the money through selling the car or justify the $15K by saying the car will be worth anything later down the road. To make things simple just think of it as I $15k put it in a pile, doused it with lighter fluid and set it on fire. What kind of things can I do that will reduce the impact on my overal budget over a period of five years?

Hmm, I look at it as a one time expense to have what you want when you want it.

Again, congratulations on your success in life. If you want it, buy it, and don't look back or rationalize it.

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