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Going Debt Free
Posted on 5/8/13 at 8:26 pm
Posted on 5/8/13 at 8:26 pm
How hard would you say it is to stay completely debt free, starting from college (I am lucky enough to have undergrad full covered with out loans)?
If you could stay debt free would you? or do you think some risk in debt have to be made to make more money in the end?
If you could stay debt free would you? or do you think some risk in debt have to be made to make more money in the end?
4
Posted on 5/8/13 at 8:29 pm to ponger3d
Try to only finance things that appreciate in value.
May not be possible in the early years, but try to stick to that approach and it wil set you up later in life.
May not be possible in the early years, but try to stick to that approach and it wil set you up later in life.
Posted on 5/8/13 at 8:50 pm to tigers win2
quote:
Try to only finance things that appreciate in value.
I disagree. If you are buying something regardless, what should matter is the interest rate, not whether it is a debt or an asset.
For example, all things being equal, if I can get 0% financing on a car for 60 months, I would not pay for it in cash.
On the other hand, if land appreciates in value, but my rate of financing it is 8%, then I would probably not buy the land.
Posted on 5/8/13 at 8:52 pm to ponger3d
quote:
If you could stay debt free would you? or do you think some risk in debt have to be made to make more money in the end?
I would take risk in certain things, but sparingly, and like I said before, depending on the cost. For example, I took out about 15,000 in my name for student loans, but that got me an education at one of the top 20 schools in the country and a job I couldn't have had otherwise. Likewise, I believe certain concentrated graduate school programs fall in the same boat. For these cases, you typically have to take on debt, but it is worth it.
Posted on 5/8/13 at 8:59 pm to ponger3d
quote:
How hard would you say it is to stay completely debt free, starting from college (I am lucky enough to have undergrad full covered with out loans)?
The "normal" route, tough.
I did the military route, and it was great. Tuition/fees paid AND making about $1,500 a month cash. Not to mention bonus programs through the guard/lotto that gave me 5k a semester.
I did just buy a house so I have that debt. Paid cash for my car with some deployment money, started a roth ira with 7k in it now, and about 10k in the checking.
This post was edited on 5/8/13 at 9:08 pm
Posted on 5/8/13 at 9:02 pm to ponger3d
quote:
If you could stay debt free would you?
Hell yes. Life is so much less stressful if you don't have to worry about $.
Posted on 5/8/13 at 9:06 pm to wegotdatwood
quote:
Hell yes. Life is so much less stressful if you don't have to worry about $.
Posted on 5/8/13 at 9:15 pm to Fat Bastard
What stocks would be best to invest in? Long? Short?
Posted on 5/8/13 at 9:25 pm to Fat Bastard
The bottom line is you've got to figure out what works for you. Just recognize that obligating your future cash flow, especially for a bunch or non-essential items has risks. It also has the potential to create a lot of stress down the road if you let it get out of contol( as most people do).
I understand the poster above who talked about a 0% interest car loan, but for me I just don't want debt. I just wrote a check for a new SUV 4 weeks ago. Yeah, rates are low and the market is doing well, but I decided to write the check and be true to who I am. It's what works for me.
As I see it, It's the not having any monthly payments that put me in the position to write the check
Posted on 5/8/13 at 9:27 pm to ponger3d
quote:
Short?
Are you asking what stocks you should short?
Posted on 5/8/13 at 9:27 pm to tigers win2
I agree, it's the finance culture/way of thinking that gets people in trouble.
For example, have a family member who is financing a vacation while they already have a mountain of debt.
For example, have a family member who is financing a vacation while they already have a mountain of debt.
Posted on 5/8/13 at 9:30 pm to LSURussian
quote:
LSURussian
Like should I invest in long term investment stocks or short term ones.
Posted on 5/8/13 at 9:31 pm to ponger3d
quote:
Like should I invest in long term investment stocks or short term ones.
For example?
Posted on 5/8/13 at 9:34 pm to ponger3d
quote:
Like should I invest in long term investment stocks or short term ones.
This made my brain hurt
Posted on 5/8/13 at 9:36 pm to tigers win2
quote:
As I see it, It's the not having any monthly payments that put me in the position to write the check
yep. the only notes i have are my rental properties and they pay for themselves. my timeshare, house, and vehicles are all paid for.
Posted on 5/8/13 at 10:23 pm to Fat Bastard
Starting out, the wife and I decided we'd only finance 1 item (besides the house) at a time. Paid her SUV off and I have a company truck. As soon as her SUV was paid off I bought a commercial mower to make cash on the weekends. I'll pay it off 2yrs early this summer and then the next few seasons will buy our next car in cash. After that we should be in a position to buy each car in cash going forward (the mowing business just sped us up a few years).
Yes money is cheap but barring any emergency we'll be 35/33 with a new car (paid for), 5 yrs left on our house, and no other debt.
Can't fricking wait. Hate debt.
Yes money is cheap but barring any emergency we'll be 35/33 with a new car (paid for), 5 yrs left on our house, and no other debt.
Can't fricking wait. Hate debt.
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