You are viewing a single comment's thread from:
RE: Are you a Slave? I was a slave to the American Dream. Learn how I escaped.
Debt isn't all bad. For example, if I have $500k in cash but can secure a loan at low interest for $500k to start a business, rather than risk my cash and tie it all up I'm put some risk on that lender in exchange for the interest I will pay. And my capital is still available should it be needed. I think so long as you could pay cash and set aside that money over the course of the loan, debt isn't such an evil thing
Read this recent article about debt Americans are in. http://www.theatlantic.com/magazine/archive/2016/05/my-secret-shame/476415
For what its worth, technically speaking I squeezed into the "1%" club of Americans, but I assure you in many ways I still go paycheck to paycheck and I live pretty frugally... it sure as hell doesn't feel like I make much more than right out of college... Most of my worth is tied up in business or otherwise "out of my reach". I couldn't tell you the last time I went on a vacation. I drive a used Prius C (C stands for cheap, or maybe compact), and have a payed of FJ cruiser. It pains me to see friends making a decent living buying a $70k vehicle. I want to slap them in the mouth. It also pains me whenever I see friends get a promotion and immediately buy more house. I live in the same house I bought in 2005 when I made $46k per year and I aim to pay the bitch off and rent it out. I'm trying to build equity, not trade up.
If more people understood what living within their means is, and that doesn't mean buy it if you are able, we as American's wouldn't be in the sorry situation we are in.
You, my friend, have the right financial mindset. It is very hard to get people to live within their means.
You are correct. But most people are not fortunate to have 500k. I bet if you have 500k, you are not living paycheck to paycheck. Consumer debt is a bad thing if you don't have an emergency fund, savings, and other investments.
I just used $500k as an example. Equally valid if you want to get a used car for $10k. if you don't have close to that in savings, then you probably can't afford it, loan or no... (caveat, a car in western society is in many ways a necessity... I acknowledge that).
Some one should bring back lay-away.
That's funny. Bring back layaway! That will be a good title for a song. Lol