Quote:
Originally Posted by Hockeyguy15
Why would you pay cash for your house with current interest rates?
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Because I believe that debt should be avoided at all possible costs, as it ultimately restricts your options and reduces your opportunities.
As a simple example, if you do not have any debt and you only need X amount to live and you do not like your current job, you can conceivably quit your job and go do something else that pays X+1 (or just X; or nothing at all, and live off your dividends, interest, and capital gains to recreate X). But if you have debt, you now need an amount equal to X+debt-service-amount in order to live, and the debt-service-amount can be such an amount that makes other lower-paying, or non-paying, jobs not realistically available to you.
Quote:
Originally Posted by Fuzz
Ya, would be interested to hear the details of his personal financial journey. How much he makes, saves, when he bought a house for how much....I mean, maybe it is all possible to make $50 000 and do what he says, but I have my doubts how that would work.
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I'll tell you this much:
I started working when I was 25, and I'm 39 now. I've worked every year during that period of time, except for about a year when I backpacked around the world and then came back home to look for work (a trip that was paid for in cash entirely out of my own savings). During the period of time in which I've worked, I have consistently saved at least 50% of my gross income (or 70% of my net income) each and every year.