RobbieB
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My new fresh harvest Washington chestnuts freshly roasted and peeled;
50% more expensive than grocery nuts and worth it -
Where to put excess money?
- Thread starter Dan32
- Start date
My new fresh harvest Washington chestnuts freshly roasted and peeled;
50% more expensive than grocery nuts and worth it -
brewer12345
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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- Mar 6, 2003
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My new fresh harvest Washington chestnuts freshly roasted and peeled;
50% more expensive than grocery nuts and worth it -
Now if only you had written it "chest nuts." I bet the audience for that would be much bigger than granny porn or even clown porn.
A friend posted on facebook today about getting her CSA veggies and the last "meat share" of the season. I could not resist.
Eliminate all debt, LBYM, and vow never to take any more debt ever again .. because her income is high enough she should never have to. That's the advice I'd give.
You can argue the numbers and probably win ... but over the course of a lifetime of living you'd lose the argument as to the peace of mind.
But hey, don't listen to me .. I'm just a burnt out old hippie.
Meadbh
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Eliminate all debt, LBYM, and vow never to take any more debt ever again .. because her income is high enough she should never have to. That's the advice I'd give.
You can argue the numbers and probably win ... but over the course of a lifetime of living you'd lose the argument as to the peace of mind.
But hey, don't listen to me .. I'm just a burnt out old hippie.
With all due respect, I think that advice is nonsense. As a medical professional, during her career she may very well go into private practice. If so, it would be to her advantage to borrow, within reason, to set up her office. She will probably purchase a home. How many people can purchase a home without going into debt? (Mortgages are debts, in case anyone has forgotten). Finally, she may well wish to do as I have done, and invest in income property (which could be her office building). Leveraging an investment that produces regular, reliable cash flow is a great way to build wealth.
I still have over $100K of investment debt (down by 80% from peak). My leveraged property investments gave me great peace of mind during the Great Recession. They were the only part of my portfolio which was not shrinking daily, and the cash kept flowing in. I do not fear good debt. It gives me peace of mind.
Last edited:
gayl
Thinks s/he gets paid by the post
+1000
Last edited:
aja8888
Moderator Emeritus
I think his point is its about a "state of mind" to LBYM. Obviously most people consider a mortgage good debt or if you are a highly compensated lawyer or Medical professional you can invest in your office if you choose. Yes you will have some necessary overhead.
DD only has 28k in student loan debt so thats impressive. If her income is truly high enough now she will be out of debt in no time.
If she chooses a frugal lifestyle and max saves like many millennials are doing she could go the opposite route you have taken.
She could easily pay cash for a house in 10 years during the next housing collapse if she so chooses.
Nothing wrong with the phycology of LBYM and trying to avoid debt at all costs.
pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
WADR, avoiding "debt at all costs" is very short sighted.
Our first house is one example... bought an "expandable" gambrel for ~$75k with 20% down.... put $10k in improvements + a lot of sweat equity building out 3 bedrooms and two baths on the top floor.... I was RIFed about 4 years later so we moved closer to home and to a LCOL area... in the meantime the area where the gambrel was located was booming... sold for ~$156k. So our $15k down + $10k for improvements yielded ~$90k in our pocket at closing... and our new house in the LCOL area was less than that.
If I had avoided debt at all costs during my adult life I would be a lot poorer today.
Our first house is one example... bought an "expandable" gambrel for ~$75k with 20% down.... put $10k in improvements + a lot of sweat equity building out 3 bedrooms and two baths on the top floor.... I was RIFed about 4 years later so we moved closer to home and to a LCOL area... in the meantime the area where the gambrel was located was booming... sold for ~$156k. So our $15k down + $10k for improvements yielded ~$90k in our pocket at closing... and our new house in the LCOL area was less than that.
If I had avoided debt at all costs during my adult life I would be a lot poorer today.
CardsFan
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I would argue there not "good" debt and "bad" debt, but "wise debt" and "dumb debt".
Wise debt can include housing, home improvements, business expenditures, necessities (cars for an example), if the price is reasonable and not an over indulgence.
"Dumb debt" would be carried forward debt on high interest credit cards, buying too much house, or car, or toys that stretch your limit.
I suspect we have all had some level of "dumb debt" in our lives. You can over come it and prosper, as long as you don't keep on doing it.
But you can still "blow" some money on a splurge (cruise, European vacation, or a little trip to Florida), as long as you plan for it.
Wise debt can include housing, home improvements, business expenditures, necessities (cars for an example), if the price is reasonable and not an over indulgence.
"Dumb debt" would be carried forward debt on high interest credit cards, buying too much house, or car, or toys that stretch your limit.
I suspect we have all had some level of "dumb debt" in our lives. You can over come it and prosper, as long as you don't keep on doing it.
But you can still "blow" some money on a splurge (cruise, European vacation, or a little trip to Florida), as long as you plan for it.
It's a state of mind. An attitude to avoid lifestyle creep and keeping up with the Jones.
Yes you take out a mortgage but a mortgage you can easily afford.
Many people buy too much house because they ignore " avoid debt at all cost".
With credit card debt it should be taken literally.
+1000
pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Well, truth be known, the mortgage on that first house was a burden.... certainly not "easily afford"..... we stretched ourselves and scrimped for a couple years until I received a couple raises and the mortgage payments became more comfortable... but I'm not sure that is unusual for a first home.
We took a calculated risk.... and it turned out well.
I guess my point is that it is poor advice to eschew all debt (though I would agree on credit card debt).
My dad was a successful businessman and multi-millionaire and didn't like debt and later admitted that one regret was not using other people's money more.
I think CardsFan hit the nail on the head.
We took a calculated risk.... and it turned out well.
I guess my point is that it is poor advice to eschew all debt (though I would agree on credit card debt).
My dad was a successful businessman and multi-millionaire and didn't like debt and later admitted that one regret was not using other people's money more.
I think CardsFan hit the nail on the head.
+1000
