I like your response PF.

I always followed the Tyler Durden philosophy. He says this about money--"We work jobs we hate to buy (crap) we don't need."

As I get into my mid 50s I look around and see things I bought but did not need even though I am a very disciplined saver. Guns, tools, equipment--the list is long.

But, I am doing something about it. It was hard, but I went through the gun safe recently. Some are getting rehomed for cash. Some will be given away. The shop is next.

Maybe I can retire just a bit earlier. Maybe I can buy something I actually need--or even better that my wife or kids actually need. Regardless, I'll have less crap weighing me down.

From Tyler Durden to the Apostle Paul....

"godliness with contentment is great gain"

Well said PF and BC!

i bought two 10 acre parcels and built two small homes and several cabins.sheds, a shop, and a sauna.

Build as you can afford

I often wonder with no credit history if i can even get a loan?

If rather Drive a newer Vehicle ...where the AC works.

Iam dead along time ....and I sure ain't suffering any more than I have to.

Friend of mine just died....saved and planned his whole life...did without for many

Many years...and now he's in the ground.

Needless to say.....iam going out Broke & Red Faced...the same way

I entered this world

Well, you guys talk about not going in debt 90% of the successful businessman that I know at some point when in debt to their eyeballs and as soon as the financial crisis started, they file for bankruptcy. One of the richest guys in my area has filed bankruptcy three times. He starts a company pays himself a big salary. Then when he gets where he can’t pay his creditors, he the company files bankruptcy. He walks away Scott free ton of construction companies operate like that do a little digging you’ll find out who all went down that path it might surprise you how many so-called millionaire/billionaires have filed bankruptcy at some point in their life.

I like capital gains tax…it means I’ve made money.

Not me other than my monthly bills I have zero debt.

Theory 1:
Pay off your house, save your cash, and watch your cash savings depreciate with increasing inflation.

Theory 2:
Pay off your house, sell your house, buy a bigger nicer house, be in debt for a more expensive home, and watch it go up in value as an asset with inflation.

Being in more debt, with less money in the bank, and increasing asset value can be a great way to make you and your family more money.

I am glad there are more than two theories

I dont play the arbitrage spread with mortgage rates and sure dont consider cash a long term investment holding. capital one HYSA is about 3.5% so not even keeping pace with inflation

The market though has been way above inflation rates and continues to grow.

I paid off my house at 5.00% APR interest many years ago

Debt is not something to be rid of, so you can do other spending later in life. Debt like all aspects of life should be managed. There a lot of advantages to using debt as a way to lower overall costs and build equity.
instead of listening to those of us that know little to nothing about how you or others spend money, live or plan. Get involved with a financial planner that knows your annual income and expenses, knows how you spend and save your money over time and hopefully for a long time and not just a snapshot of today. How much risk are you comfortable with? How much of your annual income is dependent on income flows other than retirement savings, financial investments etc. This candetermine how much risk you can take in the markets. They can also help one with diversity planning and that is not just financial market diversity but overall investment in assets. Many choose to retire as early as they can. If you like your career and you can do what you want to do there is no shame in bringing wage earnings well into your late 60s or beyond if tht works for you and your family.

Bryce

Its very interesting to see everyones take on the subject. However, this seems a lot like the childless Aunt that everyone has in the family...never raised a kid, but perports to be the expert on the subject matter. I reckon there are a lot of financial 'experts' on here that couldnt buy their way out of a dollar store. That doesnt mean they are lesser human beings. But, you wouldnt ask the fat kid how to lose weight, Id be careful of who you take financial advice from on this sight, or any other.

I haven’t had a payment of any kind since 1988. Working in coal mines, you learned to stay out of debt, as mines could close up with little notice. I slept good at night knowing I didn’t have a mortgage or car payment.

You can definitely use debt to make money. Its why I still have payments on my boys braces and why I let the wife's van run to term instead of paying them off early. The braces are 0% the van was 2.6% my cash management account has been between 4.2% and 3.4 % in interest. I would be loosing money to pay it off early.
Its not much with such small amounts and if something happens like job loss or relapse I have the cash to pay it off ot pay the payments.

Debt is a tool. Few people are able to use it responsibly. For those that can it can compound earnings and investment potential. At some point I may take out a lone to build a building or redo my cabin on the farm. But that will only be if the building will make the farm more profitable along with life more convenient. Basically the building will need to at least be projected to be able to pay for its self with the added value and income it it brings.

But im still reluctant to take on any debt. If I would it would be a small fraction of the amount needed and a very short term. Its balancing saving and paying cash vs potential lost income.

Are you a business owner? If not, the rules are different.

My kids braces were all at 0% interest if you financed them, but there was a substantial discount if you paid it all up front, so I went that route.