Originally Posted by madRiver
The idea that you borrow money even at 0% to invest means still one cannot afford something. Not a risk Ian willing to take. That all being said my wife and I took on a car loan at 2% for $20k so I can't talk. Once our 4 year old goes to public school($10k in pocket) next year we plan on paying that car down ASAP along with wife working 32 hrs instead of 20hrs.
Well to be charitable, I suppose you could categorize debt into good debt and bad debt although technically maybe all debt is bad debt. Good debt would be things like houses and cars. Houses because you need a place to live and maybe if you wait to save up enough, the prices will be even higher and cars because you need to get to work to earn a living. Bad debt might be things like credit card debt where you have nothing to show for it afterwards when spending money on trinkets. Someone who spends $1000 on something might actually be paying $1500 for it after all the interest they pay on it by financing it. Someone else who has savings and gets money from investments might have gotten that $1000 from an initial $750 investment. You can actually have a lot more money from savings than financing things.
The idea that you borrow money even at 0% to invest means still one cannot afford something. Not a risk Ian willing to take. That all being said my wife and I took on a car loan at 2% for $20k so I can't talk. Once our 4 year old goes to public school($10k in pocket) next year we plan on paying that car down ASAP along with wife working 32 hrs instead of 20hrs.
Well to be charitable, I suppose you could categorize debt into good debt and bad debt although technically maybe all debt is bad debt. Good debt would be things like houses and cars. Houses because you need a place to live and maybe if you wait to save up enough, the prices will be even higher and cars because you need to get to work to earn a living. Bad debt might be things like credit card debt where you have nothing to show for it afterwards when spending money on trinkets. Someone who spends $1000 on something might actually be paying $1500 for it after all the interest they pay on it by financing it. Someone else who has savings and gets money from investments might have gotten that $1000 from an initial $750 investment. You can actually have a lot more money from savings than financing things.