I'm talking about no bills or car payment. Mortgages aren't included.

What is the big deal with being "debt free". Is it really worth it if you can live within your means?

For those of you who are truly debt free, have you been able to maintain it or did you just acumulate debt again over time like a failed weight loss diet?

I make plenty of money, but the closer I get to retirement in the service (been in for 20 years and plan on staying in for at least 6 more) I've considered the thought of paying off all my debts at the expense of stopping all my savings to do it.

I could pay off everything I owe within one year. Do I do it at the expense of stopping my savings, or pay it down over time and just live within my means?

Thoughts?

 

the only Debt I currently have is my S... been like that for for about a yr...i charge on my credit card to get points...but then its always zero'd in the same month..

I had the 30k credit card debt once.. decided then never ever again! That was about 10 yrs ago..

 

The world is changing very fast this year, for those who are employed keep in mind jobs are not secure. How anybody can sleep at night who has not fully prepared is beyond me.

When you are in debt you are someone's bltch until you pay it off or walk away from your responsibilities.

The sense of entitlement under which this generation of Americans lives under is gonna change. Smart mortgage good, buying cars,tv's and crap which loses value bad.

The morons forgot the dot com boom /bust when they began to get damp panties with real estate boom and now bust. Short memories.

 

this attitude is exactly why america is so irresponsible.

there is no big deal to being debt free besides a sense of honor. but who cares about honor if you can have a new z06 for 0% interest instead?

i think tim's job is secure

 

Some folks see debt as leverage.

Max Growth Rate comes from leverage.

Any company with more than a few employees will carry debt. If they did not, they could not remain competitive. Imagine having all cash transactions without the concept of AP/AR?

Also, there is one way that a man can "take the money with you" when you die and that is via debt.

The absolute core and perfect example of leverage would be to die a million in debt. That is money you used to improve your enjoyment of the few precious moments we have in life.

Those experiences and those memories are what you will be left with at end of life. So, you can recall those wonder years of counting the jars of coins in your closet, or recall that dream vacation in Europe, or that cool car, etc. etc.

Presuming you have no children or wife, that debt money is a free ride. You gambled and you won! A 1 million dollar lotto of your own conception.

Immoral? Nahh. No more immoral than the bank taking someone's farm or home on a debt. The bank gambles in loaning the money. We gamble in taking it.

The stakes and rules are known by both parties.

Ask yourself: "Do I want to be a winner?"

If yes, debt will set you free on a wonderland of merriment with a goal of max balance at checkout time.

Word.

 

[QUOTE=Ruprecht,Apr 26 2008, 08:40 PM] Some folks see debt as leverage.

Max Growth Rate comes from leverage.

Any company with more than a few employees will carry debt.

 

i'd pay off my debt asap. it accrues interest and it will eventually eat you alive

 

i try to keep the debts to reasonable categories:

- mortgage
- student loan
- car

everything else should be paid for by end of the month. even now i'm putting money into my next car account - a certified pre-owned something so i don't need to finance next time (unless the interest rate is really good, like below 4%).

 

Yes, it is all that it is cracked up to be. I love being debt free. I love having cash. I sleep very well at night.

 

I like to use the Chinese payment plan whenever possible - one lump sum.

If you can build wealth you can eventually get to the point where your expenses are a small percentage of your income and you're still living a nice lifestyle.
I know a multi-millionaire who told me he lives on less than 5% of his yearly income, and that 5% is probably 10 times what I make.