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Thread: Living debt free is the life

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05-12-2024, 11:52 AM
#61
Originally Posted By Destor⏩
We could talk purchasing power parity if you want, but comparing with spot exchange rate doesn’t make a lot of sense.

But then we’d need to talk real estate cost vs value and yadda yadda
Could have just said you didn't…

¯\_(ツ)_/¯

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05-12-2024, 01:06 PM
#62
Originally Posted By XPmpnII⏩
OP based

i already have a paid off house, only debt is car loan but ya know, gotta yolo a lil bit too cuz life is short so i’m whippin a scatty

But the plan is to hopefully pay it off in 3 years and be debt free by 40
good work brother
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05-12-2024, 02:19 PM
#63
Originally Posted By Anachron⏩
Don't even bother with these guys…

¯\_(ツ)_/¯

On the contrary

I’m legitimately fascinated by how the poors think

This thread provides some insights
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05-12-2024, 02:57 PM
#64
Originally Posted By Godfrd824⏩
I'll give you an example. I have mortgages, I have tenants paying said mortgages. That's how.
Nope, YOU pay the mortgage every month, whether or not you have tenants, and whether or not they're paying you.

From a previous post: "Leverage" = "I don't understand risk, and hope everything works out exactly as planned"
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05-12-2024, 03:00 PM
#65
Originally Posted By Abzu⏩
Anyone can garauntee their mortgage every month if they are smart.

First way is you work and pay your mortgage.
The point is to NOT have a mortgage that needs to be paid, which means your income can go to investing, not to making payments.

Second way is rent rooms to cover.

If you want to get creative then you can stay with a relative and rent the whole house or you can convert a section of your house to an additional living area and rent that.
Tenants, and their ability/willingness to pay, aren't guaranteed.
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05-12-2024, 03:04 PM
#66
Originally Posted By nutsy54⏩
The point is to NOT have a mortgage that needs to be paid, which means your income can go to investing, not to making payments.


Tenants, and their ability/willingness to pay, aren't guaranteed.
there's also freedom in having no debt and instead of investing more being able to do what you're passionate about almost regardless of what it pays…say you like animals and want to be a zookeeper for $50k/year…or build wood swings/tables to sell, etc.
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05-12-2024, 03:05 PM
#67
Originally Posted By Destor⏩
How did you pay off the condo? I interpreted your post as saying you put $300k of cash into it over a period of 4.5 years ending 6 years ago, so just threw together the S&P numbers for some rough napkin math comparisons.
I paid it off by making significant extra principle payments every month, from income (not a pile of cash I had from the start).

Not sure what my total net worth is because it’s not something I focus on, but the big easy numbers I have are $330k in stocks right now and somewhere around $1.5m of real estate (two houses). The mortgages on my houses are a bit under $1.15m.
So that's roughly $680K net worth (or lower if you have other debt). Now run the math on how much interest you're paying every year on $1.1 Million in mortgage debt…

However, I also had a late start and just got out of college a decade ago. In 2014 I had zero or negative net worth and was renting a basement suite.
In 2010 I had a negative net worth, that's the year I really started getting serious.
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05-12-2024, 03:32 PM
#68
Originally Posted By r32gojirra⏩
On the contrary

I’m legitimately fascinated by how the poors think

This thread provides some insights
Poors?

I prefer the term low socioeconomic peasants.



Edit : But yes, I agree, it amusing to see the mindset of those who have, at most, a surface level understanding of personal finances.

¯\_(ツ)_/¯
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05-12-2024, 03:42 PM
#69
Originally Posted By nutsy54⏩
I paid it off by making significant extra principle payments every month, from income (not a pile of cash I had from the start).


So that's roughly $680K net worth (or lower if you have other debt). Now run the math on how much interest you're paying every year on $1.1 Million in mortgage debt…

In 2010 I had a negative net worth, that's the year I really started getting serious.
Nope those are just the big easy items, could dig further and include other assets, something for the $120k I’ve taken from the stocks this year to finish the walkout basement in my one house, vehicles, and blabla but it’s a number that doesn’t matter.

The interest on the mortgages is inconsequential, $500k is at 1.69% until 2026 and the other $1m is at like 3.6% — I make far better returns just keeping my money in the stock market rather than using it to reduce mortgage debt.

You also could have produced even better returns not putting extra money into a low-interest mortgage, but of course it comes with higher risk and a bit less peace of mind.
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05-12-2024, 03:42 PM
#70
Imagine not being a land chad having tenants pay off the mortgage

Just lol
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05-12-2024, 03:59 PM
#71
Yes. But there are also intelligent financial moves that necessitate debt for most people (real estate, starting a business, etc)

I wish I'd taken on a fukload more smart debt when interest rates were 0%
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05-12-2024, 04:06 PM
#72
Originally Posted By nutsy54⏩

Tenants, and their ability/willingness to pay, aren't guaranteed.
One thing that IS guaranteed is the various means at the disposal of the government to de-value the wealth that you hold, particular monetary wealth

What is perhaps amazing is that they can do this at a rate that is often higher in percentage terms than the rate at which you can borrow money.
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05-12-2024, 04:08 PM
#73
Originally Posted By r32gojirra⏩
One thing that IS guaranteed is the various means at the disposal of the government to de-value the wealth that you hold, particular monetary wealth

What is perhaps amazing is that they can do this at a rate that is often higher in percentage terms than the rate at which you can borrow money.
Fuark, brutal.

¯\_(ツ)_/¯

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05-12-2024, 04:21 PM
#74
Originally Posted By Anachron⏩
Fuark, brutal.

¯\_(ツ)_/¯

Agreed it is brutal.

The rate at which money loses value, in an ideal world, should not influence decision-making however if you’re not actively taking steps to preserve the real value of your acquired wealth all the good decisions you made in the past could be undone in just a few years.
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05-12-2024, 04:21 PM
#75
Everything I have is paid off

House, property in florida, vehicles etc

Run my business off no debt too. All my account at vendors are COD by choice. They always try to tell me I can open a line of credit with them but why

My dad raised me the way he was raised. Cash is king
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05-12-2024, 04:23 PM
#76
Originally Posted By r32gojirra⏩
Agreed it is brutal.

The rate at which money loses value, in an ideal world, should not influence decision-making however if you’re not actively taking steps to preserve the real value of your acquired wealth all the good decisions you made in the past could be undone in just a few years.
The worst part is that the average person cannot even comprehend this, or observe it happening.

But hey, as long as they saved "interest", it's all good.

¯\_(ツ)_/¯
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05-12-2024, 04:50 PM
#77
Originally Posted By nutsy54⏩
The point is to NOT have a mortgage that needs to be paid, which means your income can go to investing, not to making payments.


Tenants, and their ability/willingness to pay, aren't guaranteed.
I mean using that logic you aren't guaranteed to wake up tomorrow, so why save for retirement? Why do anything for the future?

People will always need shelter.
When it comes your time to die, be not like those whose hearts are filled with the fear of death, so that when their time comes they weep and pray for a little more time to live their lives over again in a different way. Sing your death song and die like a hero going home.
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05-13-2024, 03:00 PM
#78
Originally Posted By BigDeeps01⏩
Imagine not being a land chad having tenants pay off the mortgage

Just lol
Imagine expecting tenants to pay off your mortgage… but they stop paying (hint: the bank looks at you, not them).
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05-13-2024, 03:02 PM
#79
Originally Posted By nutsy54⏩
Imagine expecting tenants to pay off your mortgage… but they stop paying (hint: the bank looks at you, not them).
yeah i paid cash for my properties so if someone stops paying not that big of a deal. never gave a moment of thought to paying a bank anything.
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05-13-2024, 03:02 PM
#80
Originally Posted By Godfrd824⏩
I mean using that logic you aren't guaranteed to wake up tomorrow, so why save for retirement? Why do anything for the future?

People will always need shelter.
Huh? What "logic"? It's borderline insane to expect to die tonight, every night, and therefore do nothing for your future. No clothes, no place to live, no job, no food… just wake up tomorrow pissed off that you're still alive?

People will always need shelter - that doesn't mean every landlord will always have a tenant, and that the tenant will always pay, on time.
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05-13-2024, 03:07 PM
#81
Originally Posted By nutsy54⏩
Huh? What "logic"? It's borderline insane to expect to die tonight, every night, and therefore do nothing for your future. No clothes, no place to live, no job, no food… just wake up tomorrow pissed off that you're still alive?

People will always need shelter - that doesn't mean every landlord will always have a tenant, and that the tenant will always pay, on time.
i don't doubt that when the economy/housing market crashes again there will be a lot of "real estate investors" in panic mode with their mortgages.
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05-13-2024, 03:21 PM
#82
Just a quick observation… The only people I've seen extol how great it is to be in debt… are those who remain in debt.

The debt-free folks consistently say "NEVER going back into debt!"
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05-13-2024, 03:26 PM
#83
Originally Posted By nutsy54⏩
Just a quick observation… The only people I've seen extol how great it is to be in debt… are those who remain in debt.

The debt free folks consistently say "NEVER going back into debt!"
That is incorrect.

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05-13-2024, 03:37 PM
#84
Originally Posted By nutsy54⏩
Just a quick observation… The only people I've seen extol how great it is to be in debt… are those who remain in debt.

The debt free folks consistently say "NEVER going back into debt!"
the chew world wants the overall vibe to be that debt is ok/good…keeps people striving/consuming while in the rat race.
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05-13-2024, 03:38 PM
#85
Originally Posted By eddiehaskell⏩
the chew world wants the overall vibe to be that debt is ok/good…keeps people striving/consuming while in the rat race.
There is good debt, then there is bad debt.

If you're too low IQ to figure out which is which…

¯\_(ツ)_/¯

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05-14-2024, 04:06 AM
#86
Originally Posted By Anachron⏩
There is good debt, then there is bad debt.

If you're too low IQ to figure out which is which…

¯\_(ツ)_/¯

It's only "good" debt for those who ignore risk… Because the things that make it "good"… aren't guaranteed.
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05-14-2024, 04:12 AM
#87
Originally Posted By nutsy54⏩
It's only "good" debt for those who ignore risk… Because the things that make it "good"… aren't guaranteed.
¯\_(ツ)_/¯

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05-14-2024, 04:53 AM
#88
It is the way. I had my house paid off at 33, but I was an idiot and splurged on a new truck. Aside from that I have zero debt. All my money goes into investments and my farming business.
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05-14-2024, 05:12 AM
#89
Originally Posted By nutsy54⏩
Just a quick observation… The only people I've seen extol how great it is to be in debt… are those who remain in debt.

The debt-free folks consistently say "NEVER going back into debt!"
I have absolutely no doubt that the type of people you routinely speak to on such matters have a similar level of financial literacy as you do.
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05-14-2024, 05:26 AM
#90
Debt is great if it generates income. Like real estate purchase which you then rent out to people and they pay you. Or borrowing against your assets at lower interest than your assets return, like in case of ebloc (equity backed line of credit)

High interest debt that doesn’t pay you money is obviously retarded.
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