I'm 26 and have been debt free for a couple of years now. Plan is to keep this up with the exception of paying off credit cards monthly, and having a mortgage eventually. Long term goal with the mortgage idea is to pay minimum payments while investing, and then pay it all off when eventually the investments are able to finish off the mortgage.

No more car loans, no credit card debts, no student loan debts.

The average American has ~$90k in debt: Gen Z (ages 18 to 23): $9,593 | Millennials (ages 24 to 39): $78,396 | Gen X (ages 40 to 55): $135,841 | Baby boomers (ages 56 to 74): $96,984 | Silent generation (ages 75 and above): $40,925

Americans pay $1,233 toward debt each month, on average. The three biggest monthly payments are mortgages ($1,255), car payments ($493) and personal loans ($458).

Everytime now that I get a raise, (last month I got a ~$400/mo take home pay raise) I view it as the ability to be a little more stupid and to make up for some decisions like ordering out here and there. While some people might view a given pay raise as coverage for their monthly car bill, I can view it as extra expenses for leisure, or even extra money to go directly into investing.

Looking up average and median net worths by age we get the below. Thought this was an interesting thing to look at too. It's crazy how debt makes it so that if you're 34 or below your average net worth is not even $15k on median, or $77k on average.



My advice to anyone of all ages, but especially 20 somethings, is to view debt as immaturity and idiocy unless it's a mortgage or credit card paid off routinely. Because imagine if the only interest impacting your life is POSITIVE interest and never negative. Before you know it, your investments will outpace your job's income. And at that point you can start really thinking about retirement at a young age.


Spoiler!

33 and been debt free for many years. Thankful that my father taught me good money management skills SRS

Agreed mostly since there is a thing called good debt.

Have all manner of debt but make enough to cover. In 4 years though, I'll have a good chunk paid off and will have an after tax 9k/mo extra while living the same. Will def buy a nice car for myself at that point. Might buy out partner at that point then go back into "debt"

No debt here except for my Mortgage.

Almost done paying car, no student loan debt, no other debt, feelsgoldman. Banks ain’t making me their wage slave

Only debt is Mortgage and Student Loans.

Bought the house 17 months ago....already knocked 6 years off the loan.

I have right around $5k left on my student loans (down from $42k) and I'm not touching it. They've been deferred (b/c of covid regulations) for almost 2 years and Biden keeps cancelling more and more....and if I pay it off only to have them "cancelled" a few months later I would be pissed.

Finished paying off my car
Credit card paid monthly
Mortgage on an investment property generating monthly cash flow
Hanging onto my student loans hoping Brandon wipes them out hehe

Can confirm, been debt free for years.

No student loans or car payment. Lolz @ debtcels

Tell that to all the mortgagecels here

I cringe when people say they own their own house but have a mortgage.

Nah bish, you don't own chit. The bank does.

never had debt, mortgage or owed anyone chit crew.

Hustle hard and pay cash.

Typical rentcel cope.

debtcels try to justify their situation, but numbers don't lie.

Net worth is the key to life, and if you don't have more than the "median" of every age category on OP's chart.... You need to step up and focus on it until you do.

Median net worth for a 60 year old is $213,000.... and I am willing to bet the vast majority of that average is in home equity. What a chit-show.

Go through my post history, have given many miscers advice on investing in both residential and commercial properties.

All my purchases were made in cash. Only rented when I worked in NYC and that was a high rise apartment.

0 debt crew


theres no other way to be brother

Said the mortgagecel who cucked his freedom away for some bricks.

280k left on the mortgage Jfl

The upper 5% is really skewing that net worth table.

Rentcel cope

When your landlord gives you your 30 day notice, Don't forget to leave the place clean so you can get your security deposit back.

True, but if you have a median-income job in the USA, how TF is your net worth not many multiples higher than the average's on that chart?

Within reason.

It’s not smart to have a car payment that is higher than x% or a person’s take home income. But it’s equally ridiculous to buy a 1994 Toyota Corolla cash because no car payment.

Agreed on no credit card debt.

Agreed on paying off student loans as quickly as possible.

Being in debt gives me anxiety, never again

JFL @ the daveramseycels.

Good Debt Crew checking in.

I think a mortgage is fine, so long as it's for an affordable and likely appreciating home.

I think credit cards are fine as long as you pay them off monthly or sooner.

All else can GTFO.

borrower is slave to the lender

If you dont know how to leverage, youll never be successful.

Youre young, learn to be financially literate.

What type of debt are you going to leverage though?

Most people would be using their home equity to leverage into some other investment, but with home prices rising the way they are, there isn’t really another investment to safely place that money into.

At the end of the day the investment made by leveraging that debt has to be more than just a couple of percentage points to be worthwhile.

Just lol if u arent maxing out your credit cards and then defaulting while keeping most of the wealth

UNSECURED debt for the win bitch