tallguy
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Post by tallguy on Jan 25, 2016 15:11:03 GMT -5
I went up to talk to my financial guy several days ago when the market was down so much. He was busy with phone calls and client appointments all day, so I didn't get in. Made an appointment for the next day. Went up and talked for an hour. He was telling me that some of his clients he had to spend a lot of time convincing them that they didn't need a million dollars THAT DAY, and to stop worrying so much. Market was up, so I didn't do anything, but went back the next morning and invested a new $11,500 on a 400-point down day.
The point is that I am one of the least-wealthiest of his clients, but he has told me more than once that I am one of his favorites. One of the reasons for that is that I have "done more with less" than anyone. (I also understand more so he doesn't have to spend so much time explaining, and I make him laugh.) He did mention the sweet little old lady who gave him a kiss on the cheek and baked him cookies. I said, "Okay, I'll settle for second, because I ain't doin' that!
When I was leaving, I mentioned that, "You know, if you really look at my totals I really don't have all that much." And his response was that, "Yeah, but you have no debt." That was the second time he had said that. Having no debt has allowed me to semi-retire a decade early off only an average income. That is far more important to me than amassing a larger fortune. And far better than the client he mentioned the last time I was in who was living paycheck-to-paycheck, unable to save anything and with nothing for retirement, on a quarter-million dollar per year income. I may not have multi-millions, and I'm okay with that. I have freedom of time, which means much more to me.
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gregintenn
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Post by gregintenn on Jan 25, 2016 15:19:38 GMT -5
I went up to talk to my financial guy several days ago when the market was down so much. He was busy with phone calls and client appointments all day, so I didn't get in. Made an appointment for the next day. Went up and talked for an hour. He was telling me that some of his clients he had to spend a lot of time convincing them that they didn't need a million dollars THAT DAY, and to stop worrying so much. Market was up, so I didn't do anything, but went back the next morning and invested a new $11,500 on a 400-point down day.
The point is that I am one of the least-wealthiest of his clients, but he has told me more than once that I am one of his favorites. One of the reasons for that is that I have "done more with less" than anyone. (I also understand more so he doesn't have to spend so much time explaining, and I make him laugh.) He did mention the sweet little old lady who gave him a kiss on the cheek and baked him cookies. I said, "Okay, I'll settle for second, because I ain't doin' that!
When I was leaving, I mentioned that, "You know, if you really look at my totals I really don't have all that much." And his response was that, "Yeah, but you have no debt." That was the second time he had said that. Having no debt has allowed me to semi-retire a decade early off only an average income. That is far more important to me than amassing a larger fortune. And far better than the client he mentioned the last time I was in who was living paycheck-to-paycheck, unable to save anything and with nothing for retirement, on a quarter-million dollar per year income. I may not have multi-millions, and I'm okay with that. I have freedom of time, which means much more to me. That's what I'm looking at. I'm 42, and am on track for retirement before I'm 50 if I'm so inclined at that point. This has been my goal for many years now. Getting rid of debt has really sped the process along. I haven't spent any of my income in several years now. We live very comfortably on my wife's income. This relieves us of most all stress except for a time issue. Working full time plus, in addition to two teenage boys playing sports is a real challenge with time management.
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Deleted
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Post by Deleted on Jan 25, 2016 16:03:07 GMT -5
it's an interesting concept, is anyone but the homeless aforementioned ever actually free from financial obligation?
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gregintenn
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Post by gregintenn on Jan 25, 2016 16:07:57 GMT -5
it's an interesting concept, is anyone but the homeless aforementioned ever actually free from financial obligation? Absolutely not. Everyone, thanks to the affordable Care Act is required to buy insurance.
I'm not free from financial obligation by a long stretch, and don't ever contemplate being until I'm dead.
Again, for the purpose of this thread, I consider you debt free if you aren't paying interest on a loan.
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swamp
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Post by swamp on Jan 25, 2016 16:12:41 GMT -5
it's an interesting concept, is anyone but the homeless aforementioned ever actually free from financial obligation? Absolutely not. Everyone, thanks to the affordable Care Act is required to buy insurance.
I'm not free from financial obligation by a long stretch, and don't ever contemplate being until I'm dead.
Again, for the purpose of this thread, I consider you debt free if you aren't paying interest on a loan.
No, those people qualify for Medicaid, which was expanded under the ACA. Furthermore, since a large percentage of the homeless are mentally ill, they probably qualify for Medicare under their disability. That was true before the ACA.
I get you hate the ACA, I'm not a fan either. But you should get your facts right about what there is to hate.
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gregintenn
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Post by gregintenn on Jan 25, 2016 16:21:41 GMT -5
Absolutely not. Everyone, thanks to the affordable Care Act is required to buy insurance.
I'm not free from financial obligation by a long stretch, and don't ever contemplate being until I'm dead.
Again, for the purpose of this thread, I consider you debt free if you aren't paying interest on a loan.
No, those people qualify for Medicaid, which was expanded under the ACA. Furthermore, since a large percentage of the homeless are mentally ill, they probably qualify for Medicare under their disability. That was true before the ACA.
I get you hate the ACA, I'm not a fan either. But you should get your facts right about what there is to hate.
Forgive me. I forgot for a moment that we taxpayers are responsible for providing these folks with insurance.
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swamp
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Post by swamp on Jan 25, 2016 16:24:33 GMT -5
No, those people qualify for Medicaid, which was expanded under the ACA. Furthermore, since a large percentage of the homeless are mentally ill, they probably qualify for Medicare under their disability. That was true before the ACA.
I get you hate the ACA, I'm not a fan either. But you should get your facts right about what there is to hate.
Forgive me. I forgot for a moment that we taxpayers are responsible for providing these folks with insurance. Yeah, I forgot, we're supposed to let people die in the streets. My bad.
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ArchietheDragon
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Post by ArchietheDragon on Jan 25, 2016 16:25:40 GMT -5
Forgive me. I forgot for a moment that we taxpayers are responsible for providing these folks with insurance. Yeah, I forgot, we're supposed to let people die in the streets. My bad. No No No no no.... That is not the American way. First charge them $695 then let them die in the streets.
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gooddecisions
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Post by gooddecisions on Jan 25, 2016 16:34:03 GMT -5
Debt-free and financially independent is my goal by 55. For the time being, my mortgage allows me to maximize funds toward investments. Yeah, I pay 3% interest on the mortgage, but my brokerage accounts have a higher balance and hopefully a larger return. I have the funds available to pay it off, I'm paying interest (which clearly means I'm not debt-free), but hopefully getting paid more in dividends and shares long term. And, if something happens in the meantime, I have a big stash of assets to deal. So, it's really no different than using that credit card for the benefits, even though you pay the balance monthly. Benefits with this strategy are just longer term.
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Tiny
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Post by Tiny on Jan 25, 2016 17:24:30 GMT -5
it's an interesting concept, is anyone but the homeless aforementioned ever actually free from financial obligation? Absolutely not. Everyone, thanks to the affordable Care Act is required to buy insurance.
I'm not free from financial obligation by a long stretch, and don't ever contemplate being until I'm dead.
Again, for the purpose of this thread, I consider you debt free if you aren't paying interest on a loan.
Cool! You've just removed 15K of debt from my indebtedness (is that a word) I've got a couple of 0% loans and I took a 0% (with a fee with a cap) 15 month CC balance transfer offer.
Yeah, it wasn't really 'free money' -- I'm sure the cost of the stuff I got at 0% was a bit inflated to make up for the loss of income on the loan (I'm ok with the price I paid). And, I did have to pay a capped fee on the CC balance transfer... so the Card Company did get a pittance from me to use their 12K for 15 months.
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cronewitch
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Post by cronewitch on Jan 25, 2016 17:31:54 GMT -5
I still have 120K debt but at 3.458% interest I don't really want to prepay it. I will be debt free at 92 or maybe never don't really care. Next house I could pay cash or I could pay off this one now but debt free isn't a goal of mine so I might get a new mortgage that last until I am 100. I do understand how some would want to be debt free my parents chose that on their last house, dad got a lump sum from a house he sold on contract and decided paying off the mortgage was the best use of funds nothing to brag about it was a choice since his interest rate was higher than CDs and he didn't want to invest. All children are debt free but few have a net worth over a few thousand.
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gregintenn
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Post by gregintenn on Jan 25, 2016 17:35:25 GMT -5
Again, I didn't start this thread to belittle anyone. If you think debt is good, go for it. I'm not your judge. If you're debt free, you get an attaboy or attagirl from me. If you're working toward becoming debt free, I hope you find encouragement in some of the stories in this thread. It can be done if you make it a priority!
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iono1
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Post by iono1 on Jan 25, 2016 17:36:21 GMT -5
I'm debt free, have been for over 7 years now, but it's mainly because I inherited enough to pay off my house 7 years ago & buy a new car with cash 5 years ago.
My screen name iono1=I owe no one.
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HoneyBBQ
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Post by HoneyBBQ on Jan 25, 2016 17:40:02 GMT -5
Good point. You can use debt to a huge advantage, especially when it comes to investing in real estate. Clearly, you worship at the altar of Phil. Not that it's a bad thing. Not necessarily. I see how it works for him. I personally am paying off my mortgage faster than the 30 yr note. And I have no interest in the rental game here. It's kind of funny because anywhere else I could own like 5 or 6 houses out right for the price of 1 house here, but somehow that makes me 'less successful'? That's ok. I'll post a picture of the cashier's check for a million bucks when I sell my house. Oh, and I also think his 11% is BS. So I don't really worship, I just nod and appreciate that what works for him doesn't work for me.
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tallguy
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Post by tallguy on Jan 25, 2016 17:55:41 GMT -5
You know that million-dollar check is a bit more impressive when it is all equity and you get to keep the whole thing. Just sayin'
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 25, 2016 18:03:57 GMT -5
Absolutely not. Everyone, thanks to the affordable Care Act is required to buy insurance.
I'm not free from financial obligation by a long stretch, and don't ever contemplate being until I'm dead.
Again, for the purpose of this thread, I consider you debt free if you aren't paying interest on a loan.
Cool! You've just removed 15K of debt from my indebtedness (is that a word) It is, indeed a word. Not a fun one, mind you, but a legitimate one. And a big one, if that makes you feel smarter.
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Timberwolf
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Post by Timberwolf on Jan 25, 2016 18:12:43 GMT -5
We are debt free. After having both been divorced and broke, we were both pretty debt averse. I was able to take the last of the money I had in the world (post divorce. about $3,000) and fix up my house which was a 2-story duplex just with no kitchen, the hook-ups were there. I was able to rent out the top 1/2 of my house for nine years - this enabled me to have they money to pay off the house early. When I got remarried we just lived off of one income and saved the other. I was able to "retire" about 3 years ago (at age 49) because my DH is supportive of it (he still works) and only because we are debt free, otherwise it would have been too much burden on one person. He is a retired military reservist so he can retire at age 60 if he wants to because he will get a military pension and tri-care (military health coverage) for the family, which is premium-free and meets the ACA requirements. I don't know if he will retire then, but it is sure nice to have the options available to us that being debt free gives us. I'm not usually a braggart, but it's nice to be able to tell a few people as most people in our real life don't know this.
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Tiny
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Post by Tiny on Jan 25, 2016 18:34:16 GMT -5
Cool! You've just removed 15K of debt from my indebtedness (is that a word) It is, indeed a word. Not a fun one, mind you, but a legitimate one. And a big one, if that makes you feel smarter. it does. And it makes me feel 'richer' to be tossing out 10 dollar words with out concern for over spending.
FWIW: I do admire those who are debt free and who manage their financial life so that they maintain that debt free status. I fully suspect that as I near retirement (or financial independence) that my debt load will drop and at some point and eventually just be down to credit card(s) paid in full every month.
And I'm glad to see there are quite a few debt free people here.
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debthaven
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Post by debthaven on Jan 25, 2016 18:56:51 GMT -5
We are not completely debt-free but we're very close. Our house has been paid off since 2007. We still owe 30K on one of our rentals (my tagline). We could pay it off tomorrow but then we'd have to take out student loans for DS3. I know that we are not completely debt-free, but we're pretty close. Our house is worth about $750K-800K (VHCOLA), and it's paid off. But we do still owe 30K on that 100K rental. DH is STILL waiting for the settlement from his accident 5 years ago. We had originally intended to pay it off once he gets his settlement, but with DS3 starting college next year, we probably won't (plus that's assuming the settlement ever comes).
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gregintenn
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Post by gregintenn on Jan 25, 2016 19:39:31 GMT -5
We are debt free. After having both been divorced and broke, we were both pretty debt averse. I was able to take the last of the money I had in the world (post divorce. about $3,000) and fix up my house which was a 2-story duplex just with no kitchen, the hook-ups were there. I was able to rent out the top 1/2 of my house for nine years - this enabled me to have they money to pay off the house early. When I got remarried we just lived off of one income and saved the other. I was able to "retire" about 3 years ago (at age 49) because my DH is supportive of it (he still works) and only because we are debt free, otherwise it would have been too much burden on one person. He is a retired military reservist so he can retire at age 60 if he wants to because he will get a military pension and tri-care (military health coverage) for the family, which is premium-free and meets the ACA requirements. I don't know if he will retire then, but it is sure nice to have the options available to us that being debt free gives us. I'm not usually a braggart, but it's nice to be able to tell a few people as most people in our real life don't know this. This is precisely the reason I started this thread. Congratulations. It's something you should be able to be proud of, even if others want to poo poo the idea.
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gregintenn
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Post by gregintenn on Jan 25, 2016 19:40:30 GMT -5
We are not completely debt-free but we're very close. Our house has been paid off since 2007. We still owe 30K on one of our rentals (my tagline). We could pay it off tomorrow but then we'd have to take out student loans for DS3. I know that we are not completely debt-free, but we're pretty close. Our house is worth about $750K-800K (VHCOLA), and it's paid off. But we do still owe 30K on that 100K rental. DH is STILL waiting for the settlement from his accident 5 years ago. We had originally intended to pay it off once he gets his settlement, but with DS3 starting college next year, we probably won't (plus that's assuming the settlement ever comes). You're right there at it. Remember this thread, and tell us when you go over the finish line. Good work!!!
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Virgil Showlion
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Post by Virgil Showlion on Jan 25, 2016 19:56:05 GMT -5
We are debt free. After having both been divorced and broke, we were both pretty debt averse. I was able to take the last of the money I had in the world (post divorce. about $3,000) and fix up my house which was a 2-story duplex just with no kitchen, the hook-ups were there. I was able to rent out the top 1/2 of my house for nine years - this enabled me to have they money to pay off the house early. When I got remarried we just lived off of one income and saved the other. I was able to "retire" about 3 years ago (at age 49) because my DH is supportive of it (he still works) and only because we are debt free, otherwise it would have been too much burden on one person. He is a retired military reservist so he can retire at age 60 if he wants to because he will get a military pension and tri-care (military health coverage) for the family, which is premium-free and meets the ACA requirements. I don't know if he will retire then, but it is sure nice to have the options available to us that being debt free gives us. I'm not usually a braggart, but it's nice to be able to tell a few people as most people in our real life don't know this. This is precisely the reason I started this thread. Congratulations. It's something you should be able to be proud of, even if others want to poo poo the idea. It's "pooh pooh". Just... never mind.
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violagirl
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Post by violagirl on Jan 25, 2016 21:40:47 GMT -5
I think unlike some other boards, most people on this one are financially literate enough to know when they can get debt to work for them and so don't really view it as an evil thing. Or even view the absence of debt to be virtuous. On the other hand it is interesting to note the various tolerance levels for debt. Some people have a goal to not owe a penny and others are fine with quite a lot.
For example, the thought of having multiple mortgages on property rental or otherwise makes me break into a cold sweat. I just don't have the gumption to take on such a task. Or the people that do the 0 balance transfers. Nope.
On the other hand, the idea of tracking every cent to pay down my mortgage early or buy a car without financing just does not really appeal to me.
It is always a balance between the "can't take it with you" and "save for a rainy day" in my mind. Our financial style seems to be either full speed ahead or brakes on.
But since this thread is about being debt free, for you debt free people out there:
1. At what age did you become debt free? It seems like most are retirement 50+? 2. Did you have real estate? Did you pay down your mortgage early? or were you always a renter? Do you think one or the other helped you? 3. Has being debt free always been your goal? Has it always been your lifestyle or were you "born again"? 4. What was the biggest thing that contributed toward attaining your goals? Was it really the latte factor?
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Peace Of Mind
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Post by Peace Of Mind on Jan 26, 2016 1:57:41 GMT -5
Oh. You were serious?
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tallguy
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Post by tallguy on Jan 26, 2016 2:29:14 GMT -5
1. At what age did you become debt free? It seems like most are retirement 50+?
51, I think. 2. Did you have real estate? Did you pay down your mortgage early? or were you always a renter? Do you think one or the other helped you?
Does writing a $90,000 check count as paying down your mortgage early? 3. Has being debt free always been your goal? Has it always been your lifestyle or were you "born again"?
No. I don't like debt (or at least not the right kind of debt) but I am not really averse to it. Paying off the mortgage was the right thing to do at the time. 4. What was the biggest thing that contributed toward attaining your goals? Was it really the latte factor?
Discipline, and being a saver by nature.
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gregintenn
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Post by gregintenn on Jan 26, 2016 9:01:28 GMT -5
1. At what age did you become debt free? It seems like most are retirement 50+?
40 was my original goal. I paid my house off just short of my 41st birthday. 2. Did you have real estate? Did you pay down your mortgage early? or were you always a renter? Do you think one or the other helped you?
I have a 2000 sf brick home on 8 acres.
3. Has being debt free always been your goal? Has it always been your lifestyle or were you "born again"?
Yes. Early retirement, debt free, and financial independence has been my goal for a long time. 4. What was the biggest thing that contributed toward attaining your goals? Was it really the latte factor?
My wife and her two siblings were raised by their widowed mother who worked at a shirt factory for minimum wage. This made my wife very much a saver and not a spender. Although I wasn't this way, it rubbed off on me. Listening to Dave Ramsey's program on the radio also helped inspire me to become debt free.
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teen persuasion
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Post by teen persuasion on Jan 26, 2016 9:09:48 GMT -5
1. At what age did you become debt free? It seems like most are retirement 50+?
We finished paying off the mortgage at ages 42.
2. Did you have real estate? Did you pay down your mortgage early? or were you always a renter? Do you think one or the other helped you?
We rented until we were ready to buy our house, just before our oldest would begin school (wanted a better school district). We bought a 4 unit, and rented the other 3 units for a while, but the plan was always to take back the apartments and return it to a single family house as our family grew. Tenants are hard to find in our rural area unless you are in the village, and we are not.
3. Has being debt free always been your goal? Has it always been your lifestyle or were you "born again"?
I never liked credit card debt, and converted DH on that. We had student loans, viewed them as a necessary evil and paid them off. Same with a mortgage - it was just the normal way to buy a house, but it had an ugly rate. As rates fell, I ran the numbers on refinancing, but closing costs negated most of the advantage, so I began a campaign to pay it down as fast as possible. I was snowballing it before I'd ever heard the term. I had an amortization schedule I'd penciled out on the back of an envelope. Every month I would stretch to at least pay an additional month's principal payment, or if I had extra money available I would see how many months (or years!) it would knock off. My best was 8+ years in one payment.
4. What was the biggest thing that contributed toward attaining your goals? Was it really the latte factor?
Lack of money! SAHM, 5 kids, DH underemployed, then unemployed, decided to change careers so grad school and new student loans, still underpaid, kids in college - it is very motivating to make the best financial choices you can with your assets, and to create your own endowment fund, if you will.
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ArchietheDragon
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Post by ArchietheDragon on Jan 26, 2016 9:15:46 GMT -5
1. At what age did you become debt free? It seems like most are retirement 50+? We finished paying off the mortgage at ages 42. 2. Did you have real estate? Did you pay down your mortgage early? or were you always a renter? Do you think one or the other helped you? We rented until we were ready to buy our house, just before our oldest would begin school (wanted a better school district). We bought a 4 unit, and rented the other 3 units for a while, but the plan was always to take back the apartments and return it to a single family house as our family grew. Tenants are hard to find in our rural area unless you are in the village, and we are not. 3. Has being debt free always been your goal? Has it always been your lifestyle or were you "born again"? I never liked credit card debt, and converted DH on that. We had student loans, viewed them as a necessary evil and paid them off. Same with a mortgage - it was just the normal way to buy a house, but it had an ugly rate. As rates fell, I ran the numbers on refinancing, but closing costs negated most of the advantage, so I began a campaign to pay it down as fast as possible. I was snowballing it before I'd ever heard the term. I had an amortization schedule I'd penciled out on the back of an envelope. Every month I would stretch to at least pay an additional month's principal payment, or if I had extra money available I would see how many months (or years!) it would knock off. My best was 8+ years in one payment. 4. What was the biggest thing that contributed toward attaining your goals? Was it really the latte factor? Lack of money! SAHM, 5 kids, DH underemployed, then unemployed, decided to change careers so grad school and new student loans, still underpaid, kids in college - it is very motivating to make the best financial choices you can with your assets, and to create your own endowment fund, if you will. That is why being debt free can be said to take discipline and is a good financial decision. Most people are not going to scratch and claw and sacrifice to cobble together a few bucks to make an investment. But people will scratch and claw and sacrifice to pay off debt. There is just something about debt that motivates (there is plenty of evidence of that here on this board). So while it may make financial sense to invest a dollar versus paying off a mortgage, it makes more financial sense to take five dollars and pay off a mortgage versus taking five dollars and buying an extra hot dog at the ball game, and this is the more likely real world dichotomy.
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Post by Deleted on Jan 26, 2016 9:19:03 GMT -5
I don't think its more or less financial sense. I think its different. I think that different things work for different people, kind of like how some of us are all cash and some are all cc.. not everything works for, or frankly motivates, people in the same way.
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ArchietheDragon
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Post by ArchietheDragon on Jan 26, 2016 9:28:27 GMT -5
I don't think its more or less financial sense. I think its different. I think that different things work for different people, kind of like how some of us are all cash and some are all cc.. not everything works for, or frankly motivates, people in the same way. I disagree. It is pretty easy to prove that it makes more financial sense to take a dollar and invest it versus taking a dollar and paying down a mortgage with it. But just because something makes better financial sense doesn't mean it makes better personal finance sense, because of the items you indicated.
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