rant

[Know Common Cents]

Some debt is OK and likely necessary at times. Then, there's stupid debt like absolutely "must haves" such as a new SUV every 2 years, the latest techno-version of any gadget, every cable channel with every sports package known to humans and on and on. Wise purchases can be paid off if you don't live above your means.

I listen to Dave Ramsey from time to time. He does a good job inspiring people to shed their debt. That's just about the point where my respect for him drops off the cliff. PMs may not be the thing for everyone, but at least consider them as a possible investment for some people. At least they'll never go to ZERO value like some of the stocks I've owned in the past.

Here. Listen. "I'm not debt free, but I'm OK with it!" Take that, Dave.

[Treetop]

I believe being debt free or close is rather wise. Ive read all the arguments to both sides.

My peers who also bought homes all had their own takes on finances, and all of them mortgaged a home MUCH more expensive then mine. mine was for a place that will be paid off in a total of five years (Im nearly done) and I will own it free and clear. It is of course modest compared to what all my friends bought, but all of them have interest that compounded makes them pay for their house 2-3 times literally. I will have paid about 10 percent extra total in the end. Im also paying much less per month then all of them. I dont do so, but that could be PMs or other investments.

at the end of those five years, i can sell this place and build my dream home with no more of a loan then i originally got here, all while preserving the vast majority of wealth i put into the place. Im only 30 now with my first home about to be paid off in 18 months. Like i said I still essentially have all the cash i put into the place.

Ive heard all the arguments for how to use debt to your advantage and im sure many do those things well. most clearly do not though. Silver or PMs are almost certainly going to trend up for some time, but can I be 100 percent on that? I dont NEED PMs, but I DO need a home. doesnt matter if the economy goes up or down, owning my home is solid. could I have done better? sure, some do much better and know how to leverage assets. heck I know how to do that, and could study it more if i intended to do so..... but keeping the bulk of what i earn (that the feds let me keep) seems rather prudent to myself.(Im working on food and energy and water now as well)... Savvy investing can fail and butt up against 1000 geopolitical events. Considering the mortgages my friends all paid being well above what im paying and that they retain little of it, its clear to see not everyone can make use of the debt.

when I do own my own home, and am set up with water my food and electricity.... all that money that normally goes to those things can be 100 percent for investing. the money that goes to the mortgage now should set me up on the water and electricity within less then a year most likely if prices are similar at that time.... (water wont be saving me money actually thats mainly to have better water for the garden, but i include it in my plans in my mind so here as well)

So basically yeah i see there are ways you MIGHT do better holding debt, and with inflation and PMs we do indeed live in a time this may be easy to do, but with the way Im going I KNOW I will be fine. so Im a huge advocate of not having debt.