Just remember, the rich are rich because they borrow other peoples money. You just need to know how to take advantage of it to work for you.
Build credit by never paying any minimum late > gain credit above 700 (ideally 750+) usually within 2-5 years > get great rates > 0% for X months starts showing up > Use their money to keep credit high, gain rewards/miles, etc.
It really just takes organizing and consistency. It’s not that hard once you’ve built the habit. In fact, my wife and I don’t even put brain power into it anymore. Credit fluctuates between high 700s / lower 800s and we get 0% financing offers constantly. Once you’re a sure bet everyone wants you to finance/get credit with them. This absolutely pays off over time. When someone else is stuck buying a car with a higher APR, I’m getting close to fed rates, same with mortgages.
Is the system perfect? No, but it’s what we all have so you may as well take advantage of its potential benefits.
When someone else is stuck buying a car with a higher APR, I’m getting close to fed rates
One of the tactics I picked up in a book on financial management was to start paying myself some kind of money as a monthly payment instead. You do that by…either lucking out and having parents that bought you a car and drive that for as long as possible, or you (like me) buy some total shitbox, either paying off the entire thing at sale or nearly immediately, and keep that on the road for as long as and cheaply as possible, all while making “payments” on my next car. Trust me, that first car especially will not be glamorous.
Then, with the money you paid yourself for whatever time - use that to buy the next car. I haven’t had a car loan in years as a consequence of this.
Paying for everything in cash isn’t always the smart financial decision. Would you rather take a 2% loan on a car and put $30k into the market earning 15% or take that $30k and earn 2% by paying for a car in cash? This isn’t true all the time especially right now, but that was the smart move just a few years ago. Think about all the people with 2.5% mortgages right now who didnt wait to buy with our current 6%+ mortgage rates.
Yep. These are all tradeoffs to be weighed. Part of the equation for me is knowing the market volatility for jobs tends to fluctuate wildly, too. It’d be one thing if a job was virtually guaranteed over the course of a loan, etc.
I don’t mind having debt for something like a house - I have no real alternative anyway and it tends to appreciate in value besides. I did a refi in 2021 and locked in an absurdly low rate for instance.
Lastly - earning 15% in the market? Returns like that are not necessarily guaranteed. I sure wish they were!
Just remember, the rich are rich because they borrow other peoples money. You just need to know how to take advantage of it to work for you.
Build credit by never paying any minimum late > gain credit above 700 (ideally 750+) usually within 2-5 years > get great rates > 0% for X months starts showing up > Use their money to keep credit high, gain rewards/miles, etc.
It really just takes organizing and consistency. It’s not that hard once you’ve built the habit. In fact, my wife and I don’t even put brain power into it anymore. Credit fluctuates between high 700s / lower 800s and we get 0% financing offers constantly. Once you’re a sure bet everyone wants you to finance/get credit with them. This absolutely pays off over time. When someone else is stuck buying a car with a higher APR, I’m getting close to fed rates, same with mortgages.
Is the system perfect? No, but it’s what we all have so you may as well take advantage of its potential benefits.
One of the tactics I picked up in a book on financial management was to start paying myself some kind of money as a monthly payment instead. You do that by…either lucking out and having parents that bought you a car and drive that for as long as possible, or you (like me) buy some total shitbox, either paying off the entire thing at sale or nearly immediately, and keep that on the road for as long as and cheaply as possible, all while making “payments” on my next car. Trust me, that first car especially will not be glamorous.
Then, with the money you paid yourself for whatever time - use that to buy the next car. I haven’t had a car loan in years as a consequence of this.
Paying for everything in cash isn’t always the smart financial decision. Would you rather take a 2% loan on a car and put $30k into the market earning 15% or take that $30k and earn 2% by paying for a car in cash? This isn’t true all the time especially right now, but that was the smart move just a few years ago. Think about all the people with 2.5% mortgages right now who didnt wait to buy with our current 6%+ mortgage rates.
Yep. These are all tradeoffs to be weighed. Part of the equation for me is knowing the market volatility for jobs tends to fluctuate wildly, too. It’d be one thing if a job was virtually guaranteed over the course of a loan, etc.
I don’t mind having debt for something like a house - I have no real alternative anyway and it tends to appreciate in value besides. I did a refi in 2021 and locked in an absurdly low rate for instance.
Lastly - earning 15% in the market? Returns like that are not necessarily guaranteed. I sure wish they were!
Flipping cars from a shit box to get to high end is certainly one way to help with this. I personally never did that but know those who did.
My aim was not necessarily to get to high end, although I suppose people could try to use it that way.