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!
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!