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Old 12-04-2012, 07:57 PM
RPsX5d RPsX5d is offline
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Location: Bay Area California
 
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Quote:
Originally Posted by finnbmw View Post
I have a simple rule that has worked very well for me: If I can't afford to pay it with cash, I can't afford it. Buying real estate (home, 2nd home etc) is excluded from the above rule.

Lot of people finance their cars, I would never do it myself. Why pay the bank interest when you can pay yourself the interest. Plus I enjoy living debt free...
Not sure I follow the logic . . . assuming you are very disciplined with your purchases, why pay cash if you can borrow at 2.5% and your investments returns are around 10% . . . you pocket the difference.

Yes, living debt has an intrinsic value . . .
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