12-04-2012, 06:57 PM
|
|
Officially Welcomed to the 'Fest
Location: Bay Area California
|
|
Join Date: Nov 2010
Posts: 462
Mein Auto: X5 Diesel xDrive35d
|
|
Quote:
Originally Posted by finnbmw
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 . . .
|