"My biggest problem isn’t that I just gloss over my financial fears - it is that my goals ARE my fears." What a great way to put it. It's one thing to educate ourselves well, and quite another to let the fear govern ourselves. When we open up to more possibilities, backed with happy enthusiasm, new doors open, which make the old fear-based goals totally nonsense . . .
guinness416
· 1 year ago
But even Favre and Manning claim they live "in the NYC area" :)
Steve
· 1 year ago
Yeah - nobody wants to admit living in New Jersey. I still tell people I live in NYC out of habit, more than anything.
Ted
· 1 year ago
Note that the main reason he categorizes a home as bad debt is that its not tax deductible (he's Canadian). The fact that it is in the states is one of the reasons its usually considered "good debt" here.
Curmudgeon
· 1 year ago
Re: bad debt, good debt - it was that kind of thinking that helped get us into the housing crisis. The author assumes that all real estate is an appreciating asset, and that there are always enough assets to pay off a HELOC. The more I read things like that, the more I believe we are destined to live this crisis all over again.
My own philosophy is that the only good debt is . . . no debt at all. Recall the line from the Jimmy Buffett song in Don't Stop the Carnival: "We come from a long line of lenders, who got rich exploiting all of you spenders." If you can't pay for it without a loan, defer it until another day. You may be surprised at what you can live without.
Steve
· 1 year ago
Curmudgeon, I'm generally in agreement. We don't have any debt other than mortgage (and the tax burden and obligations of living in New Jersey which are practically debt). I know a lot of people will argue that debt is one (or the only) way to build wealth - just look at my 38 thoughts on building prosperity post - but I am mentally not there yet, either.
Curmudgeon
· 1 year ago
I hear ya, Steve, but the post you link to seems to repeat the mantra of the housing bubble all over again. And I am a good counterexample - no debt at all for over 10 years, a decent but not extravagent income, and a net worth (excluding residence - paid for) well over $1M. It's not that hard, folks!
(oh, and the tax obligation in New Hampshire is much more reasonable)
All Comments
It's one thing to educate ourselves well, and quite another to let the fear govern ourselves.
When we open up to more possibilities, backed with happy enthusiasm, new doors open, which make the old fear-based goals totally nonsense . . .
My own philosophy is that the only good debt is . . . no debt at all. Recall the line from the Jimmy Buffett song in Don't Stop the Carnival: "We come from a long line of lenders, who got rich exploiting all of you spenders." If you can't pay for it without a loan, defer it until another day. You may be surprised at what you can live without.
(oh, and the tax obligation in New Hampshire is much more reasonable)