/biz/ - Business & Finance

>>56455259
less anxiety over losing a job and more freedom financially to take risks

>>56455259
Debt is a real mental stressor.
Having no debt is a degree of freedom.

>No monthly minimum payments increasing your minimum cost of living
>Less bills
>Nobody can sieze your assets if you don't pay them
>No debt collector calls
>Won't get served court summons for owed money
>No out of control interest that can make you end up owing more than you originally borrowed
It's honestly a dumb question, why carry a balance if you don't have to, it's unnecessary risk

>>56456528
Only reason to hold debt imo is for potential gains in the future like a house or a business.

>>56455259
Zero debt is literally freedom.

>>56456546
Basically if you're smart and lucky, debt/leverage will take you further than no debt/leverage

>>56456546
Yeah, I can see a mortgage or commercial debt (under an LLC) being okay, but carrying personal debt on credit cards from buying dumb shit is too common.

Debt under 6% is good as you can invest instead of pay off the debt and leverage your portfolio.
Bad above 6% is bad as it restricts your freedom to invest.

Debt to consume is retarded. That includes buying a house and car.

If your bills are paid and you dont owe anybody money you can literally do whatever you want and have zero stress doung that. No amount of borrowed money can replicate that feeling.

Debt is usually a good thing if they’re worthwhile investments. The problem is that the things the average consumer invests in have negative returns generally, such as a car, expensive food, clothes, ect.

>>56455259
I borrowed over 2 million dollars in 2020-2021, at an average of 3 percent. I am far, far better off now than I would have been had I not. I built multiple cabins on a property in New Hampshire, several condos, land, and houses. I could not have bought that on my own. The system is designed to force you into debt, you have to do it. I don’t care if I am overleveraged. If literally every one of my properties dropped in value by 50% overnight I would still be in the black. Everything I bought more than doubled, while the value of the dollars I invested has halved. Kys

Debt can absolutely be a tool, but most people are gorilla niggers and can't manage it.

>>56456579
I've got a few loans at 4.5% -- so no point in paying them off early, right?

>>56456420
This is the one aspect to consider. Is your debt causing you undue mental anguish? Pay it off. The best financial investment you can make is just doing what you need to for peace of mind. Hence why I have ~15k in the bank and strive to keep that much as an emergency just in case, even though I've got a portfolio of ~200k spread across multiple assets. not worth the risk in case something in my life goes sideways.

Likewise, I don't carry any debt other than student loan debt. I'm not really in any hurry to pay off anything below 4% because why would I be? I just throw everything else into investments or just living my life. The amount of interest I'll pay over 10 years isn't really that significant imho, and i'd rather have assets in case something in my life goes sour. above 4% is a bit of an iffy zone for me personally, i've been debating on paying off the above ones for a bit

>>56455259
The jews have truley fucked up the minds of the western world

depends how old you are

Pretty much the difference between sleeping soundly and not, until you become transcendent and acquire debt because some rates are lower than the money you gain.

For instance back in 2018 when I was in college I took loans of 1k dollars a month and put most of it in bitcoin every month and by the end I had ~32k in debt but ended up with like 200k from btc so that debt almost printed 180k dollars for me

On one hand it was extremely risky because of btc fell off I’d be 32k in the hole at a time where I only had ~20k to my name. Then again yolo, most people on the planet handle being poor just fine not everyone gets a chance to become financially free

>>56455259
Boomer Dave lives in some fantasyland where emergencies can never exceed $1000, you can get guaranteed yearly 15% returns in the market, there are reliable $2000 used cars for sale on every corner, and inflation is non-existent.

>>56455259
The cashflow is great even with a shitty job. Just live below your means and make investing your hobby.

>>56455259
If you don't have debt that means you have savings. and that means if you are not a retard you are earning interest on your savings. in summary. you either pay compound interest, or you are paid compound interest. be the second one.

>>56455259
It's great. I honestly don't give a fuck.

>>56459713
But the rate of inflation destroys the value of your saved money far faster than any available interest-bearing account, which means that you're effectively losing purchasing power while hoarding your money in a (((bank))).

The complementary side to this is that the effective value of the debt itself also becomes worth less & less over time, as the cost in dollars to pay off the debt & interest remains fixed, but the value of those dollars drastically declines.

In other words, it's actually cheaper in the long run to go all the way to the hilt into debt, use that debt as leverage to invest with, make minimal interest payments on your loans, and then, eventually, just kinda winnow it down to nought... if the entire economy doesn't implode first, wiping out your creditors so that you never have to repay any of your loans or other debts.

Credit is a tool of the wise in a fiat economy.

>>56456980
Why would you pay them off when savings accounts/treasury bills are earning 5.5%?

>>56455259
this guy is a propped-up gatekeeper for normies just like the fridman podcast guy.
without leveraging debt to acquire appreciating assets, the opportunity cost of time keeps you a normie. "saving" dollars is retarded and doesn't even keep up with inflation.

banks don't even save money themselves. they keep a tiny fraction of the money they are "saving" for others and loan 99% of it out. if the institutions that "hold" everyone's money see being heavily leveraged as the correct move, why would you think "saving" instead is better?

>how does not giving shekelberg free money via interest improve your life?
Do goyim really?

>>56455259
Debt it's going to make me homeless. Im fucked

>>56455259
Debt is money. If you have no debt, it hurts the beast banking system. If most people had no debt the system would die.

>>56458354
This nigga doesn’t even know baby step 3.

Dave is meant to be grown out of, but also a filter. you can’t evolve to higher forms if you haven’t even mastered the basics. I bet you have 10k of credit card debt at 19% as we speak, not to mention your car loan.

I'm debt free and there is no advantage to it. You have to work to not be homeless anyways, and if you own your home then you need to work to pay tax and utilities. Debt free is a meme