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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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13320319 No.13320319 [Reply] [Original]

GET OUT OF DEBT

>> No.13320518

I followed all his advice and now I have a positive net worth for the first time in my life. Busting my butt and paying off my student loans 20 years early was the best financial decision I ever made.

>> No.13320545

Well, almost all his advice. His advice about mutual funds is mostly trash. All in on VTSAX!

>> No.13320602

Just use him for baby steps 1 through 3, and follow his advice on attacking and hating debt with all your soul and getting on a consistent budget. After that you need to move on because his actual investment advice is terrible

>> No.13320608

>>13320602
I would have to agree with this.
Follow his advice and save and invest as much as possible, but please don't dump everything into the insanely expensive mutual funds.

>> No.13320640

I have no debt outside of my (((mortgage))), which I could pay off, but the interest rate is so low I feel better stuffing the cash elsewhere.

>> No.13320711

>>13320319
When I was your age I walked from one side of the city to the other and at the end I had 10 job offers. You darn kids just don't know how to get jobs these days.

>> No.13320715

>>13320640
Fixed rate? Even if it is low, it really adds up after 30 years. I'd just rather not give my money to the bank

>> No.13320716

>>13320319
I have $1MM+ net worth
Live off divs and rent
Have plenty of money to live
But I still need a credit card for hotels, car rentals, different discounts, etc.
It is a net gain for me to hold this $2k credit card.
When I went in Paris 5 years ago they wouldn't rent me a car b/c I didn't have a cc..
Few days ago I bought a refrigerator, paid with the cc and got $90 discount. Transfered feeless from my main account the amount paid for the refrigerator to my cc and that was it.
So some credit / debt is ok I guess.

>> No.13320725

>>13320716
If you're paying off your card in full every pay period, it's not debt.

>> No.13320734

>>13320319
>BUY YOUR HOUSE CASH

Fuck this guy, still stuck in the 70s.

>> No.13320751

>>13320725
Yeah, I know. They have high interest if I didn't pay.
It still needed a credit application, except when I use it I pay it the same day.
My point is that some credit is ok.
Not the same as debt, but still in the same area.
And one can profit of it like I said in my post.

>> No.13320759

>using a credit card isn't debt

the absolute state of americans

>> No.13320767

>>13320319
I had 20k credit card debt paying 2k monthly for living expenses. I followed his advice and cut my credit cards up and moved into a studio apartment above some old ladies garage that i paid for by mowing her lawn and taking out the trash every two weeks. After cutting my credit cards into peices I was able to pay the debt off in two days.

>> No.13320804
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13320804

"His investment advice is trash" is a supremely disingenuous statement, nothing he recommends is going to leave you poor or without substantial returns.

Also hating on him for hating credit cards is silly, they are a detestable industry that shouldn't be given any business. The tiny percentage of the population that are able to successfully churn or use rewards WITHOUT spending more than they would have using cash doesn't make up for it

My reason for hating him is purely ideological.

>> No.13320811

>>13320518
why would you pay it all off? you should have left a bit in student loans and payed that off slowly over 20 years knowing you could pay it off at any time and kept your longest line of credit open instead of closing it like a doof.

>> No.13320821

>>13320811
A better question for you is, why would you willingly pay interest? And I didn't just close that line of credit, I closed all of them. Who cares about credit score if you never plan to get a loan?

>> No.13320840

>>13320759
Never got this. They are morons who think they are somehow cheating the system and making FREE money. No they are pointless unless your business relies on credit. Its such a poor person decision to use credit and defend (((them))). A smart person has sufficient money in the bank and doesn't think a bonus $10 a month is worth the time to even sign up.

>> No.13320857

>>13320821
no one ever "plans" to get a loan. shit just happens. with that being said, even millionaires borrow money to fund new business ventures. Why spend your own money when you can spend someone else's and protect yourself from lawsuits or bankruptcy? you could have set yourself up so that any interest you pay would be inconsequential in comparison to the credit benefits you would get. but its still cool being debt free don't get me wrong. so congrats bruh

>> No.13320892

>>13320857
But shit doesn't "just happen" if you're prepared.
I have 6 months' worth of expenses in cash sitting in a special account. People need to learn how to save for rainy days again.

>> No.13320905

>>13320319

>all you got to do is put your money in a mutual fund that returns 15% every year

That’s almost an exact quote btw

Also don’t forget

>tells Boomers kick your kid out at 18
>buys his daughter a house and gives her a job with his company

>> No.13320910

>>13320892
>cash
>sitting
I feel like you are memeing me at this point

>> No.13320920

Hey dipshit I get a 2,000 plane ticket for free every year just from using my card and paying it off every month.

What do you get for not keeping a line of credit? Good feels? They worth two thousand dollars?

Fucking dumbass kiddo.

>> No.13320924

>>13320910
It's an emergency fund to cover, well, emergencies.
It's not an investment because I don't want to take any risk,

>> No.13320936

>>13320920
I save way more than $2,000 a year by living on a strict written budget, paying cash, and always looking for a good deal. You credit card zombies think you're beating the banks when in fact you're paying a 3% surcharge to cover merchant fees.

>> No.13320946

>>13320821
I have have come to this line of thinking. After looking around at houses and attempting to figure out the vague and amorphous nature of credit I think that I will just pay for things that I have the money for. What's the difference between rent and a mortgage? Especially when you factor in that you will end up actually spending $700k on a $300k house. Credit is nonsense.

>> No.13320954

>>13320924
lol I can tell. to each their own I suppose. there is nothing wrong with what you are doing. I'm just saying its not the only way to do things and you are missing out on a lot of benefits.

>> No.13320957

>>13320946
Good luck, brother. I too am hoping to be able to pay for a house with cash one day.

>> No.13320960

>>13320920

What do you plan on using your fantastic credit score for?

>> No.13320961

>>13320936
There is no reason you can't do that with a card too you absolute imbecile. You're basically admitting you are too fucking stupid to remember to pay your credit card bill at the end of the month.

You impress nobody. I will continue to enjoy my cash back and free plane tickets and I will definitely keep laughing at poor retards like you who think they are virtuous for not taking advantage of lines of credit and their benefits.

>> No.13320965 [DELETED] 

>>13320957
I have come to grips with

>> No.13320969

>>13320954
What benefits could there be to paying interest?

>> No.13320982

>>13320961
You speaking of paying a credit card bill like it's some kind of accomplishment.
I plan my spending for each month in advance. I know where every dollar is going to go before I even spend it.

>> No.13320987

>>13320957
I have come to grips with the reality I will probably never be able to afford a house outright. It will be a better use of my money to buy a plot of land and put a shipping container house on it. That is actually financially achievable. I make $80k/year now which is funny because you would think (as i did) that this would make you fantastically wealthy.

>> No.13320993

>>13320969
well for example I am looking at getting a loan to purchase some commercial real estate so that I can run my business from there without having to pay someone else rent. This commercial real estate also has offices in which I will be able to rent to others to cover the payments on the loan. My long line of credit history will show the bank that I am a trustworthy creditor while also allow me to negotiate for a lower than average interest rate. I could continue if you like, but this is the first that came to mind.

>> No.13320998

>>13320715
Doesn't add up as much as market gains from investing the money instead of paying off the mortgage.

>> No.13321010

>>13320982
To fair to the other anon using a credit card to pay for everyday things is a good financial security practice. Meaning that it protects you from being responsible for fraudulent charges if the credit card data is ever stolen and misused. This is what Frank Abagnale Jr. says anyway.

>> No.13321013

>>13320993
*creditee

>> No.13321015

>>13320993
What does your business do if I may ask?

>> No.13321016

>>13320987
Where do you live? In USA with $80k/yr gross you should have $4,200 a month after taxes and 401k. You should be able to save at least $1,200 of that towards a house.

>> No.13321037

>>13320892
enjoy that cash buying half of what it can today in 10 years kek. go look at any ball park or hockey arena that was built 10 - 15 years ago. they spend $100m in 2008 and it would cost $150mm today. within 6 months that cash will be worth 1 - 3% less, compounding. stay poor fag

>> No.13321043

>>13321015
I own a bar. lol. liquor, gambling machines, slutty bartenders. you know, all the fine things in life.

>> No.13321048

>>13320993
Your plan sounds great on paper but what if there's another economic downturn? Suddenly all your renters move out and you're stuck paying a mortgage you can't afford. Now the bank is going to come after you and your collateral.

>>13320998
Ask yourself if that's true, why would the bank have loaned you money in the first place? Wouldn't it have been smarter for them to invest in these "market gains" instead? The truth is you fail to account for the risk that you won't make enough in the market to cover the interest rate.

>>13321010
That's reasonable, but why not just use a debit card instead? If you use the credit card processing network instead of typing in your PIN you have the same fraud protections as everyone using "real" credit cards.

>> No.13321061

>>13321037
Far better to lose 1-3% to inflation than 15% to credit card interest

>> No.13321074

>>13320319
>15% returns
Do people take him seriously?

>> No.13321085

>>13321061
offset it with a savings account that returns at least 1%+ interest. you're trying to be honest in a world where the system is literally designed to enrich (((bankers))), while paying 25% - 60% tax on total income to the (((gov))). you're retarded, start cheating or you'll get left behind

>> No.13321087

>>13320840
>use credit card to buy gas and groceries
>get free 5% back on purchases
>pay card balance off in full every month
>builds credit, 5% free money, no interest
people like you should listen to this guys advice because you clearly lack the brain power to process how fiances work

>> No.13321093

>>13321016
I live in AZ. After taxes, 401k, and short term disability insurance I get about $3800/month. After that It's about $1550/month in regular bills (rent, food, gas, yadda). This doesn't include if I want to go to restaurants or travel a little bit or the alcohol bill. I also buy a bunch of computer stuff because I have a short attention span and boredom is pain. I am already aware I am retarded.

>> No.13321115

>>13321093
I'm telling you that you can save at least $1,200 a month and you're telling me that you have $2,250 left after bills. Doesn't that mean we're in agreement?
You can do this, anon, you just need to get on a written budget and save like crazy for a few years.

>> No.13321123

>>13321087
based and finance pilled. these suckers ITT don't understand that you need to cheat and milk the system every way you can possibly get away with it. the central banking system is literally designed so that the middle class gets milked in favor of the poor nigs and spics and enriches the (((0.1%))). if you're taking advice from ramsey, you're a fucking idiot that can't handle more than 3 variables to a potential solution. fuck buying anything in cash, i'll be getting mine. and i'll make sure it comes at the expense of traitorous boomers and bankers. fuck everything

>> No.13321135

>>13321048
you asked me what the benefits of having a long line of credit was, now you are throwing hypotheticals at me. I never intended on arguing with you to begin with so this is my last reply to you because this conversation is becoming tedious and I really don't care what you do with your money, I was, again, just pointing out the benefits of having a long line of credit. If there is an economic downturn they take the business back, auction it off, and I declare bankruptcy. I will then fall back on my legal degree and begin to file more bankruptcies, just this time for other people.

>> No.13321138

>>13321048
>That's reasonable, but why not just use a debit card instead? If you use the credit card processing network instead of typing in your PIN you have the same fraud protections as everyone using "real" credit cards.

I am not an expert on the subject but I suppose using the credit function of the debit card would have the same protection but I am unsure as to the exact verbiage of the law. However if someone does snag your debit card data they can immediately debit your account for however much the daily limit is which I bet is pretty consistent from person to person. You will probably be able to get your money back but it will be a longer and more complicated process whereas with an actual credit card there is no immediate hit to your account and you can dispute the fraudulent charges without being out any money. Again this is Frank Abagnale Jr. says and that is where I get the idea.

>> No.13321142

>>13321135
If your long term financial plan involves bankruptcy you're over before you even began...

>> No.13321144

>>13321043
Being a professional greasy person for a living.

I am into this.

>> No.13321145

>>13320840
Do you use only debit cards?

>> No.13321146

>>13321142
yea well we will see how long your 6 months of "cash" will get you in a recession bucko

>> No.13321151

>>13321115
This is true and I wasn't disagreeing with you. It was just a half-assed explanation I guess. I do try to put at least $500 a paycheck into my savings account. If I can I put $1k in per check. I think I can do this but it's so slow and spending is so fast and easy ya know?

>> No.13321155

>>13321138
Fraud protections aren't a matter of law, they're a service offered by the payment processor. Here is VISA's, for example: https://www.visa.com/chip/personal/security/zero-liability.jsp

"Visa's Zero Liability* Policy is our guarantee that you won't be held responsible for unauthorized charges made with your account or account information. You're protected if your Visa credit or debit card is lost, stolen or fraudulently used, online or offline."

>> No.13321175

>>13321146
You don't think 6 months is enough time to find a job? Fine, just save 1 year's worth of expenses in your emergency fund. The amount is up to you.

>>13321151
Oh believe me I know how easy it is to spend money. You're not going to accidentally save up enough money to buy a house that's for sure. Time to make that budget!

>> No.13321177

FIRM HANDSHAKE WITH THE MANAGER

>> No.13321184

>>13320319
FUCK DAVE RAMSAY

>> No.13321185

>>13320811
this isn't how credit works, at all.

>longest line of credit
yeah, by 6 months, I got a credit card when I turned 18. Even if not, it's so negligible that paying interest to have a mildly higher score is retarded

>> No.13321201

>>13320840
>$10 a month
do you really only spend $500 a month? lmao

>> No.13321210

>>13320936
>when in fact you're paying a 3% surcharge to cover merchant fees
Everyone does, by that logic, and the churners are getting their 3% back.

>> No.13321356
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13321356

>>13321155
It is a matter of law though.

>> No.13321365

>buy mutual funds

>> No.13321494

>DON'T INVEST IN PONZI SCHEMES

>> No.13321497

I actually took on quite a bit of debt this year to buy the dip