until you pay it off , then you still owe the gubmint LOL I still have no desire to be considered "rich folk" LOL
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Dave Ramsey
- Thread starter Peanut Butter
- Start date
Fiscal responsibility is not a phrase the government understands.
And there's nothing wrong with that. But if you have to choose between rent or mortgage, mortgage is always the cheaper and more financially sound option. Rent is a ripoff, and you never get that money back.
PS. You never own the property. The government still taxes you on it every year doesn't it? They can take it away if you stop paying them....
I have not read his books but have read some of his advice. I agree 100% with having no debt and properly investing your savings.
Not true. Plenty of wealthy people utilize credit. https://www.thesimpledollar.com/cre...e-credit-cards-even-though-they-dont-have-to/
"And even though wealthy folks don’t necessarily need to use credit cards, they still do. A 2015 poll by CreditCards.com noted that, out of 800 wealthy families surveyed, three out of five used rewards cards with a preference for cash-back. Meanwhile, households with investable assets of $100,000 or more were twice as likely to say they prefer frequent flyer miles over cash."
"That brings us to the first reason the wealthy use credit cards, even when they don’t need a temporary loan. They do it for the rewards. Since many cards offer 1% to 2% cash back for every purchase you make, it’s not too hard to rack up meaningful rewards if you spend a lot on your cards. And if you’re savvy with airline miles, you can easily save thousands of dollars on airfare every year."
And another good article about credit use and wealth: https://www.bnymellonwealth.com/articles/strategy/using-credit-to-build-and-maintain-your-wealth.jsp
Rich folk know how to make the banks work for them.
BTW, I talk to many people that didn't realize that dividends (and long term cap gains) are always taxed lower than earned income, rental income, interest income (back when banks paid interest), etc.
If you are income the 10% and 15% Federal income tax bracket, the tax on dividends and cap gains is zero.
If you are income the 10% and 15% Federal income tax bracket, the tax on dividends and cap gains is zero.
After I graduated college I lived with my sister for 14 months to save money for a place. Living with your mom is a great idea as long as it is working out for the both of you! Great way to save money for a place of your own if that is your goal.
Using Ramsey guidelines helped me a lot. Back in the mid-90's I was $100K+ in debt with no real savings. Used the Ramsey methods to change how I spend, save and paid down debt.
Today, I do owe about $55K on a property valued at $500K. No other debt. Only pay cash for vehicles... and for Plastic... Only Debit and AmExp... And do have low 7 figures in investments.
You don't have to follow Ramsey by the book, but the concepts are great.
Today, I do owe about $55K on a property valued at $500K. No other debt. Only pay cash for vehicles... and for Plastic... Only Debit and AmExp... And do have low 7 figures in investments.
You don't have to follow Ramsey by the book, but the concepts are great.
Went through Financial Peace University.
Made it through all the baby steps.
Most important thing is a good budget and making sure you spend less than you earn.
Made it through all the baby steps.
Most important thing is a good budget and making sure you spend less than you earn.
