Paying in cash vs. financing?

[SkullWorks]

Originally Posted by suaveflooder

I've evaluated it....it a lot actually. I personally believe that debt is negative. I understand that I go against the norm, but I have some great examples, some near to me, of people doing very well with bad credit score because they have no debt. I personally have committed to being wealthy.

There seem to be some bitter people in this thread who's financial future didn't pan out the way they expected.

Every millionaire I know has always told me to stay out of debt, there is no such thing as a guaranteed return on anything. So only spending money you have will always keep you above water, and you will never be moving backwards, does this mean it is a little harder to get a leg up, yes sometimes it does, but I currently run a machine shop that has been in business for 60+ years, and the only reason it is still open and owned by the same family...no debt ever, pay cash or do without.


Don't let people over 30 who aren't millionaires tell you how to become rich, just don't.

Keep up the good work, you sound like you are on the right track.

[NickFRS]

Traded in my 2011 sti for $32k... Dealership cracked me a check for 7k... FRS

[AznBRZer]

Originally Posted by SkullWorks

There seem to be some bitter people in this thread who's financial future didn't pan out the way they expected.

Yeah, we're all bitter because we're not millionaires by 30 as if that should be everyone's life goal.

Every millionaire I know has always told me to stay out of debt, there is no such thing as a guaranteed return on anything. So only spending money you have will always keep you above water, and you will never be moving backwards, does this mean it is a little harder to get a leg up, yes sometimes it does, but I currently run a machine shop that has been in business for 60+ years, and the only reason it is still open and owned by the same family...no debt ever, pay cash or do without.

No debt ever?

So the company doesn't do any invoicing, use credit, have aged payables, or use any kind of credit at all? Everything is pre-paid? Highly unlikely.

Don't let people over 30 who aren't millionaires tell you how to become rich, just don't.

Pretty sure no one here is telling anyone how to become rich. If $1500 in interest over 5 years will make or break someone, that person couldn't afford the car to begin with.

Keep up the good work, you sound like you are on the right track.

If the path to wealth was just being debt-free, there'd be a lot more wealthy people out there. Look, I get it. No one wants to have to pay someone to borrow money, but that's the system we have until a better one comes along. Either way, we're talking about interest on a $25k car loan and not a $400k mortgage or business loan. Take it down a notch, hot shot.

[shirker]

Originally Posted by AznBRZer

If the path to wealth was just being debt-free, there'd be a lot more wealthy people out there. Look, I get it. No one wants to have to pay someone to borrow money, but that's the system we have until a better one comes along.

If the path to wealth was being debt-free, many self-made wealthy people (ones who aren't just given a ton of money to begin with) would not be where they are. How do start up companies ever grow to be huge? They get seed money, they get investments, they get debt. The key is just being able to pay off that debt while making even more money off of it. That, of course, is never a guarantee, but responsible debt management is far more important IMO to financial security and wealth than living debt-free.

[mav1178]

Short term debt = line of credit, credit card, etc.

You do realize that's how most SMBs pay payroll, right? If someone is truly sitting on a pile of cash to pay for everything, that's the worst use of your liquid asset, ever.

Again, everyone's answer will vary. You can choose to carry debt for a variety of reasons, just don't carry debt to buy this car if you have something better to do with your money.

-alex

[thill]

I have not had a car payment in 6 years until now. Even though it is just $10K at this point and I can pay it off anytime, I hate the feeling when I write the check every month. There is something about that feeling about just owning something outright...

[thill]

Originally Posted by shirker

If the path to wealth was being debt-free, many self-made wealthy people (ones who aren't just given a ton of money to begin with) would not be where they are. How do start up companies ever grow to be huge? They get seed money, they get investments, they get debt. The key is just being able to pay off that debt while making even more money off of it. That, of course, is never a guarantee, but responsible debt management is far more important IMO to financial security and wealth than living debt-free.

And most of them start a corporation or LLC, work 60-80 hours a week, and don't live frivolously. Investing in your business and taking on debt is one thing, buying an impractical RWD sports coupe for personal use is another..

[jlu]

Originally Posted by thill

And most of them start a corporation or LLC, work 60-80 hours a week, and don't live frivolously. Investing in your business and taking on debt is one thing, buying an impractical RWD sports coupe for personal use is another..

Impractical? The twins make for great daily drivers, and if your corporation/LLC doesn't need cargo hauling, they might provide a benefit by taking your stress level down. Well... at least mine does.

[thill]

Originally Posted by jlu

Impractical? The twins make for great daily drivers, and if your corporation/LLC doesn't need cargo hauling, they might provide a benefit by taking your stress level down. Well... at least mine does.

They are impractical if you ever need to haul more than 2 people or carry anything large. Which most businesses do.

You guys are funny.

[jlu]

Originally Posted by thill

They are impractical if you ever need to haul more than 2 people or carry anything large. Which most businesses do.

You guys are funny.

Hmmm...as a white collar worker, I've never had to haul anything large (besides certain people). Guess that means I should be doing a tech start-up if I want to DD my impractical FR-S.

[shirker]

Originally Posted by thill

And most of them start a corporation or LLC, work 60-80 hours a week, and don't live frivolously. Investing in your business and taking on debt is one thing, buying an impractical RWD sports coupe for personal use is another..

I don't disagree. Hence why I said responsible debt management. Buying an frs/brz with debt can either make perfect financial sense or be completely reckless. It's just misleading when people make blanket claims like "debt is bad, period"

[suaveflooder]

Originally Posted by AznBRZer

Yeah, we're all bitter because we're not millionaires by 30 as if that should be everyone's life goal.

Providing for your family SHOULD be everyone's life goal. What if you get hurt and could never work again? Do you have money to support you and your family comfortably for the rest of your life? It's called "financial peace." Never having to worry about "what if" because the "what if's" are taken care of. If you die, your family is still taken care of.

Originally Posted by AznBRZer

Pretty sure no one here is telling anyone how to become rich. If $1500 in interest over 5 years will make or break someone, that person couldn't afford the car to begin with.

It's not just that interest that can make someone. If you were to invest $464 a month (average car payment) into a good mutual fund from age 30 through age 70, you would have a little more than $5 million dollars with 12% interest mutual fund.

Investing just that interest alone for 30 to 40 years would net you a pretty great return. I can promise you it will be worth more than that car will be.

Originally Posted by AznBRZer

If the path to wealth was just being debt-free, there'd be a lot more wealthy people out there. Look, I get it. No one wants to have to pay someone to borrow money, but that's the system we have until a better one comes along. Either way, we're talking about interest on a $25k car loan and not a $400k mortgage or business loan. Take it down a notch, hot shot.

This couldn't be more inaccurate. If you follow any of Tony Robbins books, or have read T.Harv Eker's "Secrets of the Millionaire Mind", they both go into many reasons why more people aren't wealthy/rich. Both of those authors are multimillionaires.

With all due respect, maybe it's time that you do some reading. This stuff is really cool and it takes a certain mindset to actually follow through with it and become wealthy.

This system of borrowing money is a fairly recent thing. It's gotten crazy out of control. I have no problem being the odd man out.

[SkullWorks]

Originally Posted by AznBRZer

Yeah, we're all bitter because we're not millionaires by 30 as if that should be everyone's life goal.

No debt ever?

So the company doesn't do any invoicing, use credit, have aged payables, or use any kind of credit at all? Everything is pre-paid? Highly unlikely.


Pretty sure no one here is telling anyone how to become rich. If $1500 in interest over 5 years will make or break someone, that person couldn't afford the car to begin with.

If the path to wealth was just being debt-free, there'd be a lot more wealthy people out there. Look, I get it. No one wants to have to pay someone to borrow money, but that's the system we have until a better one comes along. Either way, we're talking about interest on a $25k car loan and not a $400k mortgage or business loan. Take it down a notch, hot shot.

Every account we have is on net 30, no interest paid, ofcourse we have company cards but they are cleared at the end of every month, no lines of credit from banks or lenders, ever.

Sorry you can't cope or understand but that just makes my point. we have several million worth of machines and material on hand and none of it was bought on credit...joke is on you buddy. We simply do not carry a debt from month to month.

Yes I sincerely believe if you have what it takes to become independently wealthy you will have done so by 30. you seem a bit bitter, maybe you should talk to someone about that.

And while we started talking about a 25k car the gentleman I responded to was (clearly) talking about a much wider view of finances in general.

I'm not theorizing here this is my life, this is what I have learned and been exposed to, and even though we are no-longer a startup I still work the 60-80 hr work week and have a company of my own aswell. And to answer your next question, no I'm not 30...yet...

you can feel how you feel, but you are lying to yourself if you think you need to start big to end big, This machine shop started by making fold up cardboard view finders for the first Kodak Cameras...now we make rocket components and Satellite parts day in and day out.

[jmaryt]

Originally Posted by AznBRZer

Yeah, we're all bitter because we're not millionaires by 30 as if that should be everyone's life goal.

No debt ever?

So the company doesn't do any invoicing, use credit, have aged payables, or use any kind of credit at all? Everything is pre-paid? Highly unlikely.


Pretty sure no one here is telling anyone how to become rich. If $1500 in interest over 5 years will make or break someone, that person couldn't afford the car to begin with.

If the path to wealth was just being debt-free, there'd be a lot more wealthy people out there. Look, I get it. No one wants to have to pay someone to borrow money, but that's the system we have until a better one comes along. Either way, we're talking about interest on a $25k car loan and not a $400k mortgage or business loan. Take it down a notch, hot shot.

what he really means is if you DON'T NEED to '"float a note" to buy this car,
then you shouldn't.you would be better served to avoid the debt altogether..just sayin'