Quote:
Originally Posted by P1et
Having a credit card and enjoying the perks that come along with having one is a different topic than buying your houses and cars cash. If you pay off your credit card each month, you pay 0% interest.
Now back to owning your house free and clear. Suppose you have $500K cash in your bank account. Would buying a $400K house cash make sense? Probably not.
Now imagine if you have $5M in the bank. Why wouldn't you pay cash for a $500K house? You still have plenty of money left to invest, use for retirement, pay for your kids to college, etc.
Perhaps it's because I'm European and was brought up that you should never buy something unless you can pay cash for it (with the exception of a house perhaps), but I don't prescribe to this whole "financing everything until you're drowning" crap.
Could I buy a new Porsche Panamera Turbo and make payments on it? Sure. But would I rather buy a used X5 and pay cash? All day.
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I never said to leverage yourself to your eyeballs in debt. I said people who really understand how to leverage other people's money through credit or loans know how to use that money to make them more money.