by JimmyPage 5 Replies latest jw friends
Borrow money only for investments (good debt)- for purchasing things that retain and hopefully increase in value over the long term, such as an education, real estate, or your own business.
Don't borrow money for consumption (bad debt)- for spending on things that decrease in value and eventually become worthless, such as cars, clothing, vacations, and so on.
Such good advice. We are trying to demonstrate this to one of our children that will probably start getting credit card offers in the mail. Say a dinner out, a movie and a new outfit, how much that can cost you if you don't pay it off every month. Most things younger kids will buy like this will be valueless in a week, month or year.
I agree with your advice and this is how I handle my finances. Many people find paying cash for an automobile to be very difficult. The solution is once an automobile loan is paid off, keep the car and keep making the payment to a savings account.. Next time you need a car you will have the cash including the interest the savings earned.
I read this book called the richest man in Babylon back in the 80's and I paid my house off when I was 40.
I'm 56 now and havent borrowed any money since.
But I was lucky.
I lived in Amerika during a time when there were still jobs that could be considered as gainful employment.
When the job provided health care.
I see a lot of Indian Budhist here in America making money.
I guess if you have enough money you can be a Budhist.
Or its easier to be a Budhist if you have enough money.
I'm all for it simple living.
And I think you are on the right track.
That's no fun dude....thinking like this is causing a recession.
I say....buy what you like! Pay later!
