Reply to S/O How to be comfortable with debt

Forum Index » Money and Finances

Reply to "S/O How to be comfortable with debt"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]You shouldn't be comfortable with debt. I was raised and still firmly believe that you only borrow for three things -- a house, an education, and a car. I don't even do the car thing, and I hope to have enough saved up for my son that we won't have to borrow for that.

If you can't pay for the fancy vacation, don't take it. If you don't have enough to pay for a fancy vacation, it also means you don't have enough in savings either. [/quote]

OP here. I have plenty in saving to take the fancy vacations, but I won't touch it. Savings is kind of "out of sight, out of mind" for me. It is there for emergencies, not a trip to the beach. [/quote]

OP, it is really not that hard.  The basics are:

*Do not take on debt other than mortgage debt or possibly student debt and car debt.
*Keep an emergency liquid savings fund of at least 3-6 mos of living expenses.
*Create a separate, non-emergency savings account for other uses, e.g. vacations, home renovations, big-ticket items.

When that second savings fund has enough money in it for you to go on vacation, then go.  Put your expenses on a credit card that will give you money back, frequent flyer points, or perks of some kind, and pay it off 100% from the savings fund when the bill arrives.

Living debt-free is important (and liberating).  Having an emergency fund is prudent and necessary.  Vacations and occasional splurges are important too.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics