Anonymous
09/25/2016 14:13
Subject: How Much Would You Spend on a House?
Anonymous wrote:Anonymous wrote:my god, it's surprising how people are having a hard time figuring out why it makes sense to carry low-interest debt.
if you owe 40 grand in student loans at 2%, it simply makes financial sense to throw (or leave) the 40 grand in the market, which you can expect to yield returns of 6-8%. using the money to pay a loan that is essentially free money doesn't make sense.
Everyone understands this. It's more the principal of the matter - its debt. It isn't deductible and you are having to pay someone to borrow this money. You could also borrow through a heloc at a low rate and invest, but do you?
I realize some people don't mind carrying debt. I do. I wouldn't want to hang onto student loans just to earn a few extra thousand of dollars a year in interest. It makes even less sense to me since I earn enough money that the spread is an insignificant amount of money. I personally don't want any debt besides a mortgage. We make too much money to have a bunch of liabilities over our head because we can cheaply borrow money.
I am not sure that the principal really cares.
Anonymous
09/25/2016 14:03
Subject: How Much Would You Spend on a House?
Anonymous wrote:my god, it's surprising how people are having a hard time figuring out why it makes sense to carry low-interest debt.
if you owe 40 grand in student loans at 2%, it simply makes financial sense to throw (or leave) the 40 grand in the market, which you can expect to yield returns of 6-8%. using the money to pay a loan that is essentially free money doesn't make sense.
Everyone understands this. It's more the principal of the matter - its debt. It isn't deductible and you are having to pay someone to borrow this money. You could also borrow through a heloc at a low rate and invest, but do you?
I realize some people don't mind carrying debt. I do. I wouldn't want to hang onto student loans just to earn a few extra thousand of dollars a year in interest. It makes even less sense to me since I earn enough money that the spread is an insignificant amount of money. I personally don't want any debt besides a mortgage. We make too much money to have a bunch of liabilities over our head because we can cheaply borrow money.
Anonymous
09/25/2016 13:53
Subject: How Much Would You Spend on a House?
my god, it's surprising how people are having a hard time figuring out why it makes sense to carry low-interest debt.
if you owe 40 grand in student loans at 2%, it simply makes financial sense to throw (or leave) the 40 grand in the market, which you can expect to yield returns of 6-8%. using the money to pay a loan that is essentially free money doesn't make sense.
if you owe 40 grand in student loans at 2%, it simply makes financial sense to throw (or leave) the 40 grand in the market, which you can expect to yield returns of 6-8%. using the money to pay a loan that is essentially free money doesn't make sense.
Anonymous
09/25/2016 10:07
Subject: How Much Would You Spend on a House?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:You make that much money and you still have loans?
Something isn't right here.
Right? We make half that and haven't carried loans, other than our house in YEARS.
How does the OP make his waybout of a paper bag?
Ehh. We have the same income and have some loans. They are at 1.7%. Why would we ever get rid of them?
Because you owe someone money.
So? We make far more by investing it.
So then you can definitely afford to pay it off. Not having consumer debt or student loans is freeing. Once you have enough money you don't have to take out a car loan because you make X more dollars in the market. Instead you can pay cash - if you want. It's the same with student loans. If you're wealthy enough you simply don't need to hold onto student loans because of a low interest rate.
Never have had a car loan because the rates have been higher/they won't give as good of a deal. But student loans are locked in forever at 1.75%. It is literally something like $130/mo. We spend more at Starbucks. It just doesn't matter.
If it doesn't matter then stop paying the bill. Then you'll see that it matters you have student loans.
What? You are a strange one.
Yes. It's strange to be highly successful without student loans.
DH had med school loans at 1.75% for years after I had paid mine off. We had a HHI of $1 million and it was annoying to have that last 50k of student loans. DH finally paid it off a few months ago after my nagging
Anonymous
09/25/2016 08:22
Subject: How Much Would You Spend on a House?
Anonymous wrote:Why are so many high earners completely incompetent when it comes to many?
Difference between rich and wealthy is the mindset. This is why rich people can be bankrupt the next day and wealthy people keep on moving.
Anonymous
09/25/2016 08:02
Subject: How Much Would You Spend on a House?
Anonymous wrote:Why are so many high earners completely incompetent when it comes to many?
What? Try again.
Anonymous
09/25/2016 07:36
Subject: How Much Would You Spend on a House?
Anonymous wrote:Why are so many high earners completely incompetent when it comes to many?
NP. Different priorities/ethics, Einstein.
Anonymous
09/25/2016 07:21
Subject: How Much Would You Spend on a House?
Why are so many high earners completely incompetent when it comes to many?
Anonymous
09/24/2016 20:55
Subject: How Much Would You Spend on a House?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:You make that much money and you still have loans?
Something isn't right here.
Right? We make half that and haven't carried loans, other than our house in YEARS.
How does the OP make his waybout of a paper bag?
Ehh. We have the same income and have some loans. They are at 1.7%. Why would we ever get rid of them?
Because you owe someone money.
So? We make far more by investing it.
So then you can definitely afford to pay it off. Not having consumer debt or student loans is freeing. Once you have enough money you don't have to take out a car loan because you make X more dollars in the market. Instead you can pay cash - if you want. It's the same with student loans. If you're wealthy enough you simply don't need to hold onto student loans because of a low interest rate.
Never have had a car loan because the rates have been higher/they won't give as good of a deal. But student loans are locked in forever at 1.75%. It is literally something like $130/mo. We spend more at Starbucks. It just doesn't matter.
If it doesn't matter then stop paying the bill. Then you'll see that it matters you have student loans.
What? You are a strange one.
Yes. It's strange to be highly successful without student loans.
Anonymous
09/24/2016 20:54
Subject: How Much Would You Spend on a House?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:You make that much money and you still have loans?
Something isn't right here.
Right? We make half that and haven't carried loans, other than our house in YEARS.
How does the OP make his waybout of a paper bag?
Ehh. We have the same income and have some loans. They are at 1.7%. Why would we ever get rid of them?
Because you owe someone money.
So? We make far more by investing it.
So then you can definitely afford to pay it off. Not having consumer debt or student loans is freeing. Once you have enough money you don't have to take out a car loan because you make X more dollars in the market. Instead you can pay cash - if you want. It's the same with student loans. If you're wealthy enough you simply don't need to hold onto student loans because of a low interest rate.
Never have had a car loan because the rates have been higher/they won't give as good of a deal. But student loans are locked in forever at 1.75%. It is literally something like $130/mo. We spend more at Starbucks. It just doesn't matter.
If it doesn't matter then stop paying the bill. Then you'll see that it matters you have student loans.
What? You are a strange one.
Anonymous
09/24/2016 20:53
Subject: How Much Would You Spend on a House?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:You make that much money and you still have loans?
Something isn't right here.
Right? We make half that and haven't carried loans, other than our house in YEARS.
How does the OP make his waybout of a paper bag?
Ehh. We have the same income and have some loans. They are at 1.7%. Why would we ever get rid of them?
Because you owe someone money.
So? We make far more by investing it.
So then you can definitely afford to pay it off. Not having consumer debt or student loans is freeing. Once you have enough money you don't have to take out a car loan because you make X more dollars in the market. Instead you can pay cash - if you want. It's the same with student loans. If you're wealthy enough you simply don't need to hold onto student loans because of a low interest rate.
Never have had a car loan because the rates have been higher/they won't give as good of a deal. But student loans are locked in forever at 1.75%. It is literally something like $130/mo. We spend more at Starbucks. It just doesn't matter.
If it doesn't matter then stop paying the bill. Then you'll see that it matters you have student loans.
Anonymous
09/24/2016 20:51
Subject: How Much Would You Spend on a House?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:You make that much money and you still have loans?
Something isn't right here.
Right? We make half that and haven't carried loans, other than our house in YEARS.
How does the OP make his waybout of a paper bag?
Ehh. We have the same income and have some loans. They are at 1.7%. Why would we ever get rid of them?
Because you owe someone money.
So? We make far more by investing it.
So then you can definitely afford to pay it off. Not having consumer debt or student loans is freeing. Once you have enough money you don't have to take out a car loan because you make X more dollars in the market. Instead you can pay cash - if you want. It's the same with student loans. If you're wealthy enough you simply don't need to hold onto student loans because of a low interest rate.
Never have had a car loan because the rates have been higher/they won't give as good of a deal. But student loans are locked in forever at 1.75%. It is literally something like $130/mo. We spend more at Starbucks. It just doesn't matter.
Anonymous
09/24/2016 20:48
Subject: How Much Would You Spend on a House?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:You make that much money and you still have loans?
Something isn't right here.
Right? We make half that and haven't carried loans, other than our house in YEARS.
How does the OP make his waybout of a paper bag?
Ehh. We have the same income and have some loans. They are at 1.7%. Why would we ever get rid of them?
Because you owe someone money.
So? We make far more by investing it.
So then you can definitely afford to pay it off. Not having consumer debt or student loans is freeing. Once you have enough money you don't have to take out a car loan because you make X more dollars in the market. Instead you can pay cash - if you want. It's the same with student loans. If you're wealthy enough you simply don't need to hold onto student loans because of a low interest rate.
Anonymous
09/24/2016 20:45
Subject: How Much Would You Spend on a House?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:You make that much money and you still have loans?
Something isn't right here.
Right? We make half that and haven't carried loans, other than our house in YEARS.
How does the OP make his waybout of a paper bag?
Ehh. We have the same income and have some loans. They are at 1.7%. Why would we ever get rid of them?
Because you owe someone money.
So? We make far more by investing it.
Then rack up a 0 percent credit card. After all you can make more by investing the money.
Anonymous
09/24/2016 20:45
Subject: How Much Would You Spend on a House?
Well, where do you want to live? How many beds/baths? How much does it cost to get what you want? You have tons of money, so you are in the enviable position of picking exactly what you want and then double checking to see if you can afford it. Most of us are starting with a max amount and making compromises from there.