I was talking with a 24-year-old guy the other day. He's about to ask his girlfriend to marry him and said that he doesn't want to buy a house until he can pay for it 100% in cash. He has some money saved, probably enough to put 20% plus down. My strong advice to him was to put 20 to 30% down on a house right now and buy it with a fixed 30 year mortgage. Money is about as cheap as it will ever get right now. He could get a mortgage for less than 4% and the money that he would put into the house, if he is smart could see returns north of 6% in various mutual funds and other investment modalities. So, sometimes incurring a debt in order to float your money elsewhere is a smart move.
I'm loving the ideas in this thread. I'm now trying to reconcile the fact that I want to make a reasonable amount of money, but the career path I'm considering would leave me broke. I'm really activated by the idea of expanding service opportunities to young people, in some sort of supervisory or administrative support role. I think service is important, but a public servant doesn't make all that much, at least not historically.
Exactly. One has to trust the math. Consult a financial expert if you don't understand interest. Math doesn't lie, and debt isn't evil. We've been led to believe it is, because so many people got so royally fucked in 07-08. But in the end, if you do solid research, and abide by tried and true investment principles (history is still a thing, and it's a bit longer than seven years), then you shouldn't worry about your debt load as just a number. It's not a moral issue.