|
Iowa | I started from absolute nothing and used to have a payment on just about everything, except I've always known better than to have a vehicle payment.
Judicious use of debt has taken me far further up in life than I could have ever done without it-- it has been a great tool for me to get ahead. But I have always been careful, played the odds, figured the ROI of each potential move, and have always "slept on it" before making any large decisions.
Land debt has not bothered me; how could I ever buy land without borrowing for it? I haven't had machinery debt for 7 or 8 years now, and 2013 will be my first year ever without an operating loan. Still have land debt, but it's less annually than cash rent would be.
I think a goal of no debt by retirement is probably good, but, for me, prudent use of debt ( which has meant less over time as I get older) has been the key tool that brought me up from a net worth of absolute zero--less than zero, really, because I had student loans-- when I got out of college. One needs to take well-planned and researched risk to get ahead. Growth would be nearly non-existent without the judicious use of debt, but debt on pickups, credit cards, and the like is just a hindrance to growth and wealth.
| |
|
cash ?
