nc ks | Downwardspiral - 1/27/2024 05:11
Both good points. But it depends on the financial situation.
I borrow a lot of money, but overall my earned interest far outweighs the interest paid.
Money management.
If you are using the term interest correctly, that is virtually impossible or at least poor money management. If you are equating return as 'interest' you are being a bit deceptive imo.
I am all for keeping debts paid down to manageable levels and paying enough income tax to cover all of your nondeductible expenses, but during a year of operating, keeping any from technically being used as personal money is almost impossible. Say I had 50k in my checking and bought chemical last month for 50k. This week I need to buy groceries and some other necessities and I advance 4k to cover my needs. Is that fraudulant? Should I pay interest on that 50k for 3 months so I have enough 'cash' to live on? I don't think that is how the world works. If I pay 5 million of farm expense a year and have a rolling loc of 500k available and pay income tax on 200k, I would find it hard for anyone to say I was using my loc for personal expenses.
To the op, pay down the loc.
Edited by kb ag 1/27/2024 09:15
|
Save on operating interest or invest in mutual funds?
