24 Jan 2024 12:55 pm
Great post. Very smartSkans » 24 Jan 2024, 1:45 pm » wrote: ↑ Vegas, the key is to be smart about debt. I have never financed a car. Nor, would I. But, do you know how many under $5,000 car's I've owned in my lifetime? I have no problem showing up to something driving my 2007 Jeep Wrangler with 260,000 miles. It's paid for itself, 3x over. It runs, and as long as it runs, I will drive the tits off of it.
I had to finance my first and second houses. I lived in those houses a long damn time. Paid down the mortgage to $0 on the 2nd one. This allowed me to pay cash for my present home, and any other home from this point forward.
In business, I used financing - - leverage, to buy properties that would otherwise be impossible for me to afford. I ALWAYS protected the bank - never late on a payment, never missed a payment. Didn't matter if ALL OF MY TENANTS didn't pay me, I'd still pay the bank. And, the bank treated me right - - I needed some favors and my banker came through like a champ. But, here's the deal - you will NEVER get ahead if you don't smartly use finance/leverage. This requires serious analysis and analytics. It requires "carrying power" - meaning in down cycles you have to have reserves to keep your investments afloat. There is so much to this, I would have to write an entire chapter about it, as I'm only scratching the surface.
People with above-average intelligence are capable of figuring out how to get ahead. But, they will need: Skill-set. Discipline. Patience. Ability to analyze. Ability to recognize opportunity. Guts to act on opportunity / Smart risk-taker. And, more Discipline.
I’ve followed much of that model, always bought 7-10 yr old cars in good shape, always lived well below my means. Lived simple. Result is a fairly comfortable net worth.