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@resjudicata I don't necessarily disagree with your overall conclusion but there is a mistake in your working. The rental property is cash flow negative, but not necessarily an overall loss. Every month he makes a payment he has more equity in the home, which is a part of his net worth. And the...

@unbelievable It's not necessarily a bad idea to buy a house cash, if you can afford it. You do gain certainty and avoid interest, but there are some things you give up as well Main things to consider Home loans are an inflation hedge. You're paying for 'todays' prices on 'tomorrows' income...

@unbelievable You don't get charged interest for the entire period. Once the balance is paid off, it's over. Read up on amortization if you're interested ( :P ). Will also explain why extra payments, early, will save you much more in interest than you might expect Some banks might charge a fee...

@katzby23 If you're young. An education (from academia, trade school, self teaching, etc, whichever is relevant) in a career-worthy field. If you're . Investing time in an education in personal finance.

@abzin44 1) It can but it depends on how many credit accounts you have. And you'd be surprised what counts as a credit account. A cell-phone contract for example. 2) It might but you can probably tell your provider to change the limit without having to close and reopen it (which would have...

@32983 It's way more than 20% of your income. I assume you're following a common rule of thumb, those usually consider annual income vs total car price.

@32983 Not necessarily saying it's the worst decision in the world, but it is worth considering that for most people (gearheads notwithstanding) a fancy new car purchase gives temporary happiness but people acclimate to it very quickly and it becomes 'normal'. It's a well studied phenomenon, you...