Community Chat

[Kalli]

On 1/22/2015 SnowPink said:

On 1/22/2015 Kalli said:

People need to use what works for them. It's not the same for everyone. If someone has a plan that's working for them, that's fine.

We don't have a savings account. Never have, never will.

We utilize debt to make us money.

We have an emergency fund but when it gets to a certain level, we put it toward something else and build it back up again.

I'm not very familiar with Dave Ramsey. I do enjoy watching Suze Orman once in a while.

-Kalli

Could you explain that more? Real estate?

SnowPink, yes, mostly real estate. If we aren't in debt, we aren't increasing our financial wealth.

A savings account is money wasted that could be invested elsewhere. Same is true about the emergency fund if it reaches a certain level and sits idle in the account.

-Kalli

[RoughDraft]

One way is real estate. Another is borrowing money for investment purposes, i.e. hopefully earning a higher rate of gain than the interest you're paying on the loan. Some risk involved, but then most self-made millionaires are risk takers and some risk takers are living in cardboard boxes.

It all depends on what you know, how many long hours you're willing to put into something, how much you're willing to lose/risk, who you know, a good sense of a great investment when you see it, and what's going on in the general economy when you decide to launch.