why do youb need debt to be successful?

I have never listened to him, but I've read one of his Financial Peace books. Really enjoyed it.

 

The organizations that are pushing you to go into debt are making their money off of your interest payments.

Debt isn't always bad, but it can turn bad in a hurry. Do your research and be very careful before borrowing.

 

It's a great feeling when all of a sudden, after years of pay check to pay check, you make the last payment.

 

I've been debt free for years....

 

Is why the wage (or pay) hasn't kept pace with the cost of living. Check out how much things cost opposed to what is earned compared to 40 years ago. You are using your future work to pay for things now. If credit evaporated, the economy would fail. How much debt are you in?

Many people are wage slaves. There is pressure to consume. You want Blu Ray, big screen, Wii, new car, remodel, big house, buy buy buy! I have lived on the fringes of society for so long and have been able to avoid the mortgaging of my potential income.

Unfortunately, it's why the main US gross product is consumerism. It's what is making China great. Trinkets. Remember how that brought the Native Americans down?

And those folks over in the Middle East don't believe in interest. Maybe they have something?

 

And so have I. Against Dave Ramsey's wishes, I have a credit card, used sparingly, and paid off monthly. It's called "living within your means".

 

I completely agree with you about living within your means, but we spend everything on credit cards and never carry a balance. Why? Points points points!! I see no reason why I cannot spend the money I have to spend on food, vehicle maintenance, fuel, etc. and not get some percentage back for it. But ya, without self control credit cards are a hard thing to deal with.

 

Good comments, gang. Q, to answer your question -

The answer is "yes" with good planning and common sense. It's not as easy as it was years ago but it can be done. Winning the Powerball can also be done. Business runs on credit and using OPM (other people's money) is how most businesses succeed. But... the greater the debt, the greater the risk of not staying in the black. Drivers who fell for the $995 minimum down deal on a used "SelectTruck" are fighting an uphill battle. Most will fail and be back in a company truck in a few short years; sadder but wiser.

One acquaintance of mine "beat the system" some years ago. How? He got a $995 deal, ran it for about 10 -11 months without ever making a payment, didn't park it anywhere near home, and eventually let them repo it. When MB finance threatened to trash his credit rating, he laughed and told them it was trashed before he ever bought the truck.

But I think the real question should be, "Can I maximize my earning power by running my own truck?" and the answer is no. It's about "opportunity cost" explained here. Your goal is to make the most of your blood, sweat and tears and not to enrich other companies.

Ponder the examples and visualize an O/O with his very own fast, shiny big rig, versus the guy who went with a good company and invested his money elsewhere. With few exceptions, in today's economy, the company guy with a decent company will come out ahead. Now compare the company guy to the union guy. When the day finally comes to quit trucking, there is no comparison. Who maximized their investment?

 

I hear ya there, I just tune him in every once in a while, to see how stupid people can be with their finances, especially with credit cards. My place and cars are all paid for and one cc is always paid off every month.
And I'm not buying or leasing no dang truck either.

 

Other than the mortgage on the house, I have been debt free for years.

I like it that way.