Sat 16 Dec 2006
Dueling Bloggers - Help Settle The Dispute
Posted by RichSlick under Careers, Money Management
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Seems like I’ve gotten into a finance bloggers duel with the Prince of Thrift over at DebtFree4ever.net regarding whether borrowing money for a home and/or education is a good idea. Perhaps the finance blogger community can chime in and help settle the dispute.
I contend that borrowing money for a home and college is a fairly prudent (and often necessary) move in order to get ahead in life. While the Prince of Thrift is adamant that you shouldn’t buy a home or start college unless you have cash in hand to pay for it entirely.
What do you think? Please comment here or over at DebtFree4ever.net.
December 17th, 2006 at 10:47 am
Rich, you are right, save the argument.
I have employed some of your methods diligently over the years and throughly enjoy your content.
Just glad I have met like thinkers.
Thanks for the blog!
December 17th, 2006 at 1:52 pm
Thanks for the reply Jim. Please let me know when you run across other capitalist bloggers. I know they’re out there, they’re just hard to find!
December 20th, 2006 at 12:39 pm
This has come up on my blog before in the context of whether student loan debt is “good debt” or “bad debt”. It culminated in an explanation of NPV which is basically what it boils down to in the first place. You can spend $50,000 grand on a college education to major in english or business. Under one scenario it’s “good debt” and in another it’s “bad debt” as a result.
December 20th, 2006 at 12:40 pm
I realize I just wrote “$50,000 grand” when I only meant $50,000…
December 22nd, 2006 at 6:20 pm
Why do people want to take advice on money from people who have none. This guy has $1200 in a retirement account and $250 otherwise. Yeah and a $50k house… Has his advice worked for him?
December 24th, 2006 at 7:03 pm
moom -
yes it is working for me….look how much has been paid off since I learned the truth. I will be debt free in the 2 years, though I personally hope/plan to pay off all the “stupid tax” (as Dave Ramsey calls it) in the next year. An ambitious goal considering that my debt is nearly 1 year’s salary.
As for retirement savings, I haven’t updated that in a while, and that is only this year.
I took the previous small 401-k I had before the company merger and paid off the house (consolidation loan). Something the financial advisors say was stupid.
March 2nd, 2007 at 7:50 pm
paying cash for either is stupid, even if you do have cash on hand.
better to borrow money coz its dirt cheap and invest for higher returns. Not every gets 24% return on their investments but the difference can easily be 2-3% or more.