> Never use a credit card for credit. The only kind of credit, or debt, that is acceptable is debt to acquire something whose exchange value is extremely likely to increase, like in a home. The exchange value of most things diminishes or vanishes the moment you purchase them. Don’t be in debt to losers.
While true on credit, I would like to point out that the statement "something whose exchange value is extremely likely to increase, like in a home" can only be made by someone who doesn't know history beyond their lifespan and beyond their country (or maybe even beyond their county). The long term value of homes basically doesn't increase. People in their 60s are especially prone to not knowing this, having lived through the greatest asset appreciation period in the history of America, and perhaps in the history of the world.
Forced savings may be worth it, but it is forced at the expense of crazy leverage and severe tail risks. 10% downpayment is 10x leverage, 20% downpayment is 5x leverage - would you ever leverage stocks or any other personal investment even by 3x?
While true on credit, I would like to point out that the statement "something whose exchange value is extremely likely to increase, like in a home" can only be made by someone who doesn't know history beyond their lifespan and beyond their country (or maybe even beyond their county). The long term value of homes basically doesn't increase. People in their 60s are especially prone to not knowing this, having lived through the greatest asset appreciation period in the history of America, and perhaps in the history of the world.
Forced savings may be worth it, but it is forced at the expense of crazy leverage and severe tail risks. 10% downpayment is 10x leverage, 20% downpayment is 5x leverage - would you ever leverage stocks or any other personal investment even by 3x?