Dave Ramsey agrees Renting vs. Owning Is Fine, Credit Cards Are Trash

[Originalman]

Renting vs. Owning doesn't matter much as long as you can afford whichever path you take.

If you rent, use the extra cash reserves to save and invest in the market (different types of mutual funds/etf etc). Also use the money to pay off any debt you may have. If you want to own, save up enough so that you don't wipe out your savings to buy a house. If you need a $50k down payment, save $80k or $100k so that you still have reserves.

Pay off all debt before buying a house is good strategy.

Owning a house is fine as long as you treat it as housing and not an investment. Real estate has higher-highs but has always been way more volatile. It should be a piece of your portfolio but never the biggest piece. People often look and say "I paid $200k for the house and sold it for $325k" but ignore the money they put into it, the taxes etc.

I still stand by the key is paying the home off as quickly as possible. You want to get ahead of the interest on the house. A 300k home loan is really 600k with the interest. So pay it off quickly. In the end you will always have to pay room and board no matter if you rent or own. Its much better to only have to pay taxes and utilities after your home is paid off.

 

[Originalman]

What happened to people doing whats best for them?

The need to be justified in your decisions just proves immaturity..

Its always like that. I don't think anyone does 100% what Dave says or what any of these financial folks say. But they have good evwryday tools for most americans to use...because americans (and the US government) suck at saving and spending wisely.

 

[Wildhundreds]

Its always like that. I don't think anyone does 100% what Dave says or what any of these financial folks say. But they have good evwryday tools for most americans to use...because americans (and the US government) suck at saving and spending wisely.

In 2019 being responsible means youre victim blaming..

 

[desjardins]

I put all my household expenses and bills on Amex and pay it off in full at the end of the month.
I basically barely use cash. I do a budget and examine every line item in my CC statement every month before paying the card off.
Off the strength of the rewards program I get several free flights a year

 

[Wildhundreds]

I put all my household expenses and bills on Amex and pay it off in full at the end of the month.
I basically barely use cash. I do a budget and examine every line item in my CC statement every month before paying the card off.
Off the strength of the rewards program I get several free flights a year

I've been meaning to do this.. I got 4x on certain purchases..

I gotta see if i can trust myself to even do this..

 

[FLYINHAWAIIAN]

Im 30 and still never had a credit card.
I need to get back on my feet and intentionally putting myself in debt aint gone get me there

 

[King_Sage]

I still stand by the key is paying the home off as quickly as possible. You want to get ahead of the interest on the house. A 300k home loan is really 600k with the interest. So pay it off quickly. In the end you will always have to pay room and board no matter if you rent or own. Its much better to only have to pay taxes and utilities after your home is paid off.

this is the problem, most people.. (Not TheColi) will not pay off their balance on their loans/credit cards every month. Most people will carry the balance and pay double or more for w/e they put on a credit card.

Do You Know the True Cost of Your Credit Cards?

Do People Really Spend More With Credit Cards?

The point is dont stress yourself about buying a house as an investment vs. renting because saving money every month on the side while renting is the same math as paying into a mortgage. Especially if you have astronomical credit card debts.

 

[King_Sage]

Honestly the point system on credit cards is an insult to all of us... they will give the masses 1-5% back on purchases, because they know that the majority of people may run into financial crunches and be forced to pay that 18-24% interest payment.. the math works in there favor everytime, it's just a waiting game for them.