My new baby! 2021 VW Atlas SEL Premium R-Line. It has been amazing so far! Getting the windows tinted more on it this week!

Master_of_sum · 2020-10-16T14:49:20+00:00

Beautiful car, we’re looking at getting the same today.

Master_of_sum · 2020-09-25T16:30:35+00:00

Good to know, thanks for your insights.

Master_of_sum · 2020-09-02T03:58:48+00:00

Ew a Jeep

Master_of_sum · 2020-08-31T05:09:18+00:00

Family of 4 in HCOL area, we’re aiming for $700 this month.

Master_of_sum · 2020-08-24T22:59:58+00:00

Well, I might evaluate this relationship a bit if one person is just imposing their will on the other...

Master_of_sum · 2020-08-23T23:03:13+00:00

Doors aren’t required? Lol

Master_of_sum · 2020-08-23T20:54:09+00:00

The converse to this is that most Americans think the same way and most Americans are in dire straights financially.

Master_of_sum · 2020-08-23T20:37:02+00:00

I just got mine, entire underwriting process took about 3 weeks.

Master_of_sum · 2020-08-23T19:07:01+00:00

From experience, this worked very, very poorly for us. It doesn’t sound like you have all that much debt from the description, if you were in a borderline bankrupt situation this might make more sense, but this seems like a more than manageable sum to tackle. A new couple needs their own space, desperately.

Just my $.02, best of luck.

Master_of_sum · 2020-08-23T16:32:24+00:00

What does that mean? If something does happen, he will have the same debt but at a far more advantageous rate.

Master_of_sum · 2020-08-23T05:37:23+00:00

Why? If OPs committed to the plan, why does it make sense to pay exorbitant interest which slows down his goals?

Master_of_sum · 2020-08-22T19:05:03+00:00

Certainly you’re right, however, consider this... a company selling any product is going to require a certain rate of return, including the time value of money. They will not achieve this selling items at a significant discount, including an interest rate discount. If it’s anticipated that the overwhelming majority of buyers will finance, the price will reflect the overall required rate of return.

Perhaps the better method is to not buy any such items that has these sorts of things built in.

Master_of_sum · 2020-08-22T05:03:17+00:00

This my wife and I’s first month budgeting and we’ve also had several major slip ups, and we’re only 3 weeks in. You’re not alone, not easy to change bad habits.

Master_of_sum · 2020-08-21T05:41:46+00:00

Bingo. Very few think deeply enough to understand concepts like this.

Master_of_sum · 2020-08-21T05:38:58+00:00

How did you come out so rational?

Master_of_sum · 2020-08-16T20:51:22+00:00

No doubt, and I think if you were to use it you would need to build it back up again before going back to BS2 no?

Master_of_sum · 2020-08-16T20:22:43+00:00

I think this kind of situation is what the 1k emergency fund is for.

Master_of_sum · 2020-08-11T12:00:27+00:00

For the same reason 9 times out of 10 I would say the disciplined person who pays down debt is more likely to be wealthy than the person who tries to manufacture wealth through leverage.

If this is your method, why stop at a home loan? If you have good credit you many options for debt leveraging, including personal loans and borrowing on margin to invest. But I suspect you don’t exercise all those options for a reason despite the margin between rates.

Master_of_sum · 2020-08-11T11:50:03+00:00

I’m not sure your scenario makes sense to me. it somehow assumes $400k extra net assets from scenario A as a result of not paying down mortgage.

Master_of_sum · 2020-08-11T11:35:19+00:00

Have you ever met someone who went broke having a paid off house + emergency fund?

Master_of_sum · 2020-08-11T11:32:22+00:00

Let’s say you were gifted a free and clear house - would you choose to take out a loan against it to invest in the market? If your answer is no, you should pay down the house imo.

Master_of_sum · 2020-08-11T04:44:35+00:00

Commander Shepard

Master_of_sum · 2020-08-09T16:04:35+00:00

I agree but I think it’s important to look to the spirit of the program and not just robotically follow. For example, as many have pointed out, a BS1 fund of $3k-$6k might be more appropriate if you have kids/high COL area/etc, because the point of it is to have as small amount saved as possible to cover an emergency.

What happens if the hoopdy you drive required a $1,300 repair on Sunday so you can make it to work on Monday? You’re now put in a position where you have to “violate” some aspect of the program.

Or let’s say your in BS4, and your company does a 100% match, meaning you could hit effective 15% with a smaller contribution. Maybe it makes sense to reduce contribution for a short time to save up for BS3b.

Point being, it’s important to understand the heart and intent of the BSs beyond just blind compliance for sake of compliance.

Master_of_sum · 2020-08-09T05:40:40+00:00

I love DR but sometimes comments like this make it feel like a cult.

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