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What you're saying may apply to a certain sample group, but you're ignoring the fact that not everyone is bad with money. It may have been observed that a group of people as a whole spent less money when paying cash, but that's not a very useful "fact". Correlation vs causation, right?
Yeah only about 95% of the population. If you're one of the few extremely disciplined people that would spend the exact same amount whether you paid with plastic or cash then no it won't matter. The reality is that very few people are so disciplined that they only buy what they need.

People who are great with money and pay their balance every month will still spend more over the course of a year than if they used cash. The average is 18% more a year so someone who is extremely disciplined might only spend 5% more a year so the person who isn't very disciplined will be way over 18% to get the average back down to 18%.
 

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I just paid off and cut up a credit card with "miles". I figured I wouldn't be the 90% and got a new electric kettle I didn't even need and a cell phone holder for the car, that I also didn't need, just to use them up.
What made me realize things like that are true is when I bought something on Amazon for $10 more one time because it was easier than punching in all my info on the products homepage. Never again falling into the debt trap.
 

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Have no idea why people set their money and net worth on fire just to say they don’t have a mortgage. You passed up chances to fully fund retirement accounts, to make more money on index funds than the interest, potential tax break on interest. Only reason to pay extra is to get out from under pmi or maybe get a better rate for having 25% equity. Beyond that you fuck up sending even one dime extra in.

The loss of net worth hurts your ability to do things like start a business, or tell your boss to suck your dick and do the work you do himself. Higher net worth, higher amount of freedom.
 

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Have no idea why people set their money and net worth on fire just to say they don’t have a mortgage. You passed up chances to fully fund retirement accounts, to make more money on index funds than the interest, potential tax break on interest. Only reason to pay extra is to get out from under pmi or maybe get a better rate for having 25% equity. Beyond that you fuck out sending even one dime extra in.

The loss of net worth hurts your ability to do things like start a business, or tell your boss to suck your dick and do the work you do himself. Higher net worth, higher amount of freedom.
Paying off a liability does not decrease one’s net worth. Did you take high school economics?
 

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Paying off a liability does not decrease one’s net worth. Did you take high school economics?
you obviously did. Is 4 or 3.5 less than 8? Or more?
This is why so many people are broke. Even the ones that think they know what they are doing can’t grasp how bad they fuck up with their money.
 

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If you don't have any, get a credit or two, use them for your day to day purchases and pay off the balance(s) every month, also for bigger purchases, finance them but only for a short time, make a payment or two then pay it off.

You have to have some revolving credit going to keep your good credit score up there, I know it sounds crazy but in their eyes if you don't use your credit they see it as a negative thing and hit your credit score accordingly.
 

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you obviously did. Is 4 or 3.5 less than 8? Or more?
This is why so many people are broke. Even the ones that think they know what they are doing can’t grasp how bad they fuck up with their money.
Most people do well to eliminate dept. There are those who are successful at leveraging dept as an investment and turn it into profit. The average person only does this with real estate. Now in times of very low interest rates (like now) successfully investing debt is easier.
But paying off a liability does NOT reduce one’s net worth.
 

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Since we already have one contestant struggling with this, here is some reading. Assuming people are literate enough to read it. Don’t forget the tax hit you take by losing out on money you can deduct by putting it to work for you in an account versus the black hole that is a house. That’s right. Over time putting 500 a month into a house can cost you beacoups of money! Not to mention the danger of a single “investment” versus a diverse portfolio.


how much you’d have by age 67 if you put away $500 a month starting at various ages.
If you start saving at age 25
With a 4 percent rate of return: $628,918
With a 6 percent rate of return: $1,055,703
With an 8 percent rate of return: $1,825,461
If you start saving at age 30
With a 4 percent rate of return: $490,213
With a 6 percent rate of return: $763,609
With an 8 percent rate of return: $1,218,422
If you start saving at age 40
With a 4 percent rate of return: $282,505
With a 6 percent rate of return: $382,235
With an 8 percent rate of return: $524,105
If you start saving at age 50
With a 4 percent rate of return: $142,185
With a 6 percent rate of return: $169,277
With an 8 percent rate of return: $202,501
 

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I autopay my VISA off every month, usually about 3-4K. Bank of America pays me about $100 a month for that. No annual fee, no charges.
playing little games like that add up.

I am a lender, not a borrower.
 

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Most people do well to eliminate dept. There are those who are successful at leveraging dept as an investment and turn it into profit. The average person only does this with real estate. Now in times of very low interest rates (like now) successfully investing debt is easier.
But paying off a liability does NOT reduce one’s net worth.
^hahahaha it flies right over peoples heads
The loss of net worth comes at 4% a year. That’s a metric fuckton of lost net worth.
 

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I’ll throw another free kernel out to those that only listen to radio goons and haven’t looked into the truth. The radio goons only push simplistic ideas designed to appeal to the scared. They laugh to the bank to pay their mortgage while telling you you aren’t smart enough to manage your own money. Well, maybe you aren’t...

Bonds and stocks return about the same 8% over time. So buy either or buy the one down that day. Smooth out your returns. Or stick with your dead end job because you didn’t save just to say you didn’t owe anybody.
 

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There is 13 trillion miles of unused airline miles.
Good....maybe when they finally get around to sending people to Mars, MasterCard will foot the bill. :)

My card gives a $100 discount on airline fare for every 10,000 points...each $$ charged earns one point....and I charge everything I can on the card including business expenses. That's only 1% and it's only good for flying, but it helps.
 

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Yeah only about 95% of the population. If you're one of the few extremely disciplined people that would spend the exact same amount whether you paid with plastic or cash then no it won't matter. The reality is that very few people are so disciplined that they only buy what they need.

People who are great with money and pay their balance every month will still spend more over the course of a year than if they used cash. The average is 18% more a year so someone who is extremely disciplined might only spend 5% more a year so the person who isn't very disciplined will be way over 18% to get the average back down to 18%.
Where are you getting your numbers? None of these numbers apply to individuals. If you're saying there are more people with bad money habbits than those with good habbits, I will agree with you. But the rest of these "studies" sound like Dave Ramsey newsletters.

To say that credit cards are not a perfectly useful tool for those with an appropriate amount of discipline, is simply false.
 

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So, for Christmas the wife and I decided to pay off the house and property for each others gifts. We paid off the last 22,100 and something in December. Checked credit karma today and my score went down fucking 41 points for closing the account. WTH?
Yep.....dont owe a dime.....NO credit cards.....money in the bank.....my credit score went from 805 to 681 in about 15 Months.....its fucking insane!
 

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Why don’t you shit your head out of your ass and explain the point you are trying to make?
I read your posts above and it appears you are talking about “opportunity cost”. By paying off ones mortgage a person is saving 4% but missing out on 8 %. That’s simple accounting 101.

but the act of paying off the mortgage does not decrease net worth, that’s simply an incorrect statement. Other, much more important factors are at work. (Like the stock market! LOL)
 
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