Debt-free?

r4nd0m said:
Not sure what sort of returns you're going to get on the latter, but good for you.
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I always laugh when I see sugarbabies state that they are looking for an "investor". They aften do this. I guess it is an investment the same way it is for paying for any entertainment. The entertainment I receive from sugarbabies varies, but sometimes its priceless! The memory of my greatest moments firmly entrenched in my brain and external hard drives :)
 
Would be interesting to know at what age most of those that mentioned debt free became so...Wonder if the average age was/is mid 30's, mid 40's or higher?
 
DrX said:
Would be interesting to know at what age most of those that mentioned debt free became so...Wonder if the average age was/is mid 30's, mid 40's or higher?
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I was about 36 I think. I did technically have a bond for 3 years until 39, but that was because I didn’t bother paying it off, more than that I couldn’t afford to. Interest rate was like 2%. That was also my third property (and I kept the first two).
 
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unobeat said:
Curious to know from those who were debt free , did you manage to survive during the Pandemic or have you taken some debt to survive.
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No problems for me. I worked throughout, and was already financially independent anyway.
 
DrX said:
Would be interesting to know at what age most of those that mentioned debt free became so...Wonder if the average age was/is mid 30's, mid 40's or higher?
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I was ~27 when I stopped taking on debt and made my first investment. Now in my late 30s.

Currently I can sustain about a decade of not working (lifestyle dependent ofc), so not financially independent as yet, but having this fallback buys me many options. This is also probably why I can be choosey about who I want to work for and logically argumentative at work :p.

This is also probably why I didn't stress during the pandemic, lol except maybe for February-March 2020, but I saw that more as a buying opportunity.

I had cleared my debt about a decade ago and had nothing to my name. I started from zero and have been saving investing ever since. This all started after finding the financialindependence subreddit and teaching myself. Putting my bonuses, tax refunds and most of my paycheck into investments. Taking my money offshore and becoming dollar rich. All of this is part of a strategy.

My unique circumstances have lead me to this path. I don't think everyone can afford to do what I do or just dump their paychecks into investments every month. It would be different if I had family and responsibilities. That said, anyone can pursue it if they wish.
 
Family of 4, I am early 40's. Wife brings in a little via side hussle's but I earn 98% of our income. Debt free since age 39 in owned home with two owned cars (never had car debt ever). Pandemic did not really impact my income much but most annual increases over the last 10 years where not really in line with inflation either but that was happening since well before Corona. In the last two years have WFH so saved some money on petrol and holidays that had to be cancelled I guess. Overall unchanged financially other than that my savings grew a little. I know plenty in worse shape. Some friends had to start supporting unemployed family. Some people lost everything, house, cars etc due to their businesses being in the tourism sector. Its been rough for many. Grateful we weathered it as well as we did financially.

Next few years are gonna be tight though as first child starts high school in a year which will increase school fee costs by about R3200 pm and my medical aid costs are currently up R5K pm hopefully to be reduced to only about R2.5K in March when I can make some changes. I anticipate having to dig into savings a bit when both kids are in high school for a 3 year overlap. Yes I do plan ahead a lot.
 
unobeat said:
Curious to know from those who were debt free , did you manage to survive during the Pandemic or have you taken some debt to survive.
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Yes, I still live in my wife's house.
I will definitely take on debt again in future, but only for a house and maybe a car.
 
Was debt-free a year ago. Sold my apartment and bought a house so now I'm paying off the bond. Should hopefully have it done in about 5-7 years.
 
We still owe around 25% of our original bond amount which I pay for and then I owe 59% of my original loan for my car, otherwise we have no other debt's but are saving as much as possible for future expenses for our son like schooling. The lockdown nonsense meant I took a knock in my pay for around 9 months and this last January was the first time I have had any salary adjustment in three years.
 
34 and debtless my whole life. Never even had a credit card. Drove a company car till I bought my first car. After 2008 decided to wait on buying property, will shop for bargains during the next crash. Rather spend my currency on things making more currency - investments, or business opportunities.

If you have debt, you are a slave to whomever holds the lease and also to the one who is paying you every month. Maybe you are free to chose who your master is, but you have a master none the less.
 
Nuke said:
34 and debtless my whole life. Never even had a credit card. Drove a company car till I bought my first car. After 2008 decided to wait on buying property, will shop for bargains during the next crash. Rather spend my currency on things making more currency - investments, or business opportunities.

If you have debt, you are a slave to whomever holds the lease and also to the one who is paying you every month. Maybe you are free to chose who your master is, but you have a master none the less.
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You must be fun at parties.
 
Debt is a useful tool.
The key is not to have too much debt that is not leveraged.
Minimise credit card and personal loan type debt, and focus on rather taking out debt to fund an investment (obviously that investment needs to earn more than the interest on the debt, hence leverage). Rental properties are usually used to do this, but one needs a good property and a good tenant.
 
Nuke said:
34 and debtless my whole life. Never even had a credit card. Drove a company car till I bought my first car. After 2008 decided to wait on buying property, will shop for bargains during the next crash. Rather spend my currency on things making more currency - investments, or business opportunities.

If you have debt, you are a slave to whomever holds the lease and also to the one who is paying you every month. Maybe you are free to chose who your master is, but you have a master none the less.
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My appreciation on my first house is: bought for R350k, now worth about R3m, and my next flat was bought for $420k, now worth $1m+. I have also only paid rent for 7 years of my adult life (late 40’s now), and receive about R46k/m from that flat in rental income.

Debt has a cost, but like most financial instruments, it is a two edged sword, and also provides a lot of benefit when used correctly.
 
No home loan or car loan but recent trip to durban set me back 25K on credit card debt. :crying::crying::crying:
 
fire2029 said:
Who here is debt-free? (Home loans, car loans, credit card all count as debt for this discussion)

Question edited - as hardly anyone is debt free.
If you are not debt-free, how many years away from being debt free are you?
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Only debt is the bond, on course to pay it off within 10 years. 20 more payments to go, Godwilling.

The best car in the world is a car thats paid for.
 
cr@zydude said:
I consider myself debt free but would fail the OP test. I use my credit card for almost every purchase and then pay it off in full to avoid interest payments. I have a Pick n Pay store account which I do the same with.

I have a decent deposit but will need a bond when I buy a house.

My car was paid for in cash and I will probably do the same when I replace it.
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Update to this: I will REAL debt soon.

I have used my deposit to buy a flat and will have a bond on it.

Still driving the same card and doing the same thing with my credit card.
 
I sold my flat, so I'm debt free!

But I have nowhere to live...

(actually, place I rent is pretty good, and will stay here for foreseeable future. Plan is to save as much as possible and only buy another property once I retire).
 
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