$400K is now middle class
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He's basing it on something someone told him. There's no source, no research, no confirmation.
Millennials and zoomers are half fucked because they won't fucking try anything. They won't look up housing incentives offered by various states and cities to cover a down payment. They bitch about debt, without understanding the difference between good debt and bad debt and refuse to be educated on the subject.
Did the boomers fuck us? Sure, but these people won't even try to unfuck themselves. They demand the government do it for them.
Explain to me how me owing money to someone else is a good thing.
Bad debt is taking a vacation in Paris on a credit card.
Good debt is getting a bank loan to buy a work truck that you will use in a construction business to generate all the income you need to live and pay off the loan.
Not just interest -- if I take out a loan to start or expand a business and the money I make from that business/investment pays off more than the interest I'm paying, it's good debt.
Taking out a $5000 loan to get a commuting vehicle so that I can get myself to work is arguably good debt.
Taking out $300k worth of loans so I can party for 5 years at college and "earn" a bullshit studies degree is bad debt. Taking out a $35000 loan so that I can buy a brand new car is bad debt. Racking up credit card debt to buy a big TV or the latest iPhone or some other disposable electronics device is bad debt.
I think I've actually been successful with a couple people talking them off student debt. It's just so fucking stupid. The whole "college experience" sold and pushed on everyone is a pile of shit. Want a degree? Fine. I have one. I worked the entire way through and paid as I went at low-end accredited community and state school. It sucked. It was a pain in the ass. I had to fight some professors at times even, because they really don't like people that are abnormal. When I got that first post-college job with the about 50% pay increase, I felt like a rich man because I actually had a fresh start and didn't owe anyone anything.
I figured it was something like that, but even then I'd rather just pay in full and own the asset. Having debt hang over my head, even if it's more cost effective, just doesn't sit well with me.
You have to set emotions aside and analyze the numbers. My current mortgage interest is around 3%. I can buy treasury bills that yield 5%. That's a guaranteed 2% profit I can earn for borrowing money on my house. And that's t-bills. I get a lot more than that from my stock portfolio. Hmm, pay off my 40 year mortgage tomorrow, or leave the money in my etrade account where in 5 years there's enough money there to buy 5 houses outright. Which feels better?
Well a great example is medical debt. I COULD pay it all off today. But why the fuck would I do that? There's 0 interest. I make more money the longer I string it along with zero downside.
Same with debit vs credit cards. There is 0 advantage to using a debit card. Use the credit card and keeping the balance at 0 has the exact same "debt" as using a debit card with all kinds of upside.
This is the difference between good and bad debt for a consumer.
Then don't be a farmer or run a business. You'll never have the $150k in liquid cash you need to buyout materials for the job that will net you a $50-75k profit.
That's good debt, it's debt that will make you money in the end.
You've never looked any first time home buyer incentives. This one incredibly generous, and the requirements are super loose
See? This is what I mean. You're just like most of my other millennial and zoomer friends, you guys are all doom and gloom without actually trying anything. Do you think going to your bank and talking to a loan officer costs you money? That if you get rejected they won't try to coach you on how to become eligible quickly? Why would they do that, so they don't make any money?
This is the kind of shit that has our generation tied down. We all think we know so much without knowing anything at all.
This is hustlers university level of financial literacy, just in the opposite direction.