Tuesday, September 6, 2011

Never Stop Learning

I learned something new today. I've always thought being debt free was a good thing. Not always. First off never go into debt to consume, only to preserve. I mean that you shouldn't be in debt to buy a depreciating asset (ie. car, boat, snowmobile, junk). At the same time I realized today how risky and wasteful it is to have your home paid off. If your home is destroyed in an earthquake or flood that home owners insurance won't cover, would you rather that you had paid it off, or that you would have invested the extra money in a liquid and safe investment? Just something to think on.


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