Comments on: Life After Debt: Is It Easier On The Other Side? http://frugaldad.com/2009/11/30/life-after-debt/ Tips for living frugal while still having a life Sun, 21 Mar 2010 17:03:34 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Merry Christmas 2009! | Money Smart Life http://frugaldad.com/2009/11/30/life-after-debt/comment-page-1/#comment-35662 Merry Christmas 2009! | Money Smart Life Fri, 25 Dec 2009 08:20:04 +0000 http://frugaldad.com/?p=4135#comment-35662 [...] Life After Debt: Is It Easier On The Other Side? @ Frugal Dad [...] [...] Life After Debt: Is It Easier On The Other Side? @ Frugal Dad [...]

]]> By: Investor Junkie http://frugaldad.com/2009/11/30/life-after-debt/comment-page-1/#comment-35205 Investor Junkie Sat, 12 Dec 2009 03:54:13 +0000 http://frugaldad.com/?p=4135#comment-35205 Being completely debt free is overrated. I'm NOT saying going out charge up that big screen TV you want.. Assets that increase in value for the long haul (10 years, like real estate) and with inflation it makes sense to have low fixed rate debt. Something you alluded to in this post is opportunity cost. By paying off your debt and not investing in other higher return investments you've missed out on some capital gains. It's different strokes for different folks. Some feel safer with no debt, for me personally I feel the reverse. Being completely debt free is overrated. I’m NOT saying going out charge up that big screen TV you want.. Assets that increase in value for the long haul (10 years, like real estate) and with inflation it makes sense to have low fixed rate debt.

Something you alluded to in this post is opportunity cost. By paying off your debt and not investing in other higher return investments you’ve missed out on some capital gains.

It’s different strokes for different folks. Some feel safer with no debt, for me personally I feel the reverse.

]]> By: Brenda Pike http://frugaldad.com/2009/11/30/life-after-debt/comment-page-1/#comment-35006 Brenda Pike Tue, 08 Dec 2009 16:07:42 +0000 http://frugaldad.com/?p=4135#comment-35006 My boyfriend just finished paying off our debt this week—a combined $100,000 of credit cards and student loans. Suddenly everyone's encouraging us to buy a house, but I think I just want to enjoy this freedom for a little while. Our new goals will probably be: 1) Increase our charitable contributions 2) Rebuild our emergency fund (we dipped into it at the end to pay off our last loan) 3) Increase our retirement contributions 4) Save up some money for my boyfriend to get his master's degree So exciting! My boyfriend just finished paying off our debt this week—a combined $100,000 of credit cards and student loans. Suddenly everyone’s encouraging us to buy a house, but I think I just want to enjoy this freedom for a little while. Our new goals will probably be:

1) Increase our charitable contributions
2) Rebuild our emergency fund (we dipped into it at the end to pay off our last loan)
3) Increase our retirement contributions
4) Save up some money for my boyfriend to get his master’s degree

So exciting!

]]> By: GK http://frugaldad.com/2009/11/30/life-after-debt/comment-page-1/#comment-34971 GK Mon, 07 Dec 2009 21:33:25 +0000 http://frugaldad.com/?p=4135#comment-34971 Question: Do you include your mortgage liability as "debt?" Question: Do you include your mortgage liability as “debt?”

]]> By: Dave http://frugaldad.com/2009/11/30/life-after-debt/comment-page-1/#comment-34967 Dave Mon, 07 Dec 2009 19:25:50 +0000 http://frugaldad.com/?p=4135#comment-34967 Since credit cards can boost your interest rate to as much as 30% for a late payment, would you suggest emergency funds from payday loans to avoid making a late payment and causing your entire credit card balance being changed to 30%? The APR on these loans is high, but paying $30 to borrow $200 to avoid a late payment has to be preferable to a 30% interest rate on a revolving balance that may be $5000 or higher. Since credit cards can boost your interest rate to as much as 30% for a late payment, would you suggest emergency funds from payday loans to avoid making a late payment and causing your entire credit card balance being changed to 30%? The APR on these loans is high, but paying $30 to borrow $200 to avoid a late payment has to be preferable to a 30% interest rate on a revolving balance that may be $5000 or higher.

]]> By: Matthew @ LifeOfAnInvestor.com http://frugaldad.com/2009/11/30/life-after-debt/comment-page-1/#comment-34963 Matthew @ LifeOfAnInvestor.com Mon, 07 Dec 2009 17:02:34 +0000 http://frugaldad.com/?p=4135#comment-34963 I agree wholeheartedly. I am in a very similar position as you. We have paid off all of our debt and we are trying to save up around $12,000 for an emergency fund, which of that, so far we have around $4,000 saved. I find that it's almost harder to resist the temptation to go in debt now. We have many remodeling projects that need to be done in our house currently. Instead of being dedicated to saving for our emergency fund, it's a lot easier to minimize our savings and throw a few thousand at new hardwood floors, a couple thousand more at a new staircase, etc. I had temporarily stopped my 401(k) contributions and college savings accounts while we saved up an emergency fund, but recently reisntated these since we are not being as serious as wee need to be towards saving for the emergency fund. I agree wholeheartedly. I am in a very similar position as you. We have paid off all of our debt and we are trying to save up around $12,000 for an emergency fund, which of that, so far we have around $4,000 saved.

I find that it’s almost harder to resist the temptation to go in debt now. We have many remodeling projects that need to be done in our house currently. Instead of being dedicated to saving for our emergency fund, it’s a lot easier to minimize our savings and throw a few thousand at new hardwood floors, a couple thousand more at a new staircase, etc.

I had temporarily stopped my 401(k) contributions and college savings accounts while we saved up an emergency fund, but recently reisntated these since we are not being as serious as wee need to be towards saving for the emergency fund.

]]> By: Online Shopping Tips To Help You Shop Safely http://frugaldad.com/2009/11/30/life-after-debt/comment-page-1/#comment-34691 Online Shopping Tips To Help You Shop Safely Thu, 03 Dec 2009 06:34:12 +0000 http://frugaldad.com/?p=4135#comment-34691 [...] Frugal Dad: Life After Debt: Is It Easier On The Other Side? [...] [...] Frugal Dad: Life After Debt: Is It Easier On The Other Side? [...]

]]> By: Sean @ BungalowAGogo http://frugaldad.com/2009/11/30/life-after-debt/comment-page-1/#comment-34366 Sean @ BungalowAGogo Wed, 02 Dec 2009 04:36:48 +0000 http://frugaldad.com/?p=4135#comment-34366 Life always throws curve balls and always will. The need for money is ongoing and you have proven you can overcome the "payoff" challenge. I have confidence you will meet your next set of financial challenges equally well. Life always throws curve balls and always will. The need for money is ongoing and you have proven you can overcome the “payoff” challenge. I have confidence you will meet your next set of financial challenges equally well.

]]> By: Financial Samurai http://frugaldad.com/2009/11/30/life-after-debt/comment-page-1/#comment-34349 Financial Samurai Tue, 01 Dec 2009 14:46:08 +0000 http://frugaldad.com/?p=4135#comment-34349 Good to know it's easier FD! I've always used debt as a motivator for me to do better at work and make more money. I wonder if I will stop lacking motivation if there's nothing for me to really support? Do you think that's possible? Good to know it’s easier FD! I’ve always used debt as a motivator for me to do better at work and make more money.

I wonder if I will stop lacking motivation if there’s nothing for me to really support? Do you think that’s possible?

]]> By: Hilde http://frugaldad.com/2009/11/30/life-after-debt/comment-page-1/#comment-34333 Hilde Tue, 01 Dec 2009 05:23:09 +0000 http://frugaldad.com/?p=4135#comment-34333 Whenever I read about college funds, I think how lucky we are here in Germany. For our older son, we paid about 150 € (then 200$) tuition fees per semester, now for our younger son it is about 800$. And when the parents´income is below a certain level, students get scholarships from the government as long as they pass their exams somehow, they don´t have to be excellent. And now the students are out in the street protesting against those fees and demanding "free education for everyone"! Whenever I read about college funds, I think how lucky we are here in Germany. For our older son, we paid about 150 € (then 200$) tuition fees per semester, now for our younger son it is about 800$. And when the parents´income is below a certain level, students get scholarships from the government as long as they pass their exams somehow, they don´t have to be excellent. And now the students are out in the street protesting against those fees and demanding “free education for everyone”!

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