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There are all sorts of plays where borrowing makes sense. Banks do it all day every day. Most companies do. Your government does too - that deserves a whole forum of its own.

But when it is personal debt, it really depends on your risk tolerance among other things (income security, taxes, interest rates, returns, ability to raise more capital if needed, etc).
For those of us who lived through near 20% prime interest rates, there is a real concern. Younger generations have seen nothing but cheap money for all their adult lives. Look at Germany and Japan right now! That makes a difference to some of us. As long as the world continues to accept the US dollar as the global currency of commerce, Americans are relatively protected from a lot of the financial vulnerability in the world. Look to Argentina for an example of how things can go badly wrong in a fairly well-developed economy. Even Brazil is not immune.

Borrowing funds for something that you don't need, and that is only going to lose value, is inherently risky.
If you have the funds and can deploy them to earn income, well, good for you. But consider that the $50,000 at 1.9% could have also been borrowed to earn another 13-15% (blindly following the example a few posts above) instead of buying a toy car. And the income from all that could eventually be used to purchase the vehicle. Or be re-invested to make more money.

It's all about priorities. And how much money you need when you die vs how many great experiences you had while you were alive.

Not my place to judge anyone else's answer to that.
 

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I only responded because people who chastise others for borrowing and make it a hard-and-fast rule (meh, I SAVE!.. get off my lawn that I mowed with a push mower!) are not having an intelligent conversation.

Do whatever makes you sleep at night. Often, it's totally irrational, but sleep is important. #peace

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The 50 grand I didn't drop on the 4C has earned 13-15%, while the 50 grand I borrowed cost me about 2%. I'll sleep on that.

:LOL: :LOL:
Yeah, till it goes wrong. 15% = risk. Things go bad, your 50 is now 40 and you owe 50 on the car thats now worth 40. That's the kind of thing I don't sleep well on at all.
 

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Yeah, till it goes wrong. 15% = risk. Things go bad, your 50 is now 40 and you owe 50 on the car thats now worth 40. That's the kind of thing I don't sleep well on at all.
Yes, you have a non-scientific way of evaluating risk, and likely (apparently) a stress-related reaction to risk, so you probably don't have an ideal personal risk model.

You drive a 4C though, so you have money in it, which is not an investment. So, you take on some risk.

It's all irrational by almost everyone here.

We're on different pages, but the 4C found both of us.
 
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