If your interest payment is 1% and inflation plus taxes is 5% why pile up money and lose your principle. In the depression times we are experiencing we might better borrow, right?
So how do we set this up?
How about a free and clear credit card for emergencies and using personal loans for shopping for large purchases?
I'm not neglecting retirement accounts like my 401k which has a match of 6% so if Patti and I put in $5000 a year Walmart puts in a matching $5000. (It's amazing that so few contribute!)
Anyways, my thinking is to continue to pay off my vehicle loans and then use the free and clear vehicles as collateral for 4 percent loans.
Make sense?
Now, I have my old pickup truck free and clear and can also use it as an emergency fund so I can relax as far as that goes. Should be able to get $5000 if I need it so I'm resting easy right now, how about you?
So how do we set this up?
How about a free and clear credit card for emergencies and using personal loans for shopping for large purchases?
I'm not neglecting retirement accounts like my 401k which has a match of 6% so if Patti and I put in $5000 a year Walmart puts in a matching $5000. (It's amazing that so few contribute!)
Anyways, my thinking is to continue to pay off my vehicle loans and then use the free and clear vehicles as collateral for 4 percent loans.
Make sense?
Now, I have my old pickup truck free and clear and can also use it as an emergency fund so I can relax as far as that goes. Should be able to get $5000 if I need it so I'm resting easy right now, how about you?
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