Anthony Bourdain on not having debt
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Anthony Bourdain on not having debt
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Re: Anthony Bourdain on not having debt
#2"Once I did that risky thing, leaving the only profession I knew to become a professional writer and TV guy, I was, and continue to be, very careful about the decisions I make every day."
Sage advice. Here's the link to the book publishing mentioned ~ http://www.eater.com/2012/2/22/6611779/the-lineup-for-anthon... / http://www.publishersweekly.com/pw/by-topic/industry-news/pu...
Re: Anthony Bourdain on not having debt
#3I wish more people thought this way. Debt can be be used effectively, but as Uncle Ben said, "With great power comes great responsibility." It seems that too much of America is wooed into a false sense of security by their ability to obtain debt without judging their ability to pay that debt off.
Re: Anthony Bourdain on not having debt
#4This is fantastic advice for 95% of people. If you one of the few that can manage debt responsibly, however, you'd be missing out on the opportunity for leverage. In many cases a person can effectively trade their good credit for additional returns.
Of course, you need to fully understand the risk/return profile of any leveraged investment you make AND be careful not to be overleveraged at any point. It's a fine line to walk, but it can be a valuable part of your investment portfolio.
Re: Anthony Bourdain on not having debt
#5I wish more people thought this way. Debt can be be used effectively, but as Uncle Ben said, "With great power comes great responsibility." It seems that too much of America is wooed into a false sense of security by their ability to obtain debt without judging their ability to pay that debt off.
"I wish more people thought this way."
It used to be common to view personal debt this way.
I noticed a big change in the way debt was perceived by during the late '80s. Since then, debt is seen as normal. I'm pretty sure the finance industry has pushed 'Fractional reserve banking' to the limit to allow unchecked borrowing for land and housing. [0]
Reference
[0] "fractional-reserve banking permits the money supply to grow beyond the amount of the underlying base money originally created by the central bank" ~ https://en.wikipedia.org/wiki/Fractional-reserve_banking
Re: Anthony Bourdain on not having debt
#6This is fantastic advice for 95% of people. If you one of the few that can manage debt responsibly, however, you'd be missing out on the opportunity for leverage. In many cases a person can effectively trade their good credit for additional returns. Of course, you need to fully understand the risk/return profile of any leveraged investment you make AND be careful not to be overleveraged at any point. It's a fine line…
Leverage doesn't come without a cost -- it magnifies your losses too.
Re: Anthony Bourdain on not having debt
#7I wish more people thought this way. Debt can be be used effectively, but as Uncle Ben said, "With great power comes great responsibility." It seems that too much of America is wooed into a false sense of security by their ability to obtain debt without judging their ability to pay that debt off.
"I wish more people thought this way." It used to be common to view personal debt this way. I noticed a big change in the way debt was perceived by during the late '80s. Since then, debt is seen as normal. I'm pretty sure the finance industry has pushed 'Fractional reserve banking' to the limit to allow unchecked borrowing for land and housing. [0] Reference [0] "fractional-reserve banking permits the money supply to…
There's also the rebranding of the scary "second-mortgage" into the treat-yourself "home-equity-line-of-credit."
Re: Anthony Bourdain on not having debt
#8This is fantastic advice for 95% of people. If you one of the few that can manage debt responsibly, however, you'd be missing out on the opportunity for leverage. In many cases a person can effectively trade their good credit for additional returns. Of course, you need to fully understand the risk/return profile of any leveraged investment you make AND be careful not to be overleveraged at any point. It's a fine line…
I think the important thing to consider is what you are taking on debt for - are you using it for investment in something or for an expense? A house or an education is an investment - it can be a good or bad one, of course, but the idea of going into debt to obtain either of those should not be dismissed out of hand. Both can provide a return on those investments greater than the interest cost.
However, if you are taking on debt for an expense (a vacation, a new car when you have a working one already, a new toy), then you are gaining nothing in return for the interest. You could easily wait until you have the money saved up, since those expenses have no extra return for purchasing early.
The worst debt, of course, is when you are taking it on because you simply have more expenses than you do income. This is often the source of credit card debt. If you are growing in debt but not growing in investments, you need to take a hard look at your lifestyle.
Re: Anthony Bourdain on not having debt
#9You obviously didn't read the article. Bourdain did not reach the magical 'no-debt' world of wonder until after he got famous.
If anything it's a fake-cautionary tale. "Don't do what I did kids, even though I'm rich and did more blow and had way more fun than you'll ever have in your whole life!"
Ugh.
Re: Anthony Bourdain on not having debt
#10This is fantastic advice for 95% of people. If you one of the few that can manage debt responsibly, however, you'd be missing out on the opportunity for leverage. In many cases a person can effectively trade their good credit for additional returns. Of course, you need to fully understand the risk/return profile of any leveraged investment you make AND be careful not to be overleveraged at any point. It's a fine line…
I think the important thing to consider is what you are taking on debt for - are you using it for investment in something or for an expense? A house or an education is an investment - it can be a good or bad one, of course, but the idea of going into debt to obtain either of those should not be dismissed out of hand. Both can provide a return on those investments greater than the interest cost. However, if you are ta…
IMO, student debt the way it is structured in the US cannot be classified as an investment because it cannot be discharged and has no collateral. You cannot get a return on student debt. You can get a return on an education, but the debt is much more like a cc then an investment, especially if any of the student debt is used to pay living expenses.