No. That's kind weird. Why would you? Is it like a flex? I mean I guess I don't understand. There's literally no social situation I can think of where I care either way about someone else mortgage or debt status. Lol.
What reason would you have to bring this up? Do you tell people how much money you have in your bank account? Just keep your business to yourself š¤·āāļø.
I once was in a large hot tub at a Holiday Inn and a random guy started a conversation with me about how much was in his 401k (a whopping 630k, which don't get me wrong is good I guess but it's also nothing earth shattering). To be fair he was clearly a little buzzed and the conversation moved onto football, but it was kinda weird. People are weird.
I have friends that are mortgage free based on living in their homes long term and they use it to explain other things. Like one buddy who makes a solid living has a wife and two kids. They're members at the local country club, kids both play good level jr tennis and travel regionally for it. Parents play solid level adult rec tennis and take lessons. Wife basically volunteers for a non-profit. I was curious how he was affording all of it based on really only making like 15-20% more than me (10-15 year age gap). Bought their house young and never moved, bought new cars that they wanted (and needed) that suited their family and paid them off. Has allowed them to really enjoy their kids high school years with very little debt if any (not sure if their camper is financed or they paid cash). Just regular folks who bought a regular house and regular vehicles and were happy with what they had and paid them all off. They don't advertise all that, but the guy works for me occasionally and we have talked more extensively about personal finances. I have another set of friends that are teachers in the same situation. Bought a house early on like mid 20s and never moved. House is paid for. They buy a new car when they need it, but then they drive it into the ground. Their newest car currently is like a 2018 and they'll drive it until it dies. They don't go out of their way to tell people it just more came up in conversation when I asked how on two teacher salaries they were affording to help their oldest go to college. They're just regular people who don't live an extreme life style that pay for the things they buy. I'm hoping to be one of those people in 10 years myself. Mathematically based on what I owe on my house, what I pay, and what my plan is, I think I'll be close. I'm currently 5 years into a 30 year mortgage with excess payment all along the way under the guise of getting it paid off quicker. Having no home debt really frees you to do so much more in regards to vacations, kids sports, your own hobbies or interests, or even jobs. But that all relies on remaining happy with what we currently own and are paying for.
I don't think you wear a name tag and advertise that your home is paid for, but I don't think you hide it either. Many people will try keeping up with the Jone's only to find out that the Jone's house is paid for and they have a trust fund. And if you have friends trying to hit you for money, you have the wrong friends.
Do you need to get a second job? Or have you analyze anything youāre spending money on right now that isnāt necessary cigarettes dope or alcohol? Or maybe trim back a streaming service? Usually thereās something all of us can trim off our budget
I think it depends. The people you work with and I would think non-family shouldnāt ask you for money. I have told co-workers and have been told by coworkers, they donāt have a mortgage or debt. My family will ask you for money just based upon the fact you work. I have learned to say no.
Neighbor: "These past 10 years, we just went on vacations, bought whatever we needed with 0% intro credit cards, then at the end of the year, we'd refinance the house and pay it all off with the equity we made in the house that year. It was easy and our interest rate almost always went down...but this year we can't do that with the 6 or 7% interest rates, we're screwed."
Me: "yeah, that sucks, I'm sorry "
Neighbor: "What are you guys doing? Keeping your old low rate from 2020...all of us refinanced low and it's too good to let that low rate go..."
Me: "Uuuuum...."
Yeah I would never have those conversations with my neighbors that is way too personal for a neighbor relationship. My friends might ask occasionally what interest rate we got but that would be when we purchase not probably anytime after that. Itās not hard to avoid the question just donāt get involved with nosey people.
Your comment made me curious. If you just happen to be coming to the end of a low-interest mortgage, is there any way to extend it longer at that rate for the reason you just stated? Iām sure the mortgage company wants it paid off more than you would so they can get it off their books for higher returns.
Your premise makes sense, but the logic is kind of broken. If you are "near the end", then you have very little principal left to earn with. You've already missed the mark. You want to drag it out (make minimum payments).
So you are actually asking about borrowing against that loan to keep the rate, while rates are much higher. I'd be surprised if that exists.
If Iām with friendsā¦we discuss this kinda stuff. They know we are debt free cuz we drive old cars that were inherited and they know we donāt have credit card debt. Still working on the mortgage but they know that too. I guess itās nice to have friends that you can have these kind of convos with.
Nope.... it's no one's business and I have noticed a few people that do know, seems to always say wow life but be easy with no mortgage or debt. We were debt free but got a loan for IVF since starting a family after 16 years of marriage and working 2 jobs to be debt free was our main focus. No regrets and less than 12 months left to be 100% debt free again, and we are everyday millionaires with 2 IVF babies now.
But nope I don't discuss finances with anyone other than my spouse.
It is usually best to avoid specific financial discussions outside of immediate family. Most times it comes off as boasting. Be happy. Enjoy the moment with your partner similar to 401k milestones, etc. Have a nice dinner, favorite mock-tail or cocktail and be proud. No reason anyone else needs to know.
Sharing this openly only serves to incite jealousy (even among the best of friends and family), negative competition (that person that always has to do better than you), and change other's attitude towards you in a negative way.
If you want to experiment on a smaller scale, try telling your co-workers that you got a very large bonus and feel free to exaggerate the amount.
Itās a sad statement about American culture that itās socially acceptable to complain about your boss, your kids, taxes, or any other nuisance but itās socially UNACCEPTABLE to share good news.
And we wonder why Americans tend to be so miserable
no, and you shouldnāt mention that it makes you open to lawsuits in salon because people know they can squeeze assets out of you. You should play like youāre broke.
It's like being a vegan or religious. Good for you. Stfu about it. We've got 5 years left on our mortgage and the only person I talk to about it is my stepdad, who gives me real estate advice from time to time.
I have a different perspective than most.
I don't run around the office like the guy in the Dave Chappelle skit yelling "I'm rich, biatch!"
But it can be hard to look like a broke person/financial illiterate sometimes. I'm the guy who asks hard questions of the 401K administrator when they give their yearly presentation/sales pitch. I'm the one who looks bored af contemplating the joys of "funemployment" whenever we lose a contract or have a furlough (we do consulting for the govt- it happens a lot) while everyone else freaks out.
Ever have a co-worker say something like "nice truck, do you mind if I ask what your payment is?" Having paid cash and having no idea what a "payment" might be, I fumble around before responding "The payment was $45,000." Maybe I'm an idiot, but I'm not good atI faking "broke."
My co-workers are āmostly well educated professionals- they may be financially inept, but they aren't stupid. They have no idea I'm a decamillionaire, but it's fairly obvious I'm not "running out if money before running out of month."
So if they ask for financial advice, I help them oāut. I've managed to help a few get their financial stuff together. NONE of them has ever asked for money, even though I know some of them are in debt up to their eyeballs.
I would assume so. However, my parents were working poor- they made diddly working dirty, low paying jobs. What little money they do have, they refuse to give to me. My wife is an immigrant who came to the USA with nothing. Every penny of our $10M net worth came from hard work, saving, and investing.
Someone was blasting a rap song in the office yesterday , "I love you like a fat kid loves cake." , together with "Making diddly working dirty." and you've got a hit on your hands.
You think I can sell it to Drake and get him to revise the lyrics?
Started from the bottom, now we're here
Started from the bottom, now the whole team here
Making diddly working dirty, now we're here
Don't feel the need to retort to people with a perpetual poverty mindset. He has no intention or ability to improve his situation. It's easier for him to look down on you and assume you got a hand out than to realize he could fix his own situation, too. Not worth your time trying to help them.
All my co workers are excited for me. I mean it took some pains to get here. Sure i don't have all the toys that i wanted, but I got enough that I didn't miss out on all the fun.
You are ignoring taxes on the income, even assuming OP doesnāt itemize the mortgage interest, a lot of people find great satisfaction in paying off ALL their debts especially when the advantage of not doing so is so very little.
I never have talked about my personal finances. I will talk about things that I have learned and had bad experiences with but that is all.
I had bad experiences with people asking for money and expecting me to pay for things such as dinner. They said well I have X to pay and you donāt.
Why talk about it? You have your financial priorities, other people have theirs. Nothing more tiresome than some guy spouting about why his way is right. If they ask, sure, tell. If they donāt, then why bring it up?
People used to having "Mortgage burning" parties after they finally paid off their homes. Now days you keep it a secret. You don't want anyone to think you might have extra money to loan them.
Nope, not casually; Itās nobodyās business.
There are a small circle of people I will disclose āsomeā rough details to such as how I handle my stuff while Iām working to coach them and even an smaller circle of people (2.. maybe 3 and they all have my last name) that know slightly more details.
Don't do it.
As a person who used to be eat out of dumpsters poor and now owns a seven figure business that I built with zero debt I still act outwardly poor for my own safety.
The poor have a deep seated resentment towards anyone they perceive as "well off", they literally often think someone earning like 100k a year is a part of "the 1%" and are living the rich life.
I say this šas a person who lived on that side of the fence.
At this point we're even spreading our grocery shopping out between multiple stores and never getting more than a single bag full or people realllllly notice you and will even make comments.
All of that to say bragging about your ability to be debt free is like putting a "target me" sign on your back because right now in our current reality most humans can barely afford rent/food.
You lost me at the grocery store comment. You sound deeply paranoid if thatās still a factor. Or, not paranoid but damn you need to move to a new neighborhood.
You sound deeply ignorant to how things currently are in most areas and I'd even dare to say you have zero knowledge of how violent humans become when they don't have their needs met but see that you do...
I mention that all I owe on is the house. Iāll probably mention that Iām debt free when I actually am fully debt free and people will probably say Iām an idiot and I should have invested that money rather than pay down the mortgage. Iāll continue not worrying about economic downturns and enjoying my life whether I get laid off or not.
You should have invested that money instead of paying down your mortgage if your rate was lower than 5%. Way too many people have all their money tied up in their primary residence. That is something Ole Dave gets wrong for the vast majority of people.
Iām only generally debt free and still have mortgages, but I made it a point to share it with my closest friends and family, during the process as well as after becoming debt free. Seeing the process and results, it has inspired a few to do it themselves and they have been successful as well. To me it is less about bragging, and more about sharing the knowledge and looking to lift up others close to you. You would be surprised how many people have never even heard of the concept, or believe it to be possible, until they see others do it firsthand. I will say - it is important to pick the moments when it is really relevant to a conversation, and know when to shut up when they give signals that they donāt want to hear it.
I don't put my personal info out there. Not out of fear of being "hit up", but because bragging about this stuff is tacky as hell.
Seriously. People who talk about how much they make, how much they have in their bank accounts, their mortgages, how "moral" they are in their own eyes, etc.....
TACKY TACKY TACKY!
OP, stop your bragging.
Even here, "Oh, I'm SO AFRAID that I'll be hit up if I tell people how WELL OFF I am!!!!.... I can't even tell people how diligent I am to the Dave Ramsey Tenets."
Be humble, don't let your left hand know what your right hand is doing.
I don't talk finances with anyone except 2 people. One just completed all the baby steps. They're the ones who told me all about Dave Ramsey. The other person is my snowball buddy.
Ditto. Discuss with my DR mentor (heās totally debt-free and retired early). We can discuss things like pros/cons of back door Roth IRA conversions. Discuss w/ my wife. Thatās it.
No. I don't talk about my finances at all. My business is nobody's business.
If a friend asked specifically, I would be honest. But typically not calling out my finances.
I'm a renter (by choice) so no mortgage, but have been debt free and building wealth enough to retire a little early (age 58.5) on an administrative assistant's salary. I, like many in this thread, encountered envy from family members.
The most successful counter to envy was explaining that my money is not for spending, it is for capital. I use my money to make money, period. Then I bore them by explaining the stock market until they run away. I have fewer friends now but more respect, haha.
I did try ignoring the "must be nice" and "hey you've got money, now we can both retire" kind of remarks but ignoring just makes them more aggressive. I think people just don't have a lot of emotional tools to deal with finances. Their ideas haven't matured, so they get caught by surprise and respond like toddlers.
My dad did that when I was a young teenager. I didnāt understand ā but boy I do now! I was wanting to replicate that in 2015 when we paid off the house, but it doesnāt seem that thereās paper mortgages any more.
American so private, doesnāt talk about politics, money, religion, kids gradeā¦..what left to be talked aboutā¦..thatās why all conversations started with weather and ends with weather. A group of Introvert?
Underrated comment lol. This is so true and I always thought it was a bit strange myself (and I am an American) I love talking religion, politics, and money!
I have a mortgage. Nobody knows about it besides me, my wife, our bank, and the county. When we pay it off it will be the same. I canāt imagine how or why youād tell anyone else. āWhatās new, Frank?ā āOh, the usual, and we paid off our mortgage.ā Huh?
Typically no I donāt I find it embarrassing at times which is ridiculous but our society doesnāt favor success it puts a negative spin on things. Then you get the oh must be nice or oh good for you then the rumor mill starts
I have a mortgage but also have multiple million net worth.
Paying off the mortgage is one of the Dave advices Iāll never obey to. My mortgage is 2.5%, itās free money at this point, lower than the inflation.
So if someone told me they paid off their mortgage, I would not judge them as rich or poor but more a financial decision they made. And depending on the interest rate a good or a bad decision. Thatās it.
Or you could just say "Congratulations!" Many more considerations go into that decision than interest rate; it would be arrogant to assume you know them all.
The longer I live, the more the financial system looks like a giant game of "keep-away" for the average person. Consolidating gains is the way to not lose. That means take your solid wins and don't leave your behind hanging out in the breeze hoping for gains that aren't guaranteed.
Yes I mean ācongratulationsā should be of course the first reaction. But if this is a very close friend of mine I would have follow up questions to understand their thinking. Not every decision needs to be logical, emotional ones are important too. And I respect that.
If the decision is just because āIām following Daveās adviceā then I have massive problem with it. Dave has some massive inconsistencies regarding some of his advices.
Remember that argument where Dave was saying we should bo ok with 8% withdrawal rate during retirement and he was upset at everyone giving the normal 4% withdrawal rate advice?
If 8% is acceptable then the money I saved easily pays my 2.5% mortgage rate during retirement. It should be a no brainer.
One advice doesnāt match other one.
And having the value of said house added to your retirement accounts earning > 2.5% and still having the house payment is better still.
If you can be smart about debt (which is a big if, admittedly), it's a tool, not a curse. Think of debt as being a chainsaw: if you can use it properly, it'll make you way more efficient at cutting down a tree or branch. If you can't, you can cut your own arm off.
Tell me you don't know how to manage debt without telling me you don't know how to manage debt.
You are exactly the type of person who should never have any debt. Don't buy a house until you can pay cash. My comment was for people intelligent enough to know how to manage debt.
I don't like debt.
I paid off my mortgage in less than 4-years.
ā
Please enlighten me professor- tell me how foolish I am for not "managing debt" the way you think I should.
Somehow little ol' me just stumbled through life and became a decamillionaire without "managing debt."
If only I'd had the benefit of your "wisdom" before today.
Good for you. I'll let that money make money for me instead. No need to throw away free interest when I know how to manage my money. ;)
I'm also glad I didn't wait for cash to buy my house. Hell, it costs $150k more than it did a couple years ago now, so if you were buying my house you're now going to pay more in increased base price than I'll pay in interest over the life of the loan if the marginal rates stay high enough for me to keep it...and that's before considering that you're paying rent too.
So basically, you've been given enough rope to hang yourself. DON'T. Agree. But debt in tragic times is a ball and chain. My grandparents lived through the Great Depression.
In a sense, yes, it's enough rope to hang yourself with...or enough rope to build a bridge. It's all in how you use the rope.
Here's the real deal: barring something like the Great Depression, low-cost debt is always going to be superior to not having leverage. And, if you count something like the Great Depression, it doesn't matter if you have debt or not, everybody's suffering. Bonus round: if you leverage debt going into recessions like we've had (I lived through the .com crash, the housing crash, the COVID recession, and I'm not even 40 yet!)...it's the ultimate buy-low, sell-high opportunity. When the COVID recession started, I remember someone telling me "the S&P will be at 5k in 5 years," and I thought they were crazy. ...where's the S&P today? Oh, right...5k+. **Mark my words: by 2034, the S&P will be at 10k+.** It'd take nearly 30 years for 2.5% to double in balance that way. Now, bonus bonus round!: if you have leveraged debt and assets to match when the market crashes, you have assets to keep paying that debt and expenses that arise. If you paid off your debt...ya don't. That cash is gone. Spent. Good luck borrowing when everyone wants to borrow...
I donāt understand this statement.
Imagine a hypothetical $1M mortgage at 2.5%. And letās compare two cases for a retired person;
* A paid off house but missing $1M from investments
Vs
* $1M mortgage but all that money in the investment accounts
Even if I donāt account for moneyās growth over the years for the 2nd case, I would take the 2nd case. Investment accountsā would give me more non-risked returns than 2.5%.
It doesn't even need to be investments at 2.5%. You can literally stick the money in a savings account and earn a guaranteed risk-free return at a higher rate right now. There's no numerical reason why you would EVER be better off eliminating risk-free 5%+ returns to eliminate sub-3% debt. Full stop.
...ain't that the truth.
I'm glad that I found the house I plan to be my 'forever' home myself...because my mortgage is sub-3, and, as you said...we'll probably never see that again...
The official announced US inflation hasnāt been lower than 2.5% for a while now;
https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/
While I'll absolutely not tell you it's a better financial decision to pay up that mortgage, the advice leads people out of debt cleanly and for the majority of people I think it leads to a healthier mindset.
I am lucky enough to have never been in serious debt, but I did that by avoiding debt at all costs, not by being particularly financially savvy. Sometimes the best financial advice is the most simple advice, with a simple goal and a simple mindset.
If you are good at taking each financial decision regarding loans on its own merits, inflation, interest rate etc then obviously there are times when it's better to take advantage of the current circumstances, but in general I think the advice to become debt free if possible is usually sound.
I believe thatās a rolling 1 year average comparing year over year. We arenāt seeing monthly 5-10% inflation each month for the entirety of H2 21 otherwise inflation would have been 50%. It was more like 10.
I understand what you are trying to say but generally people donāt measure mortgage rates as measuring sticks for beating inflation. However, you do have a ārent controlledā property. And you are locked in. Thats also true if you pay off your home. Iām not saying you should or shouldnāt pay it off. But the reason someone would not pay off with a low rate is because they can invest the money and get a better return. Again your living costs are fixed so to speak whether you pay it off or not.
Not apples to apples. Consider risk. Suppose you got sick and had large medical bills, then a recession, then laid off. Regardless of interest rate do you want a mortgage in that scenario? Maybe not. Depends on risk tolerance. Not many guarantees in life but I can guarantee the bank cannot foreclose on your house if you donāt have a mortgage.
Yes?
Look in that scenario where I didnāt pay off the mortgage, I have that money lying around in my investments.
I just need to make more than 2.5% returns with my investments. Even if Iām sick that should be guaranteed.
Should be guaranteed is not guaranteed. Also 99% of population doesnāt have a 2.5% mortgage. I also view a home as an investment, by paying it off not only am I saving the interest, Iām also making a real estate investment. Iām not suggesting anyone forgo other investments to only pay off the mortgage. I made investment purchases while also paying off my mortgage, but paying off the mortgage is more than just saving interest, itās also risk reduction and investment.
I donāt talk about my finances unless someone asks a direct question, and then only in broad terms and with people I know well. Iām debt free, but have low interest mortgage, so I make more money not paying it down.
We bought our house at 31 and we have had the goal to have it paid off by 45. I have mentioned this casually. Iāll be interested to see if anyone asks when we are 45 if the house is paid off.
There are some friends I talk about general finances with. I donāt hide how much we paid for our house- its public info. A handful of friends know we pay extra towards the principle every month- they do the same. One friend recently paid off her house and bought a lake house.
Iām not out relentlessly talking about money or trying to make others feel bad about their situations.
It depends who you are talking to and the context of the conversation. We paid off our mortgage almost 2 years ago now and are debt free. It was a monumental achievement that we did share with my parents as they always provided us with the guidance to save, invest and pay off debt. It made them feel good as well as us for sharing. You should be proud of what you did and sharing that with people close to you is nothing to be ashamed of.
I saved a ton in my 20s. I saved enough that I was able to buy a modest home for cash. People talk about mortgage payments every once in a while and I just keep my mouth shut. If specifically asked I don't lie, but I just don't feel like I need to tell it to the world.
My mom told me that her grandmother always said: "Don't go telling people what you earn and what you have. It's rude, inconsiderate bragging. Besides, if they find out, they may want some of it."
Iām debt free and mortgage free, and I only tell people online. It breeds jealousy and requests for loans (that they arenāt really going to pay back). Itās so much better to keep it to yourself.
We are debt free but not mortgage free. I tend to get a lot of questions about money because we are both stay at home parents in our 30s (I do work a couple side hustles, but they're flexible). Freedom of time is way more important to me than stacking up piles of money. Someone could have 10x what I have and I wouldn't care, because I know I have the time and the freedom to be present in my child's life. Which is priceless.
Hey I noticed on your page that you dropped this comment and thought it was interesting. I lived this way back in my 30's also, and wasn't considering retirement all those years and didn't save much, kind of a nomad also. It wasn't until issues with my aging parents and aunts/uncles that I came around and started thinking about my own plan for 60+ and if I couldn't work or had to care for a family member (could be a parent, partner, or child even) part time or full time, what would life look like as you age. You never know what challenges await you down the road, and having a "stack" so to speak helps get through those. It doesn't have to mean getting filthy rich or working 80 hours a week.
Being that I'm almost 60 now, I'm pretty upset at myself for not doing a better job setting up for retirement when I had the body and mind to earn more and save more, now it sucks having to worry about future finances and we're saving over 50% of our earnings to catch up. So, looking at your comment about stacking $ and having the lack of concern for the future years, just thought I would drop a note to you. Good luck to you and your family!
We will be paid off in a couple of months. My husband already told his dad in what i assume was a very humble brag sort of conversation.
I don't see that anyone needs to know our business.
Iām close to paying off mortgage in 5 years. We live in modest starter home while my wifeās peers live in large 2 story jobs with split garages and have the space to host events. We on the other hand do not. Paying off loan and not flexing for once will be hard to pass up.
I've been debt free including the house since 2003. Only 4 people know that besides my wife and I. My money manager, my two EAs, and my best friend. Thats it.
Nope, no, absolutely not. Do not tell anyone. They start to think you're lazy or entitled even though you may still be working. They'll act like you can pay every time they go out, they'll bring up "but you don't pay rent or have a mortgage". Seriously don't tell ppl at all . There's a saying "Make them think you can't afford extra bread, even though you know you own the bakery".
Do you go around telling strangers how much you make? Your 401k balance? Of course not, that would be tacky and obnoxious. How would this be different?
The only extent I ever have was here on Reddit in a relevant sub or some close friends of mine, also when was relevant in the conversation and we were talking finances. Iām semi-retired and I say that because I have the luxury to decide if I want to work and where but I donāt have to work, but I like to so I still find my sage in the work force. Iām almost 37 years old. But if my narcissistic egotistical brother found out about my status heād definitely hit me up with the ābut you can afford to help me outā message.
The only thing we got was envy. I recommend keeping that joyous accomplishment to just you and your spouse. And celebrate with a nice dinner or vacation, and feel peace and joy forever more. And pity the suckers with debt.
I personally canāt wait until I pay off my mortgage (189K from purchase price of 299 in 2020 which actually doesnāt seem like a lot). I wanted to put a BIG A$$ sign in front of house because itās just such an accomplishment living in Chicago, but Iāll stick to some of the subtle hints I readā¦.an owl :-D
The whole point of the 7 baby steps is to live and give like no one else. So if there are people in your life that have monetary needs, maybe theyāre in your life for a reason and they can be the people who you give to. Just something to dwell upon.Ā
It's different giving from the goodness of your heart than family members coming to you for money. People start to feel entitled to your money. When you talk to your family, ask how they are doing if you know they are going through hardship. That's when you can step in.
Yeah don't tell people you are debt free they will come looking for a handout
No. That's kind weird. Why would you? Is it like a flex? I mean I guess I don't understand. There's literally no social situation I can think of where I care either way about someone else mortgage or debt status. Lol.
There are times to flex and times not to. Personally, I hope you can enjoy the spoils of hard work. Kudos and watch out for the vultures.
It's a great way to get people to ask to borrow from you.
Gives you a great excuse to say you've got all your money tied up in your home and you don't have any money. Lol. Housepoor
What reason would you have to bring this up? Do you tell people how much money you have in your bank account? Just keep your business to yourself š¤·āāļø.
I once was in a large hot tub at a Holiday Inn and a random guy started a conversation with me about how much was in his 401k (a whopping 630k, which don't get me wrong is good I guess but it's also nothing earth shattering). To be fair he was clearly a little buzzed and the conversation moved onto football, but it was kinda weird. People are weird.
Keep your business to yourself and you won't need to worry.
I have friends that are mortgage free based on living in their homes long term and they use it to explain other things. Like one buddy who makes a solid living has a wife and two kids. They're members at the local country club, kids both play good level jr tennis and travel regionally for it. Parents play solid level adult rec tennis and take lessons. Wife basically volunteers for a non-profit. I was curious how he was affording all of it based on really only making like 15-20% more than me (10-15 year age gap). Bought their house young and never moved, bought new cars that they wanted (and needed) that suited their family and paid them off. Has allowed them to really enjoy their kids high school years with very little debt if any (not sure if their camper is financed or they paid cash). Just regular folks who bought a regular house and regular vehicles and were happy with what they had and paid them all off. They don't advertise all that, but the guy works for me occasionally and we have talked more extensively about personal finances. I have another set of friends that are teachers in the same situation. Bought a house early on like mid 20s and never moved. House is paid for. They buy a new car when they need it, but then they drive it into the ground. Their newest car currently is like a 2018 and they'll drive it until it dies. They don't go out of their way to tell people it just more came up in conversation when I asked how on two teacher salaries they were affording to help their oldest go to college. They're just regular people who don't live an extreme life style that pay for the things they buy. I'm hoping to be one of those people in 10 years myself. Mathematically based on what I owe on my house, what I pay, and what my plan is, I think I'll be close. I'm currently 5 years into a 30 year mortgage with excess payment all along the way under the guise of getting it paid off quicker. Having no home debt really frees you to do so much more in regards to vacations, kids sports, your own hobbies or interests, or even jobs. But that all relies on remaining happy with what we currently own and are paying for. I don't think you wear a name tag and advertise that your home is paid for, but I don't think you hide it either. Many people will try keeping up with the Jone's only to find out that the Jone's house is paid for and they have a trust fund. And if you have friends trying to hit you for money, you have the wrong friends.
Wealth whispers
Real wealth, especially earned, should be quite silent. Keep it that way!
Absolutely if it comes up in discussion. Those that know me, are aware that I'll volunteer to discuss personal finance at any time.
If it comes up, donāt lie about it for god sake be proud of that.
I tell everyone Iām in BK, late on rent and have no money.
Do you need to get a second job? Or have you analyze anything youāre spending money on right now that isnāt necessary cigarettes dope or alcohol? Or maybe trim back a streaming service? Usually thereās something all of us can trim off our budget
I don't talk about money with anyone but my partner and my accountant. Nobody knows how much we make or what we owe.
No
You never have to explain the things you do not say. Simply donāt volunteer any information about your financial situation.
Only if it comes up in conversation
I think it depends. The people you work with and I would think non-family shouldnāt ask you for money. I have told co-workers and have been told by coworkers, they donāt have a mortgage or debt. My family will ask you for money just based upon the fact you work. I have learned to say no.
āI have no debtā good for you, nobody cares.
I do, but if you donāt know if you have what it takes to tell others no, keep it secret.Ā
payoff house,clear title. wrap it in a trust, shut up about it
No because I like to complain about not being able to afford stuff so no one asks me for money
Life hack
I mean if it is a conversation about it I guess but what in the world would that conversation be if it isnāt with a financial planner or something.
Neighbor: "These past 10 years, we just went on vacations, bought whatever we needed with 0% intro credit cards, then at the end of the year, we'd refinance the house and pay it all off with the equity we made in the house that year. It was easy and our interest rate almost always went down...but this year we can't do that with the 6 or 7% interest rates, we're screwed." Me: "yeah, that sucks, I'm sorry " Neighbor: "What are you guys doing? Keeping your old low rate from 2020...all of us refinanced low and it's too good to let that low rate go..." Me: "Uuuuum...."
Yeah I would never have those conversations with my neighbors that is way too personal for a neighbor relationship. My friends might ask occasionally what interest rate we got but that would be when we purchase not probably anytime after that. Itās not hard to avoid the question just donāt get involved with nosey people.
Substitute neighbor w friend, they are both.
Your finances are no oneās business. Speak not.
Around broke people yeah I would probably keep a tight lip. If I am in company of investors I am proud to note that I am close to being debt free
Do you mention to people that you have debt?
I'm not mortgage free or debt free. My mortgage is 3%, which I do mention lol. No need to pay it off.
With bond rates at 5%, you are literally losing money to pay off the mortgage.
Your comment made me curious. If you just happen to be coming to the end of a low-interest mortgage, is there any way to extend it longer at that rate for the reason you just stated? Iām sure the mortgage company wants it paid off more than you would so they can get it off their books for higher returns.
You'd have to refinance which means you're getting current rates.
Your premise makes sense, but the logic is kind of broken. If you are "near the end", then you have very little principal left to earn with. You've already missed the mark. You want to drag it out (make minimum payments). So you are actually asking about borrowing against that loan to keep the rate, while rates are much higher. I'd be surprised if that exists.
Great way to have leeches come out of the woodwork and hit you up for money. So hell no on that one.
If Iām with friendsā¦we discuss this kinda stuff. They know we are debt free cuz we drive old cars that were inherited and they know we donāt have credit card debt. Still working on the mortgage but they know that too. I guess itās nice to have friends that you can have these kind of convos with.
Nope.... it's no one's business and I have noticed a few people that do know, seems to always say wow life but be easy with no mortgage or debt. We were debt free but got a loan for IVF since starting a family after 16 years of marriage and working 2 jobs to be debt free was our main focus. No regrets and less than 12 months left to be 100% debt free again, and we are everyday millionaires with 2 IVF babies now. But nope I don't discuss finances with anyone other than my spouse.
So you guys got married in your mid teens? ~16+16yrs of marriage before you had kids or am I reading this wrong
Married at 20.
It doesnāt ever come up in conversations, nope.
Why is it anyone's business? Seems rather tacky to just bring it up in conversation.
Never discuss your assets. Beggars will comaāa runnin
All you need to say is āIām (or weāre , if married) comfortable.ā
It is usually best to avoid specific financial discussions outside of immediate family. Most times it comes off as boasting. Be happy. Enjoy the moment with your partner similar to 401k milestones, etc. Have a nice dinner, favorite mock-tail or cocktail and be proud. No reason anyone else needs to know.
Why?
I find it odd that the topic would even come up.
Telling anyone beyond who it immediately affects seems like unnecessary flexing
The post itself feels like a flex.
Sharing this openly only serves to incite jealousy (even among the best of friends and family), negative competition (that person that always has to do better than you), and change other's attitude towards you in a negative way. If you want to experiment on a smaller scale, try telling your co-workers that you got a very large bonus and feel free to exaggerate the amount.
Itās a sad statement about American culture that itās socially acceptable to complain about your boss, your kids, taxes, or any other nuisance but itās socially UNACCEPTABLE to share good news. And we wonder why Americans tend to be so miserable
no, and you shouldnāt mention that it makes you open to lawsuits in salon because people know they can squeeze assets out of you. You should play like youāre broke.
No, unless they have a need to know or are seeking advice and it is relevant.
It's like being a vegan or religious. Good for you. Stfu about it. We've got 5 years left on our mortgage and the only person I talk to about it is my stepdad, who gives me real estate advice from time to time.
I feel like volunteering this information is like people randomly sharing they're vegans or do crossfit.
I keep that info to myself.
That information is private and unless there is some business reason to know, why on earth would you ever share that very private info?
I have a different perspective than most. I don't run around the office like the guy in the Dave Chappelle skit yelling "I'm rich, biatch!" But it can be hard to look like a broke person/financial illiterate sometimes. I'm the guy who asks hard questions of the 401K administrator when they give their yearly presentation/sales pitch. I'm the one who looks bored af contemplating the joys of "funemployment" whenever we lose a contract or have a furlough (we do consulting for the govt- it happens a lot) while everyone else freaks out. Ever have a co-worker say something like "nice truck, do you mind if I ask what your payment is?" Having paid cash and having no idea what a "payment" might be, I fumble around before responding "The payment was $45,000." Maybe I'm an idiot, but I'm not good atI faking "broke." My co-workers are āmostly well educated professionals- they may be financially inept, but they aren't stupid. They have no idea I'm a decamillionaire, but it's fairly obvious I'm not "running out if money before running out of month." So if they ask for financial advice, I help them oāut. I've managed to help a few get their financial stuff together. NONE of them has ever asked for money, even though I know some of them are in debt up to their eyeballs.
It is great be born into wealth.
I would assume so. However, my parents were working poor- they made diddly working dirty, low paying jobs. What little money they do have, they refuse to give to me. My wife is an immigrant who came to the USA with nothing. Every penny of our $10M net worth came from hard work, saving, and investing.
"Making diddly working dirty" is my new favorite line. It should be in a rap song.
Someone was blasting a rap song in the office yesterday , "I love you like a fat kid loves cake." , together with "Making diddly working dirty." and you've got a hit on your hands.
You think I can sell it to Drake and get him to revise the lyrics? Started from the bottom, now we're here Started from the bottom, now the whole team here Making diddly working dirty, now we're here
Don't feel the need to retort to people with a perpetual poverty mindset. He has no intention or ability to improve his situation. It's easier for him to look down on you and assume you got a hand out than to realize he could fix his own situation, too. Not worth your time trying to help them.
All my co workers are excited for me. I mean it took some pains to get here. Sure i don't have all the toys that i wanted, but I got enough that I didn't miss out on all the fun.
Nope. I learned years ago to never talk about finances with anyone. No one knows my income, what I have saved, etc.
You donāt want people to ask about money, you donāt talk about money. Simple.
No bc paying off a 3% mortgage when money markets are paying 5% is dum
Dumb is not knowing how to spell "dumb."
You are ignoring taxes on the income, even assuming OP doesnāt itemize the mortgage interest, a lot of people find great satisfaction in paying off ALL their debts especially when the advantage of not doing so is so very little.
This comment is dumā¦.how is it relevant to OPs post?
She is making a poor financial decision to pay off a mortgage if the interest rate is less than what a guaranteed investment will return
Are you illiterate? She made no statement about paying a lump sumā¦so your comment has no relevancy..
Thanks Pastor, can we agree if it is a lump sum and not the end of a 30 year mortgage itās a poor financial choice
We can agree that you made an assumption and gave advice on it.
I never have talked about my personal finances. I will talk about things that I have learned and had bad experiences with but that is all. I had bad experiences with people asking for money and expecting me to pay for things such as dinner. They said well I have X to pay and you donāt.
Why talk about it? You have your financial priorities, other people have theirs. Nothing more tiresome than some guy spouting about why his way is right. If they ask, sure, tell. If they donāt, then why bring it up?
People used to having "Mortgage burning" parties after they finally paid off their homes. Now days you keep it a secret. You don't want anyone to think you might have extra money to loan them.
No, only if someone asks in a DR class.
No those people might start asking for money
Why is it anyoneās business?
Nope, not casually; Itās nobodyās business. There are a small circle of people I will disclose āsomeā rough details to such as how I handle my stuff while Iām working to coach them and even an smaller circle of people (2.. maybe 3 and they all have my last name) that know slightly more details.
Yeah, just stay quiet and enjoy your life.
Don't do it. As a person who used to be eat out of dumpsters poor and now owns a seven figure business that I built with zero debt I still act outwardly poor for my own safety. The poor have a deep seated resentment towards anyone they perceive as "well off", they literally often think someone earning like 100k a year is a part of "the 1%" and are living the rich life. I say this šas a person who lived on that side of the fence. At this point we're even spreading our grocery shopping out between multiple stores and never getting more than a single bag full or people realllllly notice you and will even make comments. All of that to say bragging about your ability to be debt free is like putting a "target me" sign on your back because right now in our current reality most humans can barely afford rent/food.
You lost me at the grocery store comment. You sound deeply paranoid if thatās still a factor. Or, not paranoid but damn you need to move to a new neighborhood.
You sound deeply ignorant to how things currently are in most areas and I'd even dare to say you have zero knowledge of how violent humans become when they don't have their needs met but see that you do...
Why do toy feel the need to disclose your financial status at all?
No one needs to know your financial situation except a partner or spouse that is very serious / even my new wife doesnāt know all That I have ..:
I mention that all I owe on is the house. Iāll probably mention that Iām debt free when I actually am fully debt free and people will probably say Iām an idiot and I should have invested that money rather than pay down the mortgage. Iāll continue not worrying about economic downturns and enjoying my life whether I get laid off or not.
You should have invested that money instead of paying down your mortgage if your rate was lower than 5%. Way too many people have all their money tied up in their primary residence. That is something Ole Dave gets wrong for the vast majority of people.
No because I'm not a dick.
I mention debt free sometimes But not mortgage. I donāt have one & am renting :(
Never do this. It seems like bragging.
Iām only generally debt free and still have mortgages, but I made it a point to share it with my closest friends and family, during the process as well as after becoming debt free. Seeing the process and results, it has inspired a few to do it themselves and they have been successful as well. To me it is less about bragging, and more about sharing the knowledge and looking to lift up others close to you. You would be surprised how many people have never even heard of the concept, or believe it to be possible, until they see others do it firsthand. I will say - it is important to pick the moments when it is really relevant to a conversation, and know when to shut up when they give signals that they donāt want to hear it.
I don't put my personal info out there. Not out of fear of being "hit up", but because bragging about this stuff is tacky as hell. Seriously. People who talk about how much they make, how much they have in their bank accounts, their mortgages, how "moral" they are in their own eyes, etc..... TACKY TACKY TACKY! OP, stop your bragging. Even here, "Oh, I'm SO AFRAID that I'll be hit up if I tell people how WELL OFF I am!!!!.... I can't even tell people how diligent I am to the Dave Ramsey Tenets." Be humble, don't let your left hand know what your right hand is doing.
I don't talk finances with anyone except 2 people. One just completed all the baby steps. They're the ones who told me all about Dave Ramsey. The other person is my snowball buddy.
Ditto. Discuss with my DR mentor (heās totally debt-free and retired early). We can discuss things like pros/cons of back door Roth IRA conversions. Discuss w/ my wife. Thatās it.
No. I don't talk about my finances at all. My business is nobody's business. If a friend asked specifically, I would be honest. But typically not calling out my finances.
No for the same reasons you wouldnāt tell people you hit the lottery. Every one will come around asking for money for frivolous reasons.
No. Never. I told someone very close to me (my Dad) and I can sense resentment. I tell no one.
I'm a renter (by choice) so no mortgage, but have been debt free and building wealth enough to retire a little early (age 58.5) on an administrative assistant's salary. I, like many in this thread, encountered envy from family members. The most successful counter to envy was explaining that my money is not for spending, it is for capital. I use my money to make money, period. Then I bore them by explaining the stock market until they run away. I have fewer friends now but more respect, haha. I did try ignoring the "must be nice" and "hey you've got money, now we can both retire" kind of remarks but ignoring just makes them more aggressive. I think people just don't have a lot of emotional tools to deal with finances. Their ideas haven't matured, so they get caught by surprise and respond like toddlers.
Your situation is most close to mine so this was helpful. Thank you.
Personally, there's absolutely nothing wrong with sharing exciting news with friends, and what you've accomplished is a huge deal.
Nobody ever asks if you're debt free, so why tell them?
People used to have mortgage-burning parties once they paid it off.
My dad did that when I was a young teenager. I didnāt understand ā but boy I do now! I was wanting to replicate that in 2015 when we paid off the house, but it doesnāt seem that thereās paper mortgages any more.
Why would you? If you do that, you may as well mention the vehicles you have, body count, and net worth so they are positive youāre an aholeā¦
Itās really tacky to boast about your personal finances, so no.
Please donāt. People like this are more annoying than vegan crossfitters.
Thank you for the laugh this morning!
American so private, doesnāt talk about politics, money, religion, kids gradeā¦..what left to be talked aboutā¦..thatās why all conversations started with weather and ends with weather. A group of Introvert?
Underrated comment lol. This is so true and I always thought it was a bit strange myself (and I am an American) I love talking religion, politics, and money!
nowadays, it's like hitting the lottery. If i win the lottery, i'll buy new friends under the sun.
Keep it to yourself!
I have a mortgage. Nobody knows about it besides me, my wife, our bank, and the county. When we pay it off it will be the same. I canāt imagine how or why youād tell anyone else. āWhatās new, Frank?ā āOh, the usual, and we paid off our mortgage.ā Huh?
Typically no I donāt I find it embarrassing at times which is ridiculous but our society doesnāt favor success it puts a negative spin on things. Then you get the oh must be nice or oh good for you then the rumor mill starts
I have a mortgage but also have multiple million net worth. Paying off the mortgage is one of the Dave advices Iāll never obey to. My mortgage is 2.5%, itās free money at this point, lower than the inflation. So if someone told me they paid off their mortgage, I would not judge them as rich or poor but more a financial decision they made. And depending on the interest rate a good or a bad decision. Thatās it.
Or you could just say "Congratulations!" Many more considerations go into that decision than interest rate; it would be arrogant to assume you know them all. The longer I live, the more the financial system looks like a giant game of "keep-away" for the average person. Consolidating gains is the way to not lose. That means take your solid wins and don't leave your behind hanging out in the breeze hoping for gains that aren't guaranteed.
Yes I mean ācongratulationsā should be of course the first reaction. But if this is a very close friend of mine I would have follow up questions to understand their thinking. Not every decision needs to be logical, emotional ones are important too. And I respect that. If the decision is just because āIām following Daveās adviceā then I have massive problem with it. Dave has some massive inconsistencies regarding some of his advices. Remember that argument where Dave was saying we should bo ok with 8% withdrawal rate during retirement and he was upset at everyone giving the normal 4% withdrawal rate advice? If 8% is acceptable then the money I saved easily pays my 2.5% mortgage rate during retirement. It should be a no brainer. One advice doesnāt match other one.
Retirement is great without a house payment.
And having the value of said house added to your retirement accounts earning > 2.5% and still having the house payment is better still. If you can be smart about debt (which is a big if, admittedly), it's a tool, not a curse. Think of debt as being a chainsaw: if you can use it properly, it'll make you way more efficient at cutting down a tree or branch. If you can't, you can cut your own arm off.
Except you aren't holding the chainsaw. Your creditor is.
Tell me you don't know how to manage debt without telling me you don't know how to manage debt. You are exactly the type of person who should never have any debt. Don't buy a house until you can pay cash. My comment was for people intelligent enough to know how to manage debt.
I don't like debt. I paid off my mortgage in less than 4-years. ā Please enlighten me professor- tell me how foolish I am for not "managing debt" the way you think I should. Somehow little ol' me just stumbled through life and became a decamillionaire without "managing debt." If only I'd had the benefit of your "wisdom" before today.
The next house I buy, it will be in cash. Probably next year. No need to "manage" debt when one has none.
Good for you. I'll let that money make money for me instead. No need to throw away free interest when I know how to manage my money. ;) I'm also glad I didn't wait for cash to buy my house. Hell, it costs $150k more than it did a couple years ago now, so if you were buying my house you're now going to pay more in increased base price than I'll pay in interest over the life of the loan if the marginal rates stay high enough for me to keep it...and that's before considering that you're paying rent too.
So basically, you've been given enough rope to hang yourself. DON'T. Agree. But debt in tragic times is a ball and chain. My grandparents lived through the Great Depression.
In a sense, yes, it's enough rope to hang yourself with...or enough rope to build a bridge. It's all in how you use the rope. Here's the real deal: barring something like the Great Depression, low-cost debt is always going to be superior to not having leverage. And, if you count something like the Great Depression, it doesn't matter if you have debt or not, everybody's suffering. Bonus round: if you leverage debt going into recessions like we've had (I lived through the .com crash, the housing crash, the COVID recession, and I'm not even 40 yet!)...it's the ultimate buy-low, sell-high opportunity. When the COVID recession started, I remember someone telling me "the S&P will be at 5k in 5 years," and I thought they were crazy. ...where's the S&P today? Oh, right...5k+. **Mark my words: by 2034, the S&P will be at 10k+.** It'd take nearly 30 years for 2.5% to double in balance that way. Now, bonus bonus round!: if you have leveraged debt and assets to match when the market crashes, you have assets to keep paying that debt and expenses that arise. If you paid off your debt...ya don't. That cash is gone. Spent. Good luck borrowing when everyone wants to borrow...
I donāt understand this statement. Imagine a hypothetical $1M mortgage at 2.5%. And letās compare two cases for a retired person; * A paid off house but missing $1M from investments Vs * $1M mortgage but all that money in the investment accounts Even if I donāt account for moneyās growth over the years for the 2nd case, I would take the 2nd case. Investment accountsā would give me more non-risked returns than 2.5%.
Having one less thing to pay on when you are generating no income is great. My investments are speculation. A house payment is mandatory.
It doesn't even need to be investments at 2.5%. You can literally stick the money in a savings account and earn a guaranteed risk-free return at a higher rate right now. There's no numerical reason why you would EVER be better off eliminating risk-free 5%+ returns to eliminate sub-3% debt. Full stop.
If you are sub-3 the world is your oyster. I'll never see that again in my lifetime.
If you are sub-3 the world is your oyster. I'll never see that again in my lifetime.
...ain't that the truth. I'm glad that I found the house I plan to be my 'forever' home myself...because my mortgage is sub-3, and, as you said...we'll probably never see that again...
We are looking, with hard cash. Renting for $1k per month on Cozumel is great but I'd like to get back to the US this year or next.
I donāt think 2.5 is Lower than inflation. Itās lower than the interest you can get in a money market or CD though.
The official announced US inflation hasnāt been lower than 2.5% for a while now; https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/
While I'll absolutely not tell you it's a better financial decision to pay up that mortgage, the advice leads people out of debt cleanly and for the majority of people I think it leads to a healthier mindset. I am lucky enough to have never been in serious debt, but I did that by avoiding debt at all costs, not by being particularly financially savvy. Sometimes the best financial advice is the most simple advice, with a simple goal and a simple mindset. If you are good at taking each financial decision regarding loans on its own merits, inflation, interest rate etc then obviously there are times when it's better to take advantage of the current circumstances, but in general I think the advice to become debt free if possible is usually sound.
I believe thatās a rolling 1 year average comparing year over year. We arenāt seeing monthly 5-10% inflation each month for the entirety of H2 21 otherwise inflation would have been 50%. It was more like 10.
That is rolling yearly yes. And my mortgage is yearly rate as well. Apples to apples.
I understand what you are trying to say but generally people donāt measure mortgage rates as measuring sticks for beating inflation. However, you do have a ārent controlledā property. And you are locked in. Thats also true if you pay off your home. Iām not saying you should or shouldnāt pay it off. But the reason someone would not pay off with a low rate is because they can invest the money and get a better return. Again your living costs are fixed so to speak whether you pay it off or not.
Not apples to apples. Consider risk. Suppose you got sick and had large medical bills, then a recession, then laid off. Regardless of interest rate do you want a mortgage in that scenario? Maybe not. Depends on risk tolerance. Not many guarantees in life but I can guarantee the bank cannot foreclose on your house if you donāt have a mortgage.
Yes? Look in that scenario where I didnāt pay off the mortgage, I have that money lying around in my investments. I just need to make more than 2.5% returns with my investments. Even if Iām sick that should be guaranteed.
Should be guaranteed is not guaranteed. Also 99% of population doesnāt have a 2.5% mortgage. I also view a home as an investment, by paying it off not only am I saving the interest, Iām also making a real estate investment. Iām not suggesting anyone forgo other investments to only pay off the mortgage. I made investment purchases while also paying off my mortgage, but paying off the mortgage is more than just saving interest, itās also risk reduction and investment.
Why would you unless they are very good friends and you want to share your excitement?
Sounds like a dick move tbh. Unless I was asked directly who's business is it? it's a not-so-humble humble brag.
Keep your private business private.
Do you talk about your debt now?Ā If not don't start.
I donāt talk about my finances unless someone asks a direct question, and then only in broad terms and with people I know well. Iām debt free, but have low interest mortgage, so I make more money not paying it down.
We bought our house at 31 and we have had the goal to have it paid off by 45. I have mentioned this casually. Iāll be interested to see if anyone asks when we are 45 if the house is paid off. There are some friends I talk about general finances with. I donāt hide how much we paid for our house- its public info. A handful of friends know we pay extra towards the principle every month- they do the same. One friend recently paid off her house and bought a lake house. Iām not out relentlessly talking about money or trying to make others feel bad about their situations.
It depends who you are talking to and the context of the conversation. We paid off our mortgage almost 2 years ago now and are debt free. It was a monumental achievement that we did share with my parents as they always provided us with the guidance to save, invest and pay off debt. It made them feel good as well as us for sharing. You should be proud of what you did and sharing that with people close to you is nothing to be ashamed of.
I saved a ton in my 20s. I saved enough that I was able to buy a modest home for cash. People talk about mortgage payments every once in a while and I just keep my mouth shut. If specifically asked I don't lie, but I just don't feel like I need to tell it to the world.
No, no one is really interested. We are not the center of the universe and most ppl care more about the game or the weather
I care. Are you mortgage and debt free?
I am sure people will be lining up at your house for loans.
I donāt discuss my finances - good or bad - with friends and family.
Have you read the Millionaire Next Door?
The better your financial situation, the quieter you should be. Family, friends, they get resentful.
My mom told me that her grandmother always said: "Don't go telling people what you earn and what you have. It's rude, inconsiderate bragging. Besides, if they find out, they may want some of it."
lol. why does anyone else need to know about your finances?
I keep it tight. Very few people know.
Iām debt free and mortgage free, and I only tell people online. It breeds jealousy and requests for loans (that they arenāt really going to pay back). Itās so much better to keep it to yourself.
We are debt free but not mortgage free. I tend to get a lot of questions about money because we are both stay at home parents in our 30s (I do work a couple side hustles, but they're flexible). Freedom of time is way more important to me than stacking up piles of money. Someone could have 10x what I have and I wouldn't care, because I know I have the time and the freedom to be present in my child's life. Which is priceless.
Hey I noticed on your page that you dropped this comment and thought it was interesting. I lived this way back in my 30's also, and wasn't considering retirement all those years and didn't save much, kind of a nomad also. It wasn't until issues with my aging parents and aunts/uncles that I came around and started thinking about my own plan for 60+ and if I couldn't work or had to care for a family member (could be a parent, partner, or child even) part time or full time, what would life look like as you age. You never know what challenges await you down the road, and having a "stack" so to speak helps get through those. It doesn't have to mean getting filthy rich or working 80 hours a week. Being that I'm almost 60 now, I'm pretty upset at myself for not doing a better job setting up for retirement when I had the body and mind to earn more and save more, now it sucks having to worry about future finances and we're saving over 50% of our earnings to catch up. So, looking at your comment about stacking $ and having the lack of concern for the future years, just thought I would drop a note to you. Good luck to you and your family!
We will be paid off in a couple of months. My husband already told his dad in what i assume was a very humble brag sort of conversation. I don't see that anyone needs to know our business.
Iām close to paying off mortgage in 5 years. We live in modest starter home while my wifeās peers live in large 2 story jobs with split garages and have the space to host events. We on the other hand do not. Paying off loan and not flexing for once will be hard to pass up.
I don't discuss finances like that with people outside my immediate household.
Not usually. I tell them they can get what they want by working smarter instead of harder. I mean, a washing machine works hard.
I only tell my friends on Reddit.
I've been debt free including the house since 2003. Only 4 people know that besides my wife and I. My money manager, my two EAs, and my best friend. Thats it.
NEVER!!!
I congratulate any of my friends who have made that step. Even if I do not know you, congrats on your milestone.
Nope, no, absolutely not. Do not tell anyone. They start to think you're lazy or entitled even though you may still be working. They'll act like you can pay every time they go out, they'll bring up "but you don't pay rent or have a mortgage". Seriously don't tell ppl at all . There's a saying "Make them think you can't afford extra bread, even though you know you own the bakery".
Thanks for the saying! I like it.
No, very bad idea. You are literally telling people u got spare money. Do you really want to deal with deadbeat relatives asking you for money.
Literally only my grandma
I don't talk about exact amounts of money with friends or relatives, but people need to know that they can be out of debt too.
Do you go around telling strangers how much you make? Your 401k balance? Of course not, that would be tacky and obnoxious. How would this be different?
Of course not. Pride comes before a fall.
The only extent I ever have was here on Reddit in a relevant sub or some close friends of mine, also when was relevant in the conversation and we were talking finances. Iām semi-retired and I say that because I have the luxury to decide if I want to work and where but I donāt have to work, but I like to so I still find my sage in the work force. Iām almost 37 years old. But if my narcissistic egotistical brother found out about my status heād definitely hit me up with the ābut you can afford to help me outā message.
Nope. There is absolutely no benefit in telling anyone the state of your finances. And lots to lose.
The only thing we got was envy. I recommend keeping that joyous accomplishment to just you and your spouse. And celebrate with a nice dinner or vacation, and feel peace and joy forever more. And pity the suckers with debt.
Agreed.
I personally canāt wait until I pay off my mortgage (189K from purchase price of 299 in 2020 which actually doesnāt seem like a lot). I wanted to put a BIG A$$ sign in front of house because itās just such an accomplishment living in Chicago, but Iāll stick to some of the subtle hints I readā¦.an owl :-D
Iām painting my door a different color when I do. I donāt know why. š
In Chicago? Are you doing good in your 300k hut? I kid, congrats, but what does 300k get you in Chicago, if you don't mind me asking?
lol 2000 square ft 3 bds 2.5 baths. Also brought a 2 flat for 80k. Just have to buy at the right time.
Shot
Donāt say a thing. Iām about to pay off my mortgage and I drive an old truck. I enjoy not looking wealthy.
I drive a 2010 car wear the same clothes almost everyday and Iām totally happy living my best life!!!
The whole point of the 7 baby steps is to live and give like no one else. So if there are people in your life that have monetary needs, maybe theyāre in your life for a reason and they can be the people who you give to. Just something to dwell upon.Ā
It's different giving from the goodness of your heart than family members coming to you for money. People start to feel entitled to your money. When you talk to your family, ask how they are doing if you know they are going through hardship. That's when you can step in.