Quote:
Originally Posted by OkieSnuffBox
Because the current rate on HELOCs is lower than the current rise of inflation. If I save for 18 months the money saved loses purchasing power as the cost of goods and labor go up.
Last month the rolling 12 month average was north of 7% inflation, IIRC. Which means it was really even higher than that.
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Hey that’s a great point. If you would consider the alternative - inflation has existed since the dawn of time (and will continue to exist) and the federal reserve exists for these reasons, I think it still provides a compelling reason to prioritize budgeting over going into debt for non-essentials. Alternatively, not paying interest is a risk-free, tax-free
guaranteed return on your future earnings.
But I respect your view point, it is called “personal” finance after all