Quote Originally Posted by Alembic View Post
Pay cash for everything but your house, and I would do that if I could. If I don't have the cash, I don't need the stuff.
I agree with this in principle. That said, I use actual cash for a minimum of transactions, as my credit cards give me rewards (and I pay off every month). My dad has always made a habit of borrowing money any time he could get a lower interest rate than whatever he could "store" his money for. He financed several cars even when he had cash in the bank to pay for them, just because he could earn 6% and get a 4% finance rate.

My future father in law keeps a car payment, even though he can pay it off because it is a deterrent to him buying another car, and helps him budget.

I'd simplify the statement to "live within your means". Obviously if you only pay by check/debit/cash then you don't have any other option, but there are other savings to be found, so long as you don't go crazy.

For what it's worth, I'm only 24, and the only "bank" loan I have is for my house... I have a car loan too, but that's through the worlds best bank... bank of dad.