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I agree that cash is always good, but to say it is best I disagree. I think it does have to with the individual and the circumstances. All of us, mabey not all of us, but many of us would not be where we are without using other peoples money to buy assets. The purchase of a new mower or truck in the infancy of most companies was done by financing. The key is the type of financing, and the time it takes to pay it back. I hate debt as much as the next guy, but I know the difference of leverage and being over leveraged. With leverage you have many more options open to you that you would not if you wait until you can pay for something with cash. There is a big difference in personal debt and business debt. I agree that many millionairs do not have mortgages or personal debt, but I guarantee that they used some type of financing in there businesses (e.g. office space, product mfg.) Look at it like this, unless you are paying for all of your materials upon delivery, you are using some form of financing. Your financing may be 30, 60 days, or whatever, but you are still using it.
So if a guy wants to get a cc card to extend the terms or a loan to buy the vehicle, whats the difference. They may pay interest, but if they are making 15-20 percent a year on that 6% loan, doesn't that sound like a good investment? I just think you have to be smart about it and look at the big picture before you jump into anything. What may be good for one guy, may not be for the other.
Somebody made mention of Rich Dad Poor Dad, Robert K. also preaches the use of using other peoples money to buy assets. His may be real estate and businesses, ours are trucks and trailers. JMO
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Matt
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