this post was submitted on 29 Jul 2024
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Hey, I was wondering if someone needs credit to buy things. People in my family have said I wouldn't be able to buy a car or a house without credit. But if I'm saving up cash to pay for things outright, do I really need credit?

Note: I’m sorry if this is the wrong place to ask.

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[–] DaddysLittleSlut -1 points 4 months ago (2 children)

I've created a plan to save $1,000-$2,000 every month for 25-30 years at a realistic interest rate of 2-3%. By the end of it, I’d have around $886,389.54.

[–] [email protected] 10 points 4 months ago (2 children)

That's great, but that entire time you've (assumably) been paying rent. You've saved up enough to buy a house for cash, but also spent enough to buy an entire second home.

You'd stand to gain significantly if you bought the house earlier. Rent paid is burnt, but a mortgage paid is building equity in your hone.

[–] DaddysLittleSlut 1 points 4 months ago

I might be renting a house soon, but my family has been making me really nervous about it, which is what they do. The rent is $2.4K per month, and it includes industrial equipment like sinks, and fiber optic internet. That $2.4K covers everything I need. The house itself is $1.3K. They say I should be making at least three times the $2.4K rent, but I’m making about $4K every month.

[–] DaddysLittleSlut -1 points 4 months ago

It's a really nice place, and I want it. It's in a higher median economic class within my state, and I aim to succeed and elevate myself into Royal society, you know? It's like a game to me: you work, earn enough money, and beat each economic level. Then, you move to another state, and even if you've conquered every level in one state, you might have to start at the bottom or middle in a more expensive state.

[–] Twinklebreeze 8 points 4 months ago

And the cost of buying a house could continue to skyrocket the entire time. In 30 years that could be a nice down payment, but you'll want good credit, too.