DiabloFans

Quote from VegasRage

Ask a question like that and you'll get a different answer from everyone. You need to understand the rules of money and most important cash flow, what is known as fiduciary responsibility.

Assets feed you and liabilities eat you.

1. Poor people buy liabilities they want (occasionally on sale) with their money and live paycheck to paycheck
2. Middle class people buy liabilities they want (occasionally on sale) with their money and on credit, they too live paycheck to paycheck
3. The rich or aspiring to be, buy assets that are always on sale which return passive cash flow to them in the form dividends, rent, etc. or things that will appreciate in value and can be sold for a profit later. They do this until their passive income exceeds their paycheck plus all of their expenses by at least 1.5 times. They then quit their job and focus solely on passive income and when it's feasible they let their assets pay for the liabilities they want

The easiest time of your life to break free of a job and do item 3 is at your current age when you are young and single. There is no right or wrong answer, it's just a matter of deciding what you want and how far ahead you want to plan. Do you want a $40/K liability you have to pay on month after month or do you want buy an asset that will generate $40/K a year in passive income regardless if you work or not?

BTW I wish I had known what I am telling you in my 20's, if you do it right you can easily have a much, much nicer Italian sports car before you are 30.