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South Central IL | I bet if anti Dave Ramsey people listened to him more they would change their opinion.
Operating money is an important tool but I plan on treating it like consumer debt and borrowing less each year and hopefully can self finance in a matter of a few years. Daves main thing is risk, his team has done extensive research and found 100% of homes that were forclosed on had mortgages on them. (humor) Think about that for a minute, no debt=no problems. (no way can someone come take your home, vehicle, farm or equipment)
If a farmer must buy iron to save some taxes, simply buy used and pay cash versus the risky debt load and payments that may be tough to pay next year.
I have seen farmers and business owners that use debt as a "tool" also go on fancy vacations, buy toys, big homes, new iron and continue to borrow operating money each year. Did they see some ROI above the interest, probably, could they have borrowed less and been debt free, yes. | |
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