J.L. Collins

“Taking on a mortgage to buy a house is the classic definition of “good debt.” But don’t be so sure. The easy availability of mortgage loans tempts far too many into buying houses they don’t need or that are far more expensive than prudent. Shamefully, this overspending is often encouraged by real estate agents and mortgage brokers. If your goal is financial independence, it is also to hold as little debt as possible. This means you’ll seek the least house to meet your needs rather than the most house you can technically afford. Remember, the more house you buy, the greater its cost. Not just in higher mortgage payments, but also in higher real estate taxes, insurance, utilities, maintenance and repairs, landscaping, remodeling, furnishing, and opportunity costs on all the money tied up as you build equity. To name a few. More house also means more stuff to maintain and fill it. The more and greater things you allow in your life, the more of your time, money, and life energy they demand. Houses are an expensive indulgence, not an investment. That’s OK if and when the time for such an indulgence comes. I’ve owned them myself. But don’t let yourself be blinded by the idea that owning one is necessary, always financially sound, and automatically justifies taking on this “good debt.”
― J.L. Collins, The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life

“Three things saved us: 1. Our unwavering 50% savings rate. 2. Avoiding debt. We’ve never even had a car payment. 3. Finally embracing the indexing lessons Jack Bogle—the founder of the Vanguard Group and the inventor of index funds—perfected decades ago.”
― J.L. Collins, The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life