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.

  • DaddysLittleSlut@lemmy.worldOPEnglish
    0·
    8 months ago

    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.

    • inconspicuouscolon@lemy.lolEnglish
      1·
      4 days ago

      If you intend to put this money away for a long time, and you won’t be tempted to take it out prematurely, it would be wise to invest in a low cost index fund (invest in stocks and bonds, basically). If you are in the U.S., you can invest in a Roth IRA and take the funds out prematurely ONLY if it is for purchasing a first time house. You earn far more interest that way.