Part of the reason we have a debt based economy is because we have an inflationary economy as dictated by the Federal Reserve (and pretty much every central bank in the world). Pure savings becomes worth less over time. Debt becomes cheaper over time. Of course it is still better for one to save and stay out of debt but sticking your money in a savings account is not really sufficient. Crypto is an alternative but still a risky one for most people. Diversification is still good advice.
Having said that, it may take a very long time to save for something like a house or car and they can be worth incurring a debt for. Those aren't typically the things that get people in trouble. Not by themselves anyway. It's other types of debt like credit card debt that are the bigger problem.
Good points. I have some pretty significant investments outside of crypto. Okay, maybe not significant, but steady enough that they are going to be worthwhile down the road. One of my biggest concerns is that I am over investing now at the expense of not paying off debt.
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I guess it comes down to how much interest you are paying vs. how much you expect your investments to increase. How much you are paying in interest is easy to figure out. How much you might make on your investments...not so easy. I guess if we knew that we would all be rich.
Yeah, for sure. Back when I took out my home improvement loan I was going to cash in some stock instead. My brother in law talked me out of it. Better to pay 4% on a loan than lose 8% on an investment!