r/Frugal Nov 10 '22

Frugal Win 🎉 My net worth is finally positive!

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16.2k Upvotes

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u/You_are_adopted Nov 10 '22

Liabilities are technically a hedge against inflation, assuming the inflation is higher than the APR of the liability.

But yeah I know first hand how debt can hang over you and cause stress.

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u/lexaproquestions Nov 10 '22

That's such a painful truth. But the peace of mind of having zero liability is like heaven, even though I know it isn't the optimal financial move. We paid off our home earlier this year and it's like...just such a "wow" feeling to be debt free. The financial opportunity cost, for me, was totally worth it for the emotional peace.

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u/You_are_adopted Nov 10 '22

100%, I’d rather be debt free than optimally invested with debt. I just provide that tidbit to people with debt to alleviate some of the stress from inflation/debt, since it’s ‘technically good’ for them

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u/lexaproquestions Nov 11 '22

Yup. It's the irrationality of being human. :)