No. of Recommendations: 1
So far you've neglected cash flow.

Having debt means that you have a certain monthly obligation. Having no debt means that you do not. So you have flexibility you do not have if you have debts and non-cash assets.

Thanks, I'll be sure to note that when I start getting more "realistic." My current favorite method is to tally up my required expenses, then add a buffer for fun, small "emergencies," irregular expenses, etc. I treat this number like a ceiling (never allow myself to spend more). Anything left over at the end of the month rolls into my top-priority debt.

I'll probably discuss this in more detail when I get to "Emergencies" later on...

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