Very good advice, and something that I feel similarily about. I'm nearly done with being a university student, so I owe a bit more than I would otherwise prefer (still quite small relative to most other students), but I personally believe very much in the "if you can't pay for it cash don't buy it" philosophy. Only two exceptions - housing and vehicle. The vehicle side of things is another interesting point. I personally chose to locate myself in an area where I can easily access public transportation, so I do not currently own a vehicle. That plus a few cab rides a month sure beats buying and insuring a car, plus paying for expensive parking where I work. The above said, I do realize that at some point a vehicle may become a necessity, but there is still a spectrum of options there. I think that financing is a necessity for most people when they purchase a vehicle, but one should still be smart about choosing the vehicle. Unfortunately most people seem to want the nicest car possible, and end up paying a very nice monthly payment as a result. In my opinion credit should not be used to finance frivolous purchases, such as widescreen TVs, home theatre systems, expensive furniture sets, etc. I could personally have a much larger number of material posessions right now if I were willing to increase my debt, but I personally do not wish to do so. I am now at the threshold of being able to pursue trading more seriously, but it will still be delayed somewhat by my intention to be debt free within 2-3 years. Less debt does indeed mean less stress.