Let the lesson be drawn here.
The value of things rise and fall. Much of it is unpredictable. And is getting more unpredictable.
You could have a prepper mindset and pay cash for everything and live in the woods with MRE’s and 100k rounds of ammo and a steel bunker. This person is predicting a worst case outcome. They are well prepared for it. But they’re going to be ill prepared for the likely outcome, relative to those who planned for the likely outcome. Maybe they’re happy with that.
Or, you could predict the most likely outcome - which is that generally life and civilization will go on for you and your kids.
Taking that assumption on board, and knowing that the value of different assets will rise and fall, there’s one constant - liquidity.
Having all of your net worth tied up in an illiquid asset that could rise or fall is not a good strategy for taking advantage of the rise or fall in value of some other asset.
Having liquidity to cover your debts should your income situation change, is a good thing in the most likely scenario. Why? It allows you to take advantage of ways to increase your income when they arise.
It’s risk tolerance and risk aversion. The whole conversation in here though is about a perceived risk that is being overstated.
Also, it should be noted that if the world ends, no one will care if you or the bank owned your house the day before. If I want your house you telling me you paid cash for it isn’t going to matter to me.
