Paying off debt

Adower

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Be as frugal as you can. My wife and I are 38 and we both have pensions and 401k outside of that. I've never owned a new car in my life or anything even near new. Save save save.

My personal belief is to not make double payments on your house. Why pay down a house on 3-4% interest when you can invest and make 7% or more. Use that money for the double payment and buy stock.
 

Adower

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cars are a killer man. and really, NO ONE needs a brand new car. Honestly the older shit is more reliable anyway. my buddy bought a brand new jeep, $60k after all said and done. Payment about $700 a month. When people do this shit I think why in gods name did you do that? Most cars depreciate FAST in value. If you "need" a newer car, but something 5 or 6 years old. that way you aren't taking the depreciation. $700 on a car loan is pretty crazy considering most mortgages are 1200 to 2000.

That being said my adivse to YOU op.....open open a roth IRA or stock account, if you have not already. Use that extra money and dump it in those accounts. for roth the max is 6000 per year. Stock account or 401 there is no limit. Stick with large cap stocks AKA apple, microsoft, amazon, google, walmart, google...the companies making billions. Also stick with s&p500 companies and index.

Financing a new car is the biggest wealth killer there is. You’re talking about buying something that loses its value like 30% in the first few years. I don’t know how anyone can spend 700-1000$ a month on a car and not be well into the 6 figures salary wise.
 

nxhappy

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Financing a new car is the biggest wealth killer there is. You’re talking about buying something that loses its value like 30% in the first few years. I don’t know how anyone can spend 700-1000$ a month on a car and not be well into the 6 figures salary wise.
I agree 100%. Having a USED low mileage car/truck is the best. My F150 is 20 years old, 5.4L, slow as **** but only 100k miles. Dead nuts reliable 2 valve. Could probably sell it for 10 grand because it's so titties. Guaranteed cheaper and more reliable !
 

Crimson2v

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We are in a predicament in our house. We both have pensions, 401 and Roth which aren’t maxed but we are contributing regularly. We don’t have any stocks. We are wanting to sell our house and move to another county which would be cheaper taxes and less BS and no landfill. The issue is we have 15 years left on this current house but feel like we have outgrown it. We don’t like the idea of starting over again with another mortgage. We thought about staying in this until it’s payed off and then moving to the beach. Another thing is I would really like to get a sports car again, really want to get something older we can go to cruises or carshows. That would be another expense to think about.
 

smitty2919

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Paying off high interest debt is absolutely the right thing to do. Get outta that shit.

Consider that if your mortgage interest rate is low, it's likely you will make A LOT more money investing any extra money you have available in 5-15% long term investments compared to paying off a 3% interest loan faster.

Do the math. Pay off and invest based on the math.

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Exactly, long term you save money getting rid of the interest.

Why no kids, op?

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We were open to it. Some health problems plagued my wife all about the time we started to make more money and enjoy life. Made the decision that we were happy how we were living life and the freedoms we have. So decided no kids for us. Two dogs, two cats and a horse (which is like having a $500/mo car payment or child but the payment will never go away unless the horse dies or we buy a farm that she can stable the horse on our property (HIGHLY unlikely) It's $500/mo in horse boarding fees.

cars are a killer man. and really, NO ONE needs a brand new car. Honestly the older shit is more reliable anyway. my buddy bought a brand new jeep, $60k after all said and done. Payment about $700 a month. When people do this shit I think why in gods name did you do that? Most cars depreciate FAST in value. If you "need" a newer car, but something 5 or 6 years old. that way you aren't taking the depreciation. $700 on a car loan is pretty crazy considering most mortgages are 1200 to 2000.

That being said my adivse to YOU op.....open open a roth IRA or stock account, if you have not already. Use that extra money and dump it in those accounts. for roth the max is 6000 per year. Stock account or 401 there is no limit. Stick with large cap stocks AKA apple, microsoft, amazon, google, walmart, google...the companies making billions. Also stick with s&p500 companies and index.

Great thread right here. Lots of solid points here like do you really need that etc. Brown bag it to work cook at home all things the old timers told me 2 do in the business im in. Idc that my car is 22 years old with some cancer on it either its gets me from A 2 B

Be as frugal as you can. My wife and I are 38 and we both have pensions and 401k outside of that. I've never owned a new car in my life or anything even near new. Save save save.

My personal belief is to not make double payments on your house. Why pay down a house on 3-4% interest when you can invest and make 7% or more. Use that money for the double payment and buy stock.

Well we look at life as a balance of compromises. Could we do MORE for savings or live off Ramen noodles like Dave Ramsey promotes? Sure, but we are young and enjoying life and have come to an agreement on how much fun we have and how much we put away to debt.

Would I like a BRAND NEW $70K truck? Yes, but realistically that is not needed when a used $30K truck can functionally give me what I need as well as fill that "itch". Our truck is a 03 2500 extended cab 2WD at almost 200K mi on a LS 6.0L. It's still a solid truck but in another 2-3 years we have decided it's time to retire this one and move to a 4-door 4x4 in preparation for a horse trailer and enclosed car trailer. The next truck would be the last one for quite some time. Similar situation with her car....give it another 5 years and get something newer and lower miles but still not a NEW car.
 

2000GTSTANG

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We are in a predicament in our house. We both have pensions, 401 and Roth which aren’t maxed but we are contributing regularly. We don’t have any stocks. We are wanting to sell our house and move to another county which would be cheaper taxes and less BS and no landfill. The issue is we have 15 years left on this current house but feel like we have outgrown it. We don’t like the idea of starting over again with another mortgage. We thought about staying in this until it’s payed off and then moving to the beach. Another thing is I would really like to get a sports car again, really want to get something older we can go to cruises or carshows. That would be another expense to think about.

Why not put all the equity from your current home into the new one and take a 15 year mortgage?
 

Crimson2v

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Why not put all the equity from your current home into the new one and take a 15 year mortgage?
We want to keep our payment around what it is now. The homes now are over 300k, so that eats up a lot of our equity as down payment to bring it down to what we can afford.
 

P49Y-CY

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Well we look at life as a balance of compromises. Could we do MORE for savings or live off Ramen noodles like Dave Ramsey promotes? Sure, but we are young and enjoying life and have come to an agreement on how much fun we have and how much we put away to debt.

That is a good outlook imo. Life's way too short to scrimp and save like a miser and deny yourself for tomorrow, because tomorrow is guaranteed to no one. We are here today so we ought to try to enjoy it - but also not go overboard, and try to strike a balance.

And I believe that buying a new car is something everyone (especially enthusiasts, like most of us are on this board) should do at least once in their life, and that it also can be a smart financial move - provided you keep it for a very long time.
 

MG0h3

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We are in a predicament in our house. We both have pensions, 401 and Roth which aren’t maxed but we are contributing regularly. We don’t have any stocks. We are wanting to sell our house and move to another county which would be cheaper taxes and less BS and no landfill. The issue is we have 15 years left on this current house but feel like we have outgrown it. We don’t like the idea of starting over again with another mortgage. We thought about staying in this until it’s payed off and then moving to the beach. Another thing is I would really like to get a sports car again, really want to get something older we can go to cruises or carshows. That would be another expense to think about.

What’s the rental market like on your house? If you can break even, you’ll be making money.

Most markets have gone way up in the last year, for sales and rents.

Yes, mortgages suck in that they are front loaded in interest. But don’t let that lock you in because you don’t want to “start over”.


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smitty2919

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That is a good outlook imo. Life's way too short to scrimp and save like a miser and deny yourself for tomorrow, because tomorrow is guaranteed to no one. We are here today so we ought to try to enjoy it - but also not go overboard, and try to strike a balance.

And I believe that buying a new car is something everyone (especially enthusiasts, like most of us are on this board) should do at least once in their life, and that it also can be a smart financial move - provided you keep it for a very long time.

If rates and everything lines up and we buy a NEW truck...I would not plan on selling it. At that point we'd be racing the depreciation rate as to not be upside down on it. If we bought what we wanted/needed there would be no need to get rid of it. Buy once cry once.
 

Blk04L

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That is a good outlook imo. Life's way too short to scrimp and save like a miser and deny yourself for tomorrow, because tomorrow is guaranteed to no one. We are here today so we ought to try to enjoy it - but also not go overboard, and try to strike a balance.

And I believe that buying a new car is something everyone (especially enthusiasts, like most of us are on this board) should do at least once in their life, and that it also can be a smart financial move - provided you keep it for a very long time.

I agree. We save and invest, and could do more. But I've seen friends in their 30's already die due to cancer and accidents. I don't feel bad wanting to live a little and drive an used Gen 1 Raptor over driving an economy soulless car to save a 400 a month on a car payment.I've got my family set up nicely if something were to happen

I've bought two new vehicles in the past two years. 2019 Ram and a 2018 expedition. Ram got rear ended, and luckily I didn't payout after it was gone. Still dealing with insurance almost two years later if I'll get any comp for that.

The expedition was for the wife, and I told her we ain't getting rid of it anytime soon unless we win the mega millions. Wanted something big and safe for her and the kids.

Only debt we have is a ~900 a month house payment and both trucks. Both vehicles we had a lot of equity from prior trade ins so it doesn't sting too bad.

Damn Raptor a few months ago had a higher trade in than what I bought it for, so it made me second guess going to a cheaper car while the used market was stupid.
 

nickf2005

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That is a good outlook imo. Life's way too short to scrimp and save like a miser and deny yourself for tomorrow, because tomorrow is guaranteed to no one. We are here today so we ought to try to enjoy it - but also not go overboard, and try to strike a balance.

And I believe that buying a new car is something everyone (especially enthusiasts, like most of us are on this board) should do at least once in their life, and that it also can be a smart financial move - provided you keep it for a very long time.
If rates and everything lines up and we buy a NEW truck...I would not plan on selling it. At that point we'd be racing the depreciation rate as to not be upside down on it. If we bought what we wanted/needed there would be no need to get rid of it. Buy once cry once.
We bought a new Edge in 2010. Still have it with 176,xxx miles. Price/months = $315

We bought my 500 in 2012. Still have it with almost 60,000 miles. Price/months = $490

The 500 isn't going anywhere (plus there's still at least 50% equity versus purchase price) and I'm hoping we can squeeze a few more years out of the Edge. Not a terrible "rate" for a new car.

That said, we bought my '15 F150 in 2017 for a hair under 30k. If I can get 10 years out it, that rate would be $250/month. Like somebody said, sure, I'd love to have a $70,000 truck, but you can't tell me thats the wisest financial decision at this point in our lives.

Its interesting to calculate some of the data out to help form an opinion. Yes, the new car route isn't terrible if you're in it for the long haul. But any lightly used vehicle will still get you good life for less .

I think the Edge will be replaced by a used vehicle when the time comes. If we retire with what we're supposed to (and I make it that long!), I'm going to really splurge.

Now, you want to really talk about holding value... I bought my 2011 JD tractor in 2014 for $16,000. I could sell it outright for at least $14,000. $2,000 loss in value over 6 years? Im good with that! Way cheaper than renting.

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jaxbusa

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I need someone with a real investment background to smack some sense into my wife.

Send ‘em my way when they’re done with your wife. I’ll help hold mine down for the beating. Mine doesn’t even want to talk to me about it. Some guys lie to their wives about spending, I lie to mine about saving.




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MG0h3

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Send ‘em my way when they’re done with your wife. I’ll help hold mine down for the beating. Mine doesn’t even want to talk to me about it. Some guys lie to their wives about spending, I lie to mine about saving.




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Lmao. I divorced my wife for that type of shit.

She hits Starbucks three times a day. Unreal.


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Turkey_Lurker03

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Cash is King but 10 years ago the King suddenly vanished and the Queen took over.

Now there's 2 houses, 2 kids, 2 dogs, a new kitchen, finished basement and an inground pool.

The sad tale ends with the Queen promising to free the imprisoned stang from the garage with next year's tax returns while evilly laughing in her granite countertop throne... damn well knowing the kid will need braces or the dog will need a brain transplant...
 

CompOrange04GT

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Cash is King but 10 years ago the King suddenly vanished and the Queen took over.

Now there's 2 houses, 2 kids, 2 dogs, a new kitchen, finished basement and an inground pool.

The sad tale ends with the Queen promising to free the imprisoned stang from the garage with next year's tax returns while evilly laughing in her granite countertop throne... damn well knowing the kid will need braces or the dog will need a brain transplant...

are you the dog
 

smitty2919

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I laugh when some of you guys make it seem like you had NO say in the situation you are in.

2 Houses is ridiculous if you have two mortgages. I hope one is rented out to at least pays for itself. Kitchens can be slowly upgraded and an inground pool? F all of that.

My wife and I have a joint checking and savings accounts where all our "our" bills get paid from as well as any shared house purchases or upgrades. We also have separate individual checking and savings accounts that we can do whatever we want with as long as bills are paid.

All debt paid off (whether it be MY debt or HER debt) is still rolled into the next bill to pay off. So we have been living the same spending lifestyle for a while.

We also don't have kids so that is a decent "cost save". Kids are a monthly fluctuating bill that only end IF they become self sustaining (finding a job) LOL.
 

Turkey_Lurker03

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Was making light of my situation mostly but your right. I have no room to complain...and while a little bitter at first about the pool it was awesome for the kids and us during lockdown this summer.

2nd house is a rental... wife's old place pays for itself and makes a lil extra to put away for repairs and has helped on taxes.

Wife and I are set up the same way you are with the bill pay in a joint account, we both have separate (man) & (woman) accounts for fun stuff.

Kids were hard and expensive when they were babies but time Flys - now they are 6 & 8 - bb gun shootouts, rc trucks and killing zombies on Xbox.

I used this forum to live through others on the car, truck and boat stuff. Before I know it kids will be grown n gone, will be dedt free and my new edge might even be cool again lol.

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03cobra#694

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Good thread. I’m just lucky. Never been given anything, I just work at a good job right now for the last 21 years. Work, and don’t spend stupid.
 

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