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Posted on 9/25/24 at 12:31 pm to Harry Rex Vonner
quote:
30K student loan, 32K in cash, bam, no brainer pay it off today you only have 2K left, go get a bottle of bourbon and mourn that for one night, then wake up the next morning without a school loan
I’d wait til I have at least 10k of float before this
Posted on 9/25/24 at 12:47 pm to KRobinson
quote:
Would this be a bad move and put me back significantly in building a home down the road?
Yes. Vehicles are wealth extractors. Homes/businesses are wealth builders (generally).
quote:
I was told that by 175,000 they lose all of their value.
Well, it isn't a light switch (like buying a new one would be - that's like an instant 8 to 12% hit as soon as you sign the paperwork). So, whatever value it has now with almost 160k isn't going to magically go away at 175 - it will just slide further towards "minimum value". As long as it runs and blows cold air, it will retain a residual value.
quote:
I am wanting to get a new one.
I get it. But you don't need one. If you're only driving it 4k to 5k a year now (or less), you can keep that truck 5 to 10 more years, frankly.
Posted on 9/25/24 at 12:55 pm to KRobinson
I also agree you should get on the baby steps. You would be surprised how much money you will have if you:
1. Eliminate all debt
2. Budget every dollar WHEN IT COMES IN (folks think budgeting is a spending process - it isn't - it is an income process - you allocate money in to spend on what you have to/want to spend money on, controlling it so it doesn't control you)
3. Make your money work for you
Let me ask a basic question that often gets lost with folks who go paycheck-to-paycheck - IF you can afford these high arse "truck" notes, why isn't that money in an account already, earning interest?
Because it is no joke these days. Bring $20k and take a $800/72 or some crazy shite like that? No thank you. If I have $25k when I go to buy, that's the budget, not some hypothetical, "no upper limit", "How much do you want your monthly note to be?" form of wage slavery bullshite.
Sure, I'll pay 30 years on a house. That house is going to be worth more than I paid for it. I eat interest, insurance and taxes (but I would have the latter 2 if I owned it outright, anyway), but I would have to rent if I didn't own.
I definitely don't need to spend $4 or $5 million dollars over a working career for a beat up, used up old truck.
1. Eliminate all debt
2. Budget every dollar WHEN IT COMES IN (folks think budgeting is a spending process - it isn't - it is an income process - you allocate money in to spend on what you have to/want to spend money on, controlling it so it doesn't control you)
3. Make your money work for you
Let me ask a basic question that often gets lost with folks who go paycheck-to-paycheck - IF you can afford these high arse "truck" notes, why isn't that money in an account already, earning interest?
Because it is no joke these days. Bring $20k and take a $800/72 or some crazy shite like that? No thank you. If I have $25k when I go to buy, that's the budget, not some hypothetical, "no upper limit", "How much do you want your monthly note to be?" form of wage slavery bullshite.
Sure, I'll pay 30 years on a house. That house is going to be worth more than I paid for it. I eat interest, insurance and taxes (but I would have the latter 2 if I owned it outright, anyway), but I would have to rent if I didn't own.
I definitely don't need to spend $4 or $5 million dollars over a working career for a beat up, used up old truck.
Posted on 9/25/24 at 12:56 pm to Ace Midnight
Think of all the depreciation you’re saving after 175k. It’s no small exaggeration to say keeping my 07 ram I traded three months ago at 270k has completely changed my retirement. When the 2020 crash hit, I was loaded for bear. No pun intended.
Posted on 9/25/24 at 1:19 pm to Harry Rex Vonner
buy a new not needed but wanted truck is bad but paying off the student loan depends on interest rate. We have a student loan at 2.7% and could pay it off today but that money is in savings account drawing 4.3% which after taxes still comes out ahead.
Posted on 9/25/24 at 2:21 pm to ks_nola
quote:
We have a student loan at 2.7% and could pay it off today but that money is in savings account drawing 4.3% which after taxes still comes out ahead.
A point and a half on $30k is $37 a month.
Is peace of mind worth nothing?
Posted on 9/25/24 at 2:37 pm to Ace Midnight
every situation is different. loan here is higher than $30k. also i keep flexibility of having cash if needed and its not costing me anything. so i'm at peace.if guaranteed interest rates drop we simply write the check and its gone.
in OP's case paying off the loan appears to leave him not much in savings.
in OP's case paying off the loan appears to leave him not much in savings.
Posted on 9/25/24 at 2:41 pm to ks_nola
quote:
every situation is different
Certainly.
I understand the desire to remain liquid, but unless it is leveraging an income source, debt is anathema to wealth building.
Posted on 9/25/24 at 3:00 pm to KRobinson
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