Oh I am so tempted

Master

1420

Running trails in S. Ontario

Subject: RE: Oh I am so tempted

In all honesty, I wouldn't be using any of it for personal items. Pay down the debt. If you buy just a cheap bike, you really are no further than if you just hold off, use the bike you have, and then buy a nice bike when the debt is paid.

Too many people get into the trap of perpetuating their debt. Start a good habit by having the discipline to save, and to work toward your no debt goal. Getting out of debt is the most empowering feeling, maybe even better than a new tri bike!

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Champion

5575

Butler

Subject: RE: Oh I am so tempted

mgmoore7 - 2007-11-30 8:51 AM

Kproudfoot

Yes we both have a personal "blow" budget but right now it is $30 a month and it won't increase until we out of debt. Tough to do much with that. I also budget for events as a separate line item but this is very low too. I have to be careful with that too as I want the $ to go to debt rather than events but the event help with the motivation to keep loosing weight. Once I register, I am locked in and that helps with the motivation.

$30 that sucks (for now at least). Maybe I need to lower mine. I don't blame you for keeping that low but try to increase it in a year and then buy a new bike in 2 years.

This might be a dumb question and too personal but thought I would ask. Do you have your debt on low to no interest?? If so, what is the big rush to pay it off? I have most of my debt extremely low to 0% and do pay more than the minimums but if something comes up I adjust my budget to pay minimums only. I know some people just don't like to owe money and I am one of them but with the amount I owe it is inevitable that I will be in debt for awhile (again, probably not good thinking and got me into trouble in the first place). Just curious.

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Iron Donkey

38643

, Wisconsin

Subject: RE: Oh I am so tempted

mgmoore7 - 2007-11-29 2:18 PM

I just got a nice and very unexpected bonus. I so want a road bike and won't even spend 1/5th of the bonus but we are 15-16 months from getting out of debt (except our house) and this bonus would cut 2-3 months off of that time frame....... Once out of debt I would be able to buy just about any bike I would want within a few months of saving.......

By the way, I am currently riding a Giant Cypress (hybrid). I want to go faster and be able to do group rides on Sat mornings.

Haven't even told my wife yet. I am so excited but I want to see her face rather than tell her on the phone.

Great news for ya! But, what's a bonus? Being employed by the State myself, I've never seen one.

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Expert

934

FL

Subject: RE: Oh I am so tempted

Kproudfoot

Honestly, I thought I would always have debt too but it was just not working for us. I now believe that debt is being enslaved to someone else and just a way for others them to make money. I want to make money and have the freedom that comes with not owning anyone. I want to have an 3 month emergency fund and be able to go on vacations without feeling guilt about not paying debt with the money.......

My debt is at a decent rate now, but really the rate does not matter that much in my situation. If I was at 0%, vs 10% (where I am now), that would have an impact of about 1 month on the payoff plan. I have moved stuff around but at the rate I have it, unless I can get the large balance to a zero % it does not make any sense to move it.

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Champion

5575

Butler

Subject: RE: Oh I am so tempted

mgmoore7 - 2007-11-30 9:31 AM

Kproudfoot

Honestly, I thought I would always have debt too but it was just not working for us. I now believe that debt is being enslaved to someone else and just a way for others them to make money. I want to make money and have the freedom that comes with not owning anyone. I want to have an 3 month emergency fund and be able to go on vacations without feeling guilt about not paying debt with the money.......

My debt is at a decent rate now, but really the rate does not matter that much in my situation. If I was at 0%, vs 10% (where I am now), that would have an impact of about 1 month on the payoff plan. I have moved stuff around but at the rate I have it, unless I can get the large balance to a zero % it does not make any sense to move it.

You are right, the closer you get to paying of the debt the less interest rates play into it. My point basically is if you owe $1K for instance at 0% and your minimum payment is $10 but you pay $100 why not invest $90 at 10% interest everymonth. Remember not all debt is bad debt. If you can earn more interest on your money than you pay in interest I say borrow to invest (to a point). Not always the best advice but just showing an example.

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Expert

934

FL

Subject: RE: Oh I am so tempted

kproudfoot - 2007-11-30 10:42 AM

mgmoore7 - 2007-11-30 9:31 AM You are right, the closer you get to paying of the debt the less interest rates play into it. My point basically is if you owe $1K for instance at 0% and your minimum payment is $10 but you pay $100 why not invest $90 at 10% interest everymonth. Remember not all debt is bad debt. If you can earn more interest on your money than you pay in interest I say borrow to invest (to a point). Not always the best advice but just showing an example.

I understand your point but really once you add taxes and risk (the part that many forget about), the difference is not much more than you can get on a good CD or money market in that particular example.

I know living without debt is a different way of thinking in todays world. Debt is normal, I am choosing to be weird.

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Champion

5575

Butler

Subject: RE: Oh I am so tempted

mgmoore7 - 2007-11-30 9:49 AM

kproudfoot - 2007-11-30 10:42 AM

mgmoore7 - 2007-11-30 9:31 AM You are right, the closer you get to paying of the debt the less interest rates play into it. My point basically is if you owe $1K for instance at 0% and your minimum payment is $10 but you pay $100 why not invest $90 at 10% interest everymonth. Remember not all debt is bad debt. If you can earn more interest on your money than you pay in interest I say borrow to invest (to a point). Not always the best advice but just showing an example.

I understand your point but really once you add taxes and risk (the part that many forget about), the difference is not much more than you can get on a good CD or money market in that particular example.

I know living without debt is a different way of thinking in todays world. Debt is normal, I am choosing to be weird.

Definately good points and like you said not that simple. Trust me I personally at this point would also prefer to be out of debt than have a huge portfolio (which I don't have). I have been in debt almost all of my adult life and am getting tired of it. But I will pay every penny of it back someday just like you.

Good luck.

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New user

20

Michigan

Subject: RE: Oh I am so tempted

My point basically is if you owe $1K for instance at 0% and your minimum payment is $10 but you pay $100 why not invest $90 at 10% interest everymonth. Remember not all debt is bad debt. If you can earn more interest on your money than you pay in interest I say borrow to invest (to a point). Not always the best advice but just showing an example.

Those are silly games. Borrow to invest? Didn't that cause a lot of people to jump out of windows in the 1920's? Why not save to invest? And then invest the positive interest you earned on that? And then do it again.

Master

2314

Gulf Shores, AL

Subject: RE: Oh I am so tempted

I know living without debt is a different way of thinking in todays world. Debt is normal, I am choosing to be weird.

You are making a smart choice.

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