Toy or Ramsey?

[Addicting]

You just sold your toy and have 7k cash in your hand.

@JLDemo sends you link with a nice suburban that is 7k.

Do you do the Ramsey approved version and pay off a loan that’s at a low interest rate. Loan is auto deducted and you don’t even notice it anymore.

Or

Fulfill your want of the month and get a new Toy to fulfill the hole in your yard and heart.

The only input from the wife is an eye roll. She truly doesn’t care as long as the bills are paid.

 

[Treeshark]

Roth max-out (if eligible and you haven’t already for 2023).

 

[Addicting]

Roth max-out (if eligible and you haven’t already for 2023).

No Roth or 401k. I’m 100% with the VA.

 

[Big Sky Guy]

Or the Hormozi and just sit on the cash.

Ramsey is big on paying off loans but I do think having a strong cash position is under valued or at least not valued at the same level as paying off loans from the little I’ve followed Ramsey. What is it now, 60% of the US is paycheck to paycheck? Not hard to be in the 40% with just a bit of discipline.

IMO paying off any loan under 4% now seems silly, basically free money. Sure the money is losing value from inflation sitting in most accounts, but $7k you’re talking hundreds of dollars which is going to be like a day or two of work for most people. Having that cash on hand may be handy. Hormozi supposedly has like 80% of his portfolio in cash according to what he said on a podcast which comes out to tens of millions.

If it’s just a monthly want I say wait or invest it in ROTH etc.. If something you’ve been wanting for a while and you have 6months-1 year living expenses already in a cash account or in actual cash then I don’t think there is a wrong answer. I would personally not pay off that loan unless I was on track to max out all retirement for the year and had 1 year of cash (or even short <1 year CD) reserves or if I had some sort of beef or annoyance with the lender .

 

[Big Sky Guy]

No Roth or 401k. I’m 100% with the VA.

So you can’t open a ROTH?

 

[BackofBeyond]

Are you doing all the Ramsey approved things? If not, why start now? No shame in rolling the cash from a toy sale into a new toy.

 

[Treeshark]

No Roth or 401k. I’m 100% with the VA.

Got it- I am unfamiliar with that works to say the least. Then I think I would go the Ramsey route, piece of mind is more valuable than stuff in general to me, but I might regret it some day.

 

[Addicting]

Got it- I am unfamiliar with that works to say the least. Then I think I would go the Ramsey route, piece of mind is more valuable than stuff in general to me, but I might regret it some day.

I get a tax free deposit every month on the 1st till I die. I will also get Social Security when I want to claim it. Then my wife will get about half depending on how I die.

So you can’t open a ROTH?

Why? I no longer need one.

 

[Nick87]

Rainy day fund

 

[Boarmaster]

Most guys would put the $7000 down on a new $80,000 truck.

 

[Addicting]

Are you doing all the Ramsey approved things? If not, why start now? No shame in rolling the cash from a toy sale into a new toy.

Unfortunately, new to me toys come with the I want to change this/that credit card orders.

That 7k Burban will likely cost about 30k. Lol

 

[Stocker]

Take it to the casino and put it on red. Surest way to double it up.

 

[MThuntr]

I think we all know the proper answer is Midget Strippers

That 7k Burban will likely cost about 30k. Lol

This is the problem...toys costing more money than the initial investment.

If you don't "need" the $ and can toss it somewhere with a higher return than the interest on your debt then that's the route otherwise I say a rifle from @p_ham or when @brockel gets back from BC I'm sure he'll be flooding the market with once fired rifles to hopefully pay for a mount

 

[thomas89]

Why? I no longer need one.

It sounds like you already have your mind made up.

Even with a high disability rating, that money certainly doesn’t go as far now as it did back in the day. I still contribute to my IRA as I highly doubt I’m going to hate having more money to spend in my old age.

 

[BackofBeyond]

Unfortunately, new to me toys come with the I want to change this/that credit card orders.

That 7k Burban will likely cost about 30k. Lol

I drive past a ‘69 K25 with an $8k price tag on it, and have the same internal fight.

Wifey says do it, but she gets to drive it too - that’s the last thing I want her trying to back up!

 

[JLDemo]

Just picture yourself in a tuxedo t shirt, blasting Free Bird, 35's screaming, cherry bombs hummin', pocket full of tags headed out west and a cooler full of ice cold miller lites and you'll know the answer. That Burban is an investment in happiness and well being.

Do. It.

 

[Benfromalbuquerque]

Buy yourself a half-acre lot lakefront property and F that suburban.

 

[Southern Elk]

A man can never have too many trucks.

 

[TheTone]

Pay down debt with half, buy nice rifle with other half

 

[Addicting]

Pay down debt with half, buy nice rifle with other half

I have all the rifles I want. I went on a bit of a binge the last few years.