Dave Ramsey, debt, credit cards, retirement, etc

[Snackem]

Is there anything wrong with one of your vehicles? Why not just keep saving and keep what you got?

I would like to be debt free. Who would not be. Only debt we have is house, Cars and 1 card that we are paying off, we dont use it. Oh, it is Zero %. Toys are paid for. (SXR, SJ, Road Bike, 2 Mountain Bikes, Anita's Bike, Lawn Mower, Shop Construction)

But, if someone wanted to buy a boat, and they were in the position to where they could afford it, all other obligations are taken care of, there is nothing wrong with it. I dont know anybody that can save up 25k for a boat, by the time they did, you are looking at years down the road. Hopefully one day when Izzy is old enough, we will have a boat, most likely it will be financed. But it would be worth it. My fondest memories growing up were on the lake with my family skiing. That is where my love for the water came from. I hope she will be the same.

I agree that there are many ways to skin a cat. But I think that you would be surprised how soon someone can save up a lot of money if they put their mind to it. My wife and I make decent money but not a ton. After we got married she had some money saved up and paid off the remainder of my debt ($7k), seven months later we had that put back into savings. Because it was a priority. Not long after that we bought a S10 (another $7k). This time we had the money replaced even faster. It can be done if it is truly a priority. That 25k boat can be bought in four years if you can put $520/mo into savings, five years with $416/mo and six years with $347/mo.

What if instead of starting with a 25k boat you bought an older cheap boat to start. My dad recently bought a kinda rough old ski boat for about $2k and got a new engine for it for about $1.5k. So for under $4k he's got a usable boat that would last for six to seven years while he saves up to buy a jet sled (he uses it to fish but a jet sled is comparable in cost to a decent ski/wake board boat). Just because you can't afford a top of the line boat doesn't mean you can't afford a boat. I can't afford a corvette but we have a fairly nice civic.

 

[Snackem]

You get what you pay for. :haha:

agreed

 

[SuperJETT]

We paid off $30K in 22.5 months, with one income, and that's with part of it going to interest. Saving money is even faster because of the earned interest.

 

[Matt_E]

This "gotta have it now" attitude is terrible in today's America.

I am guilty of it, too.

 

[Big Kahuna]

I agree that there are many ways to skin a cat. But I think that you would be surprised how soon someone can save up a lot of money if they put their mind to it. My wife and I make decent money but not a ton. After we got married she had some money saved up and paid off the remainder of my debt ($7k), seven months later we had that put back into savings. Because it was a priority. Not long after that we bought a S10 (another $7k). This time we had the money replaced even faster. It can be done if it is truly a priority. That 25k boat can be bought in four years if you can put $520/mo into savings, five years with $416/mo and six years with $347/mo.

What if instead of starting with a 25k boat you bought an older cheap boat to start. My dad recently bought a kinda rough old ski boat for about $2k and got a new engine for it for about $1.5k. So for under $4k he's got a usable boat that would last for six to seven years while he saves up to buy a jet sled (he uses it to fish but a jet sled is comparable in cost to a decent ski/wake board boat). Just because you can't afford a top of the line boat doesn't mean you can't afford a boat. I can't afford a corvette but we have a fairly nice civic.

hypothetical. At age 8(Izzy) we decide we want a boat, We save for 5 years, She is now 13, That is 5 years later, she is 5 years older, and at this point, probably not that interested.........

But, I would not be buying a 25K boat to begin with. Just through that number out there.

We have had to cut back majorly. Anita resigned from her teaching job, that is 40k less a year that we no longer have. Saving right now is kinda tough. But we can handle it. No new toys, trips, etc etc.... But when she goes back, well, at that point we can start taking her income and just start putting that away.

 

[Big Kahuna]

We paid off $30K in 22.5 months, with one income, and that's with part of it going to interest. Saving money is even faster because of the earned interest.

how about a spread sheet showing cost of living, income, debt, payments etc etc.........

Numbers show me things, "Just because" words dont.

I am interested.

 

[afcblink]

You want a $25K boat? Not a problem. Drive a 10-year-old beater. Ditch your cable and watch free TV with rabbit ears. Buy Harbor Freight tools instead of Snap-On and Makita. Buy a $50 MP3 player instead of an iPod at 5x the price. If friends invite you to dinner at an expensive restaurant, suggest you grill something at your house instead.

Oh, and you might have to give up that '08 Superjet and ride a JS440.

What? You don't want to give up HBO, the fancy meals, the iPod and the Superjet? Great, but then you ARE forced to either say goodbye to the boat or go into debt.

The problem is not that people want expensive things right away. It's that they want ALL the expensive things right away. When EVERYTHING goes at the top of the priority list, that's when you end up overextending yourself.

 

[douglee25]

How many people here take annual vacations? I bet some even take vacations twice a year.

Sources state that an average week vacation runs anywhere from $2k up to $8k per year.

Now if you own that $30k boat, your $4k payment/year gets you a lot more than one weeks worth of enjoyment. Doesn't seem like such a bad investment now.

Doug

 

[afcblink]

How many people here take annual vacations? I bet some even take vacations twice a year.

Sources state that an average week vacation runs anywhere from $2k up to $8k per year.

Now if you own that $30k boat, your $4k payment/year gets you a lot more than one weeks worth of enjoyment. Doesn't seem like such a bad investment now.

Doug

The problem with that equation is that using a boat means a trip to the lake, which for many people (those not living within easy driving distance of a nice lake) means renting a place to stay, food, etc... So using a boat (or ski) often means incurring all those vacation costs...

 

[The Penguin]

How many people here take annual vacations? I bet some even take vacations twice a year.

Sources state that an average week vacation runs anywhere from $2k up to $8k per year.

Now if you own that $30k boat, your $4k payment/year gets you a lot more than one weeks worth of enjoyment. Doesn't seem like such a bad investment now.

Doug

look at how much that boat gets used over the course of an entire year, and the cost goes up tremendously.

some of ya'll on this board can only ride about 4 months out of the year.

 

[douglee25]

look at how much that boat gets used over the course of an entire year, and the cost goes up tremendously.

some of ya'll on this board can only ride about 4 months out of the year.

I guess it depends on what kind of boat and the location. I boat roughly 8 months out of the year. My boat is a second home.

Doug

 

[SuperJETT]

The whole point is that if they need a 10 year loan to be able afford the $30k boat, then that boat really doesn't fit in their life and they should get something more affordable.

I have no problem with people buying boats, as long as it fits in their life.

Take a drive down toward Western Kentucky around Kentucky Lake and Lake Barkley (huge lakes), you'll see pos trailers with junked up yards with new full-size pickups and new Ranger bassboats in front of them.

 

[Mile9c1]

I have a soft spot for wakeboard boats, I think they are awesome. But certainly, for the most part, kids don't care what kind of boat it is. They just like to be on the water. I see plenty of nice boats for sale in the $5000 range. That's probably what I'd do.

My Dad... he'd do the $1700 boat with a bad engine. Oh wait, that's what he did do one year (eye roll) and we spent all summer fixing it.

 

[BruceSki]

The problem with that equation is that using a boat means a trip to the lake, which for many people (those not living within easy driving distance of a nice lake) means renting a place to stay, food, etc... So using a boat (or ski) often means incurring all those vacation costs...

if you are buying a 30,000 dollar boat and need to rent a place to drive your boat for the weekend... its time to re-think boating... renting a boat for the weekend might be a cheaper option than owning and trailering


its expensive enough driving a free boat with a 4,000 dollar motor for me and i live on the water. i couldnt imagine paying that much for a boat ever....
















but id be fine with a pile o crap boat with a nice reliable outboard.... much like i have now.

 

[Gainera2582]

The only loans you should really have is for college and your home. Toys are wants, not needs. Therefore, if you don't have the cash to own it, insure it, gas it up, maintain it, and stay out of debt, then don't buy it.

I live for the future, not just the present like majority of people!!!!!!

 

[Matt_E]

How many people here take annual vacations? I bet some even take vacations twice a year.

Sources state that an average week vacation runs anywhere from $2k up to $8k per year.

Now if you own that $30k boat, your $4k payment/year gets you a lot more than one weeks worth of enjoyment. Doesn't seem like such a bad investment now.

Doug

I don't take annual vacations. I can't afford more than the occasional trip to the beach.

 

[SeaLion]

You guys all missed the point. I didn't once say that taking a loan for a boat was the ONLY way to spend time with the kids. It was one option. One scenario. One possibility that MattE's friend may have used as justification for their purchase. They still may camp, take walks, play catch, all with their children. Boating is just another piece of the pie.

I don't know their position, their finances, their anything. Maybe they got the boat at a 33% discount off of blue book? So in the end, they break even? Again, I don't know. For every answer I give, there is always going to be a (Dave) rebuttal.

Doug

Just rent a boat for a day a couple of times a year. You have the fun with the family, don't spend an arm and a leg on it to sit in the driveway most of the year. Better yet, make friends with someone with a boat but don't be like many others that go for the ride but never pay anything. Fill up the boat with gas and it benefits all parties involved. There are many ways to enjoy a day on the water with your family without having to owe on a boat.

 

[BruceSki]

Just rent a boat for a day a couple of times a year. You have the fun with the family, don't spend an arm and a leg on it to sit in the driveway most of the year. Better yet, make friends with someone with a boat but don't be like many others that go for the ride but never pay anything. Fill up the boat with gas and it benefits all parties involved. There are many ways to enjoy a day on the water with your family without having to owe on a boat.

thats the best advice ive heard about owning a boat ever... especially this part


"but don't be like many others that go for the ride but never pay anything. Fill up the boat with gas and it benefits all parties involved."

you must be one of the nicer people out there------ or someone who has owned a boat before and taken care of the maintenance, fuel cost, insurance, etc. and taken people out for a free ride too many times.

sometimes i think i should ditch my boat... but it does bring a big smile to my face everytime im on it

 

[Matt_E]

I've owned a boat.
I am glad I got rid of it.

 

[djkorn1]

boat? never ever ever ever ever ever. Holy Money pits. Every thing that breaks costs a fortune because it is a "marine part". F that.


Ask ski4 how much he uses his and how much it costs him a year. He could by a brand new decked out freestyle ski every single year.