Save, Pay Down, or Buy?

Nov 17, 2019
10,805
6,465
136
Chances are we'll get at least one more Eagle Drop. Not sure after that.

I could save or invest it, but not the best option.

I could pay down a loan. Won't be enough to pay it off, but will knock several months off the end of it.

I need a few things like a Fridge and Oven/Range, so I could buy those both.

I did a little of all of those with the first two.

Decisions, decisions ....
 

FelixDeCat

Lifer
Aug 4, 2000
29,175
2,041
126
Im afraid income taxes are going to be increased to pay for all this profligate spending, which is just getting started. So much as been added to the National Debt that future interest payments may become overwhelming.

Keep the money for emergencies.
 

BurnItDwn

Lifer
Oct 10, 1999
26,072
1,553
126
if you need new fridge and range/oven, pick the one you need more, and get it, then save the rest for rainy day/emergency?
 

deadlyapp

Diamond Member
Apr 25, 2004
6,587
702
126
I think I'll be dropping mine into my savings. I'm actually going to get a better payout this go around since 2020 taxes had a lower AGI than 2019. Tax refund went to paying off all outstanding high interest debt so I'm in very good shape right now. Nothing I need to buy right now.
 

dullard

Elite Member
May 21, 2001
25,066
3,415
126
Im afraid income taxes are going to be increased to pay for all this profligate spending, which is just getting started. So much as been added to the National Debt that future interest payments may become overwhelming.
That was the point. The pandemic can affect all of us, but the financial devastation did not affect all of us. The bailouts were never free money. The bailouts were to shift money from those of us who came out financially well in the pandemic to those who have been financially destroyed by the pandemic.
 

ultimatebob

Lifer
Jul 1, 2001
25,135
2,445
126
An "Eagle Drop"? That's a new one. I've been a fan of "STIMMIEZ!" myself :)

The correct answer is to save or invest it, because you know damn well that the government is going to have to raise taxes to pay for all this debt eventually.

Of course, the standard issue "Hookers and Blow" ATOT answer has already been taken, so I'll go with the "Cybertruck reservations, GME stock, and Bitcoin!" answer from Reddit instead.
 
Nov 17, 2019
10,805
6,465
136
What is the interest rate on the loan.
Around 2.5

But it's variable based on a certain Fed Rate. It was something like 4.75 a year or so ago. When it will go back up, or how much remains to be seen. Kind of why I'd like to knock some off the far end if I can.

I'm thinking of splitting it up a bit, maybe in thirds. IF we get anything at all.

 

snoopy7548

Diamond Member
Jan 1, 2005
8,061
5,057
146
All of us should donate our stimulus money to Cheez. I'm in if you guys are, but I won't be the one to deliver it to him. That task should go to the ATOT Forumer of the Year... :p
 

ultimatebob

Lifer
Jul 1, 2001
25,135
2,445
126
All of us should donate our stimulus money to Cheez. I'm in if you guys are, but I won't be the one to deliver it to him. That task should go to the ATOT Forumer of the Year... :p

Or, you could recreate the Cheez experience in your own home:

1) Buy a cheap Chinese knockoff electric scooter
2) Make a YouTube video about how great it is, and how Jesus wants you to get your own electric scooter
3) Wait six weeks for the Chinese knockoff scooter to break
4) Make another YouTube video about how Jesus is punishing you, and throw your new scooter in the river.

Whatever you do, DO NOT take personal responsibility for your poor buying choices. That is not the Cheez way.
 
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ponyo

Lifer
Feb 14, 2002
19,689
2,811
126
Mo money, mo problems. You see all this confusion and dilemma simple $1,400 is causing for people? Government is creating mental anguish for poor people. Why does the government always punish the poor but never the rich? The system is so unfair. Don't punish the poor and create confusion for them by giving them free money. Let them be happy with no money and no stress.
 

ultimatebob

Lifer
Jul 1, 2001
25,135
2,445
126
Mo money, mo problems. You see all this confusion and dilemma simple $1,400 is causing for people? Government is creating mental anguish for poor people. Why does the government always punish the poor but never the rich? The system is so unfair. Don't punish the poor and create confusion for them by giving them free money. Let them be happy with no money and no stress.

Maybe the government should do the poor folks a favor and create a savings account for them if they do not already have one. It might be helpful for them, but it probably wouldn't stimulate the economy as much as a check card would. I'll bet that those are ending up getting spent mostly at fast food joints.
 

Scarpozzi

Lifer
Jun 13, 2000
26,389
1,778
126
Mo money, mo problems. You see all this confusion and dilemma simple $1,400 is causing for people? Government is creating mental anguish for poor people. Why does the government always punish the poor but never the rich? The system is so unfair. Don't punish the poor and create confusion for them by giving them free money. Let them be happy with no money and no stress.
What are you talking about? They punished the rich if you made over $x AGI.

I agree though....if you don't have financial goals already in action, you should start there and pretend you don't have the $1400 making those decisions.... Not everyone is an ATOT 1%er. Just remember that some people only bring home $2800/week or less. $1400 is like half of that.
 

Homerboy

Lifer
Mar 1, 2000
30,856
4,974
126
appliances (and similar) can almost always be had with 0% interest for 12-36 months. There's virtually no reason to empty out a savings account to pay up front for them.
In fact roughly a year ago I bought $34k worth of appliances from Lowes and they screwed up somehow with the promotional financing. I have 0% indefinitely until the purchases are paid off - they get the min amount due each month via autopay.
 

Mai72

Lifer
Sep 12, 2012
11,578
1,741
126
You should have $2000 saved immediately. This is for emergencies, like when your car breaks down.

You should have 3 months minimum saved. 6-12 months if you are bvery conserative and want to put away large sums of money. This means, if you spend $3000 a month, you should have $9000 saved or $18000 for 6 months, and $36000 for 12 months. I like to go for 6 months because anything after this and inflation will be affecting your money. This is money in the bank and only used for emergencies like job loss, etc.

BTW, saving should only be used for emergencies. You don't want most of your money sitting in the bank.Interest is horrid. My BoA account is like 0.000001%

The rest of your pay you're going to use for investing in assets, 401k/or RothIRA and day-day expenses. The big thing here is to seperate your wants and needs.

You need to drive to work. So, you'll need a Civic, but you don't need that brand new BMW
You need a cell phone. So, you'll need a decent phone, but you don't need that new $1200 Iphone

I like Dave Ramsey's advice on paying down your bills. Start with the smallest one to build mometum. Get rid of those payments becasuse they are just going to kill you in fees.

Check out this video by Minority Mindset on what to do with your money. It's long, but it''s a game changer.