[QUOTE=myrdale;n699685
Not going for the 4 wheel drive will knock a nice chunk off. It is more a want than a need.
[/QUOTE]
This was going to be my suggestion. A $5K lower price almost funds the IRA for a year. Why pay $5K for something you'll use an average of maybe 1.5 times a year? If you own the truck for, let's say, 15 years, you'll "need" it 22.5 times, which means you'll be paying at least $222 for each use!! And that doesn't include the extra you will pay to insure it and get lower gas mileage (I'm assuming). Plus interest if you finance. Holy cow! Why not just rent those 1 or 2 times a year, or swap favors with a buddy, or something like that?
And if you save on insurance and get better gas mileage and pay less interest - voila - $$ for the IRA in future years.
I have no problem with buying a new vehicle. (We have 2 cars right now, both Toyotas, both purchased new, one we've had for 20 years and one for 9) Sometimes it makes sense. But if part of your justification is that you're "in it for the long haul" then prove it, starting with the vehicle you own now. Keep driving the truck you have since it's "running like new." Keep it for a couple more years, keep saving, keep putting money in to the IRA, wait awhile longer to buy the truck.
On a separate note, since you know you'll be needing a new roof and A/C unit soon, why not consider that money already spent? In other words, $28K - $12K for expected major expenses = $16K in "available savings." That seems on the low side for an EF, not to mention buying a new truck.
You mention having a paid-off house. Did you used to have a mortgage payment? If so, where is the money that used to go to the mortgage going? Could those funds go towards the new truck fund?
Not going for the 4 wheel drive will knock a nice chunk off. It is more a want than a need.
[/QUOTE]
This was going to be my suggestion. A $5K lower price almost funds the IRA for a year. Why pay $5K for something you'll use an average of maybe 1.5 times a year? If you own the truck for, let's say, 15 years, you'll "need" it 22.5 times, which means you'll be paying at least $222 for each use!! And that doesn't include the extra you will pay to insure it and get lower gas mileage (I'm assuming). Plus interest if you finance. Holy cow! Why not just rent those 1 or 2 times a year, or swap favors with a buddy, or something like that?
And if you save on insurance and get better gas mileage and pay less interest - voila - $$ for the IRA in future years.
I have no problem with buying a new vehicle. (We have 2 cars right now, both Toyotas, both purchased new, one we've had for 20 years and one for 9) Sometimes it makes sense. But if part of your justification is that you're "in it for the long haul" then prove it, starting with the vehicle you own now. Keep driving the truck you have since it's "running like new." Keep it for a couple more years, keep saving, keep putting money in to the IRA, wait awhile longer to buy the truck.
On a separate note, since you know you'll be needing a new roof and A/C unit soon, why not consider that money already spent? In other words, $28K - $12K for expected major expenses = $16K in "available savings." That seems on the low side for an EF, not to mention buying a new truck.
You mention having a paid-off house. Did you used to have a mortgage payment? If so, where is the money that used to go to the mortgage going? Could those funds go towards the new truck fund?
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