How much debt do you have?

[Fishindude77]

Zero debt here
I agree with above comments in favor of paying off a mortgage. Getting rid of debt creates a feeling of freedom.

[Jluke]

Just because someone CAN pay off the mortgage doesn't mean they should.

Given the choice between college expenses and mortgage payoff, decision is easy. Don't forget to factor in loss of future investments returns if you actually sell them.

If I were a millionaire with 30k mortgage I'd be sleeping fine.

What also comes into play is how much your mortgage payment really is. Are you talking say $500/month for P&I or 1200/month or higher. The higher the payment the more beneficial it is to pay it off. IMO

[cypher1]

Just the mortgage at 171000 left, or 293 monthly payments to go last I checked.

[scfr]

I credit my first boss I had when I got a job out of college, he got me started on saving and investing. I never had a lot of money at 21, I'd save $25 a month. Compounding really works!!

Love this!

[scfr]

Zip, Zilch, Zero

[clatoden99]

Debt is generally a losing proposition for people of modest means, and especially in the case of consumer goods like automobiles. Most consumer goods decrease in value, (depreciate). So it is not practical to look at the purchase of an automobile as an “investment”, or the car itself as an asset. In addition to the monthly payment, you will also have to pay for maintenance, and insurance. And the insurance will be more expensive because the lender will require full coverage. And the interest on most car loans is considerable as well. There is a huge amount of “expense” associated with the purchase of a car on credit. Generally, unless you are rather well off financially, you can almost always get a much better deal on a good used car, by paying cash for it.

(Note), it is not so much the cost of the car itself, as you say you wish that you had bought a cheaper two door model. It is the fact that you have a debt obligation that is the problem. So what to do?

I never buy a car new. Modern cars are usually built quite well, and they can if they are properly maintained, last for many years with a minimal amount of expense for maintenance. So a good used car, at 20% of the price of a new model, which you have had checked out by a reliable mechanic, is a much more practical investment than a new car that you have to pay for over time. After the first year, your new car is going to be in the same condition that the used car would have been if you had bought it instead, anyway.

[Jluke]

And the interest on most car loans is considerable as well. There is a huge amount of “expense” associated with the purchase of a car on credit. Generally, unless you are rather well off financially, you can almost always get a much better deal on a good used car, by paying cash for it..

Good post but I'm going to pick on these statements.

My car loan will cost me $260 in interest if I take the full 4 years to pay it off. I paid $125 in dealer fees.

Dealers have incentives to get you to finance so they would prefer you don't pay cash. I've heard this multiple times now on this site and others where someone was going to pay cash but then they "sweetened" the deal if they financed.

Cars are a losing proposition/necessary evil but most people need at least one vehicle if they don't live near reliable public transportation.

Also car dealers are pricing the 2-3 year old used cars close to the the cost of a brand new one such that it would only make sense (to me) to buy new.

I'm a High mileage driver so I have different "rules" to evaluate/justify buying used. New has always worked out for me and hasnt prevented me from reaching my financial goals. I just have to sacrifice in other areas where other people don't (I.e vacation, entertainment, other consumer purchases).

[breathemusic]

Only debt is my mortgage at $598,000 (just bought).

Credit cards are paid off every month, car is a beater and fully paid, and I paid off my student loans very early within about 6 years of graduating college.

[Atretes1]

Personal debt none. When my house was paid off and I was debt free I started rental properties. I have 2 now with mortgages totaling 112,000. Rent is more than enough to cover the mortgages so I am kind of debt free