Time to smell some roses or do I still have a hill to climb?

[disneysteve]

FYI - I drive a 1998 Camry with 135,000 miles on it. Mine isn't particularly pretty either but it was paid for long ago and it drives just fine. And I am debt-free except my 15-year fixed rate mortgage. I won't replace the car until it dies.

[cypher1]

FYI - I drive a 1998 Camry with 135,000 miles on it. Mine isn't particularly pretty either but it was paid for long ago and it drives just fine. And I am debt-free except my 15-year fixed rate mortgage. I won't replace the car until it dies.

Yeah I don't understand all the hate from people know for older Camry's outside the big recall. Besides Camrys, my friend and I agreed some of the most reliable cars are corollas, civics, and accords. I don't see any shame in owning an older car, nor do I judge someone for downgrading or upgrading their car. On the flipside, I understand the poster's reasoning for deserving a nicer car after what he or she has accomplished.

[thomsoad]

Thanks for all the input everybody. Sounds like Im knocking down the ARM starting today. Maybe down the road I will get an 03 Civic or at least something that doesnt have dents! Sux lookin up at this big ol mountain ... but it sure will look sweet when im looking down it.

[disneysteve]

Maybe down the road I will get an 03 Civic or at least something that doesnt have dents!

I know the car really isn't worth much of anything as far as book value but what about spending a few hundred or a thousand dollars and having some cosmetic work done to it? If it would make you happier about driving it for a while longer, it might not be such a bad idea.

[thomsoad]

I know the car really isn't worth much of anything as far as book value but what about spending a few hundred or a thousand dollars and having some cosmetic work done to it? If it would make you happier about driving it for a while longer, it might not be such a bad idea.

To get that car to where I would actually enjoy driving it would be far more then just buying a better looking/newer car. Thanx for the input tho. I grinned it out this far. I can bear it a while longer. Besides, if it gets too unbearable I know I have the cash to buy something nicer.

[DebbieL]

Thomsoad,

You must be the only person in Phoenix with an older car. Seriously, my DH and I just spent Christmas there and I couldn't believe it. I drove around 400 miles that week all around Phoenix area and didn't see anything but newer looking cars. We stayed at a huge resort, and I only saw one older looking car. We figured it must have belonged to one of the chamber maids or something, lol.

As for the property values they sure are low there. We just cannot believe it. We're from Victoria, BC which is still in the midst of a huge bubble ($600K average house prices with family incomes average only in the upper 60K's). It's nuts here. We are patient renters, for a lot less money than "owning" here. Even when we went to Phoenix in late 2006 I knew that property market was in trouble. You could drive around and see tons of condo complexes offering free furniture, etc if you buy a unit. I told DH that this is what I forsee in our (Victoria's) future. Victoria houses are always expensive even at the best of times, but to go from an average price of $240K in 2001 to average prices of over $600K by 7-8 years later is just stupid (and incomes obviously haven't risen to match).

[scfr]

We stayed at a huge resort, and I only saw one older looking car. We figured it must have belonged to one of the chamber maids or something, lol.

Or maybe it belonged to the owner of the resort ... someone who would rather sink their money in to a profitable business than a depreciating asset.

[scfr]

Ive spent sooo long doing the gazelle approach that I really dont wanna break that cycle. It reallt has done wonders for me and my plan is not to split it up for this purpose. Either I pay the ARM down first or I save up for my lifetime car. I honestly think I would get frustrated if I split it up. Being honest with you.

Does Dave Ramsey advocate only focusing on one goal at a time? If so, I wonder how that is practical in the long-term? Life is all about balancing multiple priorities. Many people save for retirement, their childrens' college educations, their next car, a vacation, AND next year's Christmas presents all at the same time.

If you feel you must do one or the other, then I agree about paying down the ARM first.

Congratulations on what you have achieved so far.

[disneysteve]

Does Dave Ramsey advocate only focusing on one goal at a time?

Yes and no. His 'baby steps' program is as follows:

Step 1: save a $1,000 emergency fund
Step 2: snowball debt payments until debt-free except the mortgage
Step 3: fully funded EF of 3-6 months of expenses
Step 4: start saving 15% for retirement
Step 5: college savings for kids
Step 6: prepaying mortgage
Step 7: build wealth and give

So Steps 1, 2 and 3 are single goals at a time but steps 4, 5 and 6 all happen simultaneously.

[scfr]

Yes and no. His 'baby steps' program is as follows:

Step 1: save a $1,000 emergency fund
Step 2: snowball debt payments until debt-free except the mortgage
Step 3: fully funded EF of 3-6 months of expenses
Step 4: start saving 15% for retirement
Step 5: college savings for kids
Step 6: prepaying mortgage
Step 7: build wealth and give

So Steps 1, 2 and 3 are single goals at a time but steps 4, 5 and 6 all happen simultaneously.

And Step 7 definitely looks like it is about balancing multiple priorities all at the same time.

OP, do you consider paying down the ARM part of Step 2?

[disneysteve]

OP, do you consider paying down the ARM part of Step 2?

That is pretty much the point of the thread. In general, I think we all agree that prepaying the mortgage is normally step 6. The problem is this ARM is going to blow up in his face if he doesn't get it taken care of. Obviously, Dave Ramsey doesn't recommend ARMs (neither does anyone else except those making the loans) so his plan doesn't generally address them. I think if you know there is a problem on the horizon and there is something you can do now to keep it from occurring, you need to push that to the top of the priority list.

[thomsoad]

That is pretty much the point of the thread. In general, I think we all agree that prepaying the mortgage is normally step 6. The problem is this ARM is going to blow up in his face if he doesn't get it taken care of. Obviously, Dave Ramsey doesn't recommend ARMs (neither does anyone else except those making the loans) so his plan doesn't generally address them. I think if you know there is a problem on the horizon and there is something you can do now to keep it from occurring, you need to push that to the top of the priority list.

Exactly Steve. I wasnt sure where this ARM problem should be placed. But you are 100% correct: I do have a storm on the horizon. Granted, it is wayy out there in the distance ... but its there and I should just take care of it now. Well, at least as fast as possible.

[scfr]

I wasnt sure where this ARM problem should be placed.

If you view it as part of Step 2 and you want to stick with Dave Ramsey's plan, then it's clear that is where your focus needs to be.