Saturday, February 2, 2013

Who cares what Dave Ramsey would do - what should WE do?

In all honesty, I am a huge Dave Ramsey/Financial Peace University fan.  Anytime someone has asked me for help getting out of debt, that's the direction I've sent them.  However, we don't follow all of his "rules" because we happen to be very financially disciplined when we need to be (totally not a brag, just a statement).  We don't pay off smallest debts first, we pay off highest interest debts first.  We just don't need that gratification to motivate us.  We don't do the envelope system, we just buckle down.  ...and last summer we really broke his rules, and bought a new (to us) car.  Long story short, it was the best thing to do in the situation we were in.  
So...  here's the deal.  We have sold something fairly valuable & have a chunk of money to do *something* with.  I/m not sure what we should do though.  There are 3 options on the table.  
Option 1 - buy land in Dallas.  This is an ultimate goal of ours, we want a big chunk of land to use as a getaway & we'd like it in Dallas so when we visit for holidays, summer, etc, we have our own space & don't burden family with our chaos.  
Option 2 - use the money + a little in savings to pay off the car we bought last summer & be 100% DEBT FREE (since we're currently renters).  Which would feel great, no doubt.  100% debt free sounds pretty darn amazing, huh???  Our car payment is 300something/month.
Option 3 - put the money in savings.  We will be buying a house at some point in the near future.  Perhaps when this lease is up in July 2014.  (Although renting just a little longer to save even more is still an option, so who knows.)  While this chunk of money won't make as much interest for us as we're paying on the car (that's where Dave Ramsey would have a fit, lol), we all know how much money mortgages suck out in the long run & having more to put down on a house would be a really good thing.  Remembering that the car payment is $300something/month, in 17 months that won't equalt what this chunk of money is.

So, I'd say that while I orignally made this deal so that option #1 would happen, I've kinda shelved that idea. I'm really torn between option #2 & option #3 though.  So, what do you think you would do (Dave Ramsey rules aside)?

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