Payments. Here's my plan
Seasoned HDF Member
Joined: Dec 2003
Posts: 7,090
Likes: 3,882
From: Murfreesboro , TN
RE: Payments. Here's my plan
ORIGINAL: Biggzed
One rule of thumb I have tried to live by to pay things off early is:
Figure out what the principal and interest are separately. When making your payment each month, try to double the interest portion every month. You will pay it off in less than half the time. For example:
Monthly payment (principal + Interest) is $200
Principal is $50
Interest is $150
Try to pay $350 each month.
One rule of thumb I have tried to live by to pay things off early is:
Figure out what the principal and interest are separately. When making your payment each month, try to double the interest portion every month. You will pay it off in less than half the time. For example:
Monthly payment (principal + Interest) is $200
Principal is $50
Interest is $150
Try to pay $350 each month.
Since you have less time on the sports car, I'd concentrate more on that one first, put more towards that first. Once that is paid off, take that entire payment from the sports car and apply it to the bike. (I applied that principle to some high credit cards, helped more to concentrate on one, the smaller one, then go for the bigger one with the extra dough)!
Seasoned HDF Member
Joined: Dec 2005
Posts: 5,464
Likes: 624
RE: Payments. Here's my plan
ORIGINAL: Cryptoboy
So what happens at the mid way point and beyond, when the interest portion starts becoming less than the principal?
Since you have less time on the sports car, I'd concentrate more on that one first, put more towards that first. Once that is paid off, take that entire payment from the sports car and apply it to the bike. (I applied that principle to some high credit cards, helped more to concentrate on one, the smaller one, then go for the bigger one with the extra dough)!
ORIGINAL: Biggzed
One rule of thumb I have tried to live by to pay things off early is:
Figure out what the principal and interest are separately. When making your payment each month, try to double the interest portion every month. You will pay it off in less than half the time. For example:
Monthly payment (principal + Interest) is $200
Principal is $50
Interest is $150
Try to pay $350 each month.
One rule of thumb I have tried to live by to pay things off early is:
Figure out what the principal and interest are separately. When making your payment each month, try to double the interest portion every month. You will pay it off in less than half the time. For example:
Monthly payment (principal + Interest) is $200
Principal is $50
Interest is $150
Try to pay $350 each month.
Since you have less time on the sports car, I'd concentrate more on that one first, put more towards that first. Once that is paid off, take that entire payment from the sports car and apply it to the bike. (I applied that principle to some high credit cards, helped more to concentrate on one, the smaller one, then go for the bigger one with the extra dough)!
Ultimate HDF Member
Joined: Sep 2005
Posts: 8,641
Likes: 26
From: Ozark Country
RE: Payments. Here's my plan
Guess I'm 'old fashion', but I don't believe in usingother peoples money(credit), along with paying interest,tomake purchases.
Especially when this credit and interest are being used to purchase items might be considered a 'luxury item', and not necessary for day to day survival.
I just like the feeling of being completely debt free, and not having to worry about currentor future financial obligations.
But that's just my opinion, and opinions vary.
Especially when this credit and interest are being used to purchase items might be considered a 'luxury item', and not necessary for day to day survival.
I just like the feeling of being completely debt free, and not having to worry about currentor future financial obligations.
But that's just my opinion, and opinions vary.
Tourer
Joined: Mar 2007
Posts: 481
Likes: 0
From: Canada
RE: Payments. Here's my plan
ORIGINAL: OldFenderGuy
Guess I'm 'old fashion', but I don't believe in usingother peoples money(credit), along with paying interest,tomake purchases.
Especially when this credit and interest are being used to purchase items might be considered a 'luxury item', and not necessary for day to day survival.
I just like the feeling of being completely debt free, and not having to worry about currentor future financial obligations.
But that's just my opinion, and opinions vary.
Guess I'm 'old fashion', but I don't believe in usingother peoples money(credit), along with paying interest,tomake purchases.
Especially when this credit and interest are being used to purchase items might be considered a 'luxury item', and not necessary for day to day survival.
I just like the feeling of being completely debt free, and not having to worry about currentor future financial obligations.
But that's just my opinion, and opinions vary.
In addition, I think everyone likes the feeling of "not having to worry about currentor future financial obligations"
That is pretty much the definition of RICH!
Road Master
Joined: Dec 2006
Posts: 1,058
Likes: 6
From: Omaha Nebraska
RE: Payments. Here's my plan
Having just retired and reflecting back, I'm sure glad that I got ahold of myself many years ago and became a better money manager. It happens quickly, one morning you wake up and it's time to retire, but canwe(if married)? Glad tosee that you're thinking and prepared to act on it. FWIW,some major contributors to our early retirement was, weusually purchased used cars and bikes, like 2-3 yrs old and neverborrowed for toys. Now it's time to play.
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Extreme HDF Member
Joined: Sep 2006
Posts: 10,033
Likes: 29
RE: Payments. Here's my plan
If I had to finance a toy for 72 months, I'd do without.
Dallas,
Aren't you 48? By the time you get around to finally adding more to your retirement, you will be facing retirement.
Dallas,
Aren't you 48? By the time you get around to finally adding more to your retirement, you will be facing retirement.
Road Master
Joined: Oct 2005
Posts: 1,034
Likes: 1
From:
RE: Payments. Here's my plan
If I were 48, I would be putting every available dollar into a 401k or IRA. Even if it means selling one of the toys and getting a used beater just for transportation.
It's true you only live once, but if you expect to live long enough to retire, Social Security is not enough to live on and that problem is gonna get worse before long.
It's true you only live once, but if you expect to live long enough to retire, Social Security is not enough to live on and that problem is gonna get worse before long.