To pay or not to pay

I have it within my power to pay off the rest of my truck immediately. I would have the title of my truck and would no longer have to deal with an annoying bank. I could also get cheaper insurance. You’d think this decision would be a no brainer, but I can’t deny the allure of my other option: buy a sweet gaming rig. I got it all specced out on newegg.com. I just can’t pay off my truck and purchase the computer. I know, I know. You’re all saying, “Dude, what are you thinking? You don’t need three computers! Each one is like a space heater, your apartment is going to get so hot during the summer!” Look, I’m willing to pay that price for an exquisite gaming experience. It could be said gaming is in my blood. There’s something about it that has always attracted me ever since I was knee-high to a bullfrog and playing Lode Runner, Wings of Fury, The Duel II, and Gauntlet. Now, gaming is my chief form of entertainment outside of interaction with 3D IRL friends. Unfortunately, I’ve always played on sub-par computers, and, now for once I can afford to buy a sweet box that can run even the most demanding of games. I relish the thought.

9 thoughts on “To pay or not to pay”

  1. 1) You’ll no longer have a truck payment.
    2) You’ll no longer be paying interest needlessly.
    3) You’ll save money on your insurance…which means your paycheck will feel larger every month.

    Take the money each month that you would have spent on your payment / insurance, and I bet you’ll have that system soon. :up:

    ((((cough cough))))) (or you could actually SAVE / INVEST the extra funds)

    (finance geek running for cover)

  2. Don’t mind my conservative accountant-speak bore you, but, humor me with a little analysis.

    Now, I don’t know how much this sweet little system is or how much you have left on your truck but lets assume you stick $4,000 into a ROTH IRA. Assuming you receive the historical average annual return in the stock market of 10%. You will be able to withdraw $219,534.48 :jawdrop: on your 65th birthday. Even with $2,000 you would have $109,767.24. :mrgreen: Oh, and by-the-way, Uncle Sam wouldn’t even get a DIME of it! :up::up:

    Based on my analysis, I come to three conclusions:

    1. Compounding annual returns are kick-ass.

    2. That is one super-expensive gaming system. :doh:

    3. I am a nerd.

    Paying off the truck would be a smart idea too. Actually, you would probably get a better initial return on your investment by paying off your truck than dropping money in an IRA.

    Now, I know what you’re thinking. “I’ll start saving next year”. Well, if you deposit that same amount a year from now, you’ll still get to withdraw $198,725 but that is $20,806 less, or, 5x that initial $4,000.

    So, Steve, I think you just got pwn3d by your sw33t gaming experience.

  3. I don’t think you should invest, buy a computer, or pay off your truck. There is one, and only one, thing you should be spending your money on: popsicles.

    Safeway sells delicious Red/Orange/Purple 24 packs of Popsicle brand popsicles for only $3.00. Assuming you took that $4000 Chris recommended and purchased popsicles with it, you could buy approximately 29,352 popsicles. And I believe if you look up 29,352 popsicles in the dictionary it’s defined as “totally frickin’ awesome.”

    -OR-

    You could pay off your truck and buy the computer with Newegg’s no interest financing for 6 months. I’m pretty sure the still have the deal on purchases over $500. That’s how I paid for my new computer ?

  4. Finally some sensible advice! Thanks, Matt!

    As for you others, I’m surprised so many of my friends are such nerds. I’m sure none of you have ever been accused of having too much fun. Nerds.

  5. Unlike The-Oh-So-Wise-Chris, you, Steve-o, are clearly oblvious to the inherent sexiness of compound interest. :doh:

  6. i think that popsicles is the clear answer here. then you can accidentally leave one on your computer keyboard on a hot day. obviously you can’t buy just a new keyboard, as it won’t match the rest of your equipment. the asthetics will be spoiled! soo….:mrgreen:

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