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Discussion Starter · #1 ·
gone. Paid off. wife and I are debt free...no CC debt...no car payments currently...nothing. (except a easily manageable mortgage, which will be gone in 18 years after our refi. last December which knocked off 4.5 years and kept our monthly the same).
been in school debt since I was 19.

still sinking in....

so, what should I buY?!! sea kayak? new ukulele? a subaru?
 

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Always changing.....
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A new Colnago? That is what I would buy since I don't own one. We already have a kayak but a second one would be nice.

Unrelated; funny how RBR thinks Colnago is spelled wrong or doesn't recognize the word.
 

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Discussion Starter · #5 ·
A comfortable retirement - contribute the monthly student loan payment to a 401(k)/IRA/Roth instead.
good idea! but already in process. ROTH is maxed out. planning on bumping up the 403b in a month or two. Work contributes generously to the 401K...

it also helps that the house remodeling/renovation work is near completion...a few minor exterior projects next summer, some yard work...easy (cheap) stuff.
 

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gazing from the shadows
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Good for you! That's a huge marker for people in this day and age. And a nice increase to your monthly cash flow as well. So buy whatever you wanted that you put off. You know what's on that list.

I paid my loans off long ago, but then $5k ain't that big a deal for 12 years of college. :D
 

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Discussion Starter · #7 ·
Good for you! That's a huge marker for people in this day and age. And a nice increase to your monthly cash flow as well. So buy whatever you wanted that you put off. You know what's on that list.

I paid my loans off long ago, but then $5k ain't that big a deal for 12 years of college. :D
I can only imagine. hell, I ended up paying off a total of $42K in total for undergrad and grad debt over 21 years, plus whatever interest accrued on 1 unsubsidized loan. would have been higher if I didn't work the entire time.

the wife had over $60K in debt for her fancy ivy league schoolin'.

I'll probably buy a toy or two and then put the extra cash into investments or cash...continue on my frugal ways.
 

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That is tremendous. Being debt-free is still a lifestyle that requires maintenance to keep it that way, but it's truly an achievement :thumbsup:

'course there are those who say that if you die in debt, you're technically ahead of the game........but that's a whole different topic :p
 

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disgruntled pigskin fan
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Congrats! I paid off my student loans in the 6 month window I had before they started accruing interest, but still had 3 years to serve in the USAF for the HPSP scholarship I received. It was worth it to graduate relatively debt free. The average debt of my optometry school classmates was 150K (higher for out-of-state students, lower for in state).

After celebrating with hookers and blow, I say buy something that makes you smile and continue on with your frugal ways.
 

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gazing from the shadows
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I can only imagine. hell, I ended up paying off a total of $42K in total for undergrad and grad debt over 21 years, plus whatever interest accrued on 1 unsubsidized loan. would have been higher if I didn't work the entire time.
I worked all the time as an undergrad. But really, it's because schools threw a lot of money at me to learn stuff. I understand that is not normal, and at the levels I received money was very abnormal.

My wife had 20k, so not quite so rosy as it sounded. But not all that bad, given how many people have multiples of our total debt from education.
 

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I thought I was done when I paid off the mortgage, but then I had kids...
 

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I was so debt averse that I made the mistake of not borrowing as much as I could have. Those were the days of the National Defense Student Loan Program, interest rate: 3%. In desperation I borrowed $3,000. I wanted to repay it as fast as humanly possible until my father-in-law explained that I could put the borrowed money in a passbook savings account and earn 4% or better at the time. I finally relaxed and took the full 10 years to repay it. My first home mortgage was 6% at that time, so my student loan was pretty insignificant.

Debt free is a good feeling. Heck, buy a new Subaru - they are handing out zero interest loans, or close to it. I've learned to take practically free money when it's offered.
 

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West Point came with a four year commitment but no debt. Hope my nerds do the same. Son wants Clemson though, so I think I'm hosed. Good for you, that's a great accomplishment.
 

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Discussion Starter · #18 ·
Reducing your debt is a bad idea. How will the financial sector wealthy people stay wealthy if there are fewer interest payments going in their pockets? You might force them onto welfare...
there are quite a few profiting off of my home loan still at 4.1%...that helps with the guilt. :eek:
 

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gone. Paid off. wife and I are debt free...no CC debt...no car payments currently...nothing. (except a easily manageable mortgage, which will be gone in 18 years after our refi. last December which knocked off 4.5 years and kept our monthly the same).
been in school debt since I was 19.

still sinking in....

so, what should I buY?!! sea kayak? new ukulele? a subaru?
a whole bluefin tuna
 

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Reducing your debt is a bad idea. How will the financial sector wealthy people stay wealthy if there are fewer interest payments going in their pockets? You might force them onto welfare...
All kidding aside, one of the best personal financial moves you can make is to become your own banker.

Lets say you are in the market for new family room furniture, it might cost you $10,000. Some will do the financing with the store (actually a bank) for nothing down, no payments for 6 month, but then 5% interest later.

Don't get hung up on the numbers, but go with me.

There is a better way,

Now, you have $20K in savings. So what you do, you take $10K out of your savings (That's the hart part). Pull up a loan calculator, figure in a finance rate of 4% for example, and terms you can handle, say 60 months, and you yourself back. You must be diligent and whatever that monthly payment is, you pay yourself each month.

Now instead of the bank making money on the interest, you are. And you got new furniture.

I've done it a number of times, for example paying off a car loan early, or family vacations. I'm about do it again for a new bike.

It also helps sell the wifey on bike purchases.

It's a win - win - win.
 
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