Should I keep the truck I have or go into debt for a new one?

Yep, which was my only real point in posting in this thread. I’m not one to give out financial advice one way or the other on the Internet. There are far too many opinions and “schools of thought” on the matter. I just wanted to call attention to the fact that, while paying cash for everything and never carrying any debt may sound appealing, you need to stay on top of your credit report and keep your score as high as possible regardless.

Even if you don’t ever plan on borrowing money, that stupid number can wreak havoc on many things. And it usually happens when you’re put in a position you didn’t plan for or, was outside of your control. In my opinion, it’s always better to be prepared for the worst (financially speaking) and if you can afford to do that in cash or liquid assets, then bravo, more power to you. But the reality is, the majority of the population can’t and even those who can don’t always want to drain their assets. Debt is sometimes unavoidable, no matter how prepared you are.

 

IMO if you have a vehicle that runs well and meets your needs and is not costing a lot in repairs, you should keep it. Remember the devil you know is better than the devil you don’t. Run that truck till the wheels fall off, or it does not fit your needs and you have the cash to pay for a new one. We had a land cruise that was still going strong at 260k miles. One lesson of Covid is expect the unexpected!

 

Smart guy right there !

 

I don’t think it’s idiotic. You’re comparing apples and oranges. There are things that are fine to go into manageable debt for. All the things you mentioned appreciate in value and are an INVESTMENT. I’d add one more and that’s an education in a field that is increasing. As Dave Ramsey said if it has an engine or tires it’s not an investment. You can’t hardly pay it all fast enough to keep up with the value.

 

Choosing to go back in debt for 15-30 years doesn’t require a credit score you just proved it. May make it easier to go back in debt but it certainly doesn’t keep you from doing it.

 

I heard it this way:

poor people buys liabilities. Stuff that depreciate.
The Wealthy buy assets. Stuff the generate income.

 

I wouldn’t. A pension is the best. I have two. One gvt and one private. Both are constantly funded. The private is worth over a billion dollars and while the money in it is invested in the market it doesn’t require the stock market to grow larger. It has been around for 40 years and most years it makes so much money we get a 13th check. I also have a 401k but the only way that grows is if the market does well. Lastly a 401k doesn’t let you retire in your early 50s like my pension does.

 

Nothing about a pension being ‘invested in the market but doesn’t require the market to grow’ makes sense, but as long as you’re comfortable with the risks, all is good.

Also, a pension being worth a billion dollars means nothing without knowing many other people are depending on the money and how long they’re going to live. It could be worth $2B and still grossly underfunded for all we know.