Wise or Foolish financial move?

[evangelist6589]

Someone needs to learn the difference between need and want.

Yes indeed so. It was a impulse purchase.

 

[evangelist6589]

This should have been reason enough not to take on another debt.

Noticed that there was only one hour between the OP and the declaration that it was purchased. Either an impulse buy or predetermined decision?

I have been good about avoiding consumer debt besides this purchase. I stopped buying books pretty much, stopped buying tracts (have too many). Yes I did have to take on debt after I owed the IRS more than a grand, but besides that I have been paying back my debts.

 

[evangelist6589]

I had a Dell PC at work that lasted me 11 years and my wife's home computer lasted for 10 years. The only reason I replaced them was because support for Windows XP was ending. I've since custom built two screaming gaming machines for around $1,000 each. Intel i7 processor, 16 MB RAM, solid state drive, upper tier graphics card, custom cooling. Yes, I overbuilt them but I figure they'll last 10 years.

I've never heard of an Apple that has lasted 10 years. I'm sure they exist but I personally don't know of it and I know plenty of Apple owners.

Check eBay. Lots of machines with 16MB of RAM from the mid 1990's being sold there.

 

[evangelist6589]

For $1,200, I could buy 3 PCs that would run just as well and do the things I saw listed in this thread.

Make up your own mind as to what's a wise or foolish choice. Deciding on only one type of computer, when a cheaper model is available and would take you minimal time to adapt to -- is purely a *want.*

Bu the advantage of the Mac is that I can run Mac OS X and Windows side by side. Mac's come with Bootcamp and other more expensive options are available, but I usually use what is free.

But yes this was a WANT purchase and not a need such as car repairs, dental costs, or the IRS.

 

[Rolfe]

However at least I put it on a 0% CC and chose not to finance it. Financing it would have been a very stupid move and no way I would have done that.

My own opinion. Do not kid yourself. You financed it. "0%, same as cash" is simple marketing. You are betting your ability to pay the balance off in the allotted time, while the issuer is betting that you will not. If you already have the cash in hand and can use it to your benefit elsewhere (gaining interest, as an example) during the 0% period, it makes sense. If you do not, it is a simple gamble.

 

[evangelist6589]

My own opinion. Do not kid yourself. You financed it. "0%, same as cash" is simple marketing. You are betting your ability to pay the balance off in the allotted time, while the issuer is betting that you will not. If you already have the cash in hand and can use it to your benefit elsewhere (gaining interest, as an example) during the 0% period, it makes sense. If you do not, it is a simple gamble.

I will sell my MacBook and use the money to make a payment. But yes it would have been better to have had the cash on hand.

 

[InTheLight]

Check eBay. Lots of machines with 16MB of RAM from the mid 1990's being sold there.

Why don't you give me a link? I'd love to see one of these machines from the 1990's with 16 MB RAM. (Note: A PC with 16 MB RAM, not a hard drive with 16 MB capacity.)

 

[annsni]

Yes it would be foolish if suddenly my car were to need repairs, or when I visit the dentist or doctor they discover something. However at least I put it on a 0% CC and chose not to finance it. Financing it would have been a very stupid move and no way I would have done that.

Perhaps I could have avoided this one by saving.

You can avoid it all by saving. This is exactly what an emergency fund is for.

 

[JonC]

If you already have the cash in hand and can use it to your benefit elsewhere (gaining interest, as an example) during the 0% period, it makes sense. If you do not, it is a simple gamble.

I can't even make myself do that. Been looking at a riding mower for some time - 0% for 24 months. I could pay cash....but I'm unwilling to part with the money. Financing at 0% is only good if I were willing to pay cash, which I'm not....but give me a few weeks of push mowing and I might. :smilewinkgrin:

Basically, 0% is used to get us to buy what we cannot (or are unwilling) to afford. It is enticing, but it is still money owed and can quickly become a burden as someone else has a claim to our income or held money.

 

[evangelist6589]

Why don't you give me a link? I'd love to see one of these machines from the 1990's with 16 MB RAM. (Note: A PC with 16 MB RAM, not a hard drive with 16 MB capacity.)

You built a PC with 16MB Ram so you know all about eBay. I can't figure why you need to run Windows 3.11 or Windows 95 but you must have old apps.

You want models? Mac Performa 6360. Mac Quadra, Mac LC 475,etc.. We have some 68K and PPC units here.

 

[evangelist6589]

You can avoid it all by saving. This is exactly what an emergency fund is for.

Correct indeed. Should I use it all? I could pay off most of the bill if I were to use it. I hesitate because this was not an emergency and maybe I should leave the money there for a car repair or dental bill.

 

[annsni]

Correct indeed. Should I use it all? I could pay off most of the bill if I were to use it. I hesitate because this was not an emergency and maybe I should leave the money there for a car repair or dental bill.

Well, the choice should have been made before the purchase. It was a whim purchase and as such, should have been put off until you had the money set aside for it. I have taught my kids that when they really feel the need for something, get an account set up in ING/Capital One 360 and start putting money aside for it. It's interesting just how much they "need" it after a couple of months of putting money aside for it or if there is another alternative.

 

[InTheLight]

Correct indeed. Should I use it all? I could pay off most of the bill if I were to use it. I hesitate because this was not an emergency and maybe I should leave the money there for a car repair or dental bill.

You've got 0% financing. Take advantage of it. Make your regular loan payments on time. Build up your credit rating. Save money on the side.

 

[Rolfe]

I can't even make myself do that. Been looking at a riding mower for some time - 0% for 24 months. I could pay cash....but I'm unwilling to part with the money. Financing at 0% is only good if I were willing to pay cash, which I'm not....but give me a few weeks of push mowing and I might. :smilewinkgrin:

Basically, 0% is used to get us to buy what we cannot (or are unwilling) to afford. It is enticing, but it is still money owed and can quickly become a burden as someone else has a claim to our income or held money.

Yep. Agree with everything that you wrote.

 

[evangelist6589]

Yep. Agree with everything that you wrote.

I'd like to pay it off ASAP without depleting my emergency fund.

 

[InTheLight]

I'd like to pay it off ASAP without depleting my emergency fund.

Why? The money isn't costing you anything.

 

[JonC]

Why? The money isn't costing you anything.

He said it would cost $1272 and he was planning on paying it off in 90 days. That's $424 a month. If he has the money and will pay it off in 90 days, then I don't think it is a big deal (I don't know his finances, perhaps his financial situation has drastically improved from previous discussions). But if he takes longer in paying then that is money that could be added to his monthly budget.

Also, too often when we finance we overspend. If I end up gong 0% on a mower I know that I will pay it off in 6 months or less, but I also know that I will upgrade from what I would purchase if I paid cash. It's just too depressing seeing my account take a hit at one time. I've seen too many people get in trouble over 0%.

 

[evangelist6589]

Why? The money isn't costing you anything.

What if I had a real emergency? Are you saying I should just make min payment on the CC? I don't think so as I want to pay off the laptop debt ASAP.

My IRS debt I won't be able to pay off as easily so that debt I just make min payment, but the laptop debt is doable with my income.

This is one reason Dave Ramsey is wrong. He says no credit cards, no credit cards!!! But without one I would not been able to handle the IRS. Its unfortunate they had to bomb me, but I am glad their debt is on a Credit Card verses owing them money directly.

 

[evangelist6589]

He said it would cost $1272 and he was planning on paying it off in 90 days. That's $424 a month. If he has the money and will pay it off in 90 days, then I don't think it is a big deal (I don't know his finances, perhaps his financial situation has drastically improved from previous discussions). But if he takes longer in paying then that is money that could be added to his monthly budget.

Also, too often when we finance we overspend. If I end up gong 0% on a mower I know that I will pay it off in 6 months or less, but I also know that I will upgrade from what I would purchase if I paid cash. It's just too depressing seeing my account take a hit at one time. I've seen too many people get in trouble over 0%.

The same but I do things differently such as I BUDGET every dollar. I also am not buying books nor tracts.

 

[evangelist6589]

He said it would cost $1272 and he was planning on paying it off in 90 days. That's $424 a month. If he has the money and will pay it off in 90 days, then I don't think it is a big deal (I don't know his finances, perhaps his financial situation has drastically improved from previous discussions). But if he takes longer in paying then that is money that could be added to his monthly budget.

Also, too often when we finance we overspend. If I end up gong 0% on a mower I know that I will pay it off in 6 months or less, but I also know that I will upgrade from what I would purchase if I paid cash. It's just too depressing seeing my account take a hit at one time. I've seen too many people get in trouble over 0%.

What of the all the people that do not get in trouble on 0%?