First let me qualify this post with the statement of fact that Big Daddy is a very intelligent individual. He is also somewhat of a brat. You'll understand in a few . . . .
Having relocated three years ago, and due to circumstances etched in concrete, we put our former home on the market to be sold. I'm pretty sure I don't have to draw a diagram for anyone in an attempt to explain the complete pile of crap that is the housing market. Needless to say, our former home is still on the market and after three years of renters (to pay the mortgage that we could not continue making when we moved), the former home? She's not so nice and neat now as she is ragged and sad.
I am HORRIFIED at the condition of the house. But just short of kicking out the renters and paying the mortgage ourselves, thereby putting a significant strain on our monthly budget, our only choice is to continue renting it until someone buys it. And with the market and the lack of care . . . chances of selling it for what it would have been worth during a strong market are none to zilch. So we will be taking a significant hit on the price just to unload it.
Here's where Big Daddy and his intellect come in.
It is time for me to get a new truck. For the 25+ years I have been driving, I have always had a car payment. I've never not had one. My thinking is that I would rather have a newer, financed vehicle than deal with an older paid for vehicle that will probably require more than maintenance expenses. Besides, I'm a car hound and I appreciate a sharp vehicle as much as the next guy.
So with me needing a new truck and my current truck only 3 (THREE!!!) payments away from being paid for, we figure once we get the house sold, one of the first things to do is acquire my new truck. Big Daddy will keep my old one because it's still in really good shape and, since he has a take-home patrol unit, he doesn't drive a personal vehicle but maybe 2 or 3 times a month.
We have the potential profit split in two: half to spend and half to put aside.
My plan is to take a chunk of the profit and put it towards a new truck - maybe end up with a $200 or so monthly payment (as opposed to the current $500 payment). Then take another chunk and put it towards the condo we want in the mountains (which pays for itself each month + some with rental income). Then the rest would be put in the IRA.
Big Daddy's plan? PAY CASH FOR A BRAND NEW TRUCK. Period. That's it.
While I appreciate his thinking that it would be nice to be without a payment every month, I cannot get on board with his "white trash rich" budgeting strategy. I like to think that we can get our money to do more for us than just buy one overpriced vehicle.
Did I mention Big Daddy is a brat? Yes. Well, he thinks pouting is going to work in his favor.
He thinks wrong.