Get into debt or pay cash? what would u do?

Question

It has taken my hubby and I nearly 3 years to pay off all our debt and we were finally were able to save up enough money buy our own home in Jan. He makes great money but with a kid in college, one in high school (from previous marriage) along with child support and our families bills it just takes alot to live.

The problem is this..he wants a boat. We have saved 15K in a little more than 2 mts and It wont take but another 2 months to save enough to have enough money but he wants one NOW and we dont have the cash which would mean financing, again and getting into debt..debt that I have worked my a** off to get paid off. Finally free!!!!

I told him that we should wait till we save enough and that I didnt agree with what he wanted and he hasnt spoken to me in 4 days, told me Im not his mother and he deserved it....I think he is being impatient.

Should I give in or stick to what I think is best for our family as a whole?

Answer 1

Stick with your opinion. But it sounds that what you desperately need isn't the decision about the boat but a sound financial plan for the family.

Financial decisions are often more than the issues on the surface.  Take buying a boat isn't just about the purchase price.  You also have to consider insurance, operating costs, maintenance cost, storage cost and not to mention additional liability to properties and people that your current home insurance don't cover.  Furthermore, taking out a loan right now will hurt your credit score that could mean higher interest rate when you apply for mortgage and even auto insurance.

I would suggest that you do some research and lay out all the numbers, get your credit reports (and possibly credit scores as well) and your currently household budget (what you are making and spending).   Take with him to set long term goals for the household and how you might get there, things like purchase a home, saving for retirement or college etc.  Work out a projected monthly budget for the future which include mortgage, additional insurance cost etc, retirement savings etc.  Does your current household budget moving you toward your long term goal and what adjustments you need to make?  Hopefully he will come to the conclusion that the instant gratification with a boat is not the best thing for a secure financial future.

Alternatively, find a local hourly financial planner to help you with this process.  

The big question isn't about whether or when to buy a boat but understand and establish financial goals for your family.

Best wishes.