How should I spend some extra money? Pay off debt or purchase something to make money?

Question

I have an extra $3000 and have always wanted to buy a Hobart mixer to bake breads. The mixer is used and will cost me $2000. I'm wondering though if I should take the money and pay towards my car leaving a balance of $1000. My car payments are $450 a month, Any suggestions?

Answer 1

pay towards your car and then save up for the bread maker

Answer 2

well I think paying down a debt is always a good thing . but in order to make money is import-en to . so to you if you pay down debt. how long would it take you to save up the money to make the money . or the other way around .witch is more in line to get you where you wont to be quicker.

Answer 3

Pay off debt. Interest is killer.

You won't regret it.

Answer 4

hello - usually better to pay off debt, get rid of the interest.  good luck

Answer 5

Pay your car loan,safe the rest for rainy days.

With the extra $1000 you could buy you more breads, minus the trouble you are going to take.

So, I suggest you pay off your car loan first and forget about the Hobart mixer.

Answer 6

Do you have an emergency fund set up? If not, put 6 mths worth of your living expenses in that account. If you do, I'd be more for paying down the car note.... you will be so much quicker to being debt free and then you can start saving the money that was going towards the car note until its enough to pay for the mixer. Also, have you taken into account all other things you are going to need to put that mixer to work? That is overhead cost, materials etc. Then again, if its for an existing busines and you can write off the purchase, then you may not go wrong in getting the mixer.

The best option though would be paying down the car, it will help improve your cash flow in the long run whereas the mixer will take away from your cash flow initially before it starts paying for itself.

Answer 7

Pay the debt. You’re guaranteed to save some money in interest. You’re not guaranteed to make anything from a mixer.

Answer 8

ALway pay off your debts first.

Answer 9

If you are sure that the Mixer will enable you to really make money that would be higher than the interest of your car loan then I would suggest that you do both.  Get the mixer for $2000 and pay the remaining $1000 towards your debt.

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http://www.investmentpaysoff.com

Answer 10

you can get a breadmaking machine for $100 - and they make good tasting loaves of bread - why would you spend $2000 for a "mixer? If you only have  $4000 balance on the car - that means only 9 payments or so - paying $3000 towards the balance won;t really ave you a lot of money - you're paying practically all principal at this point -  buy the $100 bread machine and keep the rest in your emergency fund, and/or open an IRA with $1000 or start contributing towards a 401k if available

Answer 11

I think you should buy the Hobart mixer,it would pay for it self eventually.When it does you'll have money to do whatever.Work hard to get your money right!!!!

w3lL go0d luCk  :)

Answer 12

Pay it toward your car loan