You’re really just trading one expense for another

Dear Dave,

My wife and I are on Baby Step 2 of your plan, and we’re paying off our debt as quickly as possible. I’ve even put my motorcycle up for sale for $5,000 to help us get out of debt faster. The other day, a guy offered me $500 cash and a fishing boat for the bike. I’ve always really wanted a boat, but picking up a toy feels weird when we’re trying to get out of debt. Plus, the money portion of the deal would only make a tiny dent in what we owe. What do you think about this?

Gordon

Dear Gordon,

I’m proud of you two for working to get control of your finances. And I’ve got to admit, the deal this guy offered is kind of interesting. Odd, but interesting!

At this stage of the game, though, I think you and your wife should sit down together and ask yourselves what your real goal is. If the goal is to own a boat, then you could accomplish that easily. If your goal is to get out of debt and get control of your finances, then this deal isn’t really the best way to go. It seems like a cool transaction on the surface, especially if you like being on the water. But the upkeep and maintenance on boats can really add up. And that means more hassles and expenses in your lives.

I think you already knew this, Gordon, but in my mind, getting out of debt as quickly as possible comes first. There’s plenty of time later for you to save up and buy a nice boat after you get control of your money. In this scenario, you’re really just trading one recreational vehicle – and the accompanying expenses – for another.

If you’re on Baby Step 2, it means you’ve already got $1,000 in the bank for emergencies, and you’ve moved on to paying off all your debt, except for your home. This tells me you two are motivated, but the idea of a boat has caused your resolve to get a little shaky.

So, if you’re looking for someone to tell you to forget the boat and stay on track with getting control of your lives and money, I’m your guy. Don’t do the deal!

Dave