It’s been a great week for us financially, still I’m feeling a little guilty about being so stingy. I’ve definitely been ungenerous this week. As much as I like to help people, especially family, it’s hard to help financially when we aren’t debt free.
You have to know the whole story to fully understand, so here it goes.
Tom got a fabulous interest rate at a credit union in order buy his brother’s SUV. At 1.75 percent interest the most we will pay in interest over the life of the loan is $700. And the credit union paid him $200!
We currently have 3 cars at our house while we are figuring out how to sell my 2005 Toyota Corolla. I worked so hard to pay off that car. Getting the title in the mail was one of the most satisfying moments of my life.
Neither of my little sisters currently have a car. Isabel is in college and would love a car to drive home to visit us, and Tori really needs a car to get to work. Currently she and my mom are sharing a car which means sometimes I end up being the chauffeur.
Common sense would make you believe that if we have 3 cars and my family needs one, we should generously gift them the car, right? I don’t need three cars, and they need it.
Here’s the last piece of the equation: the car is worth roughly $3,000. The same amount that we currently owe on the last of Tom’s law school debt.
Selling this car would mean that we could officially be finished with this monstrous debt that had a crazy high interest rate (as high as 8%).
So, we are opting to be stingy. We’ve offered to sell the car to family for $2,200.
As guilty as I feel for not helping my family, I also feel good about our decision.
We made a goal 6 years ago to pay off $180,000 in 7 years or less. We are so close to the finish line that I can’t possibly give up now.
Here’s what I’ve learned this week: It’s okay to be stingy with your money when you are working towards a goal. It’s not being stingy, it’s being smart. If we want to be financially fit, we have to make tough decisions like this.You can't help people financially if you aren't financially fit yourself. Click To Tweet
Maybe I’ll look back one day and think differently.
As far as financial successes and failures go for the week, I think it’s a great success that we bought a new (to us) car with a 1.75% interest rate. No room for financial failures this week!
What do you think about being stingy with money?