Is it better to invest or pay off debt?

Home Forums Financial Preparedness Paying Off Debt Is it better to invest or pay off debt?

This topic contains 4 replies, has 5 voices, and was last updated by  Dorothy Cameron 2 weeks, 5 days ago.

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  • #27825

    Anonymous
  • #27827

    namelus
    Participant

    Right now pay off debt….there is going to be a money hyper inflation period… people.think wait when money hyper inflates I can pay off mortgage/debt with worthless cash look at what happened in other countries this happened to … banks NEVER LOSE  they just will adjust interest rates.

     

    If you have excess…. we don’t invest unless tangible product we hold on to now we think it’s unwise to risk in unstable markets. Can always sell bean bullets bandaid fuel.  Can’t always sell precious metals nor precious stones,coins, stamps or other such valuables.

     

    We do have some cash reserves for land/property buying it’s not yet time in our opinion to buy as the great calamity has not hit yet.

     

    For right now cash flow one of the person here is selling roadie supplies. Another selling knives/axes/tools from the smithy. We also bought duplicate heavy equipment and rent out for job (with our operator) example bought used 200 series excavator same as first one $20k $10k in repairs. $2k for transport. Rental at $185 an hour and we can’t do government contracts as too old but for private people it works as going rate is $225 an hour for the new government OK equipment when all they care about is no leaks and can do the job.

     

    That is 180 hours to pay back machine and 200 hours if you include fuel and  maintanace items. The owner operates so pay is not an issue after basically a month it’s $150 an hour profit.  Oil changes every 250 hours and its a 4 cylinder isuzu diesel enine it sips fuel. Yes you need insurance and we do have a transport truck  but cost of transport is always billed to renter.

    For first job it was 3km of fence posts put in on marked territory 10feet spacing  so  social distancing they left the posts we sent 2 guys had 3km done in less than 4 days  as the excavator can push in poles like you do candles in birthday cake. That was 2/3 cost of excavator in 4 days contract.  We where cheaper by $5000  than next bid. Using a post pounder it takes about 10 min a post.. excavator the slowest part is moving excavator. Added bonus the neighbor to that job asked for bid to redo a section of their fencing.

    All of you have skills and knowledge that people.want or need… just need to find niche.

     

    We have a lot of gravel roads here with clay content… makes for a mess in spring on logging roads and load restrictions founder a product called ecozyme. It enzyme seals the road top using clay to concrete hardness for 10 years. We used it on out own road, people see it and we pitched it to the village and community forestry. They are now asking us to do this for the main logging roads because it will cut repair cost to nothing. The manufacturer has a 20 percent off sale because of covid and the product is stable for years. Win for everyone.

     

    Right now trust yourself your family pool your skills and resources there are things you can do and can sell just have faith in yourself. The tribe here has been talking about never going back to old jobs just staying on farm.

     

     

     

    Q

  • #27866

    Crow Bar
    Keymaster

    Pay off debt first (snowball method).
    Then savings.
    Then, maybe if and when everything settles down, invest.

  • #27896

    Cath
    Participant

    I like your comment, Namelus.

    “We do have some cash reserves for land/property buying it’s not yet time in our opinion to buy as the great calamity has not hit yet.”

    Sifting through data, and reading the tea leaves :), we have decided it IS the great calamity and are relocating asap, as I noted in another thread.  With a little luck, you’ll be somewhat of a neighbor.

  • #29871

    Dorothy Cameron
    Participant

    Sometimes employers are just unfair. I’ve lost my job because of Covid-19 not so long ago, but, TBH, I’m not feeling bad about it. Because my boss treated me like a slave. And always tried to make the stuff they make to you, OP. Now I’m on my own. Good thing for me is that I’ve saved some money and now I can start my own business. TBH, I didn’t decide where to invest money yet . Not so long ago one of my friends sent me an article with passive income ideas here themoneymix. I think I will use it.

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