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Hey guys, I've been toying around with this idea for a few days and I wanted to see what you guys think. I am 20 years old, about to turn 21 in a month. I am home from school for the summer and have secured two jobs that pay pretty well for around here. I am interested in buying a cheap sailboat ($2000-5000). I have about $1200 saved away and now have no financial obligations whatsoever. (no rent, bills, etc...). I grew up sailing and and want to get back into it. Rather than buying a cheap sunfish or something, I was hoping to get something a little bit bigger and nicer while building my credit at the same time. I was thinking of doing a short term loan of 6 or 12 months, but trying to pay the loan back faster than length of the loan. (i.e. 12 month loan in 6-8 months, or 6 month loan in 4-5 months) Does this sound like a good idea?
Before you guys ask, I plan to trailer the boat, so there will be no slip or mooring fees to worry about.
it sounds to me like you want to spend any money you are making in your jobs on a boat. if thats what you really want to do, then go for it. but it seems like a big expense and a bad start to your financial life.
also, id cross off the concept of taking on debt in order to build credit. for that purpose, just get a credit card and make sure to pay off the balance every month. there is no need to pay extra to build your credit score.
Last edited by CaptainNJ; 05-15-2013 at 09:54 AM..
Agreed with the Captain. Sounds like you're just trying to justify the purchase of a sail boat. How long would it take you to save the rest of the money so you can pay it in cash? I'd go that route versus incurring debt, but I'm adverse to most types of debt.
Agreed with the Captain. Sounds like you're just trying to justify the purchase of a sail boat. How long would it take you to save the rest of the money so you can pay it in cash? I'd go that route versus incurring debt, but I'm adverse to most types of debt.
Well I am just wondering if I can possibly build my credit while buying a nicer boat. If you don't think it's a good way to build credit, then perhaps I will just buy a cheaper boat. It would take me a majority of the summer to save enough money to pay for a nicer boat in cash, though that kind of defeats the whole purpose of buying a boat in the first place...since the whole point is to actually sail it this summer.
Quote:
Originally Posted by CaptainNJ
there is no need to pay extra to build your credit score.
I thought that it helped a lot though, rather than paying minimum payments where you also incur more interest.
I thought that it helped a lot though, rather than paying minimum payments where you also incur more interest.
i dont know how much it helps, but you should be fine as long as you pay your bills on time. i doubt the difference will be a factor when its time for you to buy a home or car. you probably wont be doing that for a while.
also, i said to pay the balance off every month. under no circumstances should you be paying credit card interest.
Well between this post and the one I just posted on another thread I guess I'm going to sound like a huge mean parent....
If you are 20, going to school and home for the summer and can buy a boat..... do you really have no other financial obligations? Cell phone bill, car insurance, etc.? If your parents are paying for everything, then maybe it's time to pay your share. What do they think of you getting a boat and spending all your money on that?
People wonder why kids today don't understand money.... I guess it's because parents are paying for everything and when kids do have a job they are allowed to just pocket it all and not pay their way. I just don't get that and I guess, like I said, I'm the mean parent.
Since our son got his first job at 14 he learned that there are things that then have to be paid for. Cell phone, later on his car insurance, registration, gas, any fun he wanted to do.
Based on the information you provided, please don't buy the sail boat until you have the cash. Save up this summer, sail next summer (assuming you still don't have other financial obligations).
My parents do pay for school and cell phone, but while at school I was paying for my rent, food, gas, and other living expenses. Now that I am at home, I only have food, gas, and misc expenses to pay for.
So wait - this adds to the picture of advice. So you DO have financial obligations (up top you said you had none whatsoever). And you do have obligations during the school year.
In no way, in my opinion, should you dip into your savings. Well, personally I think taking out a loan for a boat at this point is also not a good move.
If you want to get back into sailing, what about renting a boat when you want to for the summer, save money, then maybe do something next summer? Just a thought.
if your parents dont want you to help them out more, thats up to them. you are young and have few years left to be wasteful. i just want you to be completely understand what you are doing and not make decisions based on incorrect logic.
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