Buy Farm Equipment With Cash
Meryl Anne and her husband are farmers. Her husband wants to buy another piece of equipment for $100,000. She wants to pay off the farm and then buy the equipment.
QUESTION: Meryl Anne in Boise and her husband are farmers and have always been in debt. They have $120,000 left on their second mortgage with $6,400 in hospital bills. Her husband wants to buy another piece of equipment for $100,000. She wants to pay off the farm and then buy the equipment. Dave thinks they should pay off the farm and then save up for this equipment.
ANSWER: So as soon as we get out, our goal is to jump right back in. We just can’t stand being free. I would pay off the farm and be out of debt, and then I would save up and never be in debt again and save up and buy all my equipment from this point forward. Break the cycle.
Do you know how much more money you’d have in your pocket if you had back all the money you’ve given to banks for equipment over this 30 years? Do you know how rich you’d be right now? Add it up. You know what you had. You’ve paid hundreds of thousands of dollars to banks over the years—probably $1 million or more in 30 years—in interest alone. And you had the stress.
Just like the last caller, farmers are business people. It’s not popular to run it debt-free. But I don’t really give a rip what’s popular. I’m not worried about popular. I’m worried about what’s right for you. I’d pay off my house, and then I’d save up my cash and pay for my equipment from now on.