or Connect
Mothering › Mothering Forums › Natural Living › The Mindful Home › Frugality & Finances › pay down debt or stock up?
New Posts  All Forums:Forum Nav:

pay down debt or stock up?

post #1 of 22
Thread Starter 
Hey so I'm relatively certain inflation is about to happen in the US. So assuming that will happen...

Should we stock up our pantry? Its not too full right now (with long term foods)

OR do I keep working to pay down debt?

I am building a cushion egg thing as well.

My gut says pantry, but I don't know if thats just because I'm used to debt...

What do you all think?
post #2 of 22
I'd pay down debt. Inflation really is anyone's guess, but it's not likely to be at a very high rate, and I doubt that you would really come out ahead banking on it and stockpiling over paying off debt.
post #3 of 22
I would totally pay down debt. Then I would continue saving and if you want to stock pile your pantry couldn't you do that a little at a time?? I like a well stocked pantry in the winter because the power goes out or storms happen. Otherwise I think being debt free is the best way to battle inflation We JUST got debt free last month. It feels great!
post #4 of 22
I would pay down the debt but maybe add a little extra onto groceries to slowly stock up if there are good sales etc.
post #5 of 22
pay down debt... if you want to do the math...

1. use a debt calculator to see how much interest putting X dollars against your highest interest rate debt is. (keep in mind that this money saved is a *sure* thing)
2. If you invest X amount in groceries, and those groceries keep for a year, you will have 'earned' what the inflation rate is on that. Even at 5 percent, it doesn't sound like very much, especially given that this is *not* a given. It's actually risky. you are betting that the food will last a year, not go bad, *and* the inflation rate will be high.
post #6 of 22
The long term foods you are thinking about stocking up, are they things that are already a part of your normal diet? If so, then maybe just buying those things in bulk quantities (eat what you store, store what you eat) while continuing to pay down debt as much as you can.

That's what we've decided to do. We buy our staples (rice, beans, wheat, oats, popcorn) in 25-50 lb bags and repack them. After filling the smaller containers in our pantry, the rest is packed for longer term storage. This cuts down on our grocery bill while building up our food stores.
post #7 of 22
Pay down debt.
post #8 of 22
Pay down the debt. You're not likely to stock yourself to the point of not having to buy anything, and that will be harder to do with the debt payments on top of it. As you pay the debt down, the minimum payments get lower.

If you see something on phenomenal sale (and I would keep a price book just to be sure of it), yeah--grab some extra. But unless you're finding something that is a spectacular deal on something you go through a lot of, I would focus on the debt.

It's very easy to only know a life with debt. As a result, it's hard to picture life without it and we focus our efforts on other things.
post #9 of 22
Pay down debt
post #10 of 22
Deflation (and the resulting unemployment) is a much bigger threat right now.
post #11 of 22
I will be the lone dissenter.

I say stock up. The fed just announced $600 billion in quantitative easing today. $100 billion more than previously thought. There are certain commodities that have risen dramatically including wheat, coffee, cotton, etc.

We will see inflation in the arena of 10% or so this year - if not more.

Food is more important than money. If all else fails - you can declare bankruptcy. But what will you do when you can no longer to feed yourself and your family?

I know this sounds very doom and gloom - but things are not looking good economically. Any "growth" we have seen has been the result of excess liquidity in our economy. It's not real "growth."
post #12 of 22
We are paying on what debt we have and continue to build our pantry. Like a pp we buy our oatmeal, rice, beans, popcorn, flour and sugar in bulk and store into smaller portions, usually 2lbs. We also buy our pasta (Barilla whole wheat goes on sale for between 75cents and $125 a box several times a year I stock up then) etc. We only store what we will eat not what we "think" we should have.

I'm kinda feeling the doom and gloom.
post #13 of 22
Pay down debt.

I'm reminded of a thread a year or so back where someone was ABSOLUTELY convinced there would be giant food shortages in the next 3-6 months.

It's pretty much a certainty that if you don't pay down your debt, it will still be there. I would not "assume" inflation will happen at any kind of enormous rates.
post #14 of 22
Quote:
Originally Posted by MrsJez View Post
I will be the lone dissenter.

I say stock up. The fed just announced $600 billion in quantitative easing today. $100 billion more than previously thought. There are certain commodities that have risen dramatically including wheat, coffee, cotton, etc.

We will see inflation in the arena of 10% or so this year - if not more.

Food is more important than money. If all else fails - you can declare bankruptcy. But what will you do when you can no longer to feed yourself and your family?

I know this sounds very doom and gloom - but things are not looking good economically. Any "growth" we have seen has been the result of excess liquidity in our economy. It's not real "growth."

While I completely and totally agree with everything you've written, I still disagree with stockpiling vs. paying down debt... especially if the OP can manage to eliminate one of those minimum payments in the next year or so.

The gov't toys with our economic system at a constant and it's infuriating. But at the end of the day, you can apply for food stamps to eat if they don't make some other ridiculous "adjustment" that they think will band-aid the economy if/when inflation gets to where you're projecting. You can't do that for your debt. It won't be great, healthy food, but it also won't be 7 years on your credit record.

I wish this country would either vote these economic morons out of office, or that the morons might listen to the people who actually know what the heck they're talking about. We are headed directly in the direction of Greece (and Spain and Portugal behind them) and none of them seem to notice or care.
post #15 of 22
Quote:
Originally Posted by Ellien C View Post
Pay down debt.

I'm reminded of a thread a year or so back where someone was ABSOLUTELY convinced there would be giant food shortages in the next 3-6 months.

It's pretty much a certainty that if you don't pay down your debt, it will still be there. I would not "assume" inflation will happen at any kind of enormous rates.
Yes, I remember that. I often imagine her sitting surrounded by panic bought stockpiles wondering why the sky never fell. Sort of like after January 2000.
post #16 of 22
Quote:
Originally Posted by choli View Post
Yes, I remember that. I often imagine her sitting surrounded by panic bought stockpiles wondering why the sky never fell. Sort of like after January 2000.
It's a running joke in our household. DH was dying for me to bring it up again after the required time frame.
post #17 of 22
Thread Starter 
OK so compromise to the voices of reason (Why I love MDC)

I will continue to pay down debt, but stock up on great sales of food we use, but not when not on sale.

I did buy 30 cans of pasta sauce a few weeks ago, but we eat pasta 1-2x a week and it was only .50 a can. Which in all my shopping years I've never seen for less than 1-2x a year at .88, usually on sale for a dollar.

Yeah...I'm not happy with the Fed right now. Not a good plan. I guess part of me feels that if $20 won't go as far in a year or two I'd rather have it pay off debt that doesn't change than pay more for food. KWIM?

IF Dh makes the amounts he should than we could be out of most debt (house and student loan would be left) in 18 months, but he's in sales so depending on that...

(he sells cable which does seem to be the last hing people will cut back on so there's hope)

Thanks!!
post #18 of 22
Quote:
Originally Posted by MrsJez View Post
I will be the lone dissenter.

I say stock up. The fed just announced $600 billion in quantitative easing today. $100 billion more than previously thought. There are certain commodities that have risen dramatically including wheat, coffee, cotton, etc.

We will see inflation in the arena of 10% or so this year - if not more.

Food is more important than money. If all else fails - you can declare bankruptcy. But what will you do when you can no longer to feed yourself and your family?

I know this sounds very doom and gloom - but things are not looking good economically. Any "growth" we have seen has been the result of excess liquidity in our economy. It's not real "growth."
This!
post #19 of 22
Quote:
Originally Posted by dakotablue View Post
Yeah...I'm not happy with the Fed right now. Not a good plan. I guess part of me feels that if $20 won't go as far in a year or two I'd rather have it pay off debt that doesn't change than pay more for food. KWIM?
Put me here, too.

I think a conservative approach would be to do both. Get your pantry in order at a reasonable rate that is comfortable for you, and pay what's left to your debt so that the interest doesn't pile up as fast. Once your pantry feels well enough stocked with the basics, put more toward debt.

If food prices are rising faster than inflation right now, which is what it feels like to me, then you come out ahead if you buy food now/cheap than if you wait. You have to do the math the best you can and/or just take a good intuitive stab at it and do what feels comfortable to you.

I think the people who are making fun of the poster who was preparing for food shortages should take back their words. I remember that thread and it wasn't as black and white as you make it sound. And just because the "sky didn't fall" in the timeframe she expected doesn't mean it isn't prudent to prepare for the possibility that it could at some point. It's not fair to make fun of someone for their version of prudence and I'm sad to read that here.

Some people are only comfortable when they feel "prepared" and others don't feel the need. I don't see any reason to judge either side. If we are doing what helps us feel comfortable and least stressed, whether that is planning for possible disaster or pointedly not thinking about it, we are doing the right thing, IMO.
post #20 of 22

I am paying the debt and buying items when they are on sale.

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Frugality & Finances
Mothering › Mothering Forums › Natural Living › The Mindful Home › Frugality & Finances › pay down debt or stock up?