I want to go on a cruise

It is cold here in Connecticut. Really cold and windy, with blowing snow. Weather like this makes me think of escaping to somewhere warm. I start to think about sitting on the deck of a cruise ship, drinking something fruity. I want to go on a cruise.

Photo from the upper deck of the Norwegian Epic, looking out into the Mediterranean.

Photo from the upper deck of the Norwegian Epic, looking out into the Mediterranean.

If you are reading this blog, I’m sure that last statement made me sound like a hypocrite. I didn’t say I am going on a cruise; I said I want to go on a cruise. We are not going on a cruise, not until the snowball is paid off.

The dream of a cruise is making me crazy. Well, it was until I ran some numbers. As I have been organizing everything for taxes, I had my interest statements readily available. I decided to add up how much we paid in interest last year on the items in our snowball. Total interest paid was $6,960. Almost $7,000. That’s a damn European cruise. Yup, that’s less than it cost us to go to Italy a few years ago. So I am paying the equivalent of a 7-day all-inclusive Mediterranean cruise (including airfare and spending money) to the bank in interest. Not principle and interest, JUST INTEREST! If I add the total minimum payments, we could go twice, in a suite!

I want to be able to do that. I want to be able to go on a cruise once a year and pay cash. Can I do that today? Yes. But I would have to sacrifice something. If I wait a few years, until my debt snowball is paid off, we can travel on the interest we are currently paying to the bank and use the principle payments for investing, giving and paying down our mortgage.

Do I want to go on a cruise? Yes, I love cruising. Do I want to go today? Not if it keeps me from paying down my debt today. Short term sacrifice is worth the future benefit.

What could you do with the interest you are currently paying on your debt? What could you do with the money you are using for payments if you didn’t have any debt?

 

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