Skip to main content

Practice Makes Perfect


So, maybe over the last six months or so you’ve been contemplating a rather large purchase…let’s say a vehicle. You have saved some money and have not been affected financially by COVID-19. You filed your tax return and got back the money you overpaid to the government in 2019, and you pocketed the stimulus (that will be taxed…don’t forget that). You are ready to go car shopping!

Hold on–do you have enough cash to pay for it outright? I suppose that depends on what type of vehicle you’re buying, if you’re buying new or used, and how much money you were able to save. Are you planning to make payments (not the course I recommend, but I digress).? Do you know how much you think you can afford monthly? Before you get out there and find the car you think you can’t live without, I have a suggestion: practice making the monthly payments to yourself.

But, how?

If you think you can afford a monthly car payment of $450, then actually take that $450 every month for at least six months and put it in a savings account that you will not touch. If you do need to get into that money to live on, you obviously cannot afford $450 a month. If you don’t trust yourself not to spend it, then find a trusted friend of family member and give it to them to hold onto for your training period. At the end of those six months, you’ll have an additional $2700 to put toward your car, and you will prove to yourself that you CAN make those payments.

Maybe you will see how much better it is to save and pay cash instead of financing it. Maybe you will decide to keep on saving that way from here on out, even after you buy your “new to you” car. Maybe you will invest that money wisely and watch that money grow. And maybe the next time you need to buy a car, money won't be an issue.

Comments

Post a Comment

Popular posts from this blog

One More–Christmas Experiences Part II

Christmas is just a week away. Hopefully you’ve checked everything off your to-do list and can spend some quality time “experiencing” Christmas gifts with your family. Because, after all, your loved ones will be far more touched by how you made them feel than they will be with what you gave them. This week, I want to share with you my sister, Carey’s, family Christmas experience. “One Christmas, when my boys, now 18, 23 and 28, were little, we gave them an experience that is still talked about now. And it’s something so easily replicated that any family can do it, and it’s not too late to do it for Christmas (even ON Christmas) this year. We drove around our neighborhood and looked at all the homes decorated for the holiday. We took note of the addresses as we numbered them. We talked about what made each ornamented yards stand out. And at the end of the night, we voted for our favorite. I had my sons help me make some of our favorite holiday desserts and, in addition to taking p...
Post a Comment
Read more

It Happens Like That

And, in what seems like the blink of an eye, Memorial Day is over, school is out (or almost out), and my favorite time of the year is here! I love summer. I love it when the sun comes up early and wakes me. I love flip flops and shorts. I like to be warm (ok, not HOT, but warm). This is when I thrive. And I think it’s an excellent time to take a vacation or road trip. That being said, I plan a long time in advance for a vacation because I won’t finance one–and I’ve taken some pretty amazing vacations! I don’t usually just take off on last-minute road trips, either, but I’m learning to be more flexible in my old age. So I have done that on occasion, too.  Now, this blog post isn’t about the last-minute drives I’ve engaged, cruises I’ve embarked, or the countries I’ve explored (being a debt-free, self-employed, budget-loving, young, empty-nester has its perks!). This post is about getting you to a point where you, too, can take vacations without stressing about paying for it late...
Post a Comment
Read more

Know Your Limits

When I was 17, I drove a 73 Nova. It used to be really easy to do things like changing taillights myself. That is no longer the case. If I tried that on my later-model vehicle (which is more like a computer than a car), I’d do more damage than good, because there are some thing you should just not do yourself. It will cost you more in the long run. That being said, there are probably some things that you usually pay someone else to do that are not getting done right now. My advice is to just be patient; depending on what it is and your skill level, it might end up costing you more to fix your mistakes. Let’s discuss some of those… Obviously, most if not all car repairs are just better done by a licensed, trained professional, including oil changes. They can also correctly dispose of used petroleum products. Depending on your tax filing status, a professional can help you avoid overpaying the IRS. I remember cutting my daughter’s hair when she was little, and I made a me...
Post a Comment
Read more