To save or to borrow?
We have been thinking about 2 major purchases lately that have happened just with specific timing meaning that we weren't looking to purchase these things. First we had an offer on redoing our basement that is really hard to pass up and the second is the need to buy a different second car.A few years ago we went through the Dave Ramsey class called Financial Peace and since then felt that we always need to save up 100% for whatever we plan to buy instead of borrowing money when we need whatever the item is at the time.
So our dilema-- what to do about the basement and the car? We have already been saving for the car but we don't have enough yet and we had not intended to finish the basement off just due to funds anyways. But with the current situations of both we felt urgency to not let the opportunity pass us by. However we talked it over weighing the goods and the bads of both sides. We waited a day and in both situations decided that neither was the right timing now and it is so freeing to know we don't owe anyone any money. I actually felt relief after saying no to both instead of "yippee look at what we are going to be getting". Some people feel a rush buying large items like that but for me it is the opposite. I feel burdened, almost sick to my stomach like something isn't right when I have to buy something big and I don't have the money.
Where do you fall when it comes to this?
-Kathy
posted by David Drury @ 10:00 AM
4 Comments:
maybe your car will last longer than you think?
Yes hoping the car will last at least until spring with nothing major!
thanks for reading!
I'm big-time proud of you for not getting buying fever and going out to borrow money. You can still get a good deal on the basement AND the car by continuing to save up the cash. Then you flash it and get a discount. Bada-bing, bada-boom. Way to go on saving the dough, baby! www.debtective.com
I fell across your blog from my bro who reads Keith's blog--anyway, my husband and I are doing FPU and we love it!! We just finished Session 5 and we are totally committed to following this system.
Tough dilemma...the basement is one that we are dealing with right now as well. My husband is finishing it off himself, and we are trying to save money that way.
I think you have to look at it as a process - as D Ramsey says, you don't cut your credit card up till you have your emerg fund in place, and you may have to borrow for a car, but you buy less of a car so you can put the extra money toward your 'car fund' and trade in/buy better once you have more money.
You may have to still borrow for a while, but you try to do it less and especially not for things that are typically credit card things.
Very funny that you got a debtective comment. I got one too when I mentioned Dave Ramsey on my blog!
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