practice for big ticket purchases

Welcome back! This week we are talking about practicing for big ticket purchases and the impact they have on our budget; I want you to cool your heels and see if the Car/Trailer/Boat/Timeshare/Private School is:

• Worth the sacrifice

• Something that is truly sustainable over time in your spending plan

• Something you will feel proud to have spent the money on or regretted

Can your really afford it long term? Will it be a stretch each month and if so will it still feel worth it? Will it be a fight in 3 months time, awkwardly in front of visiting relatives? 

So how do you know? Go to the budget....Math will tell you right away if it will fit or not. If it does, great! Put that $872/mo car payment into the budget and then live with it for 6 months. Good news is in 6 months the car will be "old" and on Sale! 

For the next 6 months transfer the cost of the car payment; $872 to a savings account. In 6 months time you have $5,232 which is a good down payment and will reduce your finance costs. OR you decide that $872 is too big of a chunk and when you head out to the car lot again you have a $5,232 down payment and agree that your maximum monthly payment will be $500. You are now informed on how the new payment will impact your monthly budget, you have confidence that it is a long-term sustainable expense you won't regret. 

For those of you wondering about other car buying options I'm happy to review your situation/budget, just visit me at macmoneysolutions.com and book your time. In the meantime....go practice your big ticket purchase....it will make you rich :)