New concept.... saving for emergencies and purchases! What is up with all this crazy talk!

Saving for emergencies AND purchases! I don't know, that seems foreign somehow. Who plans for emergencies anyhow, isn't that what insurance is for.... oh wait we're not talking about ambulances? You mean put money away so the next time you look at your tires, and determine that they must have made a mistake at the tire shop 8 years ago, and accidently put on racing skids!

I think our idea, and probably most peoples idea of an emergency fund is... pray like mad until something gives, or a loan shark... eh hem I mean loan company comes along and "helps". So here we are at class, and some questions are put forth. What was the last major unexpected financial crisis you face? How would that have gone differently is there was... gasp... money in a savings account?

Well I think the last major one was when I lost my job, our shop, and the car in the same quarter. Well that was quite the zinger, not to say that there was no other crisis, but when I think major that is what appears. So had we discovered Dave Ramsey earlier, and we had a fully funded emergency fund, it wouldn't have been so devastating. You know like being punched in the stomach and just for kicks rip out the carpet from your feet so it was easier to kick you in the ribs cause your flat on your back... oh sorry rambling a little.

Maybe things would have been different altogether, you know saved up cash for the car instead of financing, or at the very least, rather than panic about those events, taken a deep breathe, and thought about the next step, rather than run around like a crazy person.

Now my favorite questions are "dream big ones" you know what would you do if you won the lottery! Well I am a little small town so I am okay with this one: What if you were debt free (except your home) and had $10,000 sitting in the bank just for emergencies? How would your life be different? How would you be different?

Dreams would come true... I would be sitting in my studio downtown, throwing and firing all day beautiful pottery and sculptures, painting on occasion. Selling my art and maybe others too, but at a bargain so that everyone can see it. Then go home wait for my family to come home, cook dinner, and enjoy seeing them, and hanging out. Thinking about this for a moment makes me smile. I get excited, cause in a short time and with these little goals my husband and I have acheived already, I think that this is reality, this can actually happen. This is motivation! This I can do. I would never get a loan again, and in fact when I think about this little dream I start rolling around numbers in my head thinking... how much do I need to put away to make this happen, what can I do to acheive this goal and how long will it work.

This new thought process is funny because when I would think of this before I would think to myself, how can I crunch the numbers for the bank, how can I convince them to loan me the money. This concept of paying cash and saving for things is not extreme thinking anymore, just different thinking. I hear the testimonies on the radio everyday. This is real cause right now it's happening to us, little by little we are progressing from the depths of financial despair to financial freedom.

This is awesome!

Cash for Clunkers... wonder or blunder

*Update* I realize I did not put in the cost of parts and repairs for the older vehicles!

hmmm. Admittedly I am tempted, after all there are cars out there you can get for $5000 brand new after the government credit! So why do I hesitate, the gas mileage would be alot better than my Nova (which by the way is never an option for trade in or sale) My van is decent mileage about 18 or so on a good day. It would be prettier than my van that is for sure, poor little work truck, filled with gear, waiting for a little more in the budget for her makeover.

So I couldn't help myself... had to figure it out. Now I am no accounting wizard here just gathered some information from what I knew personally regarding parts and from what I got when I called local shops.

So here it is check it out I think you would be shocked as I was! The money alone we could save... would fix the air conditioning in the van, brand new paint job, and reupholster the whole thing in just a couple of months of what I would save if I opted to not get a new car. The Nova by the way is perfect in all those departments

The figures for monthly expense includes what you would need to put away for replacement of wear and tear. Most people say well older cars are not dependable. On our newer car we learned that everything is much more expensive; from simple oil changes, inspections, etc. From talking with other people at the time our car payment was considerable low at the time. All in all these figures I believe will be different for each person, maybe your car payment is higher or maybe your gas mileage is better. I think it is better to hammer out the long term factors before considering Cash for Clunkers.

For me I'm thinking maybe not, because I can put the van in perfect running order with new paint and interior and not only, not have a car payment but save other expenses as well.

Good Luck in your decision