Posted on 10/09/2012 8:51:16 AM PDT by Kaslin
Dear Dave,
When it comes to taking control of your money and living on a budget, what’s the biggest thing a family can live without?
Will
Dear Will,
There are always the shiny things people can do without. Sometimes people sell a fancy car or boat and get rid of a $600-a-month payment right off the bat. But on a regular, day-to-day basis, I think maybe the biggest and best thing you can amputate from your life is eating out.
I love a good restaurant, and I’ve got nothing against the industry. The problem, though, is that people are struggling to pay their bills or set aside something for retirement because they’re eating out all the time. Most folks simply don’t realize how much money they throw away by heading to the drive-through for lunch or going out to dinner “once in a while.”
I want people to enjoy life, and a great part of that can be going out and having a meal with your family and friends. Just don’t do it when you’re broke. If you’re having financial issues, the only time you should see the inside of a restaurant is if you’re working there!
—Dave
Dear Dave,
We’re expecting our second child next spring, and even though we have an extra bedroom, our place is pretty small for a growing family. We also have $40,000 in student loan debt hanging over our heads, but we can save up almost $50,000 by the time the baby’s here. Should we use this money to buy a bigger home or pay off debt?
Chris
Dear Chris,
If it were me, I’d make sure to knock out the student loan before buying a house. Trust me, if you buy a home with a ton of debt hanging over your heads, Murphy will move into your spare bedroom and make your lives miserable. If it can happen, it will happen. And that’s especially true when it comes to buying a house when you don’t have much cash on hand.
You’re telling me you can save nearly $50,000 by next year. That means you guys are making pretty good money. So there’s no reason you can’t turn around and do the same thing next year, right? I mean, this is only a one- or two-year program we’re talking about. In another year’s time, you could save up for a huge down payment with some extra savings on the side. If you waited and saved for two years, there’s a possibility you could pay cash for a bigger place outright. Imagine how cool it would be to have your own home with no mortgage payments!
Just clean up the extra bedroom and fix it up as a nice nursery. Some new carpet or hardwood is always nice. Throw in a fresh coat of paint, and you’re in business. Then, a year or two after the new baby arrives, you’ll be ready to move from a financial and a family perspective. A baby can live just fine in a small bedroom. There’s nothing in the world wrong with that!
—Dave
Not if they're electric!
Good job to you and Hubby! That is exactly the approach I am planning to take next summer!
;-)
“A baby can live just fine in a small bedroom.”
Number one had a full, kitted out, color coordinated nursery with fancy crib linens. Number 2 slept in a cradle next to the bed. Number 3 slept on my shoulder, carefully supported with a pillow so she wouldn’t suffocate. That really beat the crap out of waking up in the middle of the night multiple times, going into a cold nursery and falling asleep in a hard rocking chair while nursing. Of course with the idiots in our country, I wouldn’t recommend that to most people.
I was so thrilled! the car is gorgeous and runs like a dream! now If I could just shake the rest of this bug that has been plaguing me for over a week - I could actually use it :-)
True, I just haven't seen that combo in my personal life, how common is that in a single room?
Of course it being a mercury it is now a classic! Mercury is dead!
Good point.
There was a string of nights where eating in restaurants resulted in foreign matter in my food. I found a plastic tie tab in my cheeseburger, paper between the slices of turkey, etc..
I seldom eat out now; but when I do I only eat at restaurants where you can see the kitchen. Macaroni Grill is OK, as is the lighthouse deli in San Pedro. Not one Mexican food place qualifies now.
I have to tell you the car example doesn’t work. I bought the car I am driving now, cash, $4000. I have put maybe $2500 in repairs into it (that is a high estimation), and I have had it for 4.5 years. So, $6500 total in “costs” directly related to the car, not counting routine maintenance or gas. A lease/purchase car would cost me $200-400 a month plus a huge increase in monthly insurance premiums, and a lease wouldn’t work for me, in terms of mileage limitations. A lease over that time would have cost me $12,000 +. I think I will stick with my cheapo, used and paid for car right now.
Hubby is retired and I work out of my home office. We cook and eat every meal at home except for Wednesday. To me it is worth the $50 a month just to get out of the house once a week. Lol
“Hubby is retired and I work out of my home office. We cook and eat every meal at home except for Wednesday. To me it is worth the $50 a month just to get out of the house once a week. Lol”
I hear that! I’ve done “home office,” too, and one really does need to get out. I like a nice dinner out once in a while, but really have a hard time understanding the people that have fast food multiple, multiple times a week. Yuck- unhealthy, expensive over time, and not a way to have a family meal.
Why would you have an electric furnace? Wall or floorboard heating would be much more efficient in that case.
In any case, an electric furnace produces ozone. And to top it off utility rooms have no windows, making it impossible to rescue the baby if a fire is near the utility room.
I have been involved in Fire Prevention and Fire Safety Education for 23 years. Any parent pursuing this idea is endangering the life of their child. Period.
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