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Conversationalist
Posts: 8
Registered: ‎11-07-2015

Re: How Do You Handle Big $$ Purchases/Projects?

Message 21 of 26 (1,478 Views)

1.We wait until the item is on sale. Use a charge card and pay off in 30 days.

2. Or buy on an offered interest free plan, pay minimum payments then pay off when due. Never pay interest!

Treasured Social Butterfly
Posts: 19,485
Registered: ‎12-25-2011

Re: How Do You Handle Big $$ Purchases/Projects?

Message 22 of 26 (1,854 Views)

I got an almost-final update for my bathroom remodeling contract yesterday, and although I'm totally familiar with all the $ listed, that expression came to mind that "it got very real", listing all the components of the project & seeing the total figure again .. and the clauses about dealing with "what can't be seen" until the walls are opened! Even though I have more than enough $ set aside, and the contractor has an excellent reputation, I'm a little nervous.


Registered on Online Community since 2007!
Respected Social Butterfly
Posts: 1,975
Registered: ‎02-01-2008

Re: How Do You Handle Big $$ Purchases/Projects?

Message 23 of 26 (1,944 Views)

I use my emergency fund as a general slush fund.  I use it to cover all unexpected expenses plus expenses I know will come during the year.  The size of the fund determines what kind spending plans I make.  Most of all I try to avoid getting in a bind where I have to sell an asset.  I feel I have everything I need and my wants are negotiable.

vita umbratilis
Treasured Social Butterfly
Posts: 19,485
Registered: ‎12-25-2011

Re: How Do You Handle Big $$ Purchases/Projects?

Message 24 of 26 (1,889 Views)

For several years, I realized the extensive retaining walls on both sides of my driveway, and around the front of my property, were in bad shape & would need to be replaced. So having no clue what it would cost, I saved up for it several years, before tackling the project the end of last summer. It wasn't inexpensive, but I had nightmares that it might be twice as much, so I was happy when it wasn't!

 

Back in 2012, I thought about remodeling the main bathroom in the house; nothing wrong with it, but I just didn't like a lot of things about it. I had a good idea of what I wanted, but when a designer who had a design fee special turned out to not listen to me at all, I put the project on the back burner for 4 years. Earlier this summer, I resurrected the project .. thinking it would cost about $15K to remodel, since I wasn't having any structural work or fixture relocations done. Boy, was this a learning experience .. and it will be costing me between $25 & $30K in the end. My only "luxuries" are putting in a large skylight, and a large frameless shower. I've been saving up for the project, but it still surprises me how much some things cost!


Registered on Online Community since 2007!
Trusted Social Butterfly
Posts: 7,094
Registered: ‎02-14-2008

Re: How Do You Handle Big $$ Purchases/Projects?

Message 25 of 26 (1,891 Views)

   Because we're in a fortuitous financial position, DW and I can simply take out monies, as needed, for projects on the house, or travel, car. No rules of thumb or anything at this point. We do a lot of the work ourselves, so remodeling costs have not been great anyway.

 

   When working and still saving, yes, we planned in advance and set monies aside for planned projects.


Just think. The world was built by the lowest bidder.
Treasured Social Butterfly
Posts: 19,485
Registered: ‎12-25-2011

How Do You Handle Big $$ Purchases/Projects?

Message 26 of 26 (1,901 Views)

Sometimes we have an unanticipated emergency, but what do you do when you have the time to plan ahead .. new car, major vacation, home remodeling? Do you begin saving up specifically for the next big projected expense, take out a home equity line of credit, or take the money out of savings/investments when you need it?

 

Do you have any rules of thumb, as to how much you'll spend on something like a vacation or car, based on income and/or assets? What about remodeling; some people find it not only expensive, but overwhelming, once they're past a certain age?


Registered on Online Community since 2007!