Author Topic: To Save or to Spend  (Read 2201 times)

shinebright

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To Save or to Spend
« on: July 03, 2013, 03:38:55 PM »
I have some bigger purchases coming up on the near horizon: the tires on both my Jeep and VW need to be replaced before this winter sets in.  I have no savings- and want to build that up pronto.  My question here is do I get the bigger purchases out of the way first, and then start my savings, or do I throw some money into savings and then just use that up late for the tires?  That kind of is always my question and the pitfall in my savings endeavors- do you buy the stuff you need and then save- in that case, it seems I can never save because there are always things that we need- or do you just save like there are no needs to be found?

olivia

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Re: To Save or to Spend
« Reply #1 on: July 03, 2013, 03:58:13 PM »
If you find it hard to save you're probably just spending too much money on everything.  If I can't manage to save much one month, it's typically because I blew too much money, not because random expenses popped up.  Case in point, are both cars yours?  If so, sell one, or both, depending on gas mileage/reliability/whether you have a car payment.  1 person doesn't need 2 cars!

If you're in the US, winter is several months away.  I would save until then and then buy tires for whichever car you decide to keep.  (See what I did there?  I'm assuming you'll sell one because it's crazy for one person to have 2 cars!)
The hippos eat marble after marble, but are never satisfied. Thatís America.

Eric

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Re: To Save or to Spend
« Reply #2 on: July 03, 2013, 04:31:58 PM »
Save first.  Definitely save first.  Before you buy tires, sell your Jeep.  That'll jump start your savings and lower your expenses.  Then keep lowering your expenses and keep saving.  If your saving never outpaces your future expenses, then either your expenses are too high or your income is too low or likely both.

http://www.mrmoneymustache.com/2011/06/21/frugality-as-a-muscle/
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madmax

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Re: To Save or to Spend
« Reply #3 on: July 03, 2013, 04:36:24 PM »
Are both the cars for yourself? Tires are one thing that I refuse to be cheap about. I would replace the tires on your daily driver before starting savings. If somebody drives both cars everyday, then definitely replace them on both vehicles. Money can be made again, safety first IMO.

shinebright

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Re: To Save or to Spend
« Reply #4 on: July 03, 2013, 05:15:13 PM »
I should have specified that both cars belong to my partner and I - and sorrily enough at the moment we need both of them :(

Jamesqf

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Re: To Save or to Spend
« Reply #5 on: July 03, 2013, 05:37:26 PM »
I'm assuming you'll sell one because it's crazy for one person to have 2 cars!)

Why?  There are several situations where it makes perfectly good sense.  For instance I have a pickup I use for hauling and occasional trips into rough country, and a hybrid that I use for most driving 'cause it gets over 70 mpg.  Or there have been times in my life when my cars were old beaters, and often one or the other was being repaired.  In both cases, having two cars was actually less costly than having one vehicle that would do everything.

in2themild

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Re: To Save or to Spend
« Reply #6 on: July 03, 2013, 05:58:52 PM »
Do you need new tires to pass a state inspection on both vehicles?  If it is a true legal or safety necessity, perhaps you can get new tires only for one vehicle, carpool, and then wait to equip the second vehicle until you have more cash on hand.  Definitely do not compromise safety, but by all means consider not being able to drive one vehicle for a time as a way to save money - perhaps you could even drop insurance on it for a few months while not driving it.  Good luck!