Information Overload

[solo1001]

Hi -- I've been reading up on the web site as well as Jim Collins and to be honest, I'm overwhelmed with all of the information.  I'm sure this question is asked often but my search-fu is failing me just because I feel swamped.

We have an emergency fund with $20K in a Barclays savings account.  1% interest and we add to it every month.  That's the beginnings of our FU fund.  One of the larger points made on many of these websites is paying cash for cars.  I have no problem with that but where does that cash come from?  We max out our IRA's right now and we put a little bit in our emergency fund but for big purchases such as cars, what do we do.  Is there a taxable investment account that we should buy index funds with or is this just old fashioned saving.  Again, I'm sure this is a redundant question so if you don't want to answer, maybe someone with better search skills than myself can help.  I would like to be an active member of this community.

Already trying to find savings where I can.  Got 60 bucks off my cell phone bill last night and just got cable knocked down 30 bucks.  I'd love to get rid of it all together but HGTV and Bravo get their hooks in us.

[geekette]

To buy a car cash, you have to save more and/or buy cheaper cars...  Not much way around that. 

Investing is great over the long term, but for money you'll need in the next 5 years or so, just old fashioned saving, IMHO. 

I believe you can watch both those channels online.  Check out Hulu, too.  It's still a subscription, but way cheaper than cable, at least around here!

There are a lot of ways to save money - read more and see how much more you can lower your expenses.

[solo1001]

Thanks.  I figured as much and I have no problem saving.  I just know it will take a while.  I realize it's probably completely common knowledge on this forum/blog but I didn't even realize what all I was paying for with my cable/internet and the cell plan.  Never knew I was renting a modem every month.  I should really start paying closer attention to everything.

[Hurley82]

I think the key is not buying a car that requires you to save crazy amounts of money. I love cars, I've owned way to many, some were decent buys and cost me little to drive others were poor choices. I'm fairly content driving my 15 year old Isuzu to work every day. It set me back $3k, and I didn't need save a dime to get it because I already had the money and it was no big deal. I still love cars but when I think about the insurance and monthly payments on a slightly used Wrangler unlimited, I can't fathom spending that kind of money for how little I need to drive.

[Retired To Win]

Hi -- I've been reading up on the web site as well as Jim Collins and to be honest, I'm overwhelmed with all of the information.  I'm sure this question is asked often but my search-fu is failing me just because I feel swamped.

We have an emergency fund with $20K in a Barclays savings account.  1% interest and we add to it every month.  That's the beginnings of our FU fund.  One of the larger points made on many of these websites is paying cash for cars.  I have no problem with that but where does that cash come from?  We max out our IRA's right now and we put a little bit in our emergency fund but for big purchases such as cars, what do we do...

For bigger home improvement/repair jobs and similar projects, we maintain a separate savings account apart from our emergency reserve.  When we draw from its set "full" level, we gradually build it back up to that "full" level.  And, yes, this is done with priority over putting money into the investment accounts.

Specifically regarding cars, we intend to drive ours forever.  We've got a 1996 Dodge Dakota and a 1998 Subaru Forester.  We will drive them -- while keeping them well maintained -- until they drop dead.  :D