Monday, April 13, 2015

New (to us) Car Update!

All I can think about is my new (to me) SUV....I dream about it. I can't wait.

Except I am going to wait. For about a year.

Peanut started searching for the vehicle that's going to make me sing aloud when I drive it, and we discovered a couple of things. First, we have no idea what our car is worth - cars in similar condition but with much higher mileage are selling on Craigslist for way more than what KBB values our car. Second, SUVs are more expensive than comparable sedans (in terms of model year, mileage, condition). The only way for us to get an SUV that wouldn't be a step down would be to either deplete our cash savings or skip retirement contributions next year or take out a loan. We aren't comfortable with any of those options, especially since this is very much a WANT situation and not a NEED situation (the Mazda runs fine, after all) so we decided to try to save up enough money to max out Roth IRAs ($11,000) and pay cash for an SUV ($12,000) by a year from now.

Can we save $23,000 in 12 months?

Well, we managed to save $20,000 last year, roughly - helped out by our newest little tax deduction and a property tax refund and some other unexpected income - so we think we can do it again this year. Our savings for the last few years has been amorphous - retirement, emergency fund, just saving to save. We haven't had a tangible goal for a while, and I'm excited about that. It's much easier for me to make frugal choices when I can make the argument, "Hmmm, I can spend $8 on takeout right now...or I can put $8 towards MY NEW CAR." I only have to make that choice 1,500 times to save $12,000.

We don't have a lot of wiggle room as it is - we already are pretty frugal when it comes to daily living expenses and we won't be cutting out things like our big annual trip to visit my family. But we'll continue squeezing where we can, and also redirect all unexpected income (hello, birthday money!) towards this goal, and I think we can get there. I should put a counter up on the sidebar to keep track of this - maybe it will even help us get there early!




1 comment:

  1. Here's to unexpected income to go towards your car! Your decision makes sense.

    I think we're in the same(ish) boat, we need (ahem, need) a larger car but neither of us are willing to spend down our savings for it yet so we're looking at maybe spending $30K next year. Even I can't cash flow THAT, so we'll have to save a little more each month and take it out of savings at the time we buy.

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