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Savings Goals

September 8th, 2021 at 08:14 pm

We have debt... but we also have goals. One of the hardest things for us to do is to balance those two things.

We have a decent emergency fund saved up. We have enough saved for two months of bare bones expenses. I know that money could be used towards debt, but then where would we be if an emergency hit? We are still living during a pandemic and still unsure of the future, (not that you can ever be sure of the future, but I think you know what I mean).

We actually have more than two months saved, we have an additional $2000, and growing, that we are putting towards some of our savings goals. I know it's counterintuitive to have savings goals when we still have so much consumer debt, but there are still things we want/need.

The last thing we were saving for was ring repair for a bunch of my rings. That has been taken care of. I am awaiting the completion of the work, but it has been paid in full, with cash!

On our list currently is:

New TV's (X2) The TV in our family room is 12 years old and actually "broke" the other day. Its screen went completely blank, though the sound continued to work. The Husband tried troubleshooting the problem and can't get it to work, so we are going to replace it. The TV in our spare room (actually my mom's bedroom now) also has a "dark area" down the middle third of the screen.  This TV is only 4 years old as it was purchased when we moved into the house. Not too happy about that!

New mattress: our current mattress will be 20 years old in December. We really need a new mattress! We bought both The Kids new (bigger) mattresses when we moved, and they finally got their own room. We bought a new mattress for us too, but I hated it, so we put it in the spare room and brought the old mattress back into our room. We will do some serious research before purchasing anything!

Fireplace insert: I want a fireplace in my bedroom! I am totally aware that this can wait, but it is something I really want, so we have decided to save for it. We have priced them out and we are going to be able to get everything we want for $500. I realize that this is in no way a need, but we are willing to save for it in order to have it before we are out of debt.

New (used) car: Again, this is not a need, but a convenience for us. The Daughter has started driving and will take her test in the next few months. It would make our lives so much easier if she had a car to drive. She does not need one, we do not need for her to have one, but it will be worth it for us if she has a car to drive so we don't have to chauffeur her around every day! (Between school, extra-curriculars, and competitive dance, her schedule is crazy busy sometimes!) We will not buy a car as soon as she gets her license, but probably 3-4 months after. Since our last car was paid off, almost 3 years ago, we have continued to put $400 into savings every month as a "car payment". We bought a used truck for The Boy to drive with that money and will buy a used car, probably a Honda Civic or the like, for The Girl to drive. We are hoping that by the time we are actually ready to buy, used car prices will have come down.

With the money we already have saved towards these items, and what we plan to save in the next 6 months, we think we will be able to purchase all these things, with cash.  How they are listed is probably the order we will purchase them in.  All of this savings is on top of our emergency fund. We won't be using our emergency fund to purchase any of these items. This is new/additional savings.

There are other things we would love to buy but are waiting until we get out of debt to do those: new floors, remodeling the bathrooms in our house, new light fixtures, a new car for me. But those things can wait.

3 Responses to “Savings Goals”

  1. Wink Says:
    1631135354

    I think that each person's path is different depending on your goals, your circumstances, your income, your debts etc. Be aware of what may have caused you to fall into debt, change any negative behaviors, form a plan of action that works for you, and stick to it.

  2. LivingAlmostLarge Says:
    1631136972

    Sounds like a good plan. I think that when paying off debt life happens. When it happens then you try your best/

  3. Lots of ideas Says:
    1631197994

    I think it depends on the kind of debt you have and what the debt costs you.
    If you have credit card debt, especially if it is from spending on wants/extras, you need to get to zero as an exercise both in will power and because the cost of the debt is so high. Then if you have the discipline, use cards to earn rewards, paying them off monthly.

    Car loans at low rates are sometimes more sensible than diverting from investments with higher yield. But the car shouldn’t be way more than you actually need if you are financing it.

    Student loans, you must be paying enough to be paying some of the principal each month. If the interest is building, you are digging a hole.

    Mortgage at low rates I think is a low goal as long as you are maintaining the house and are not close to retirement.

    Funding retirement and HSA if you are eligible should be higher than everything but credit card debt. Never leave a match on the table. Understand your tax obligation to understand what you can save by using traditional 401k/IRA.

    Of course mergency fund, tailored to your needs and comfort level.

    Saving for wants has a place, but it’s below a lot of other things.

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