Do you really need a new car? Let’s start there. Do you REALLY need a new car? Has yours died? Do you need to switch to a 4 door to make room for baby? Do you need to trade in your motorcycle for a family car? Great! You are getting a new car! OR do you just really really want a new one because yours is ‘annoying.’
So many people, when beginning their car buying journey forget about the most important detail: Cars are freaking expensive! We are talking about more than you make in a year, expensive. And the salespeople are more than willing to help you get a ‘deal.’ When you first start the process, it’s easy to get caught up in all the gadgets and pretty colors (that aren’t tainted by rust). But inevitably, when it comes down to it, you may experience a mild panic attack when handing over your hard earned money. Or even worse, when you decide to go even deeper into debt. No matter what your situation, you are going to feel stressed about car buying and in my opinion, you should. This is a huge purchase. Probably second only to your home. I would be more concerned if you signed up for a car loan and didn’t feel anxious about it. So what rules do you follow when buying a car? Let me be the first to say that when it comes to car buying, everyone is going to do their own thing. Some people swear by leasing. Others have planned to have a car payment in their monthly budget. But here’s my advice. Debt Free Living It is my philosophy that it’s best to live a debt-free life. Other than my mortgage, I don’t have a single debt. No credit cards, no car loans, no student loans. I recommend this method of finances because you always know exactly where you stand. My paycheck comes in and I know where it goes. Some to retirement, some to savings, some to charity, some to the household bills and then fun and food money. I don’t have to pre-calculate every single dollar to make sure I can pay off things I bought two months ago. I just pay for what I need when I need it. It still requires a detailed plan to make ends meet, but it’s wonderful. My opinion on debt-free living still applies when buying a car. Here are the Dave Ramsey Rules of Car Buying. Dave Ramsey Guide on Car Buying “Unless you're filthy rich, you cannot afford a new car! New cars drop in value like a bag of rocks. A new car loses 60% of its value in the first four years. Save up money and pay cash for a used car. “It's much easier to save $400 a month (the average car payment) for 10 months and buy a used car than to sign up for a payment plan and pay thousands of extra dollars for several years! Remember, the purpose of a vehicle is to get you from A to B. When you are working, playing with your children or helping a friend, you are not thinking to yourself, ‘Man, I am so happy since I have a new car. Life is beautiful!’ The key to happiness is not a new car, so don't pay for it like it is!” -Excerpt from daveramsey.com: Dave Ramsey teaches that the total value of all of your cars should not exceed half of your annual income. We had bought Ben’s car (a hand me down) for $1,000 so we could easily purchase the CRV without hitting that benchmark of 50% of our income. Of course, it does take time to save up for a car. My History with Cars My first car was a hand me down because I was a poor college sophomore. I paid $1000 to my sister for it. When it finally died I sold it for a few hundred to a mechanic. My next car was about 17 years old. My father-in-law helped me find in at a dealership in town. And we paid cash. The cheaper the better and drive it ‘til it dies! That has been my philosophy. My New Car Recently, I got a new car. Did I NEED one? No. However, my eyes have been set on a beautiful White CRV for 10 years. That’s right, exactly ten years ago to the month my now in-laws bought a 2007 Honda CRV. It was beautiful. Heated seats, GPS, a great view for longer car rides. My husband and I have borrowed it many times on short road trips. I decided over that past few years that one of my goals in life is to own a CRV. This spring, my in-laws decided to upgrade and sell their 2007 CRV. The opportunity presented itself and I could not turn down. After a few months of debating it, I let Dave Ramsey’s rules of car buying convince me to go ahead. Car Buying Checklist
We participated in a “year of savings” in 2016 where we bulked up our account in anticipation of buying a new car. We worked hard to build our savings up and will need to do so again, but I don’t have any debt and I definitely don’t regret the purchase. I feel like a million bucks in my new ride. So there you have it. My advice on car-buying. It has served me well and I don't plan to change it. Buying a new car isn’t minimalist. But the way I bought it was. Finding a reliable used car and paying cash. Good luck!
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This Spring my sister got married! It was a beautiful wedding and so much fun. Did I mention it was in Disney World? Happiest place ON EARTH! Weddings are amazing, especially if you are in the wedding party. But destination weddings are more than just a wedding, they are a vacation. Going into this trip, I knew I wanted to try something a little different. This week for Fancy Free I was wondering how someone takes a vacation on a budget. What does a Minimalist trip to Disney look like? Some would say a camping trip is minimal. Or a weekend in the Dells. But I am going to Orlando whether I like it or not. And so, my version of a minimalist vacation was going to Disney without visiting the theme parks. The Disney World Resort offers a TON of activities and entertainment outside of the parks. So my husband and I decided not to go into the actual parks this time around. It’s $107 a day, people. That wasn’t in my budget this year. So we are making it work. Minimalist Accommodations There are many ways you can save a buck on your stay. You could stay off-site or bunk up with family to reduce costs. We chose to do both (at least for the first part). Rather than rent a hotel room that we wouldn’t really be spending time in for the first 4 days, we decided to go in on a shared condo with my whole family. It’s not exactly relaxing, but it’s cheap! We then moved into a Disney Hotel room for the last 4 night of our stay for some alone time. Also, always look to see if you can find any bonus discounts. I used to work at a Marcus Theatre. Even though I spent my Friday nights selling popcorn, I could get super cheap rates at any Marcus Hotel in the nation. Do your family members get any good discounts for work that they can share? My sister works for Disney so she was able to help up get a deal on the room. Don’t assume the online price is the only option. Minimalist Entertainment We went to Disney World without going to the parks. Let’s let that sink in for a moment. Do we regret it? Actually, no. We really enjoyed taking our time rather than rushing through crowds and eating $8 hot dogs. We spent most of our days riding the free boat transportation to and from Disney Springs. It’s a major shopping center. Even though it’s anti-minimalist to go shopping 3 days in a row, we actually didn’t feel tempted to buy anything. Months before the trip I made a plan. There was one specific thing I wanted to buy for myself this trip: a charm for my new purse. And that’s all I got! Next up? Monorail Crawl! The Monorail system between the Magic Kingdom Resorts is free to ride. You don’t have to stay there and you don’t have to enter the park for access. We took the free bus to get there and spent one afternoon visiting all 3 resorts. We walked the grounds, explored the lobby, looked at the artwork, and went to the lounge of each resort. At each of the 3, we visited a lounge and bought a snack and drink. Yes we paid for the food and drink, but we didn’t add any clutter to our luggage in the process and we had a blast. Afternoon tea anyone? Another great experience! We went to afternoon tea at the Grand Floridian. It was romantic and super fun. This was one item that had a price tag, but it was still cheaper than going into the parks and was just as fun. I even had the chance to re-wear my bridesmaid dress that day. :) Other days, we toured our resort. We stayed at the Port Orleans French Quarter. This resort alone has two giant campuses. A lot to see and do! They offer fishing, pool party games, hot tubs, spa experiences, bike trails, horse drawn carriage rides, and free lounge entertainment in the evenings. All just at our resort. And Disney World has 29 different places to stay. (Including campsites and family cabins if you are into that kind of travel). Minimalist Transportation Drive if it’s close, fly coach if you must. Stay at a place with free transportation. (Disney will take you to and from the airport and between all of their hot spots for free.) I have two more vacations coming up that I am planning to do Minimalist-Style. My other sister’s wedding in Charleston, SC and I hope to visit my third sister, Mary Ann at her place in LA sometime. Lots to look forward to! Fancy Free Vacations I spent money on my trip to Disney. There is no denying it. BUT I spent a lot less than I could have. There are a ton of great things you can do for free or cheap when on vacation and it’s up to you whether you need expensive things to make you happy. If you are trying to get out of debt, but dying for a vacation. Find something close to home, or something where you can get free access to lots of entertainment. |
Designer I pared down the selections to three designers I liked. Michael Kors, Kate Spade, and Calvin Klein. I browsed the Hilldale boutiques many Saturdays in a row and found these three designers most appealing. I liked the Kate Spade most. I loved Michael Kors, except for the iconic little lock. Not quite my style. Eventually I got down to two bags. A gorgeous ‘Toasted Wheat’ Tote from Kate Spade and a super cute Soft Pink Tote at Macy’s from Calvin Klein. | |
My New Purse And here she is! My new beauty. In theory, this is one piece that will elevate the rest of my style. A plain white T with well fitted jeans and this bag take me much farther forward in the fashion world than I have ever been. Although I don’t care to be a materialistic diva, it feels nice to know that although I only have one bag, it’s a quality item I can treasure and care for for years to come. I waited 2 weeks before making the final decision. The frugal shopper in me prevailed. Instead of spending $378 on a Kate Spade, I spent $50 on an extremely similar Calvin Klein. I liked that the Klein had a longer strap for a more comfortable fit around my shoulder, and a little more bling with the gold chain. Take a look at the three bags on the right. The well-trained eye can tell the difference in quality and expense. Can you? |
How I Got the Deal
On February 18, the purse rung up in store at $178. So I waited. On Monday, February 20 (Presidents’ Day) it still rang up as $178. BUT online it was on sale for $100.13. Because it was the same store and the same exact bag, I got that price in store at Macy’s that it was going for online. How did I drop it another 50%? I had saved up a gift card from a student. So that was another $50 down. Finally, instead of a physical gift, I had received some cash from a grandparent at Christmas. So I gave the cashier the cash. My account balance changed by $0.00.
And THAT is how you buy a designer purse, minimalist style.
On February 18, the purse rung up in store at $178. So I waited. On Monday, February 20 (Presidents’ Day) it still rang up as $178. BUT online it was on sale for $100.13. Because it was the same store and the same exact bag, I got that price in store at Macy’s that it was going for online. How did I drop it another 50%? I had saved up a gift card from a student. So that was another $50 down. Finally, instead of a physical gift, I had received some cash from a grandparent at Christmas. So I gave the cashier the cash. My account balance changed by $0.00.
And THAT is how you buy a designer purse, minimalist style.
My name is Kendra and in 2017, I'm giving minimalism a go. Follow me as I work to declutter my house, my diet and my finances.