It’s Starting to Sink In

by Kevin on March 21, 2008

I shared this over at the GRS forums, but thought I’d put it up here as well.

A big part of personal finance is habits. Changing habits can be hard.

We are going to end up with some extra money this month because I sold a stock we were holding in a taxable account. We also have extra money that we had saved up for our tax liability this year.

For starters, we aren’t going to go blow this money. We could buy an HDTV or more ‘stuff’ in general. We’re not going to do that. Instead it will be applied to our NYC trip and the rest put toward saving for my MBA loans. The money will top off our savings for both of these which frees up cash flow each month in the amount of $280.

Now we could do many things with this extra money now. Save it, spend it, invest it… or a mix of the three. This is what I’m excited about. While discussing what to do with the extra money, my wife said “Didn’t we say I would be needing a replacement car in 2012?

Wow, I love my wife!

We are planning on replacing her 2002 Civic in 2012, when it is 10 years old. We ran the math, and this seems like the best option for us. We’ll be socking away that extra money into ING Direct, earning interest on it, and doing as much as we can to buy a car with cash when the time comes.

In short, our habits are starting to change. It’s really starting to sink in. We’re working as a team together. We’re not in a “he’s a spender, she’s a saver” situation. We’re holding hands walking down this path together.

I chalk this up as a big success for us. Go team. (Oh, and Go Vols!)

{ 1 comment }

Fiscal Musings March 21, 2008 at 12:00 pm

Congrats on working together on things. My wife and I are much the same, and I often have friends tell me that they don’t know how she puts up with it. I’m just glad that we understand each other and are making great strides towards our goals.

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