I don’t know about you, but I love saving up money and being able to pay with cash. This past week we had 2 big purchases that we had saved up for and were able to pay with cash. I love not having to worry about if we have the money in our checking account or if we will have to use our emergency savings or if we will have to scrimp on other areas of our life.
The first purchase was renewing our car tags and paying taxes on our cars. Last year we saved cash for this, but the first year we were married we had not saved. It ends up being around $400 a year for our cars. The first year we had to pay, we had to scrape together the money and empty what little savings we had. The past two years, we have been doing awesome! This past year I had been putting $35 cash into our cash envelope each month. We ended up with $420 total, and the total ended up being $383. I took what was left over and split it up. I put $7 into our vacation fund and $30 went back into car tags for next year. Because cars depreciate each year, the amount will be lower next year. With the $30 already in there, we will be able to lower our monthly deposit to just $30 a month instead of $35. That’s not a huge break, but I will now be able to put an extra $5 into something else. I haven’t figured out where I want the money to go, but after I talk to Hubs we will figure it out.
The second purchase I had to get was dog meds. Bandit needed heartworm prevention meds and both dogs needed flea/tick meds. I do have a cash envelope for the dogs each month, but I also have an ING account for vet bills which gets its own money each month also. All of the meds together ended up being about $140– ~$35 for a 6 month supply of heartworm prevention for Bandit, and ~$105 for a 4 month supply of flea/tick meds for both dogs. Again, I was able to pay cash! Some people may look at how much I put into the dogs’ envelope each month and say it’s too much (between $75 and $100 each month). I do this so it carries over each month and when we have these occasional purchases, we don’t have to figure out where to get it. The money each month also goes to yearly vet visits, dog food, treats, occasional toys, antlers, etc. Those things all get paid with cash, and I love the feeling. The money in the ING account is saved for any vet emergencies, yearly shots, kenneling if we need it, etc.
Now that those are out of the way, we don’t have anything in particular to save for. We have some baby items that we will probably end up paying for, so I guess we are saving for that, but nothing specific.
Do you save up for large items and pay with cash, or do you use your credit card and pay it off immediately (or later with interest)? If you have never paid for something large with cash, I would recommend it… You walk away without any regret or doubt about the purchase. It’s fantastic!