What do you mean by 'afford it'? Seriously..

Discussion in 'Budget Board' started by DreadpiratK, Aug 29, 2010.

  1. Mrs. Charming

    Mrs. Charming I'm not your entertainment, get a life.

    Joined:
    Jul 8, 2009
    Messages:
    4,374
    'Afford it' to us means that we wouldn't miss the money if we had to spend it on something else. It's not money we should be spending on other things, also. We just budget for our Disney trips, and pay cash for them. That said, we don't have a Mc Mansion or luxury cars, but they're not really priorities to us. :goodvibes
     
  2. Avatar

    Google AdSense Guest Advertisement


    to hide this advert.
  3. natenapril

    natenapril DIS Veteran

    Joined:
    May 28, 2006
    Messages:
    2,314
    :thumbsup2:thumbsup2
    The DIS is the only board where everyone has lots of cash laying around for a trip to WDW whenever they want or they have recieved several trips for "free"
     
  4. delmar411

    delmar411 DIS Veteran

    Joined:
    Jan 25, 2007
    Messages:
    8,893
    Seriously? It all depends on the item to how we define 'afford it'.

    We don't have a single formula that decides whether or not something is 'affordable' at that very moment. Some are easy, simply check the bank account verses bills still pending due. LOL Others require more research into options and payments, such as student loans.
     
  5. delmar411

    delmar411 DIS Veteran

    Joined:
    Jan 25, 2007
    Messages:
    8,893
    Totally OT from your post but I see your siggy says only 2 more days until your son arrives. So I wanted to say CONGRATS!!! and I hope everything goes smoothly. :goodvibes
     
  6. disfan07

    disfan07 DIS Veteran

    Joined:
    Mar 25, 2006
    Messages:
    3,465
    For vacations, it means we pay in right out (cash/debit). We do not under any circustance use credit cards on a vacation. We save credit card use for more important things such as medical bills, new car (result of a car accident), emergencies, etc. We used to put vacations on our credit cards but not anymore.

    And, no. We dont have this money "lying" around as some people have implied here. We just save and wait until when can afford it. It's been 3 years since we have taken a vacation . Since our last vacation, we have moved across the country and paid about $50,000 in medical bills. We easily could have said we will put in on our credit cards but to US it is more responsible to wait to pay it out right because vacations are not a necessity. But JMO. Everybody pays for things the way they see fit and as long as they can pay off their bills, it doesnt matter to me.
     
  7. fabmic

    fabmic Mouseketeer

    Joined:
    Aug 22, 2010
    Messages:
    76
    You have not been on a vacation in 3 years but you have three listed in your signature (2008, 2009 and 2010). Aren't they vacations?:confused3
     
  8. mamaLori05

    mamaLori05 DIS Veteran

    Joined:
    Feb 4, 2008
    Messages:
    1,260
    Just meant as a friendly, helpful tip, but check out car loans via the dealer or banks. Most of the time the interest rates on car loans are a lot lower than putting it on your CC. Might save you some money!!!
     
  9. mamaLori05

    mamaLori05 DIS Veteran

    Joined:
    Feb 4, 2008
    Messages:
    1,260
    not necessary!!! Why try and cause problems????
     
  10. babyrich

    babyrich "I was hiding under your porch because I love you"

    Joined:
    Mar 30, 2003
    Messages:
    1,379
    Afford to us is when we can pay off the trip as soon as the bill comes in; which is before the vacation. If this was not "excess" cash, we wouldnt or better couldnt go.
     
  11. 2disneyboys

    2disneyboys DIS Veteran

    Joined:
    Feb 20, 2009
    Messages:
    1,236
    to us, Afford it means we have the money to cover the full cost of the trip without taking from any category in the budget other than the vacation/fun category. and that is the last category that gets funded each month. I am like several of the pp on this thread... in daily life and even on vacations, I can "afford" much nicer than I typically do. However, I would rather see that vacation/fun Fund grow faster then have brand new, top of the line stuff the moment it hits the market.
     
  12. Marionnette

    Marionnette <font color=deeppink>Wishing On A Star<br><font co

    Joined:
    Sep 26, 2009
    Messages:
    7,578
    Im glad that works for you. But I would prefer to take my vacations knowing that everything is paid up or covered before I step on the plane. To each his own. Ill collect interest. You can pay it.
     
  13. Katy Belle

    Katy Belle DIS Veteran

    Joined:
    Jan 20, 2004
    Messages:
    3,768
    Funny, DH and I were just having a conversation about what "afford it" means. We just ordered a new Expitdition and someone else had an Eddie Bauer Edition Expedition and DH said we "couldn't afford" that. I said we "choose not to spend the extra money" on that edition.

    We are savers, not spenders, and are on track to fund college for our 3 children and retirement. So... we "could afford" most anything....but choose to spend our money on other things, or save for other things. The bank says we "can afford" or qualify for a loan on a house that is 3 times what we feel we "can afford" or are willing to spend.

    I think it is more socially acceptable to say "we can't afford it" rather than "we choose to not spend our money on that," but I feel they are sort of mixed up.

    Interesting topic!
     
  14. KandD

    KandD <font color=darkorchid>BUT YOU NEVER SAID THEY HAD

    Joined:
    Aug 1, 2008
    Messages:
    926
    Afford it to ME means that I can pay for it without taking money out of my emergency savings account. I am paying for grad school (I will graduate in March 2011 hopefully without any student loans-undergrad or grad). My boyfriend and I have a house (he pays the mortage and some of the bills-I pay the rest of the bills). I work fulltime plus two part time jobs, right now I am really wearing myself thin but graduating without any debt is important to me. However I do want to enjoy life so we do save for trips but if I couldn't pay for school or if we had to take money out of the emergency savings account, then we would not be going on vacation.

    I put things on credit cards but I pay them off monthly (or until 0% APR runs out). Having no debt is important to me as my boyfriend and I are going to get married within the next year or so and I don't want to start our marriage with any debt.
     
  15. MrsPete

    MrsPete DIS Veteran

    Joined:
    Feb 24, 2002
    Messages:
    11,862
    Whether you're talking about a vacation, a new car, or a new pair of jeans, "you can afford it" means -- to me -- that the purchase fits into your financial circumstances. That means both long-term and short-term.

    Just saying "I have the cash to cover it" isn't enough. For example, I could pay cash for a new BMW right now . . . but I know that I've got to put braces on one child soon, and the other is heading to college in two years, so I'd be much better off to hold onto my cash (and adding to it!) and keep driving my 2-year old Honda -- especially because I happen to love my car! That's just an example.

    Different purchases require different criteria, but these are some typical questions I'd ask myself before deciding whether I can "afford it" or not:

    1. Do I need this item? How badly do I need it? If I don't buy it, what will happen?

    2. Is this particular item a good value, or could I get a similar product (perhaps used?) for less money elsewhere? Would I be just as satisfied with an older model or a simpler model? Could I borrow or rent this item rather than buying it myself?

    3. What other expenses do I have coming up soon? Yearly insurance? Christmas presents? New tires? If I spend on this item, will I be short for any of those things?

    4. What does my cash flow look like for the next few months? Do I have the money to pay for this item? Considering my overall financial goals, should that money to earmarked for anything else, or is it really money that's okay to spend?
     
  16. disfan07

    disfan07 DIS Veteran

    Joined:
    Mar 25, 2006
    Messages:
    3,465
    Not that it's any of your business but we didnt pay for any of those. All of those trips were either with my grandparents or aunt, uncle and cousin who paid for everything and they were overnight trips to DL. We live an hour away from DL. We would drive down around 8AM and drive back around 5PM thr next day.

    We havent been ona vacation that WE have paid for in 3 years because we havent had the money. We've just been lucky enough to have relatives to go with for the weekend.
     
  17. disfan07

    disfan07 DIS Veteran

    Joined:
    Mar 25, 2006
    Messages:
    3,465
    Thanks. Yeah we did that this time around with the car. My car was totaled in 2008. We had to buy a car before we got the money from the insurance so we just put it on our credit card since we knew it would be paid of within the next couple of weeks. But we made the decision to trade in that car this past march (it was a recalled toyota camry) and we got a loan through carmax this time.
     
  18. Kaler131

    Kaler131 DIS Veteran

    Joined:
    Apr 27, 2007
    Messages:
    1,771
    I work extra hours specifically to pay for a WDW (or any other vacation). My DS makes a LOT more money than I do, so we use his income to pay our mortgage, car payments, etc. and my income pays other bills and pays for our vacations. I always have our trips paid for in cash at least a month before we go. :thumbsup2
    My co-workers always know when we have a trip planned because I volunteer for extra assignments and pick up any unwanted shifts and work lots of extra hours....lol!!
     
  19. crisi

    crisi DIS Veteran

    Joined:
    Feb 25, 2002
    Messages:
    22,902
    Agreed - also...."what am I giving up for this?" If I have to give up something I want more than a Disney vacation (while meeting my responsibilities - which for us are college, retirement funding and savings) then I "can't afford it" - or - more properly "choose not to afford it" because I'm choosing to afford something else.
     
  20. Swimalie

    Swimalie DIS Veteran

    Joined:
    Sep 11, 2009
    Messages:
    2,691
    Exactly. People often say "can't afford" when for us it's that we choose not to spend money on something. We're looking in to buying a new car next year and we're looking in to the extras right now. So we're looking in to what are good values and what we feel are wastes of money. Could we afford to pay cash for a BMW? Yes but that is not a wise decision. Instead we can pay cash for a Forrester and save the rest. Okay, so we might splurge on a moon roof but it's a car we plan (barring no accidents) on having for more than 10 years and a $300 moon roof is worth it to us. We've saved over the last 10+ years with our used car to afford that 1 luxury.
     
  21. Colleen27

    Colleen27 DIS Veteran

    Joined:
    Mar 31, 2007
    Messages:
    17,028
    I probably have a more flexible definition than most budget boarders, because we do live on a modest income and try to balance living well now with saving for the long run. There are probably those who would say we can't really afford the trips we take, because our retirement and college funds could undoubtedly benefit from any extra we could throw that way, but we're not willing to focus completely on tomorrow at the expense of living/enjoying today.

    We can afford something if we have the cash to pay for it without dipping into our emergency fund or postponing other payments. We don't have credit cards so having enough liquid savings to cover our high insurance deductible and living expenses for an extended period is non-negotiable, but we don't necessarily max out all our long term savings plans before taking a vacation or buying a new "toy".
     

Share This Page