Help! Can I really afford it?

[Disney MAINEiac]

Only you truely know what your financial situation is, run the numbers and if it will be comfortable to write those checks, thats great. On the other hand if it will be close and if something unforseen occurs and will result in a hardship, I recommend not doing it yet. if you have to worry about finances I don't think you will enjoy yourself as much as if there were no guilt associated with it.

I know the rush of realizing a dream like this is easy to be swept up in, don't lose sight of the really important things first.

 

[drakethib]

Ahhh.

I look back 6 short years ago and remember we were in the ame boat as you.

In our situation we choose to wait and it worked out best for us.

My 2 cents is make a spreadsheet listing all cost with DVC including the additional trips that you will be making to WDW (trust me it happens).

I wish you the best.

 

[Dean]

None of us know your situation well enough to tell you what you should do. But in general, anyone asking if they can afford it, likely cannot. I also don't think financing is reasonable for all but a couple of special situations where you have money coming in to cover it that's guaranteed.

 

[bongo59]

Glad to see that most have counseled this poster well...................no one and I mean no should ever buy DVC if you have to finance it.................no luxury purchase should ever be financed.................95% of America breaks this rule...............and that is why we are a debtor nation and one that has the lowest saving rates in the developed world...............it is a nationwide scourge that even our own government is complicit in and it the reason that our way of life is in total control of those nations holding our national debt....................they could bring us to our knees quite quickly.................the only way to gain control of your own situation is to eliminate and stay away from all debt.........................in the next ten yrs this one simple rule will be very understood when it becomes the foundation for our own politcal/economic detriment.......................it is not a matter of if...............just when. Something will break the camels back..............SS Medicare or maybe the baby boomer generation reliance on the govt handout that wont be there any longer.................dont believe it..................fine.................just be prepared in your own household..................stay out of debt at all costs

 

[jenntish]

I'm lucky enough to be in a situation (now at 32) where I've worked with a financial advisor... so here's my advice to you. Make sure you have the following things squared away before buying DVC... and then ONLY buy if you can pay cash:
1) 6 months monthly expenses/savings in cash (Emergency Fund)
2) Life Insurance for you & spouse
3) College Fund started (529)
4) Own a home - and your monthly mortgage payments are LESS than 1/3 of your monthly combined NET income
5) 401Ks fully funded at your job(s) - I believe it's now a max limit of $15K/year per person

You should actually have more set aside then what I put above to be considering DVC. I'm not saying this should be a rule for everyone, but my suggestion for a young family. It's about financial priorities. Notice I didn't say you shouldn't eat out or dring at Starbucks or drive an old car... thsoe are things you can figure out on your own once you get the basics set.

Am I trying to be a showoff? No. Am I trying to help someone else avoid the financial problems my parents struggled with because they didn't have anyone guiding them financially? Yes. Sure, they managed, but thankfully because nothing terrible happened when we were growing up. If my Dad had lost his job, we would have been in serious trouble.

Good luck!!!

FYI--We were just told Disney did not exercise ROFR on our 150 pt. SSR purchase... so we will be DVC members in just a few weeks

 

[crisi]

Ahhh.

I look back 6 short years ago and remember we were in the ame boat as you.

In our situation we choose to wait and it worked out best for us.

My 2 cents is make a spreadsheet listing all cost with DVC including the additional trips that you will be making to WDW (trust me it happens).

I wish you the best.

You may be the first person other than myself who says "glad we waited" instead of "wished I'd have done it earlier."

When I first heard about DVC - pre OKW opening, it was with my first husband. He would have been happy to buy in! But I'd have been unable to afford it after the divorce - so would he.

My second husband's first trip to Disney was on our honeymoon. He was thrilled with Disney, and I could have talked him into it. Money was a LOT more stable. But between then and when we did buy five years later:

1) We built a new home.
2) We went through expensive infertility treatments
3) We went through an expensive adoption
4) We had two kids in daycare (you might as well burn money).

While we enjoy our DVC, I like having my nicer home, and my kids. DVC - and vactions in general - would have been a burden when the money was tight those years, although there were many times that we could have afforded the downpayment and payments.

It would have been nice to have owned it before taking the first trip with kids. Because that was the start of the pattern of regular travel and enough money.

 

[Didney Daddy]

This is all very good advice! We were squaured away financially and found ourselves spending tens of thousands of dollars over a 15 year period vacationing at WDW in premium locations. DVC just made so much sense for us because of the amount of time we spend at the Mouse. We were in our late 30's at the time and it was the right time for us. Look at your long term vacation plans and see if this is right. IF you are not prone to paying for premium locations right now, then DVC is a financial increase in spending. You would then want to wait until you know you are going to be vacationing that way.