Surprise expense woes

[martikus]

It really depends on your daily life. I consider mortgage and car loans the only good debt to have so i wouldn’t hesitate to get a car loan. That said I don’t live outside my means. I have savings, but make a vacation a priority as you hear of too many people dying as they retire and never got to do anything. If you can afford a car loan with your panther monthly expenses them I’d say vacation.

 

[shh]

I'd MUCH rather have a scaled down vacation to look fwd to than canceling altogether. - Definitely staying offsite; groceries for breakfast in the room; fast food or chili's-type places offsite for dining...then when you're in the parks, a few snack treats, the saber for him, something for you. It would still be a magical time with the right mindset.

 

[wenrob]

It really depends on your daily life. I consider mortgage and car loans the only good debt to have so i wouldn’t hesitate to get a car loan. That said I don’t live outside my means. I have savings, but make a vacation a priority as you hear of too many people dying as they retire and never got to do anything. If you can afford a car loan with your panther monthly expenses them I’d say vacation.

I would think if the OP is questioning it, it’s most likely outside of their means. Maybe it’s my age or maybe I’m just too practical but the idea of taking out a car loan so that I could still go on vacation seems crazy to me. And no one is saying ‘never go vacation’ we’re saying ‘maybe this vacation at this point and time is not a good idea.’

 

[pearlieq]

I'm sorry. This stinks! My concern is not so much the car/vacation, but the idea that if you're in this situation you might not have much of an emergency fund (apologies if this assumption is not correct and you just don't want to touch the emergency fund). Without a cushion to fall back on in situations like these, you're vulnerable.

I absolutely understand that life is short and a real grind with nothing to look forward to. If I were you I would keep a scaled-back version of the trip while at the same time getting some side gigs and cutting back your day-to-day expenses. You may be able to pick up holiday season jobs that could knock out the shortfall on the car budget AND get you started on an emergency fund so that you have more options the next time life throws you a curveball.

Good luck!

 

[DirectGirl]

So...if you take this trip, how much longer will it take you to pay everything off?

An extra month or two? Then I might take the trip, but ONLY if this is a one time thing. You can't keep extending your payoff timeline by a month or two for trip after trip or purchase after purchase.

More than a month or two? Then I would definitely adult up and not go. Although I find it odd to tell someone to "adult up" at 45. That's something I expect to have to tell an early 20-something!

One other thing to consider here is it sounds like you might not have any sort of emergency fund today. If that's the case, what's your plan to cover other unforeseen circumstances that may come up in everyday life? If you have no plan, then I think you know what the answer to your question is....

This was pretty unkind.

 

[Penny McMouse]

I need more information.
What is happening in 6 months that the car is going to need to be replaced?

I would focus on what I could do to not have to replace the car first, not modifying anything else.

DH and I carpool everyday. My job is moving to a new building in a totally different part of town once renovations are complete. Carpooling will no longer be an option. ...I did jokingly ask for work to reimburse the me for getting another vehicle....

It really depends on your daily life. I consider mortgage and car loans the only good debt to have so i wouldn’t hesitate to get a car loan. That said I don’t live outside my means. I have savings, but make a vacation a priority as you hear of too many people dying as they retire and never got to do anything. If you can afford a car loan with your panther monthly expenses them I’d say vacation.

We're down to mortgage and one vehicle loan. Our goal is to be completely (or mostly) out of debt in 20 years and, as much as possible, start paying cash for everything. We could technically swing another car loan. We're paying double on our current one.

So...if you take this trip, how much longer will it take you to pay everything off?

An extra month or two? Then I might take the trip, but ONLY if this is a one time thing. You can't keep extending your payoff timeline by a month or two for trip after trip or purchase after purchase.

More than a month or two? Then I would definitely adult up and not go. Although I find it odd to tell someone to "adult up" at 45. That's something I expect to have to tell an early 20-something!

One other thing to consider here is it sounds like you might not have any sort of emergency fund today. If that's the case, what's your plan to cover other unforeseen circumstances that may come up in everyday life? If you have no plan, then I think you know what the answer to your question is....

We'd be adding a couple years to paying off everything. 3 years from now we would have had the money saved up. We do have an emergency fund but DH thought he'd break his arm and hit his head while running and it turns out our insurance is crap when it comes to ER's. Now we have both an emergency fund and a medical fund.

 

[Jen and Ashwin]

DH and I carpool everyday. My job is moving to a new building in a totally different part of town once renovations are complete. Carpooling will no longer be an option. ...I did jokingly ask for work to reimburse the me for getting another vehicle....



We're down to mortgage and one vehicle loan. Our goal is to be completely (or mostly) out of debt in 20 years and, as much as possible, start paying cash for everything. We could technically swing another car loan. We're paying double on our current one.



We'd be adding a couple years to paying off everything. 3 years from now we would have had the money saved up. We do have an emergency fund but DH thought he'd break his arm and hit his head while running and it turns out our insurance is crap when it comes to ER's. Now we have both an emergency fund and a medical fund.

So, what would your payoff look like if you don't include the mortgage, because it sounds like that is on a very long timeline? If taking the vacation would mean it takes you 3 years to pay off a $7k loan, I don't think I would take it. That means you would be putting less than $200 per month towards the car loan and likely incurring a higher than desirable interest rate. I would get the car using the vacation fund, plus emergency funds or whatever else necessary to not take a loan out and then get side gigs to replace emergency funds and then save for a vacation.

 

[DizMe]

I think there are lots of great answers here about responsibility and ideal money management. However, I have a different view from many. You're 45 (which is young to me), extremely responsible and have been working hard toward your goal of no debt. I would take the vacation, which is not a frivolity but a celebration of accomplishment. I don't like the term "adult up", at least in your case, as it implies that it's irresponsible to choose this reward you've saved for over using that money to pay for an unexpected blip in your budget. Whichever choice you make, you've certainly 'adulted up' already and if you determine that this trip is more meaningful than a little bit longer wait to reach your debt-free goal, then it's really nobody else's call whether or not it's the best choice. You obviously understand the ramifications on your budget if you go, and at your age I don't see it as a problem.

I'm going to echo what someone else said earlier: life is not a given, and we don't know what's around the corner. I know plenty of people who have blown every paycheck and lived to regret it. I have also known many who carefully saved and paid off and waited for the day they had "earned" the right to go on a great trip, only to have something take away that ability. Of course there's a happy medium, and I feel you recognize that. If you feel this trip, whether as planned or in a scaled-back fashion, is the best use of the money you've saved, then go on the trip without regrets and revise your budget accordingly.

 

[Hikergirl]

Our trip budget is roughly 3500. The car budget will be under 7000. We have almost 2000 saved in the car replacement fund. We didn't expect to buy another car for 3 years or so.

We did pick that time of year for his birthday but also for the weather and lower crowds. He just enrolled in college again so we would be going the week after finals which is something else to celebrate. If we postpone it will be for a full year due to school/weather/crowds.

I'm assuming a car is a definite need for you so I'd put off the trip for a year and buy the car.

 

[blewits]

I think there are lots of great answers here about responsibility and ideal money management. However, I have a different view from many. You're 45 (which is young to me), extremely responsible and have been working hard toward your goal of no debt. I would take the vacation, which is not a frivolity but a celebration of accomplishment. I don't like the term "adult up", at least in your case, as it implies that it's irresponsible to choose this reward you've saved for over using that money to pay for an unexpected blip in your budget. Whichever choice you make, you've certainly 'adulted up' already and if you determine that this trip is more meaningful than a little bit longer wait to reach your debt-free goal, then it's really nobody else's call whether or not it's the best choice. You obviously understand the ramifications on your budget if you go, and at your age I don't see it as a problem.

I'm going to echo what someone else said earlier: life is not a given, and we don't know what's around the corner. I know plenty of people who have blown every paycheck and lived to regret it. I have also known many who carefully saved and paid off and waited for the day they had "earned" the right to go on a great trip, only to have something take away that ability. Of course there's a happy medium, and I feel you recognize that. If you feel this trip, whether as planned or in a scaled-back fashion, is the best use of the money you've saved, then go on the trip without regrets and revise your budget accordingly.

Amen and Ditto!

Work the car to a short loan. Buy used. We never buy new cars. But we have good cars.

I’ve been married for 22 years this month. We don’t fondly talk about car loans. We talk about time spent together. I’m assuming it’s just you and him, but if with kids, even better. Memories made are truly priceless. Whether it disney, Europe, Cruising, western US, whatever . . .

We live frugally. But we are about to put a second kid in college. So, we are going to Disney this year, for a celebration, but I am not booking Disney property. Which has only happened twice in our lives (18 people one year - rented a house, one year as a tag along on husbands work trip).

I just booked the swan. 2 bedroom executive suite for considerably lower than my 2 room reservation at the new Gran Destino. So. Make cuts in the budget. Don’t stay on property. I’ll save money also by using Uber eats delivery, etc.

Just learned tonight that Costco or Sam’s might beat my quote on my Swan reservation. I’ll be there tomorrow to find out.

There are 100 ways to cut your trip budget without eliminating it. Get savvy on that.

Try to keep the trip. If you can. As my almost adult kids would say, “all the feels” in those memories we made.

It’s one reason why we are going in December. They haven’t been in quite a few years. They are college age, excited like they are 6. So are my husband and I.

 

[martikus]

e're down to mortgage and one vehicle loan. Our goal is to be completely (or mostly) out of debt in 20 years and, as much as possible, start paying cash for everything. We could technically swing another car loan. We're paying double on our current one.

Based on this then I’m in favor of a trip and a car loan. You don’t have unreasonable debt. Now maybe not a fancy trip every year. But this one planned - yup I’d do it. You won’t regret the memories and it’s not like you are living on credit cards. Best of luck whatever you decide.

 

[MomToOne]

We'd be adding a couple years to paying off everything. 3 years from now we would have had the money saved up. We do have an emergency fund but DH thought he'd break his arm and hit his head while running and it turns out our insurance is crap when it comes to ER's. Now we have both an emergency fund and a medical fund.

Good to hear on the emergency fund - so many people go on vacations even when they aren't prepared to handle things like your DH's situation when they come up.

But 2 extra years of debt just for a Disney trip? That seems like a LOT.

 

[blewits]

Based on this then I’m in favor of a trip and a car loan. You don’t have unreasonable debt. Now maybe not a fancy trip every year. But this one planned - yup I’d do it. You won’t regret the memories and it’s not like you are living on credit cards. Best of luck whatever you decide.

Sound advise!

 

[MillauFr]

The car is a necessity, the vacation is not. I would plan a smaller, cheaper celebration closer to home. Maybe a weekend getaway? I would use the vacation money towards the car and then plan a WDW vacation for the next year. 46 seems equally good for a lightsaber.

I would rather give up a car and go on the vacation. A car is a luxury.

 

[Darcy03231]

I'd do the trip, but scale it back as much as possible. You sound like your in a good financial place and it won't "break the bank."

If you asked me this question a couple of years ago, I would have been in the cancel the trip camp. DH and I saved aggressively for retirement and to live a "no debt" lifestyle. Our retirement plan was to be able to travel extensively. DH had retired five years ago and although I could have retired when he did, I wasn't ready (I'm 8 years younger than he is). We still would do one "big" trip a year and then some long weekends. If we had an opportunity to travel with friends and we'd already had our big trip that year, we would decline. All of that changed two years ago when DH, the picture of health, had a heart attack. He's made a full recovery, but our priorities have changed. We now aren't waiting until "later" to do things or take advantage of opportunities. It doesn't mean we're out spending money willy-nilly, but we've come to realize that "now" can be just as important as "later."

 

[tzolkin]

I would rather give up a car and go on the vacation. A car is a luxury.

They currently only have one car and carpool. Her job is moving locations so they will need two vehicles to commute. I would agree with you that getting a newer/nicer car is a luxury, but in this situation the car seems like a necessity to me.

 

[DLgal]

They currently only have one car and carpool. Her job is moving locations so they will need two vehicles to commute. I would agree with you that getting a newer/nicer car is a luxury, but in this situation the car seems like a necessity to me.

Well, maybe. Is there public transportation available? Is the office within biking distance? There are a few ways that people get to work other than in cars. However, I trust that if OP says she needs a car, that's the case where she lives.

 

[DLgal]

Just out of curiosity, why did you land on $7000 for the car? Do you think it won't be possible to buy a used car for less than that? How far do you have to drive to work? Since you said "across town" I assume it's not that far away. I'd look at what type of reliable car you could get for around $4000-5000. They do exist.

 

[tzolkin]

Well, maybe. Is there public transportation available? Is the office within biking distance? There are a few ways that people get to work other than in cars. However, I trust that if OP says she needs a car, that's the case where she lives.

Yes, absolutely true that a car is not ALWAYS a necessity. But for some people, especially those living in rural areas, it is. I was assuming that since the OP was already practical enough to carpool and only have one vehicle that they had looked at whether any other options would work for them before making the decision to purchase a second vehicle.

 

[TwoMisfits]

Another reason to do the car 1st and cancel vacay...the 2nd car will also have follow-on extra expenses, like increased insurance/gas/inspections/maintenance that you'll need to account for...depending on your state, driving record, and car purchase, these might not be insignificant to account for...you may need the vacation money to also cover these...