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Old 12-23-2009, 12:12 PM   #1
castoral
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Join Date: Dec 2008
Posts: 404
Vehicle purchase...WWYD?

DH and I have saved to purchase a new to us SUV. (There are various reasons for purchasing an SUV vs. a van, so please, no posting about not buying an SUV). We have saved for it for a long time, but now DH has been dragging his feet on it because he doesn't want to spend our hard earned savings. Plus, time is running out on our special financing option. Sowe came to the agreement to finance half of it (@ 3.24% and we're earning 4.5% on our savings). I'm okay with this, but wanted to get input...

I worked a budget to see if we could afford a payment and also just because I'd like to get back on to actually sticking to a budget since we've been freely spending a lot over the past year or two...

House Payment 1500
Eating Out 160.00
Gas + oil changes/maint. 320
Groceries 400
Cable 45.00
Phone and internet 43.00
Babysitting 520.00
College savings for 2 kids 200.00
Electric (no gas) 190.00
Cell phone 65.00
Water 60.00
Garbage 18.00
Entertainment 100.00
Clothes/Extra Needs 100.00
Car Payment 500.00
Car insurance for 3 cars 65.00
4300.00

Take Home Pay
UPS 1160 <--- goes in separate account
and we pay 529 from this,
but rest is just savings
USAF 4000 <---we try to live off my salary alone -
I usually have extra money at end of month
because I travel for business at least once a month
and get more money than I tend to spend
Extra income:
DH ownes a landscaping business as well and profits
about $35K a year which we use for remodeling projects,
funding our IRA, put in the stock market, vacations, etc.

Retirement:
I put 10% away in federal TSP account (like 401K)
DH's put 10% away between stock purchase and 401K
We will be getting two pensions as well, but we plan as if
we won't get either

Savings:
1 year emergency fund - $36K in money market fund
$32K in savings for SUV and basement remodel this winter
$12K in business checking - $4K needed for equipment and
March 2010 season start up, rest will be moved into our savings shortly

So WDYT???? Can we afford it? Is the agreement we came to a good decision?
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