I recently had a conversation with a friend who asked why I was buying a Lexus instead of saving up to buy a house. I had never really thought about that but it did trigger a set of emotions in me. I do have a fund in my ING account called Car Fund where I am currently putting in the amount that I used to pay on the car loan before I get debt free. I have been thinking about getting this Lexus for a long time and it has been one of my biggest dreams as well.
img from pensionriskmatters.com
I have an account that is separate from my Emergency fund which has been steadily growing and it is called my Never Go Back To Fresno Fund. This account holds money that will enable me to live independently if I had a major loss in my life and I just realized that it can also be my House Fund. I would use the Emergency fund to pay for daily living but the money in the Fresno fund can be used to build a downpayment for a house in the future, instead of just being a vague idea.
So to answer my friend…I am not buying a car instead of a a house….I am saving separately for each goal!
Nice thinking LuLuGal!!!
Before buying anything you need to know how much you needed it, only then you should decide to buy anything.
Good idea Lulu. A house is actually a much better investment than a suv, especially if you already have a working car. I made the mistake of splurging on an expensive vehicle and it really delayed my first home purchase. If I had to do it over again I probably would spend less on a vehicle and start paying a mortgage sooner.
I know that a house makes more sense financially than a car..but I was not actually going to run out and buy the car anyway. I just salivate every time I see the Lexus.
Good idea, saving separately for each goal! Buying for a house will be more of a longer investment.
I myself want to purchase an Audi, not sure which model yet but that is my dream. I know I will get there one day, and I know you will get your Lexus someday too LuLu!
-Jean
Well a house is certainly a better investment than a car because actually a car is not an investment. The problem is that a house is much more expensive and it can takes many years to accomplish this goal