Comments on: Don’t Break the Budget with Large Expenses http://www.financialdominance.com/dont-break-the-budget-with-large-expenses/ A Personal Finance and Investing Blog Wed, 03 Dec 2008 22:47:48 +0000 http://wordpress.org/?v=2.6.3 By: Brian http://www.financialdominance.com/dont-break-the-budget-with-large-expenses/#comment-482 Brian Thu, 27 Sep 2007 01:57:03 +0000 http://www.financialdominance.com/dont-break-the-budget-with-large-expenses/#comment-482 "...is that not sort of like being in debt, only to yourself somehow?" Great way to say it - and the answer is yes! I do large cash purchases this way because you must replenish the emergency fund (or wherever you got the cash) in some way. If you just "wiped out the whole monthly budget at the start" then you would be back on the normal spending/savings track the next month and may never replenish your cash reserves. So, yes, I would say you are indebted to your emergency fund. “…is that not sort of like being in debt, only to yourself somehow?”

Great way to say it - and the answer is yes! I do large cash purchases this way because you must replenish the emergency fund (or wherever you got the cash) in some way. If you just “wiped out the whole monthly budget at the start” then you would be back on the normal spending/savings track the next month and may never replenish your cash reserves.

So, yes, I would say you are indebted to your emergency fund.

]]> By: Stuart http://www.financialdominance.com/dont-break-the-budget-with-large-expenses/#comment-478 Stuart Wed, 26 Sep 2007 22:02:27 +0000 http://www.financialdominance.com/dont-break-the-budget-with-large-expenses/#comment-478 Is this not a bit like drinking 20 beers in one night, then just telling yourself and other people you drank two a night for the next 10 days? Unless you set up some sort of scheme to pay for the furnace monthly does it really matter what way you decide to cost it out? If you just wiped out the whole monthly budget at the start, you would have the 'extra' money in subsequent months, surely thats what emergency funds are for. If you decide to cost it out monthly is that not sort of like being in debt, only to yourself somehow? Is this not a bit like drinking 20 beers in one night, then just telling yourself and other people you drank two a night for the next 10 days? Unless you set up some sort of scheme to pay for the furnace monthly does it really matter what way you decide to cost it out? If you just wiped out the whole monthly budget at the start, you would have the ‘extra’ money in subsequent months, surely thats what emergency funds are for. If you decide to cost it out monthly is that not sort of like being in debt, only to yourself somehow?

]]> By: Brian http://www.financialdominance.com/dont-break-the-budget-with-large-expenses/#comment-458 Brian Mon, 24 Sep 2007 14:53:15 +0000 http://www.financialdominance.com/dont-break-the-budget-with-large-expenses/#comment-458 paidtwice: I've become a hardcore spreadsheet user, so it's not too bad to make this happen. The only difference between tracking it myself and taking a loan out for it (which I think most people would do) is that the bank doesn't send me a reminder every month. Now to get as good at shopping for groceries as you seem to be! paidtwice: I’ve become a hardcore spreadsheet user, so it’s not too bad to make this happen. The only difference between tracking it myself and taking a loan out for it (which I think most people would do) is that the bank doesn’t send me a reminder every month.

Now to get as good at shopping for groceries as you seem to be!

]]> By: paidtwice http://www.financialdominance.com/dont-break-the-budget-with-large-expenses/#comment-457 paidtwice Mon, 24 Sep 2007 14:31:55 +0000 http://www.financialdominance.com/dont-break-the-budget-with-large-expenses/#comment-457 The idea of keeping track of something I already paid for for the next 60 months makes my head hurt :) But you and I use budgets as very different tools and I see where it makes sense for you :) The idea of keeping track of something I already paid for for the next 60 months makes my head hurt :)

But you and I use budgets as very different tools and I see where it makes sense for you :)

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