Saturday, March 10, 2007

What are we gonna do with the money we've saved?

It's eight o'clock on Saturday morning. I have been up for an hour and a half. I have eaten, started doing laundry, and soon I will shower. When did I become 87 years old?

I used to get HOME at 7 a.m. on Saturday mornings; I remember dragging myself in as the sun came up. I can no longer imagine why staying out so long was that interesting. What was keeping me amused till 7 a.m., really?

So since I was up, and since Marvin Gardens is watching the world's most boring documentary, from his collection of mind-numbingly dull and depressing documentaries, I started thinking about money.

As you can see from the column on the right-hand side of this blog (unless I later change where the column can be found, in which case I apologize for confusing you), we have accumulated quite a bit of cash by not spending any money. We have saved wayyyyyy more than I thought we could. I recall several times over the years asking Marvin Gardens, "Where does all our money go?" and he would say, "It goes to bills! We don't have any extra money."

Well, clearly we were misguided.

So now we will finish this year with maybe $20,000 saved up (I am deleting the money we spent on taxes, a thing that still makes me resentful). So what are we gonna do with the extra cash?

I have heard you are supposed to have three months' income saved up, for some reason or another. I guess in case of emergency or if you ever get fired or something. So, is that three months' income BEFORE taxes? Is it three months' living expenses? Cause there is a big difference there. Do any of my fiscally responsible friends (Cindy) know the answer to this?

If we blow off being fiscally responsible -- and have you met us? We probably will -- what'll we purchase with our newfound cash? My friend Renee is moving with her husband and child to Maui later this year. Perhaps next year we can visit her. I have never been to Hawaii. I am certain I am the ONLY friend who has considered bothering poor Renee for a free place to stay next year.

We will not have enough for a down payment on a house, not in this stupid area. We will not even have enough for a down payment on a CONDO. The median price for a single-family home in LA County is currently $545,000. And I would like to meet the person who can show me a home for sale that's LESS than $545,000, cause I haven't seen one listed for years. So that's out.

I did peruse one of my favorite websites, kate spade, to see if there was anything I needed to buy myself next year. And you know what? Not really. Then I looked at my second-favorite site, and nothing thrilled me there, either.

Have I already gotten out of the habit of not spending?

I guess we could pay off my car, or wait till just the right thing presents itself. Someone said we could be really noble and give all the money to charity. Again, have you met us? Although maybe a little could go to the Humane Society, certainly.

I guess if there was going to be something on my mind, how to spend several thousand dollars isn't the worst thing that could be going on.

I guess I will sign off now, as my feet are cold. It is supposed to be 90 degrees this weekend. Tell that to my extremities.

9 comments:

Adeline Dimond said...

Actually, I think, with all the new mortgage products out there, $20,000 is probably enough of a down payment. It depends on how gutsy (some would say "stupid") you are regarding interest only loans etc. Example: me. I bought a house with about that much down 2 years ago, with a seven year interest only loan; I pay about what my friends pay in rent AND I get a tax write off. But, in seven years, I might be homeless. Not sure if that sounds appealing, but seriously, look at some of the loans out there; I'm sure you could do it.

dcrmom said...

90 degrees? SHUT. UP.

Kelly Garrett said...

Suze Orman recommends having an emercency fund with enough to live off of for six months in it.

I think you should save most of it, but think of a great trip somewhere exotic -- Thailand, India, Botswana. If you go to Maui, let me know and I'll tell you where the secret nude beach is.

sabrina duncan said...

Like Kelly, I would advise you to save it since it may not be so easy to save in the future. However, unlike Kelly, I can't see Marvin Gardens in Maui due to his problem with flip-flops.

But I, being neither fiscally responsible nor afraid of flip-flops, would go to Maui (or at least somewhere in Hawaii).

david said...

Spare
Spare
Spare

I think it's always good to spare money with 3 goals :
Facing the future
Being able to spend with pleasure, without constraint
Forcasting future spending for pleasure

jtcosby said...

www.daveramsey.com gives you all the necessary financial decisions...hopefully that will help with the 3/6 month saving thing. Good luck, and I am so thoroughly impressed I wish I could make myself do it too....*big sigh*

Anthony said...

I actually assumed that you were saving for a house or something that was pre-planned. But we all know what happens when you assume!

You spend the whole lot on lottery tickets and maybe turn it into 390 million.

But my suggestion would be for you to finance an independent movie (hint hint) ;-)

Anthony said...

I actually assumed that you were saving for a house or something that was pre-planned. But we all know what happens when you assume!

You spend the whole lot on lottery tickets and maybe turn it into 390 million.

But my suggestion would be for you to finance an independent movie (hint hint) ;-)

noneemac said...

I like how you sound so nonchalant about "getting fired or something." I'm gonna go out on a limb here and say that this could be a distinct possibility for someone of the editorial persuasion who routinely comes home at 7 a.m.

Speaking of matters editorial, what did you nickname that witty, urbane, Renaissance Man proofreader you had in there a month ago? The guy who would have bought your car had his wife not insisted that their next car have an automatic transmission?