I hope everyone have a great 4th of July!
On the heels of Independence Day, preparing for hefty expenses just seems so appropriate, doesn’t it? Financial freedom at its best!
The great part of the anticipation, preparing and saving for this week’s task is that it’s completely personalize-able (is that even a word? I’m going to go with it). For example, what one person may consider a large expense another may not, such as a new appliance or a car.
By now you should have a good idea of how much you would like to have in emergency fund and be contributing to this regularly. Similar to how you had to decide what would be considered an emergency, it is necessary to anticipate what you will be spending lots of your hard earned money on.
Two examples of what Mr. A and I have come up with are:
- Used pickup truck. This is important to us, as we do a lot of our home reno ourselves and we either have to spend money renting a truck or borrow a friend/family members.
- Addition to our house, probably the biggest expense we will have in the next 15 years or so
- Coming up with 30K for grad school
Maybe you want to redo your bathroom, or plan a once in a lifetime vacation. Even planning on splurging on a new wardrobe can be applied here! These expenditures can be as grandiose or basic as you like- the key is to be prepared and only spend what you can truly afford. By being mindful in your finances, you learn to spend your money carefully in ways that will reward you long after you swipe your card.
I hope this post gave you the kick you needed to start thinking about what large purchases you want to make and come up with an action to make this happen, #debtfree of course!