How to Watch What You Spend and Time Large Ticket Purchases
How to Watch What You Spend and Time Those Large Ticket Purchases
© 2022 Dan the Budget Man
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What if I told you there is a way to safeguard your money during any economy?
The secret I am about to let you in on is not too hard. It will not take too much time. You do not need a graduate degree to follow this plan. All it takes is a disciplined decision by you. Would you like to hear more?
I thought so. I did too - when I first learned how to watch what I spend and time my large ticket purchases. This was a totally new concept for me.
When I was young, my parents bought things on layaway (known today as buy now, pay later). The only difference was, my parents did not take home the item until they made the last payment.
Years later, when I got my first job, dad took me to the bank so I could learn how to “finance” my first stereo. Seems like I paid for that thing forever.
Fast forward. I got married and had two beautiful daughters. In no time at all, we had 2 credit cards maxed out, my wife’s car was on installment payments, and we had a line-of-credit attached to our checking account (big mistake!)
When our two salaries did not cover credit card payments and the car loan, I did what most dads do. I got a 2nd job, and went back to school so I could get a better paying job.
It seemed like the one thing I had doing for me was that I learned quickly. Eventually, I began to study how businesses kept their bills paid. I discovered some things about money and spending that differed vastly from the way I was doing things.
All this to say - there is a way out of financial desperation!
Today, I am here to help you get on top of your financial obligations, instead of being buried beneath them.
Let’s get started, shall we?
Watching what you spend and timing large ticket purchases can fix a lot of your money problems. Over time I have learned that a money plan works for people who are willing to work their plan.
Before we begin, let me be transparent. The goal of my blog (Dan’s Money Help) and my website (https://www.budgetingessentials.com) is to help you get financially secure. Financial security takes time and personal discipline. I make no financial promises or warranties to you. Individual situations vary. The material presented to you on this site (https://www.budgetingessentials.com) is meant to be shared for informational, non-commercial use only.
Your paycheck is not your own when it gets annihilated by bills
Credit card balances
Home equity loan(s)
Out-of-control spending habits
I want you to start thinking of these bills as negative cash weights that need to be eliminated!
Imagine yourself out shopping:
Visualize yourself at one of those retail places that tempt you. Motorbikes. Jewelry. Maybe you want a vacation. You get the idea.
You spy something you want.
You do not have the money to purchase this item, but you are looking at it anyway.
Your conscious starts talking to you, saying, “You do not have the money for this…”
You argue back, “I work hard for my money. I deserve to have this!”
Physically, you back up to consider the item. Soon, you begin to justify why you should have this item.
If you do not get hold of yourself quickly, you will pull out the charge card, or start listening to the salesperson who will inform you of the easy monthly payments.
Bam! It’s yours.
Another heavy (negative cash) weight that you will work hard and long to eliminate.
Why Was Imagining Important?
In order to watch what you spend: you will have to get nakedly honest with yourself about how you spend money and what tempts you financially.
Admit that sometimes you are tempted to use a credit card, or buy now pay later plans, or make easy monthly payments that outlast the item you purchase.
Soaring Credit Card Debt:Let’s Fix This in 2023:
By exploring how we can pay attention to large ticket spending.
Timing Large Ticket Purchases
Remember: once debt is eliminated, your money will be your own!
The way to time a large ticket purchase like a big screen TV or a computer is by budgeting a certain amount of money – on a regular ongoing basis - over a period to pay for that item in full.
For example, let us say you want to pay $500 for a laptop computer. Assuming you are paid bi-weekly and can tuck away $50 each pay period; this laptop is yours and debt free in just 20 weeks. (Alternatively, at 18% interest, you could make 47 easy minimum payments – paying interest + 1% of the balance, thereby giving the creditor $198.36 in interest.)
Debt paydown allows a person to “tuck” money away each payday to save for large ticket purchases.
Let us say the TV goes out, or the computer crashes while you are in debt paydown mode. You need another one, right?
You may be thinking, “What kind of crazy talk is that?”
When your goal is to pay down debt quickly, a broken-down appliance is a Distraction to your mission.
What do I mean by that?
A broken household appliance (even one you use all the time) is a temptation that interferes with frugal living. Living frugally is one way to apply more money to current debt.
An Interim fix for this: a hypothetical situation
Any good salesperson will be excited (at least on the inside) to hear that you need what they sell. Even those not working on commission. (Good sales stats support a standout resume.)
1. Prepare to get hold of yourself. (You will see fancy, shiny, trendy features on the latest model of what you shop for.)
Then do this:
2. Bring the family in for a close huddle. Preferably a place where you can talk freely. Be honest about where you are financially.
- Encourage everyone to be realistic, not embarrassed. If the retail setting does not work for you, make the decision in the comfort of your home.
- Capture your purchase options:
- “Cheap” generally means you are buying something of lesser value that may not last and may have to be replaced sooner.
- “Interim model” is an item that will meet the need until you can afford better.
- “Dream version” is the item you can purchase when your debt is gone.
It may sound harsh, but you could get a “slightly used” version of your appliance that will serve you well for a few years. (Not a bad choice in some cases!)
I can hear someone saying, that’s what charge cards are for. I strongly disagree. Buying on credit or low monthly payments that may end up costing you twice the purchase price is a driving force of insurmountable debt.
It Comes Down to This:
Even if you have been in debt for decades, you can pay it off more quickly by coming up with a money plan that you stick with until those debts are gone for good!
When you determine to watch what (and how much) you spend and time your large ticket purchases, you can place yourself and your family in a more secure financial position. You also teach your children - by way of your actions - how to handle money responsibly.
When you are ready for more help, we offer a deep-dive Debt Relief & Budgeting Program for you. This is where Dan the Budget Man will guide you step by step to create your own money plan to pay bills off quickly and efficiently. (There is a one-time fee for lifetime access!)
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© 2023 Dan the Budget Man
© ©2023 BudgetingEssentials.com Dan The Budget Man