A Bigger Car

In the pursuit of living simply, I have actually succeeded in making my life more complicated.  Well, I might just be acting overly dramatic. 

Here is the ridiculous story.  When I first told my boss that I was getting married and one day would probably have children, after nearly falling off her chair she proceeded to tell (and tease) me how I was going to need a mini-van.  Now I know that some people love their mini-vans… great for you!  It is just not the vehicle for me.  I was pretty adamant with her that I would NEVER own a mini-van, even signed a paper stating that fact which probably still exists in my personnel file. 

So in an effort to prove her completely wrong, my wife and I purchased the smallest car we could find.  Well, not really.  We bought a Nissan Versa.  It is a decent economical car, pretty good on gas, and for its class of hatchbacks, fairly roomy in the back.  In our day to day life, it works pretty well for our family.  I mean, we have to finagle the recycling and trash in the back and give a push on the boxes before quickly slamming the door shut. 

Our problems have arisen when we travel.  This summer we took a few camping trips, and we had to pack around our son.  Literally.  The softer items went on top so that in the event of shifting he wasn’t bonked in the head with a cooking stove.  And truth be told it isn’t his stuff that is taking up so much room, it is ours.  Yes we are camping but that doesn’t mean we can’t sleep in comfort.  And this isn’t to mention how the back of the car sank down dramatically when we loaded our bikes on the back.  Yikes!  Sorry struts or shocks or whatever is back there.

 

So we need a bigger car.  And it is indeed a need, not a want.  We are a one car family, we don’t even like to drive.  When traveling we like to arrive at our destination, unpack and then travel by bicycle.  We also have been car-payment-free for the past year, snowballing that payment into other debt.  Knowing that it takes a village, I would love to get your thoughts.  Does it make sense to get a car just for vacations?  Is there something else we are missing here?  And, if we must get a car (thinking Honda CRV size), any recommendations? 

Why I chose to use my savings account

Around three years ago, when I began working at UMassFive as a teller, I had a checking account. That was just about all I cared about. Granted, I did have my basic savings account, which everyone has, but I didn’t use it, and I didn’t care about it. Why would I? I loved the interest rate Co-op Advantage Checking gave me, and I wanted to squeeze every penny out of it.

Then, not two months into my new job, my car broke down.

The funny thing is, it wasn’t actually my car. I was twenty two, working two jobs, and just barely out of college. My mother let me use her car at all times, because she lived in New York, and it helped her not have to deal with owning a car in New York City. It also helped her convince me to run errands for her on my days off. And for me, it was a free car. My mom paid for the insurance, and I had no car payments. My responsibility started and ended with paying for gas and repairs. At the time, that was a lot, but I didn’t know how good I had it until I didn’t have it anymore.

So there I was, with no car, two jobs and about $300 to my name. It was also the winter, and I lived nowhere near the bus route. I got by for about a couple of days, but quickly realized I’d need to buy a new car. Desperate times called for desperate measures.

At 60 hours a week, with budgeting, I was making enough money to save without car payments. With car payments and insurance, I didn’t want to give up my savings, but in order to do that and make sure I was making my payments in time, I had no choice but to put money into a savings account. That, along with a loan savings account, turned a hectic heap of bills into a manageable stream. I began to appreciate that my savings account was there for me to build my savings, and that I couldn’t touch it very easily. And I began to really appreciate it when my savings account grew. It not only helped me build savings, but it also helped me pay my loans down more quickly… Happy days!

Since that time, I’ve moved to being a full time employee of the Credit Union, and I’ve begun leading workshops on budgeting. The practice what you preach mantra has helped me make a more convincing case for separating savings accounts from spending accounts. In that time, I’ve picked up a Holiday club savings account, and am considering a secondary savings account for more transparency.

Still, it’s not easy to work out an organizational plan, especially when you’re concerned with making a high rate of return on the money in your checking account. For those who are resisting a savings account, I have one suggestion: Look at how much interest you’ve earned over the last year. If you feel like you couldn’t have saved more money by keeping your savings separate from your checking, then you should keep doing what you’re doing. If not, it might be time for a change.

How about others? How has organizing your accounts differently helped you save (if at all)?

Birthday Parties

My son recently turned 2 and lots of mental energy was expended trying to figure out how to celebrate his birthday.  My wife and I like to keep things simple, we are the type that would rather spend money on an experience as opposed to a thing, and that is a value we hope to pass on to our son.  It is a struggle however, to not get all caught up in spending, spending, spending as a way to celebrate.  There are endless ways to watch your budget get surpassed with bounce houses, clowns, and slides - oh my! 

Another issue is gifts. This day is about celebrating him; does that have to be with piles and piles of presents? Is there some magical amount of presents he needs to get to feel valued and celebrated?  Can that even be quantified?  I also don’t want friends to feel pressure to have to arrive with a gift, not to mention setting a limit on the amount of stuff that will ultimately get piled in different corners around the house.  As a person who strives to live simply, I am still amazed at the amount of plastic toys (mostly reused & recycled) that has entered my life in these past two years.  I want him to get special things, things that I think he will really enjoy but as I watch him take great joy in playing with the box and plastic bags the reusable popsicles sticks came in or the mud puddle on the way to the playground, I question the concept of special.  Whose idea of special are we really talking about?  What’s important to him?

In the end, I did manage to reel myself back in. It was pizza, homemade cake and ice cream in the backyard.  The guest list narrowed down to the closest of friends and a request made to not bring presents.  He got some stuff, a wooden sand box and a new bike, gifts that came early and were from family.  A few friends ignored our request and came with gifts, a rake, a toy car and motorcycle, and his new favorite toy, a previously loved wooden doll house from his young friend on our street.

Most importantly, I hope that he got an early lesson in doing more with less.  What else could a Credit Union mama ask for?