Page 67 - Book2E

CHAPTER 7
Saving for Major Purchases and Emergencies
Major Purchases
Let’s face it. Some purchases are worth waiting and saving for, espe- cially as you are trying to get out of debt. While it’s human nature to want more of the nice things right now vs. down the road, your discipline in sticking to a budget and learning to put money away in savings for emergencies and future major purchases will enable to you realize those objectives in due time. If an individual or family can’t afford to save in order to pay cash for an item, they certainly can’t afford to buy on credit.
Do you want to save for a down payment on a home? Will you need a more reliable automobile in a year or two? Then now is the time to budget a certain amount of money each month and set it aside in sav- ings until the day comes that you have the money for the goals you’ve established.
Periodic Payments
Unlike a monthly mortgage payment or car payment, some of our financial obligations aren’t due each month, rather, they come due periodically. Examples could be a car insurance payment due three or four times a year, college tuition, dental or medical bills, income tax, birthday gifts and wedding gifts, dry cleaning, etc. The point is, while periodic expenses may not occur every month, they need to be
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