So it's WFMW again, backwards edition! Which means instead of blessing you all with a fabulous tip from Stepford, you all bless me with some fantastic feedback and advice to a question I have. This couldn't come at a better time, as I have a question that's really occupied my mind this last day or so. As I'm sure you've been reading, I've decided our spending must change and I've begun kicking around plans and ideas to help our family back on the road to responsible spending and saving. This has been hard, as life has given those few wrinkles that I'd have normally run out and solved by shopping with the plastic... Namely and most tragically, our digital camera of 10 years has finally died leaving me without a camera.
Well, as some may or may not know, I have a part-time job to help me pay my school loans and pad our savings. While the pay is fairly small, we do have the opportunity to make more money through commissions, which are awarded as a gift card to the place where I work. The commissions aren't large at all, but it's a good deal, as we can buy everything from groceries to home electronics to outdoor sporting goods with said gift cards. In fact, one of the things I was saving for at the store where I work (before going frugal) was a kayak that I had anticipated buying later this month with money from savings (that I'd been saving for quite awhile) and a coupon that saves me $50. I love kayaking and it’s something I enjoy doing in the summer with my husband as a cheap, entertaining diversion. However, our frugal planning has made me question if that's really such a prudent purchase, even though I'd been saving specifically for it before we went frugal.
Yesterday I got my commission gift card from my boss, and what should have been $42 she doubled to $84 because I was the top earner of the season. Now, the problem... What to do with said gift card? Should I:
Buy groceries with the $84 gift card (which will last a couple of weeks as groceries) and put the surplus money that we save from the budget into savings…
Combine the gift card of $84 with the coupon for $50 and buy the kayak, putting the money that was saved for said kayak but not used into savings…
Take the gift card to replace the digital camera that died on us, saving no money at all and actually costing us extra money since getting a digital camera for $84 is unlikely…
Take the gift card, stuff it away somewhere, and decide later… Possibly after earning more cash and gift cards to put towards mystery something…
Now, Mr. Stepford says that because the money is completely unanticipated and outside of our budget, in the form of a gift card, and the result of a job incentive for a job well-done, I should take it and do with it what I want… Either buy a kayak or a digital camera. My frugal mind says it’s more practical to buy groceries and save the rest, or hide away the gift card for a rainy day, when the choice becomes more obvious (read: when something goes on sale and I can save more), but my non-frugal mind wants that camera or kayak!!
So now, dear readers, if you were in my situation where you found yourself with a fairly good sum of money, tax-free, what would you do with it? Buy the want you’ve been saving for (kayak), the want you will eventually need (camera), save it for later, or use it practically?
Edit: It appears my camera has hit a second life. It's apparently working again. For how long, who knows, but it's at least trying to cash in on another of it's 9 lives. Oh wait... Is that cameras or cats?
8 comments:
I know it goes against my frugal training - but I'd use this "free" money for something more enjoyable than groceries. I'd say if there is debt - it would be best used for groceries so the grocery money could go for debt - b/c hard to really enjoy something fun with a monkey on your back.
You should never spend even "free" money without thinking carefully about it - it will still be there in a month (the money).
Could you use it to help pad your budget in other areas, like use it to purchase gifts for others. That way you aren't spending money out of the budget for gifts and you have the joy of giving...
It's not in the budget so definitely use it for something that you want. You worked hard and deserve to reward yourself!
I say go halfsies on it! Use half for a nice splurge for you and the other half for something practical and useful.
You asked what I'd do and here it is. First I'd sit and deliberate between saving money for the family budget and the fact that I probably won't have another opportunity to get the kayak if I don't use the money I've been saving, intending on spending it on the kayak. So I'd go get the kayak and when hubby and I are on a date in the summer kayaking around I'd be patting myself on the back for making the decision ahead of time to save and then earn enough commision to get the kayak at a discount. Hope you make the "right" decision no matter what you do.
I tend to be very practical, so I would usually spring for groceries, etc. HOWEVER, a kayak in your situation would not be an impulsive purchase, and it's something you'll enjoy which does seem like a nice reward for work well done.
When you kayak in the summer, do you borrow or rent? If you're paying money to use one and instead could invest, then that seems like a sound decision to me.
Great feedback, guys!! Thank you so much for your replies!!
When we kayak in the summer, we borrow a friend's set of kayaks. At the very end of the summer, he allows us to borrow them until hunting season, when he takes them back to go hunting. In the last weeks of August/early September, we kayak 3-4 times a week.
However, this year he got rid of the ones we used normally, trading them for a single (and much better) kayak. So they will not be available to us anymore.
Otherwise, when his aren't availble, we do not kayak at all, though my husband will sometimes rent one for himself to go take pictures. Renting is very expensive, so we try not to do it.
OK, Dave Ramsey would say to use it for groceries if you are in debt at all. Don't get me wrong, I am a Dave fan, BUT...I'd use it to by the kayak. Especially if you have to rent a kayak and it is something that you do often in the summer. We all need a release, and if kayaking is a release for y'all then it's more than entertainment! If you are really trying to "get back on the road to responsible spending and saving", you should check out Financial Peace University by Dave Ramsey. It is awesome! You will learn so much from it!
Thanks so much for stopping by my blog!
Post a Comment