Tell me that I did the right thing...

[Fizgig]

2006 has been all about the emergency fund. It's gone from a big fat zero in January to $6100 at the beginning of October, and my initial goal for the year was $7200 (four months of living expenses). Once I got there I was going to split my savings contributions 70-30, with 70% going into the emergency fund to build up to six months of expenses, and the other 30% going into a splurge account so that I could buy furniture next year.

Up until now my living room has one couch, one lamp, one coffee table, a TV on cinderblocks, and the cable box and DVD player on the floor. I really wanted to buy a cushy chair and a TV armoir. I had my eye on one armoir in particular, and it cost $1000. I was hoping to talk them down to maybe $700 and buy it early next year.

Well, the furniture company went bankrupt and is liquidating everything, completely closing up shop in three weeks. I went to their clearance center, found the armoir that I wanted, and talked them down to $400. I LOVE IT, and I have an actual living room now. I can still make my EF goal by the end of the year.

Did I cheat on my emergency fund, or did I do the right thing by snapping up an awesome deal when I had the chance?

(By the way, if anyone is in the market for furniture, it's a Pottery Barn-like chain called "Storehouse". They're not in all states, but it's good stuff and WAY cheap right now.)

[tinapbeana]

fizgig, as long as you're pleased with your purchase and feel it doesn't affect your ability to meet the goals you've set for yourself, no one else's opinion matters.

if you're wondering if you actually saved money or not, figure out how much interest your EF (including contributions), would make between now & the time you intended to make this purchase. is the interest less than the amount you saved on your purchase price? you probably saved yourself some money.

[rduell]

If it had been me, I would have done the same thing.

[nanamom]

Sounds like you made a good deal to me. You are still going to meet your goal for your emergency fund (wish I was!) and you have the exact piece of furniture you wanted. Actually sounds like you made two goals!

[bjl584]

A good deal is a good deal as long as you can afford it. It only becomes a bad deal when the finance charges eat up the savings that you got up front or when it causes you to have a shortfall someplace else. You stated that you will still achieve your financial goals, so what's the problem? You did the right thing.

[autoxer]

Originally Posted by tinapbeana

fizgig, as long as you're pleased with your purchase and feel it doesn't affect your ability to meet the goals you've set for yourself, no one else's opinion matters.

I agree. You don't need us to justify your purchase, because our spending habits could be vastly different from yours. Your priorities & goals are allowed to change.

The good thing about having saved money is that you can take advantage of the good opportunities when they come along.

[sweeps]

I called the EF police on you. They're on their way.

[Ima saver]

Gosh you saved half of what you might have spent. I am kind of lucky, cause if I need a new table for something, my husband can build it. He is not a furniture builder, but he does great with built in items, tables, cabinets, etc.

[Elgin526]

The best financial plan is the one writen in pencil!

I think you did fine. It was a need (a low priorty need, but a need none the less), you paid cash, saved 60%, and can still meet your savings goals. I say you done good!

[greedy4chips]

I think you did very well for yourself! You took advantage of an opportunity to purchase what you wanted/needed at a huge discount.

If you feel guilty, then change the 70/30 to 75/25 for 3 months as penance.

[KellyJef]

I say enjoy the armoire in good health

It obviously was not an impulse buy and you got a great deal.

[creditcardfree]

You did the right thing!! Way to go. Keep up the good work.

[boefixepa]

I think you did great! No worries...enjoy it! (Pst..that's why we save, so we can snatch up deals like that!)

[thekid]

I guess I'll echo all here. Good deal, enjoy! It was well planned in that you will meet all your goals by year end and saved a few hundred on a purchase you would have made anyways (and had been planning for) in the new year.

[Fizgig]

Woo hoo! I can enjoy my new furniture without guilt.

All year I've just been so hardcore about "no spending outside the budget" that it feels bizarre to plonk down cash.

[puck36]

I would say you did the right thing. All you need is 3-6 monts EF and you had 4 months. Any time you can save $600 is a good thing. I would of done the same thing. Good job man. Keep it up.

[Hot dog]

I probably would have put it on a 0% cc for the next six months to a year but sounds like you definitely got a good deal I have been struggling with buying furniture myself and already have my tax refund spent already as I have bought a dining room set and now I am wanting a bedroom set. I don't know whether to buy or not I can put it on another cc till 2008 I have in the past year moved in a new house and am not used to wanting all new stuff I have rooms with no furniture at all still. I was always satified with the old stuff now that I have a new house it doesn't seem to look as nice

[SuzeOFan]

I remember my first downpayment on a new bedroom set.

It was the first big purchase we made when we first got married.
It was a cheap pine wood set. But we thought it was a good deal and went ahead and bought it for $1100. 12 payments later, and it was ours. When we moved, I was happy to get rid of it and gave the whole set to my brother.

Now that I'm a bit older and wiser, I see that better quality furniture can be gotten at *much* better prices if I'm willing to look around for it and get it used.

Furniture to me is one of those things in life that (short of buying mattresses) I can't see buying new. For one, everything they make today is junk. Second, new furniture is way over-priced. Thirdly, they make it too easy to get in over your head by tempting you with interest-deferred payments.

Today I get really nice furniture quality pieces at places like estate sales, Goodwill-like stores, want-ads, flea markets, second-hand baby shops etc. And I manage to find everything I want at killer deals. I buy better quality furniture now than I would be able to afford new. Such as a Thomason Mahogany bedroom set with a two-closet mirrored 'headboard' and large mirrored mahogany bureau - for $400 at an estate sale. I would never even consider buying that new.

My whole house (and I live in a nice colonial in a nice neighborhood) is full of used furniture - and you'd never know it! I don't buy worn-out stuff. Only in the best condition.

I do empathize with your purchase. Who doesn't love getting a good deal?
And I'm happy for you. I also know how it is when you begin to amass a little savings - how at some point it starts to burn a hole in your pocket....!

It happened to me just this summer!

I now know how much I can stand saving before it burns a whole in my pocket!


Did you do the right thing, well, like tinapbeana says,

"as long as you're pleased with your purchase and feel it doesn't affect your ability to meet the goals you've set for yourself, no one else's opinion matters."

Enjoy it in good health!

[piggybank4]

Part of having a budget is to save money. if you really needed that furniture, you might as well get it when it's on sale.

There's more than one way to save money.