Comments on: Using My Emergency Fund To Buy A Car (How To Buy A $10,000 Car For $7800!) http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/ Debt Reduction Rocks - We Are Living Debt Free! Sat, 21 Nov 2009 11:44:22 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Living Behind The Curve » An Emergency Fund in Action: Our $500 Weekend http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/comment-page-1/#comment-22523 Living Behind The Curve » An Emergency Fund in Action: Our $500 Weekend Mon, 09 Jul 2007 09:11:43 +0000 http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/#comment-22523 [...] away. What I don’t see a lot of is emergency funds being used for, you know, emergencies. (A planned car purchase is not an emergency.) Maybe they don’t have many emergencies, or perhaps personal finance [...] [...] away. What I don’t see a lot of is emergency funds being used for, you know, emergencies. (A planned car purchase is not an emergency.) Maybe they don’t have many emergencies, or perhaps personal finance [...]

]]> By: Customers Revenge http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/comment-page-1/#comment-12410 Customers Revenge Tue, 15 May 2007 13:51:02 +0000 http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/#comment-12410 Reread my comment ... I don't want anyone to think I'm insulting NCN. What I'm saying is that I disagree with the concept of saving as a way to earn money. Buying the car is fine, and saving for it or taking a loan is certainly required for most of us. However the strategy of buying a $10K car for under $8K by saving is what I think needs to be analysed a little more; $10K will be spent at the time of purchase and every penny will be earned through a sacrifice of some sort. Reread my comment … I don’t want anyone to think I’m insulting NCN. What I’m saying is that I disagree with the concept of saving as a way to earn money. Buying the car is fine, and saving for it or taking a loan is certainly required for most of us. However the strategy of buying a $10K car for under $8K by saving is what I think needs to be analysed a little more; $10K will be spent at the time of purchase and every penny will be earned through a sacrifice of some sort.

]]> By: Customers Revenge http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/comment-page-1/#comment-12352 Customers Revenge Tue, 15 May 2007 01:42:37 +0000 http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/#comment-12352 Time value of money is a critical part of the analysis here. A savings strategy is worthless in general simply because of TVM. By worthless I mean you aren't really profiting. Savings is just "waiting until you have enough". The other missing part is the real world trade-offs you will make to save the money and purchase the car. I wrote a longer response on <a href="http://www.customersrevenge.com/node/76" rel="nofollow">The Real Value of Money</a> but the main thesis is that one should remember time and enjoyment of money is not free. You can make anything worth huge amounts or money, or very little simply by changing the way you present the calculations and what costs or benefits you count or don't. Take the measurements against things you value, not apparently free money. Time value of money is a critical part of the analysis here. A savings strategy is worthless in general simply because of TVM. By worthless I mean you aren’t really profiting. Savings is just “waiting until you have enough”. The other missing part is the real world trade-offs you will make to save the money and purchase the car. I wrote a longer response on The Real Value of Money but the main thesis is that one should remember time and enjoyment of money is not free. You can make anything worth huge amounts or money, or very little simply by changing the way you present the calculations and what costs or benefits you count or don’t. Take the measurements against things you value, not apparently free money.

]]> By: Planning your Purchases Far, Far in Advance http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/comment-page-1/#comment-11961 Planning your Purchases Far, Far in Advance Fri, 11 May 2007 13:58:20 +0000 http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/#comment-11961 [...] Compounding Interest Week continues, I’d like to highlight some very smart thinking by No Credit Needed. He’s planning his next car purchase now and saving money each month for it in a [...] [...] Compounding Interest Week continues, I’d like to highlight some very smart thinking by No Credit Needed. He’s planning his next car purchase now and saving money each month for it in a [...]

]]> By: Personal finance at KMull.com http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/comment-page-1/#comment-11560 Personal finance at KMull.com Tue, 08 May 2007 03:02:01 +0000 http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/#comment-11560 [...] Credit Needed plans to buy a $10,000 car for only $7,800. (Psst… NCN, you forgot to account for taxes!) Don’t worry folks, he isn’t [...] [...] Credit Needed plans to buy a $10,000 car for only $7,800. (Psst… NCN, you forgot to account for taxes!) Don’t worry folks, he isn’t [...]

]]> By: Carnival of Personal Finance » Carnival of Personal Finance #99 http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/comment-page-1/#comment-11500 Carnival of Personal Finance » Carnival of Personal Finance #99 Mon, 07 May 2007 13:02:18 +0000 http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/#comment-11500 [...] Using My Emergency Fund To Buy A Car? [...] [...] Using My Emergency Fund To Buy A Car? [...]

]]> By: Carnival Of Personal Finance #99 - Awesome Money Quotes Edition http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/comment-page-1/#comment-11494 Carnival Of Personal Finance #99 - Awesome Money Quotes Edition Mon, 07 May 2007 12:09:09 +0000 http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/#comment-11494 [...] Using My Emergency Fund To Buy A Car? by NCN @ No Credit Needed. NCN runs a few numbers in trying to figure out an efficient way to buy car. Basically, the message is - delay a purchase by a few years - save in the meantime. [...] [...] Using My Emergency Fund To Buy A Car? by NCN @ No Credit Needed. NCN runs a few numbers in trying to figure out an efficient way to buy car. Basically, the message is – delay a purchase by a few years – save in the meantime. [...]

]]> By: NCN http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/comment-page-1/#comment-11092 NCN Fri, 04 May 2007 14:43:07 +0000 http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/#comment-11092 Yes, TMV does come into play, but I would, of course, ACTUALLY put back a bit more than 325... I was just keeping things "simple" for the example... Taxes are always changing, so, again, to keep it simple, I did not really mention them... the calculator that I give in the example will figure taxes, if yo want it to do so... Yes, TMV does come into play, but I would, of course, ACTUALLY put back a bit more than 325… I was just keeping things “simple” for the example…

Taxes are always changing, so, again, to keep it simple, I did not really mention them… the calculator that I give in the example will figure taxes, if yo want it to do so…

]]> By: David http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/comment-page-1/#comment-11090 David Fri, 04 May 2007 14:40:01 +0000 http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/#comment-11090 Bear in mind that the interest you earn on your savings is taxable so that will either reduce the amount you will have for a car below $10,000 or reduce the amount of money you have for other things if you pay the taxes from other income. Still your approach is a good one! Bear in mind that the interest you earn on your savings is taxable so that will either reduce the amount you will have for a car below $10,000 or reduce the amount of money you have for other things if you pay the taxes from other income. Still your approach is a good one!

]]> By: InaDaze http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/comment-page-1/#comment-11075 InaDaze Fri, 04 May 2007 11:13:55 +0000 http://www.ncnblog.com/2007/05/03/using-my-emergency-fund-to-buy-a-car-how-to-buy-a-10000-car-for-7800/#comment-11075 Really like the post, gives the rest of us paupers a reason for hope about saving for a car. One question, although you sacrifice two years time to "wait" to get a better car ($10,000 car instead of $7,445), does it take into account TVM? I think you are comparing $10,000 in 2 years to $7,445 now, but $10,000 won't be worth quite as much in 2 years, if I am going thinking about this correctly. Anyway definently a great example either way of the power of interest in your favor. Really like the post, gives the rest of us paupers a reason for hope about saving for a car. One question, although you sacrifice two years time to “wait” to get a better car ($10,000 car instead of $7,445), does it take into account TVM? I think you are comparing $10,000 in 2 years to $7,445 now, but $10,000 won’t be worth quite as much in 2 years, if I am going thinking about this correctly. Anyway definently a great example either way of the power of interest in your favor.

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