FPU Week #3—Cash Flow Planning

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wwrdI actually finished FPU about a month ago, but I’ve been distracted with other blog topics.  Time to get back on track!

Week #3 was about the power of cash flowing major purchases.  You are supposed to take money from your budget and set it aside every week/month for a purchase you really want.  Say you want a new couch that costs $2,000.  You save $100 a month for 20 months and pay cash for the new sofa.  That way you are not socked with interest charges, you have time to really research your purchase, and you will love it that much more once you get it.  Here are five things going through my mind as I sat through this lesson:

  1.  Maturity is the ability to say “NO!” to your inner child.  I think of all the times I make impulse purchases on items I really don’t need.  That demonstrates a stunning lack of maturity and wisdom on my part!
  2. I remember one year I took a trip to the Virgin Islands with a friend of mine.  I was in grad school, working retail, as an editor and as a substitute teacher.  I also gave plasma twice a week.  I scrimped and I saved my plasma money for a year so I was able to go.  Let me just say that was one of the most amazing trips I’ve ever taken because I shed my blood—quite literally—for that trip.
  3. Right now I am cashing flowing to replenish my emergency fund for paying so much in taxes this year.  One month down, one month to go.
  4. Dave considers $300 a major purchase.  For every major purchase, you MUST take 24 hours to sleep on it, pray on it and think about it before you buy.  That is very sage advice, but I think in my case, even $100 is a “major” purchase.
  5. The thing I am also saving up for right now is a hiking trip to Scotland.  I have 75 pounds to lose till I get to my weight goal.  But when I hit my goal, I am TOTALLY raiding my emergency fund and taking a trip-of-a-lifetime backpacking in the Highlands of Scotland.  My goal weight is far off—only something I can dream of at this point—as is the hiking trip.  I personally cannot wait for the day to accomplish both those goals.  It’ll make the struggle that much more worth it!
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