Struggling

iVillage Member
Registered: 07-14-2008
Struggling
6
Mon, 02-22-2010 - 10:55pm

I thought that once we got our credit cards paid off, this would get easier. I have been saving money for living room furniture for a long time now. I had $2500 in the furniture account, so DH and I went to the furniture store. The good news is that we purchased a couch and accent chair and I am very happy with our choices. But, part of me feels so guilty about spending all that money on just two pieces of furniture. Also, it was hard not to purchase (using credit) the other things we would like for the living room. We would like a new coffee table, a rug and perhaps one more chair. I saw a coffee table I really liked so hopefully I will be able to go back and get it at the end of March, early April. We discussed buying some less expensive furniture, but we really want to get "what we want" even if it takes longer to get it. Also, we did get the "extra warranty" on the furniture, which covers stains, and other damage for 10 years. We did also discuss saving up more money so that we could purchase some more purchases. However, we decided to go ahead.

Also, we met with a financial advisor last week. The good news is that with our current investments, and if we continue to invest what we are now, we will have a very comfortable retirement. The plan has me working until I am 65, which I really don't want to do. However, the plan did not take into account that our home will be paid off early, so we shoud be able to make up some ground. Just as we were breathing a sigh of relief, she presented us with some options to increase our potential interest earnings. The suggestions made complete sense, but with greater risk. So, now we have been talking about her suggestions. We are both feeling a little overwhelmed with it all. It has caused us to argue a little about finances, which is not usual for us. Us arguing makes me so stressed out.

Well, forging onwards and still resolving not to use credit. But man it is hard. While we were paying off I was of the aditude that we will never rack credit cards again. I am now realizing that it would be so easy to do. Hoping for strength to get through this.

Thanks for letting me vent. I feel a bit better.






iVillage Member
Registered: 08-02-1998
In reply to: sillycanadian
Tue, 02-23-2010 - 1:08am
Bravo for not giving into yourself to buy the other pieces of furniture. And now that you have the big pieces you can get less expensive pieces for accents. I think you are right in getting what you wanted even though you had to save a bit longer for it. At least you didn't put it on plastic.
With your financial advisor, don't do anything you feel uncomfortable with. Better to take a bit longer with your savings than to argue with DH about what you are doing with it and causing untold stress in your house.


iVillage Member
Registered: 04-09-2008
In reply to: sillycanadian
Tue, 02-23-2010 - 7:55am

It is difficult to make that change initially. To always forego the bigger, better idea on credit and take it slowly on cash. I know how crazy it feels to spend that $2500 even though you planned for it and saved it for this purpose. You second guess yourself and wonder if it would be wiser to save it rather than spend it.

These are your wake up calls. The reminders of what you worked hard for and they'll help you stay on track.

I remember when we were getting our finances in order we visited a financial adviser too. I thought it was a perfect thing to be doing. Now, 9 years later I realize he talked us into doing some things that I wish we hadn't done. No major harm done but I realize in his firm that most of his advisers weren't career money people but 'other field' workers who he'd recruited to come work for his financial services company (a national branch of financial services company) after a training period. What we did then seemed like good ideas but have made almost no money in the time since. Luckily we still had other investments that paid off nicely. Until recently anyway.

Just be educated about options and don't be pressured into making any move that doesn't pass the funny looks test. Now that we got our debt behind us and live on a level far lower than our means it's financial freedom. It feels as good as being retired might. Or it even feels as good as being a millionaire. I don't need a million dollars to be happy. Just living with in the means of what you have is good enough for me right now.

momto3

iVillage Member
Registered: 04-10-2003
In reply to: sillycanadian
Tue, 02-23-2010 - 8:56am

Its so hard! I just paid mine off and am thinking about how there are so many things I would like to do that I could put on the credit card. Alas, I will not!


Think about it this way: You have come so far, and the furniture is YOURS. Not the banks, not the CC's, YOURS.


Also, remember, cash is king! If you go in with $2500 cash you can often negotiate a small disount (even if its just 1-2%) because that is what the store pays for CC transactions! If you have the cash, you also have the luxery of waiting, looking for sales and getting the best price.


As for the financial part, do what you are comfortable with. You have a solid plan now, so ask yourself is the extra risk and possible sleepless nights worth the extra number of dollars that you will get each month in retirement?


Congrats lady, you're doing great!


Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

iVillage Member
Registered: 11-14-2008
In reply to: sillycanadian
Tue, 02-23-2010 - 1:39pm

I agree, it is harder to part with/spend cash. But I bet you appreciate the heck out of that furniture! Its all yours.

Investing, start off with something low risk if you are even having small qualms about it. It is hard to find the perfect investment for two people because they usually have different risk tolerances. To avoid finger pointing down the line, do low risk. If you want to compromise, do 10% in the medium or high risk category to apease the other person.

I don't want to work until I am 65 either! I am thinking 60 max! And believe me, my house(that we haven't built yet LOL) and our land will be paid off by then!

OMG I want new furniture. Save, save save!







iVillage Member
Registered: 07-14-2008
In reply to: sillycanadian
Wed, 02-24-2010 - 1:53pm

Thanks for your kind words. I am feeling better about everything today. We get the couch delivered on Friday. I am really excited. And it is so nice to have paid cash and now not worrying how it will get paid for.

As for the long term financial. DH and I are on the same page. We are going to start working with this advisor, and start to invest with her rather than contribute to our RRSPs through our employers. This is enough of a change to start with. We are going to mark on our calendars to re-evaluate long term finances every 6 months.






iVillage Member
Registered: 10-01-2008
In reply to: sillycanadian
Wed, 02-24-2010 - 3:20pm

Like you, I have a hard time parting with my cash.

Norma


"Patience is the best remedy for every trouble"- Plautus