Tuesday, June 5, 2012

Can I Afford It?

I just returned from another fabulous, annual Memorial Day weekend girls trip.  The trip was expensive, nice hotel, pricey flight, fabulous 5 star dinners every night.  But, as you know, I plan for these trips and put away money each month for our travel expenses.  So this trip came in on budget, but it still was an expensive outing especially in light of the fact that Mr. Sam may not have a job at the end of the year.

While we did some great browsing in some great galleries and boutiques, I didn't actually buy anything on my trip.  I was interested in a hand made regional flavor basket, that would cost between $200-$300 (depending on size).  I decided not to buy it in the touristy area because I figured, and I was correct, that I could find a better price away from the hustle and bustle.  Then I was in a gallery and found a large piece of original art that I fell in love with.  In the gallery, it was priced at $750, but on-line it is priced at $625. Plus, I'd have to pay shipping which would tag on another $50 or so, but I don't have to pay sales tax.  So all together it would cost around $675.

I'm not a huge fan of Suze Orman but I've always liked her  "Can We Afford It" segments.  So this is my version of Orman's can I afford it.

Now, we don't have any unsecured debt, but we do have lots of mortgage debt.   However, at present, all of our investment properties are rented and paying for themselves.  We also have almost $18,000 in our emergency fund.

But, the elephant in the room is Mr. Sam's job.  We know there is a good chance that he will lose his job at the end of the year.  As a result we've been spending big dollars on some certification classes for him and therefore we are behind on our 2012 savings goals.  More importantly, we probably should be saving even more because of the high probability that Mr. Sam will be unemployed.

And putting that all aside, there are other home projects, i.e. plantations shutters and other improvements, that we could use this money for.

What do you think?  Can I afford it?


Robin said...

If you're asking/debating it you already know the answer.....nope. :)
There will be other art and other baskets.

Sam said...

Robin, thanks for your feedback. I think the answer is actually, yes I can afford it. But the question, can I afford it is wrong. Rather, the question I should be asking is okay I can afford to buy this lovely painting but with Mr. Sam's insecure employment status and other goals, should I buy it. And I agree, the answer to that question is no.

I think maybe what I'll do is start an art fund and if at the end of the year we've met our other goals and Mr. Sam is employed, then it makes sense to splurge.