We have been trying to keep up with the changes happening in our family recently. Unfortunately, that meant taking on a new car loan. Our family had outgrown our previous vehicle and it was also beginning to have problems. With my husband’s new job and our improved credit scores, we both took time to think about it and decided a new car was worth it. Following that decision, we did a review of our finances. Here’s what things are looking like…
Income Changes for Last Quarter
First, there have been some changes in our monthly take-home income. My husband was extended an offer to become a full-time employee at the company he was temping with. This increased his salary and decreased the amount of money we are paying for insurance month-to-month.
How much of a change are we talking here? Well, it’s quite a bit actually. He is taking home $600 to $1,000 more each month. Plus, I have been taking on small projects to earn some extra cash to stash away too. So, we are steadily increasing the amount of money coming in.
Making the Car Decision
When it came to taking out a new loan for a car, we were both hesitant. We were pretty close to paying off our old car, but it was starting to have some issues. Not to mention, the backseat was a struggle when it came to getting the car seat in and out. On top of that, there was no way we could bring the dog along with us if we wanted to.
Budget wise, we wanted to make sure that the payment stayed in the same range we were paying before. This is because we know we can afford that payment, even on the tighter months.
Conclusion
Sometimes, it is going to feel like you are taking steps backwards in your debt-free journey. However, you have to take into consideration your own quality of life. For us, having one car makes sense because we both work from home. That being said, we need to ensure that the car we do have is reliable, safe, and fits the whole family.
Saying goodbye to our old car and hello to new debt was no easy decision, but we are SO happy with the new car. It will last us a long time and we will continue to keep you updated on paying it off here on the blog.
Read More
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- Household Debt Is At An All-Time High In The U.S.: What You Can Do To Avoid It
- Making Changes to Our Financial Plan
Amanda is an editor and writer. She has a passion for sharing information that helps people and communities to better themselves in some way. In addition to writing online, she also freelances for local newspapers in her hometown of Charlotte, NC.
It Is sort of a false dichotomy to say changes in your family caused you to take out a new car loan. It was your choice, one out of many possible choices. I think you should own the choice and not act like it was forced on you. You wanted a new car and so you took out a loan and got it. That’s perfectly OK, millions of people make that choice every year. you Satisfied a big want in your life, there is no need to try to make it sound like it was a need. Some of us never wanted a new car enough to go into Debt to buy one, we waited until we had the cash saved up. But that’s a small minority of car BUYERS, personal finance is personal, congrats on the extra income, that’s always a big boost when it comes to achieving financial independence. Sorry for the all caps, thiis website won’t let me type lower case for some reason.