Blogging Away Debt

Recently our car hit an unwelcome milestone—150,000 miles. We’re a one-car household and own a red Ford Fiesta that probably dates back to 2012. It’s needed more frequent repairs lately, so we’ve had to sink about $1,300 into it in the past few months. Because our Fiesta is starting to have some issues, I’ve been reviewing our finances and looking into our car replacement options more seriously.

My partner drives about 20,000 miles per year for work, and I’ve seen estimates that say this model only lasts for 200,000 miles. Although I’d love to get 250,000 miles out of it, that’s looking like less of a possibility. We decided that we’re going to budget as if we’re replacing our car in two years so we’re prepared if it dies.

Status of Our Car Replacement Fund

Right now I have $10,000 specifically earmarked for a new vehicle. We have a separate car maintenance fund that has $3,000 in it, which we could potentially dip into. We also have an emergency fund with about eight months of expenses, but we don’t want to touch that unless absolutely necessary.

Initially we thought an adequate budget for a used car might be $15,000. But after further research, it seems like the market has gone bananas and that’s not enough to get a reliable vehicle anymore. It’s looking like we’ll have to spend $20,000 to $25,000 to get a car with the specifications we need, such as all-wheel drive to navigate through the extreme amounts of snow we get.

Our current vehicle doesn’t have it, and my partner has felt unsafe at times driving down gravel roads during the winter without it. Ideally we’re also looking for something lower-mileage that will last us for a while because we hate car shopping!

Plans to Add to Our Fund

I’ve calculated that I need to save at least $700 per month toward our car replacement fund. This will enable us to avoid taking out a car loan or dipping into our emergency reserves to buy our next car. Luckily this is doable since I was already saving, albeit at a slightly slower rate because I didn’t think a car would cost this much!

I’ll have to bump up my savings rate by cutting some extras from our budget such as eating out. I’m also going to route any extra money we get toward the car fund. My partner is expecting to receive $2,500 thanks to a bonus and an upcoming extra paycheck month, so that will help get us closer to our goal.

Car Recommendations

Right now my partner and I are considering getting a Toyota Camry. One of my family members who also lives in a snowy climate has one and likes it, but I’d love to hear your thoughts.

Are there any other cars with AWD that are a great value and handle snow well? Is $20,000 the right budget for a reliable used vehicle? I’d also welcome any car shopping tips since I’m not the most experienced buyer!

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Story of a Table

by Ashley

small square kitchen table with four chairs

When my ex-husband and I first separated back in the summer of 2018, I left a lot of the joint marital possessions behind. When I moved out, I took my bedroom set (which was a hand-me-down from my Dad), some patio furniture (which I used as indoor furniture initially since I had none), and most of the kitchen stuff since I was the cook in the family. But that was it!

In those first months, things were very tight financially. I made two immediate purchases that I considered necessities – a new bedroom set for my kids (bunk beds + dresser, as I’d left theirs behind with their Dad) and a washer/dryer. I figured we could slooooowly add whatever else we needed in time.

Making Do

That meant we did not have a kitchen table. Instead, we had a kitchen island and two barstools. Each night when we had dinner together, the girls each sat on a barstool at the island, and I stood at the island with them. That is how we had our family meals for months and months.

Maybe 6 months into this living situation, one of my friends moved away and offered to give me her old craft table. This was not a huge or fancy dining room table situation. It was scuffed and a little wobbly and had paint marks on the top. But it was a table and four chairs. I was THRILLED at the generous offer and snatched it up as quick as I could!

Combining Lives

It was maybe a year after that when my now-husband and I moved in together (I was in a rental home and he joined me about mid-way through my lease). I was still making do with our old craft table + kitchen island. But he had a lovely kitchen table set and that became our primary table. My craft table was now a secondary table. We used it in the breakfast nook and it became the place where the girls did their homework. But we never ate there anymore. My now-husband’s table took its place.

In Summer 2020, we got married and bought our first home together. Both tables came – my husband’s (now a little beat up, itself), and my trusty craft table. We’ve still used the craft table for kids’ homework and my husband’s is where we eat all of our meals.

New Horizons

Since joining lives, we’ve verrrrry slowly added new pieces here and there. I wrote in this post about how our formal living room came together spending very little money out-of-pocket (instead acquiring most of the things second-hand).

But I’ve turned my sights on that old craft table and think it’s now time for an upgrade. While I still love my husband’s original table and fully plan to keep it as our primary table, I want our formal dining room to get a formal dining table it deserves. As it is, my husband’s table (I guess I should just say “our” table at this point? Lol) only seats 4 comfortably. If there are children we could squeeze in a few extra chairs, but the table does not have a leaf to extend. It’s a square table, not a long rectangular one, so it’s tough to fit additional people on each side. And, being over a decade old now, itself, it shows its age. It’s perfect for regular usage, but I want a more traditional table (long, rectangular, with a leaf for added length) that we can use for special occasion meals like Thanksgiving, Christmas, or when we have guests over for dinner.

Savings Plan

Because I love myself a challenge, I’m using this desire as a motivator to cut back in our budget and trim off excess. I want to save up for a new dining room table with the goal to be able to buy one in cash in time for our Thanksgiving dinner! I actually started saving last month, so that gives me 6 months of savings time between now and the goal purchase date. I don’t have an exact table picked out yet, but will probably start window shopping soon just to get an estimated price range so I know if I’m on track with my savings. I hope to save up between $1200-1500 in that time. That’s a savings rate of about $250/month, which I think I can do if I squeeze the extra out of my budget! Last month I’d set aside $200 so I’m a smidge bit behind, but I think I can catch up.

In the coming week, I plan to take a hard look at my August planned budget to see where I can pinpoint areas with heavy spending. I know I can likely do better on our grocery and eating-out budget, and with extras like clothing purchases and entertainment. After I’ve had a chance to really dive in, I’ll report back with my savings plan!

Blogging Away Debt Our Journeys to a Debt-Free Life

Planning to Replace Our Car