Buying Our Most Expensive Purchase Yet: How We Were Able to Afford It

There are just things in life that you need to buy. But this need might also be expensive. Even if I am kuripot, it takes a lot of thought and work to be able to afford the most expensive purchase we have as a couple. And that is a car.

Some might be taken aback by this purchase. I have read a lot of times that cars are considered a liability. This is because of the weekly oil purchase, maintenance, registration and other associated costs of owning one. There are a lot of things to spend when you have a car. If you will use it for business, then you can be able to justify the purchase. But allow me to give a context of the need for us to buy one.

Our home is located in a hill even if it is close to the city. The only means of public transportation for us is riding “habal-habal” or a motorcycle and riding a taxi. We would be lucky if we can be able to hitch a ride with my parents going downtown but they usually will be out very early in the morning to attend to their jobs. Waiting for a motorcycle to work can sometimes takes a while. There are only a few riders in our place and the amount of time waiting for one can be tiring. This would even be worst especially when it rained because most habal-habal’s don’t have protective coverings. Hence we always take a taxi should that occur. But taxis have increased their rates. And my husband and I tend to ride separately because of our varying job times. And we are out almost every single day. With that being said, having a car for us would be a need rather than a luxury. 

Choosing a car was another dilemma. We were scouring for car agents and the type of car we would want. But we always know it would be a Toyota given the cheap maintenance and the parts that are readily available in the country. There were a lot of questions in our mind such as; should we get a brand new car? Can we be able to afford it? Up to what extent, etc? We were even visiting car shows in malls and tested some cars in order to get a better grasp of the unit and see if it fits us. But more importantly, it has to fit our financial capacity to pay.

My husband and I agreed to let go a specific portion of our savings and dedicate it for buying a car. We decided to forego around 30% of it so we still have a lot of savings left. This amount will be used as downpayment. We were really considering buying a new car and pay it for five years but an opportunity came where a friend is selling his car. The good news is that, the final amount is something we can afford out from the money we have allocated before. Even if it will be second-hand we know that the previous owner took really good care of the car. Not to mention, it is a Toyota.

If you are faced in that kind of situation where you would need to buy an expensive purchase, here are some key takeaways.

Plan it.

Buying something expensive takes a lot of planning. After all, this involves spending money that we don’t usually earn in a month. It is appropriate then to take the time to set aside money for this kind of purchase.

Discern it. 

Another thing to take note is that you need to think things through. Weigh the odds of purchasing the item such as whether this is a need or a luxury. Identify what things will be sacrificed or items to give up to make way for this purchase.

Save it. 

The most important thing would be to save up for the purchase. Rather than swiping your credit card for it, it is important that you save up for the purchase first. Even if you think you have sufficient savings, it is important that you will not cripple the entire savings just to afford the purchase. Leave sufficient amount and do not drain your savings for this one.

Anyone can be able to afford any expensive purchases as long as you don’t take a loan for it and you plan your money months in advance. Plus, you need to be able to maximize the use of the item so it will be worth your investment.