Tuesday, November 23, 2010

Set it Right or Else...

The title of this post refers to your perspective. Two posts ago, I shared that my money fear boiled down to being financially unstable and restricted by debt. Well here's a quick update about my "mini-dilemma." The car repair wasn't some irrational amount of money. After my coupon, I paid $231.66. No more "service engine light" and no more "gettin' jiggy with it" action from my engine.

Now about my perspective...
I'm not the type of person to spend my resources recklessly then look to someone else come to my rescue. But I do know, for sure, that if I legitimately faced an issue that cost me more than I have in all of my bank and investment accounts and more than my credit card limit, I still have somewhere to turn: family and friends. I know they would come to the rescue because they have in the past. For example:
  • I'd worked through most of my undergraduate studies to pay for rent and tuition (whatever scholarships and loans didn't cover). It wasn't until my senior year that I focused my efforts on saving up to purchase a car. What I'd saved wasn't enough to purchase a reliable car on my own. And heading into grad school with a $1300 monthly stipend spoke volumes about my capacity to re-pay a car loan (that is to say, it wasn't in the budget!). You might argue that I didn't "have" to purchase a car, but I was headed to a place where I had no networks and there was little (read: absent) public transportation. In short, I was forced to purchase a car. Who dropped some stacks to fill the gap? Dad.
  • After opening a Maaco credit card and spending $2500 of my own money to repair my car after an accident, my mom fronted me several thousand dollars to use for a down payment on another car. Unfortunately, when I retrieved my car from the body shop, the engine seized. Estimated replacement cost: $5600 for a rebuilt engine. I paid about that much for the car. And considering that I had JUST gotten out of the repair shop, it didn't seem prudent to drop that kind of money on it. So I got another car, with the help of Mom.
  • The car I purchased (with help from mom) was stolen. Everyone knows that when you file an insurance claim, you have to pay a deductible for services rendered by/through your insurer. At the time, my deductible was $1000 (it was this high because I wanted to pay lower premiums). However, stupid me didn't have the full $1000 in liquid savings. I would've been forced to pull funds from my investment accounts (which would suck: fees and penalties and crap) had it not been for my boyfriend. He surprised me and put a check in the mail. As it turns out, I didn't have to pay the deductible because of the way my appraisal turned out, but he was there for me nonetheless.

Going forward, I should be reminded of these instances - and many more- of support around me and not freak out (as much :>) when I'm faced with a financial "dilemma."

Who would you turn to if you exhausted your resources in case of emergency/major unexpected expense?

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