Budget Me!

  1. so, i need a whole pile of help and a calculater and a mind for math...
    if my goal is to buy a kelly in (drat) 2013 (holy cow!), i have 2 questions:

    1. going with the rate of inflation, price increases, etc., how much might a 25 kelly in togo with gold hardware, retourne (souple) cost in 6 years?

    2. what are some $$ ideas for how much i ought to save and how often - $x a year, or $x a month, or $x a day? what is a feasible plan?
     
  2. Well, IMO, you could look at it as 1K a year, or about $75-80/mo into an account...I just feel that it's sooo much over such a long time I know something would come up for me in the meantime! However...it sounds like a great idea and goal...and something I need to look at so I feel I can have another H bag down the road! Good luck HH!
     
  3. ^^ thanks for the response shoes! do you mean that something would come up in terms of a windfall, $$-wise, or do you mean that you would not be able to protect a little savings pot for long, as temptation would arise?
     
  4. Well I don't know your situation but is it possible to pick up extra hours or a side job as your "Hermes fund?" Maybe convince your husband to give you a certain amount of money as part of your birthday, holiday, anniversary gift towards the H fund? That would really help out.

    Its hard for me to budget for a purchase at all let alone one in a few years! If you are already saving a percentage of your income maybe you can add a little more and put that as your H fund, so that you have savings in case something come up and don't need to dip into the H fund. You could also look at your budget and see where you can cut back.

    The price in six years will also depend on the dollar/Euro exchange rate and supply and demand issues.
     
  5. HH- Where is my HP 12-C (financial calculator) when I need it?? So let's say that Kelly will cost about $9,500 in 2013 (not exactly sure what it costs now but let's assume $5,000 and let's say it increases 10%/year (these numbers are approximate and 10%/year is quite a jump- probably will be less):

    2007: $5500
    2008: $6050
    2009: $6655
    2010: $7320
    2011: $8052
    2012: $8857
    2013: $9743

    OK, so let's assume you need an even $10k to pay for tax and some accessories for this bag.

    Working backward, this would mean if you saved the exact same amount every month for 84 months (7 years) you would have to save $119/mo. But this assumes you weren't getting interest on your money, which you will (as my brother says, the power of compounding-- meaning compound interest--is the strongest force in the universe). And this also assumes your savings power won't increase, which it probably will.

    Here's where I need an interest calculator which I don't have at the moment at my desk. But I'm going to work backward using an online mortgage amortization calculator. I could be wrong, but assuming a modest 4% interest rate on your savings I think this works out to your needing to save $102/month. This means you would be saving about $8570 over 7 years and earning about $1,450 in interest. Am I doing this wrong????

    So if you could swing $100/month you'd be there with probably lots to spare because I'm assuming Kellys increase in price at a really rapid rate (2.5 times the rate you get on your savings) and that you can only earn 4%/yr. in the next 7 years.

    Hope this helps and please, everyone, correct me if I'm wrong.

    TV
     
  6. um... it is safe to say...
    taxvixen i love you!
    yeah, didn't love you when you put it in black and white, that a bag by then will cost $9,743. but it's comforting to know that i can definitely swing putting $100 aside every month, and the thought of having some to spare at the end, well, that just means a twilly, etc. to boot. happy day. this is a lot to digest actually. i'm going to have dinner, etc. and come back for another looksee. but thank you so much.
     
  7. .... have a kid or two in the meantime.....:shrugs: where did the fund go??
     
  8. TV--quite impressive! It looks about right--although I can't calculate the interest portion w/o my HP either, and I don't even know where it is. I'll have the hubs take a look at this when he returns. Although if he sees this he may think it's a brilliant idea for me to consider!
     
  9. CAUTION- DO NOT USE THIS PLANNING STRATEGY!!

    OK, if one were really disciplined, (and again I don't recommend this) and one charged that $5,000 bag today on a credit card which otherwise had a zero balance with 12% fixed interest (high) the payments would only be $88/mo to pay it off in 7 years. Could that be right?? Of course there's a huge risk rates could increase too.

    Ugh, I've got work to do.

    TV
     
  10. I don't condone using CCs but when you think about the evolution of H prices this could actually be true... :wtf:
     
  11. lol taxvixen, and here i thought you liked me...
    no, i know that the numbers might look good that way, with the cc plan, but beside it being a gamble due to the rates risk, i would not want to be carrying a borrowed bag, as it were (until it was paid off). i would rather pay more in the long run (as long as it's from hermes directly, and not a reseller) and have it with a clear mind - if you can have a clear mind after spending $9,700 on a leather (non-exotic) purse (should i laugh or cry?). while i was bathing dd (see rose, no surprises there, i already have a kid - and yes, her tuition is already about one 28 box kelly bag a year, and as she goes to the higher grades, it will increase to a birkin+kelly annually, or a very big croc anything) i was thinking about the crazy fun it would be to go in and pay for the bag (in 6.5 years) in cash. mwu-a-ha-ha-ha.
     
  12. ohmgd, orchids you cracked me up!
     
  13. HiHeels I am there with you to cheer you on!!!! You know I am your #1 cheerleader!!!!!
     
  14. HiHeels, I'll be right there with ya saving. :flowers: TV, That's so impressive but yeah the price in 2013 - scary! :shame:
     
  15. thanks kellybag & crochetbella {and everyone who has (esp. taxvixen) and will (maybe orchid's dh, lol) post advice}. i was just shopping around on the internet for possible additional freelance work, and what i found was really depressing - terrific jobs that i'm totally qualified for but can't take because of my choice to stay home full-time with my dd. *SIGH* 97% of me is very committed to my choice to be at home, but 3% of me lusts for the jobs i've been reading about - and along with the stimulation goes the paycheck... oh it's so yummy. i went from dreaming about a bag to dreaming about a job, how backwards is that?!
    perhaps in 2 years when dd is in school a full day i will be able to explore more work options and thereby increase my "savings power" to quote taxvixen (i assume this sort of thing was what you were talking about).

    psss, hey, crochetbella, i thought you were all set to buy a bag come december