Recently my husband and I decided to purchase a new-to-us dream car: a Ford Mustang. The thought process and individual experience that went into this decision make a great story about the concept of values-based spending.
Love at First Sight
I remember the first time I saw a Ford Mustang. I was ten years old and at the dealership with my parents and brother to purchase a new family car (anyone remember the Ford SHO?) There was a forest green Mustang in the showroom, and I was obsessed with it. Having my own became a personal goal of mine. Luckily when I met my husband, he also happened to want a Ford Mustang one day.
Saving Up + A Little Bit of Luck
The car I had owned since late 2012 – right after Hurricane Sandy – was looking worse for wear. It still ran fine, but had quite a few dents, wear and tear, and according to my six-year-old, a strange smell (she wasn’t wrong). I slowly started setting money aside for a replacement vehicle. Knowing that the car was used infrequently, I settled on a used car and set a budget. My lucky break came when the car continued running for longer than I anticipated. Still saving up, I started to research Mustang options and realized that purchasing one was within reach.
The Time Factor
Why buy the Mustang now? As a financial planner, I think a lot about saving vs. spending, investing for the future vs. living for today. There were times in the past when I needed to buy a car that were not the right time to buy a Mustang. But today was the right time. With a strong financial plan in place, I felt confident I was on track to meet my long-term goals and had been saving for this short-term purchase. I love the car and have no regrets. And when this car eventually starts to smell funny, I will revisit my financial plan and consider my options.
Final Thoughts on Values-Based Spending
Buying a sports car because your neighbor just bought one is not values-based spending. Following you values means aligning your spending with what is most important to you. For me, that was the Ford Mustang I had dreamed of since I was a little girl. For you, it could be absolutely anything else. The point is not keeping up with the Joneses or trying to impress your family. It’s doing the work to identify what money can buy to bring the most joy to your life.
Very Nice Story !!!!!