Dear Dave,

 

I was wondering if you recommend including future purchases, especially major purchases, into your monthly budget. If so, how far in advance should you do this?

 

Andie

 

Dear Andie,

 

When you wait until things go wrong or something breaks down, you’ll find yourself in a mess and the victim of your own poor planning. That’s why I’d start putting money aside in my budget as soon as I saw signs there would be a need for whatever item it may be.

 

Let’s say you’re pretty sure you’ll need a newer vehicle in a couple of years. Go ahead and start putting the money aside now. Decide on a reasonable, affordable ballpark price, then do the math to see how much you’ll have to save every month to make it happen. And if you can make it happen faster than two years? Great!

 

And remember, this kind of stuff is a whole lot easier when you don’t have things like car loans and credit card payments hanging around your neck!

 

— Dave

 

 

* Dave Ramsey is a national best-selling author, personal finance expert and host of The Ramsey Show, heard by more than 20 million listeners each week. He has appeared on Good Morning America, CBS Mornings, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth and enhance their lives. He also serves as CEO for the company, Ramsey Solutions.