Let’s face it, we all want stuff in life. I want to get a new pair of running shoes after I just hiked the Grand Canyon and my old ones didn’t work out so well for me. It seems like almost every week there is something new I want, whether a big item or a small one. So how do we get what we want in life? We determine how much that item is going to cost and save for it.

Let’s say you want an iPad 2 and it is going to cost $400. If you do a budget and you have $100 of extra cash per month, then put that in what I call a “Countdown” fund. Every time you put money in, it is like you are counting down until you get to zero. When you’re there you have enough money to get what you want. In this scenario, it would take 4 months and you will be able to play Draw Something with your friends on your new iPad 2.

What about putting it on a Credit Card?
Well, the average credit card rate as of May 2nd is 14.91%. I don’t know about you, but I don’t want to pay 15% interest, EVER. Also, there are several studies that show people spend more by using a credit card versus paying cash. There was a Dunn and Bradstreet Study that revealed people spend 12-18% more by using a credit card. Cash is th best way to go.

Conclusion: Pay cash and put it into a Countdown fund. You will get what you want every time with this method.

What is something that you want, that you could save up money to get?

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