How do you decide whether a big spend is OK?

GlamGirlie

kidmugsy wrote: »

Pretend that the cost was added to your mortgage, then work out what the total interest payment will be over the years. Sobering!

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Why would you do this? The OP is not talking about borrowing for the holiday.

Surely a better thing to do would be to work out the interest saved if that sum were paid OFF the mortgage?

davetrousers

Are you and your family competent skiers?

Thrugelmir

Make big purchases in cash from savings. It's a sobering way of looking at the situation. How long to replenish them is a major factor.

racing_blue

davetrousers wrote: »

Are you and your family competent skiers?

Adults have skied a few times, teenagers complete beginners.

racing_blue

I have been pondering this and come to the conclusion that taking the family skiing is something that is important for me.

I guess we all have experiences growing up that shaped our views - in my case as a teenager my family went skiing most winters and I have such good memories of it. A generation on, I would like my own family to have the same type of experience.

So I'm going to have to build it into the budget & I guess the "funbucket" just got bigger. Perhaps we will aim to go twice during the next five years & do it really well each time. I'm going to budget £20k for this. Perhaps Europe once, USA once, family of 5. Does that sound realistic?

The flip side, it may take a year or two longer to build up a fund to fully offset our interest-only mortgage. So I reset that goal & weighing the buckets, the scales say they still balance OK.

Thanks for helping me work through it, I was almost convinced we should never do it when I asked the Q so this thread has changed my mind.