The official blog for the Friday Addition Foundations in Personal Finance class
Friday, December 13, 2013
December 13 - Online Discussion Question 2
String Melton surfed an online auction site on his lunch break, a harmless pastime until he found a ’65 Fender Stratocaster guitar up for auction with only 12 hours left. Suddenly, he was back in his parents’ garage with his high-school rock band. He bid $1,800, then called his sister to get her opinion. When she got his message she told him she’d let him know that night. His sister is a huge Dave Ramsey fan. How does she advise String?
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don't buy it for two reasons
ReplyDelete1) $1,800 is a lot of money to spend on a guitar
2) its an impulse purchase you don't really need it
travis
He doesn't need it. He should save the money.
ReplyDeleteLike Travis said, it's an impulse purchase.
Autumn
Because he wants to purchase the guitar impulsively and because he is emotionally drawn to the guitar, she'll remind him that he doesn't need the guitar and that it's a lot of money to spend on something he may not use often. She'll also advise him to go through the five steps that Dave Ramsey uses to make a significant purchase.
ReplyDeleteShe is telling him to wait for one night to get over the thrill of the find. She should ask him why he wants it and then tell him what he could do with that money that was worth more.
ReplyDeleteAdam
He should understand the purchase and think more on it, maybe even sleep on it before he bids, hey, it does have 12 hours left!
ReplyDeleteHe should wait and think about it before he decides to buy it.
ReplyDeleteHe should wait and make sure it is something he really needs or if he is acting on impulse.
ReplyDeleteBuying it right away would be an impulse purchase. His sister wants to make him think about it before buying it right away. Plus if someone else bids the price will go up and before he knows it he spent way more than he meant to.
ReplyDeleteeyezik
He should save for it every month, then, he can get it the smart way. If he can't do that, then he shouldn't get it.
ReplyDelete