Nov 30 2011

When 0% financing really isn’t…and our new bed, and some stock stuff

Comments Off on When 0% financing really isn’t…and our new bed, and some stock stuff

Last Friday, Shane and I made a purchase that we have wanted for several years — a king size bed. We had a queen (thanks to Bob Barker and The Price is Right) but I’m a violent sleeper and Shane is sorta, too. We need more space! It was hard to consider that purchase when we were living in small apartments, just for fitting it in the room and also moving the thing.

But no more. We went to an Indianapolis mattress manufacturer and got a latex foam bed and it was delivered this morning. Love that thing already!

The salesman offered us 24 months of 0% financing. O really?

“Is there any incentive for paying in full?”

“Yes, there’s a 10% discount.”

So really, the 0% financing is a flat 10% rate. If we went with that option, even if we paid it off early, there would be no additional financial incentive to do so. We’d be locked in at that price.

We opted to save that 10% and put the balance on our credit card (earning 1% cash back) and will pay that sucker off when we get the bill, as we already have the funds earmarked for it.

The salesman offered to include a free set of bedsheets, but I wanted the mattress protector instead so he swapped that out (even though that was a higher retail price, hah!). That will help keep my warranty, not to mention help with dust mites and stuff.

Part of our bed fund came from some stock that Shane received at his previous company as a bonus. Owning individual shares of stock hasn’t been a fun experience. We’ve seen that stock go up and down wildly with the market. Any time anything crazy happened with the stock market, that individual stock went bonkers, too. Europe having financial problems? Stock tanked. Arg. The company is a Fortune 200 company and has done well in the economy, and is regarded as a good pick by stock analysts.

Even so, it’s not immune to stock market panic attacks.

We wanted to sell right around the time we were buying our house. We were getting the paperwork in order, and then the debt crisis thing hit and the silly stock dropped like $30/share. WHAT. So we held. Buy low, sell high, right?

It’s back up to where it was before, + or – a few dollars. Time to sell. It had a small amount of dividends and we held it for a few quarters so that’ll boost the overall earnings.

I don’t think we plan on owning individual shares of stock in the future. Too volatile and if you need the money in the near future, it’s just too big of a question mark.

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Hey! I'm Kacie, wife and mother of 3. I write about my family's finance: how we save money, improve our spending, and plan for the future.

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