Our washing machine died yesterday and it isn’t an emergency. The Fisher and Paykel washer was 11 years old and after 3 loads a day (roughly 12,000 loads), we knew it’s days were numbered. Planning for this didn’t start last week, or even a few years ago. It started the day we bought it. After we became debt free with a fully funded emergency fund, we added some other budget categories to prepare for days like today. Every month, we set aside $10-30 in an “appliance fund” and since we know ourselves and needed extra accountability, the cash went into a real envelope and tucked into a combination safe (not into the bank account where we pay for other bills.) We also fund other bonus budget categories including a car replacement fund and furniture replacement fund. We set aside small amounts each month into these envelopes so that over the period of 10-15 years we can replace our items that wear out.
If I hadn’t had an appliance replacement fund, my day yesterday would have looked very different. I would have searched our local Craigslist for a working washing machine to limp by with until we could raise the money we needed. They had used machines about the age of ours ranging from $50-$150. I would have used part of our emergency fund or my home repair fund, to pay cash for the appliance. It’s not a bad plan really and if there hadn’t have been any good sales on, I might have done that anyway so we could wait for a better deal.
Instead, I had the cash to shop for the best rated machines I could afford. I looked at reviews online, drove to the scratch and dent outlet store to see their choices, and thanked my lucky stars that Independence Day sales were still going strong.
When it came time to make my final decision, I almost went with my less favorite, just to save a few hundred dollars. Then Darren reminded me that this machine should last us 15 years or more and that since we had the cash saved up, I should buy the set of machines that I wanted to use for the next 15 years.
Even though our dryer is still working, it is almost 18 years old. We decided to buy a matched set since the machines are visible from most of the main floor. I should be able to sell the working dryer on Craigslist to offset our costs a little.
I chose the Whirlpool Cabrio set because of it’s huge capacity, low resource use, and good reviews. I loved the idea of a front loader and would love to be able to build a counter over the top of my machines, but the whole mildew thing and needing to leave the door open discouraged me.
After searching the prices online of all the stores that carry this model of machine, We called Sears to order over the phone. I needed the dryer door reversed and that couldn’t be specified online. While I was on the phone the operator asked me if I had a coupon code I would like to use. I said, “oh! Is there one?” He put me on hold and we both searched for any available coupon codes. I was unable to find a coupon code that would work in their system, but his manager approved an additional 5% discount for us. The cool thing about this, is the 5% discount is the same we would have earned by using a sears credit card. As a rule, we don’t use credit cards and I was feeling kind of bad about missing the discount. Turns out, I didn’t have to miss it after all.
It may seem like a lot of extra little categories, but most people won’t miss the extra $10-$30 a month and over 15 years that fund will grow to be $1800-$5400.
Really sound advice – I really benefit from these bits of wisdom!
Thanks for the encouragement, Heather!
Excellent advice. I think it’s too easy sometimes to fall into the trap of the reverse- paying for something on credit over time. I need to be more disciplined not to touch the funds for other things- I see the money and rationalize it’s use for something else, esp when we really need the extra money. Putting it in a safe is a nice alternative, out of sight out of mind.
Thank you, Rachel. It can be tempting to have money lying around. For our personalities when it’s in an envelope with a label on it, it’s harder for us to spend it on something else than if it were just in our bank account. Also, hiding it from ourselves helps too, lol! The only way we’d spend it on something else would be to stop of foreclosure.
We are saving for a family trip right now, so I’m putting money in a separate account only for this purpose and we made a commitment that this is “non-existent” money (aka for, and ONLY for, the trip!). When it goes into this account, it “dissappears” !
Isabelle, It’s so smart to have a separate bank account! Paid for trips are way more fun than trips put on credit cards. Have a blast!
Love the new washer and dryer. I highly doubt that you will see them last as long as your old set though. We researched and bought what we thought would be great but the washer lasted less than 4 years. After talking to several repairmen, they explained to me that with all the electronics they just don’t last as long. We also bought all brand new Samsung appliances for our kitchen and had to replace micro less than 2 years and have had at least 3 times with repairmen trying to fix our fridge. After several hundred dollars it still is not working correctly. Frustrating when it happens less than a year since you have had it. So my husband and I decided that with further appliance purchases we will research the most basic of models and then based on reviews, purchase something that will most likely be on the cheaper side. Although for a washer and dryer I am tempted to purchase Speed Queen though because they are commercial products and very simple design. Love your blog Angela!
Jenn, Thanks for sharing your experience! It does seem that appliances aren’t lasting as long as they used too. It’s too bad. Is your fridge still under warranty? It seemed like most appliances had a 1 year guarantee when we were shopping.
Give your new set TLC during their life and I bet you can get them to pass the decade mark;). We bought a more “technologically advanced” set for the time 13 years ago and they are still humming along;)
I’m so glad to hear that! With has much laundry as we do, I’ve had a repair man out a few times. He admonished me not to overstuff the washer, to always put tiny things (like baby socks) inside a garment bag so they couldn’t get loose and get stuck in the motor, and to use the right amount and right kind of soap. (Homemade detergent from Fels Naptha soap ruined my first washer. Ruined it. I’ll save money on other things.)
WONDERFUL ADVICE!!! I will implement this TODAY!
YAY, Kristy! There’s peace of mind knowing those funds are already established. It reduces the amount of emergencies that pull on the big emergency fund.
The new set is beautiful so hlad you got the very best! Using YouTube tutorials and ebay to find parts we have kept my early nineties top loader running great and fixed our other older kitchen appliances. I was able to bless a friend whose front loader broke that way too. There was no replacement money but ebay turned up a working used part for 30 dollars instead of several hundred and we were in business. One day I will join the modern appliance age.
Anna, I love that you learned how to fix your stuff! That’s so awesome!
I like how you do your extensive research and use the envelope system. We are, also, debt free owning our home, vehicles, etc. and owing no one. This frees us up to give to those in need. We are retired and down-sized a few years ago. We bought a new washer & dryer for our new home and decided on Speed Queens. They are made of steel and should last for years – not complicated so having fewer parts to replace and easier to repair. We have a small laundry room so were not concerned about how they looked – just ordered plain white. They are noiser because of their strong build but we just close the washroom door when in use.
Thank you for your information through the years that even us old timers can learn from!