So if you don't want to tap the home down payment, change your car search criteria. You may not get the car you "want," but it will prevent you from taking on a lot of debt. If you are going to take the loan, borrow as little as possible. Do some research and you can find a reliable, fuel-efficient, used -- or new if you insist -- car for less than the approved $15,000. There are several Web sites that can help in your search -- www.edmunds.com, www.kbb.com, www.consumerreports.org.
Q: I conceived our son (almost 2) after a year of fertility treatments, mostly covered by insurance. We've been trying for No. 2 for almost eight months without success. So, it's on to in vitro fertilization (IVF), which is not covered by insurance. Is it fair to my son to spend $20,000 on IVF for a chance at a sibling? We have the money (as well as a rainy-day fund, retirement accounts, 529 plan, etc.) but could certainly use it to pay for his college.
A: It appears you are good at saving, so even if you spend the $20,000, you have the discipline and the time to save again.
Q: I just paid off my credit card debt. I will be moving back in with my parents to save on rent (I'm 30). I still owe undergraduate and graduate school loans ($100,000) and don't have any savings. Should I pay off loans or go for the savings? Or both?
A: Build up a small emergency fund and pay down the debt. Since you will be living at home, save about a month's worth of whatever living expenses you do have. Then live as frugally as possible so that you can pay off the $100,000 in student loans. Additionally, sit down with your parents and let them in on your plan. Periodically, let them see how you are paying down your debts. They deserve to be kept in the know about your progress since they are allowing you to live rent-free.