flag image
Form Wealth Management
Reader Feedback
report print email Source: Editorial: Officials talk ideas for no more municipal borrowing
Taxpaying citizen in Fontana
July 20, 2011 | 09:52 PM

When one wants to purchase a "large ticket item", ie. firetruck, you can do it two ways. First, you can borrow the money and pay it back in monthly installments including the interest on that loan. Or, secondly, you can do it through a "re-fresh cycle" whereby you set money aside for those large ticket items in a budget. You know how often you need a new fire truck and or new vehicles like trucks or automobiles. Set money aside for those items and line item them. Also are you going to purchase those items or lease them? The same question has to be asked when you need to update your technology hardware. Are you going to lease them or purchase them? More and more technology companies are going into the leasing business because technology is always changing so rapidly. There are companies who lease automobiles and trucks. People who "budget" their needs know where their money is going and if you follow the budget to the "item", you know how much you have in each account.
Look at how the money is spent. Could you establish a "re-fresh cycle" for those large ticket items or services? It is something to consider. Just a thought.

Jim T
Walworth County