ADC is rubbing off on me

andy

I'm giving advice like this to a guy who makes ~$50K annually and just bought a $28K car.

quot;That's quite good. Just because your household income is ~$150K doesn't mean it is all available to you. Roughly $4100/month gross with only a $520+insurance isn't bad, but throw in a mortgage, kids, and a spouse; suddenly you're looking at broke on your sole income.

I stand by my decision with the Sentra, it's going to be paid off soon enough, which will free up ~$425 a month that I can invest. I don't need to tell you that in a typical savings account will only accrue ~$145 over ten years in interest. However, if you dump the money in monthly you'll accrue ~$7600+the 120*$425 you'll have deposited. That's gt;$55K in a simple interest account with additional deposits vs. ~$565 with a single deposit.

Like I said, I'd enjoy a nicer car; however, in 5-7 years I could save enough to pay cash for a new/used car. I'm not arguing 350zgt;Sentra, and again I'd say have fun with your car.

Total debt except your mortgage should never be more than 66% of your income; then again you should never have debt and start a mortgage and expect to be ok.quot;

Or it could be just realizing what financial responsibility is all about.

.There is financial responsibility, and then there is preaching to people well beyond what religious people preach to them about.  I hope he asked you specifically about if he made a financially smart decision, otherwise yer just an *** berating him about it.  You're happy with the Sentra, perhaps he wouldn't have been.  Sometimes happiness has a different price.  And you might not understand the desire of some for automobiles.. but some people have to come to grips that not everyone is like them.

.Glad I could help.   Yea, dude can't afford that car for sure.

We all make lots and lots of mistakes through the years interms of investing, bad purchases, etc.  You really can't affort to make a purchase that its completely obvious that you can't afford it.  And many will say you only live once and just go for it.  True to a certain extent.  But everyone has only quot;Xquot; amount of dollars to work with and for me pissing those dollars on a car just made no sense.

I wouldn't mind getting a new vehicle but the Sentra runs so damn good its hard to part with it.    And really for me the only important part of driving is that I get from point 'A' to point 'B'  reliability.

.Is that quot;~$150kquot; a typo?  If not, that guy can afford a few of those cars.... I don't think Houston is that expensive.

.He still lives with his parents, the three of them combined make ~$150K, he alone makes ~$50K.  He's 21, and is living naïvely with his funds.

He asked what we thought about his acquisition, I took a different approach than kissing his *** and telling him how the finances really look.  I would love to get a new car as well especially since I just got started in my career; however, I would rather start living that model of investment instead of dreaming it.

.
Originally Posted by ThePhilosopherHe still lives with his parents, the three of them combined make ~$150K, he alone makes ~$50K.  He's 21, and is living naïvely with his funds.
He asked what we thought about his acquisition, I took a different approach than kissing his *** and telling him how the finances really look.  I would love to get a new car as well especially since I just got started in my career; however, I would rather start living that model of investment instead of dreaming it.

If he's still living with his parents it may be a good suggestion for him to live on his own for a few months before deciding what he can and can not afford.  50k on your parent's tab is a lot of cash, 50k on your own dime isn't a whole lot.

.if he's living with his parents, his household income isn't really $150k.  his PARENT's household income is $100k and his is $50k.  household income only counts if they are contributing to the same end -- otherwise its just a useless number since it has no bearing on reality.

.I did the opposite of his advice more than a year ago and today I am ahead on my car loan, just bought a house, and have put more towards my 401k this year than I have in the last 5 years combined.

.i feel sorry for you.

.
Originally Posted by Kerpali feel sorry for you.

I wouldn't waste your time with that......

.maybe i should clarify

quot;ADC is rubbing off on mequot;

my response- quot;I feel sorry for youquot;

.
Originally Posted by Kerpalmaybe i should clarify

quot;ADC is rubbing off on mequot;

my response- quot;I feel sorry for youquot;

I know, I wouldn't waste your time feeling sorry for stupid people.  My statement stands.

.eh, they have no happiness... might as well give them some pity

.and they certainly don't get any TITTY

.I don't believe in putting all my money away into insvestments, but I don't believe in buying ridiculous stuff either.

Money is made to be spent. I believe being responsible with it will provide a good balance of fun/security in your life.

I want to enjoy my money and still be able to sleep at night, so I buy things that make me happy and that I can afford. The last thing you want to do is be strapped down and living paycheck to paycheck. Nobody is right or wrong in this kind of debate. It's all about personal preferences.