Talk Me Into It: Financial Concerns

pumaknight · 02-18-2008, 09:57 AM

I think it also comes down to the need vs want ratio. A lot of people need a car but they want it to be a BMW. :biggrin:.

A "Need" is a must have to sustain life. Items such as food, shelter and water are considered "Need" items, along with electricity and gas. In the modern age, a car could be considered a "Need" item as well. These are all items that allow basic quality of life.

Everything else should really be classed as a "Want" item. We all "Want" a nice car, a big house, a holiday in the Carribean, but do we really "Need" them?

Debt tends to be brought about to sustain a "Want" life style, and for most becomes a quick tool to feed the insatiable "Want" without apparent consequences. Indeed, the OP was about a want, not a need. If it was a "Need" we wouldn't be offer advice on a $40k+ car.

But as with all things in life, it comes down to choices and consequences - but I could go on about those for hours.....so I will stop.

PrematureApex · 02-18-2008, 10:03 AM

Quote:

Originally Posted by pumaknight

I think it also comes down to the need vs want ratio. A lot of people need a car but they want it to be a BMW. :biggrin:.

A "Need" is a must have to sustain life. Items such as food, shelter and water are considered "Need" items, along with electricity and gas. In the modern age, a car could be considered a "Need" item as well. These are all items that allow basic quality of life.

Everything else should really be classed as a "Want" item. We all "Want" a nice car, a big house, a holiday in the Carribean, but do we really "Need" them?

Debt tends to be brought about to sustain a "Want" life style, and for most becomes a quick tool to feed the insatiable "Want" without apparent consequences. Indeed, the OP was about a want, not a need. If it was a "Need" we wouldn't be offer advice on a $40k+ car.

But as with all things in life, it comes down to choices and consequences - but I could go on about those for hours.....so I will stop.

I believe every post on this forum is based on a "want" life style.

Heck, BMW wouldn't exist in a "need" based world.

Further, you probably wouldn't even have a computer to be typing on. :biggrin:

pumaknight · 02-18-2008, 10:05 AM

Quote:

Originally Posted by PrematureApex

I believe every post on this forum is based on a "want" life style.

Heck, BMW wouldn't exist in a "need" based world.

Further, you probably wouldn't even have a computer to be typing on. :biggrin:

Exactly:biggrin:.

I just find that some peoples wants out strip their financial abilities / sense / etc. Call in the bailiffs and bankruptsy orders:smile:

hector · 02-18-2008, 10:29 AM

Quote:

Originally Posted by PrematureApex

...have a boat load of school loans...

:drinking:

just remember to add to that your share of the national debt.

Brandon26pdx · 02-18-2008, 12:48 PM

Quote:

Originally Posted by PrematureApex

Definitely not a "hot new car" syndrome kinda guy...

But the WRX has about 100k miles on it, not that it NEEDS to be replaced, but by the time I get something fairly fun used, and replace the daily driver in a few years, I'd be right at the point of a $36k 1 series.

As to the person posting about interest on school loans...

The fact that interest rates are falling have absolutely no affect on my existing loans. They are locked in, no one consolidates them at a lower rate than what you had to take them out at.

As for the amount...well, 4 years of expensive undergrad and 3 years of expensive law school...we're not talking about a small amount of loans.

Is it really worth only paying say 2k a month toward the loans than 2.6k a month and driving a beater? I think there is something to be said about not living like a popper when you're young enough to enjoy it so to speak. I don't know.

I see a lot of young people on here with no qualms about buying one. Why do I have them???

If you're putting $2k/month toward the student loan debt till it's gone, and driving the car will make you happy in liu of the other expensive "me" crap like the uptown condo and trips to Vegas, then I say go for it. Sure, the extra $600/month would help the repayment schedule, but it sounds like your student loan debt repayment would take several years even at full-tilt anyway. Driving a junker for that long would suck, I agree.

Brandon26pdx · 02-18-2008, 12:58 PM

Quote:

Originally Posted by Chop79

I'm 28, make just under 100k, and I'm still carrying about 3k in student loads at 2.9%. Fully funding my retirement accounts are my #1 priority, next, pay off all unsubsidized loans. Have an emergency account that will cover all expenses for at least 6 months. And lastly, I want to buy a house so I've got a down payment ready for when I find the right place.

Most would say pay the debts off first(except house, if applicable) before worrying about retirement accounts, but with your age and income, do what makes you happy.

PrematureApex · 02-18-2008, 12:59 PM

Quote:

Originally Posted by Brandon26pdx

If you're putting $2k/month toward the student loan debt till it's gone, and driving the car will make you happy in liu of the other expensive "me" crap like the uptown condo and trips to Vegas, then I say go for it. Sure, the extra $600/month would help the repayment schedule, but it sounds like your student loan debt repayment would take several years even at full-tilt anyway. Driving a junker for that long would suck, I agree.

Yeah, but if I threw 4k/month at it, I could have it gone in 2 years. The extra $600/month will probably cost me an extra $6k in the long run...

So I'm torn.

Brandon26pdx · 02-18-2008, 01:19 PM

Quote:

Originally Posted by PrematureApex

Yeah, but if I threw 4k/month at it, I could have it gone in 2 years. The extra $600/month will probably cost me an extra $6k in the long run...

So I'm torn.

Two years? Maybe I'd pay the loans off first then...thats fairly short term bad news. :iono:

That's what I'm doing BTW. I've got about $12k left on the student loan that i'll be writing a big check on in August. I'll feel a little better about driving a spendy car with that done with.

PrematureApex · 02-18-2008, 01:32 PM

Quote:

Originally Posted by Brandon26pdx

Two years? Maybe I'd pay the loans off first then...thats fairly short term bad news. :iono:

That's what I'm doing BTW. I've got about $12k left on the student loan that i'll be writing a big check on in August. I'll feel a little better about driving a spendy car with that done with.

Yeah, the thought of dumping $100k in the next two years toward it sucks. I could manage it, but that's going to be a crappy two years. Especially at my age.

Damn all you responsible people...

MastaMind · 02-18-2008, 02:15 PM

Quote:

Originally Posted by PrematureApex

Yeah, the thought of dumping $100k in the next two years toward it sucks. I could manage it, but that's going to be a crappy two years. Especially at my age.

Damn all you responsible people...

Really, the hard part is just getting yourself in that mindset. Once you get accustomed to spending most/all of your "extra" money on debt, it really becomes a way of life.

Then, it's actually hard to go out and buy a new car like the 135 because you're so used to being "cheap". :biggrin:

PrematureApex · 02-18-2008, 02:21 PM

Quote:

Originally Posted by MastaMind

Really, the hard part is just getting yourself in that mindset. Once you get accustomed to spending most/all of your "extra" money on debt, it really becomes a way of life.

Then, it's actually hard to go out and buy a new car like the 135 because you're so used to being "cheap". :biggrin:

No, that's how I live now. And its crappy, and as you can see, hard to buy a $35k car.

edge350 · 02-18-2008, 02:32 PM

Quote:

Originally Posted by PrematureApex

I believe every post on this forum is based on a "want" life style.

Heck, BMW wouldn't exist in a "need" based world.

Further, you probably wouldn't even have a computer to be typing on. :biggrin:

That says it all.

Please keep your avatar. She's very nice on the eyes.
It's the reason I look forward to your posts.
(Don't make me turn the topic of your avatar into a separate thread).
:smile:

PrematureApex · 02-18-2008, 02:37 PM

Quote:

Originally Posted by edge350

That says it all.

Please keep your avatar. She's very nice on the eyes.
It's the reason I look forward to your posts.
(Don't make me turn the topic of your avatar into a separate thread).
:smile:

She's the girl from 1addict.com...

I should probably replace her with a pick of the gf, she's just as easy on the eyes.

edge350 · 02-18-2008, 02:47 PM

Don't do that to yourself. Have you read some the stuff under the presidential election thread? Some of these fuckers are CRAZY!

R32 · 02-18-2008, 03:23 PM

Quote:

Originally Posted by PrematureApex

Damn all you responsible people...

what is the point of life? to die with a bunch of money?

to be frank, you are a high-income person, and you will not get yourself in trouble with a bmw. 10 years from now, you will wonder why you agonized about this purchase. you will be working your ass off for the next several years, so might as well have some pleasures.

that is not to say that you shouldn't take care of business. that means buy a house no more than 2x your income, have disability insurance, life insurance if you have dependents, and pay down your high-interest stuff quickly. if you have kids, save for their college.

but after that sort of thing, balance your work and enjoyment.

my parents lived very modestly, a teacher and professor. they did the millionaire-next-door thing, and now are quite comfortable. of course, there were a lot of broken-down cars and all-you-can-eat buffets along the way. i have chosen to make enough to be free of general financial worry, take care of my wife and kids, and enjoy my life a little more than that. i DON'T plan to leave the kids a whole bunch of money-- it wouldn't do them any good, after all.

you will make plenty of money to have your cake and eat it too-- save, invest, protect your income, and enjoy the discretionary income that you have worked so hard for.

one thing to look out for: your taste, as it gets more expensive, gets to be more expensive. for myself, it takes a little reminding that there are plenty of $20 bottles of wine that i enjoy just as much as a nice silver oak cab. same with cars-- there are so many $40K cars that are incredibly nice and fast, that i have no desire to drive more conspicuous cars.

so, don't agonize over this type of decision. the car is more than reasonable for your earning potential.

MastaMind · 02-18-2008, 04:40 PM

Quote:

Originally Posted by PrematureApex

No, that's how I live now. And its crappy, and as you can see, hard to buy a $35k car.

LOL, I hear you! :drinking:

If that's the case, then go for it man.

mjovic · 02-18-2008, 09:59 PM

Quote:

Originally Posted by PrematureApex

She's the girl from 1addict.com...

I should probably replace her with a pick of the gf, she's just as easy on the eyes.

spankalicious.

XM_Rocks · 02-19-2008, 12:21 PM

The 25 year old in me says:

Do it... you only live once.

When I was 25 I had ~ 30% of the income (married now) I have today and I had a brand new Audi TT... after that I bought a new S2000.

I enjoyed every second of it!

Nothing like a single young guy in a flashy car.

The 30 Year old in me says:

Contrary to the calm being exuded by the FED the four horseman of the US economy apocalypse are at our door knocking. We may be in for some rought times.

In the real world job can be here one day and gone tomorrow.

Plus buying a $38K car you will suffer ~$10K in depreciation in 2 years.

If you have more than $96,000 in student debt I would pay that off.

Not by actually paying it off but building money in a safe liquid savings account earning ~ 4.5%.

When you have enough to pay off your loan account and have about 6 months of bills saved in that savings account take the money and pay off the student account. Then you will have a rainy day fund.

Then go out and buy the 1!

C4talyst · 02-19-2008, 10:12 PM

Hey Apex, who's the chick in your avatar...she looks very familiar.

Chop79 · 02-24-2008, 04:36 AM

So..... What did you decide?

PrematureApex · 02-24-2008, 08:09 AM

Quote:

Originally Posted by C4talyst

Hey Apex, who's the chick in your avatar...she looks very familiar.

1addict.com

Quote:

Originally Posted by Chop79

So..... What did you decide?

Haven't yet. The car is on order. I'm also poking around at S2000's (keeping in mind the extra 3k for the supercharger

)

Bu I pulled the suspension off the WRX this weekend. So the returning to stock process has begun. Something has to give...

Bdh821 · 02-24-2008, 09:45 AM

Just do what I did. Move back with your parents and buy the car cash. It sucks for the mean time but I did that for 2 reasons. 1 to pay cash for my 1er which I am doing. And 2, I'm also saving for a house/condo that I hope to buy later this year. At the same time I'm only 22 which is why I can justify moving back with them. And since the real estate market is just crashing, I figure by the time I am ready to buy, the market will be completely dead... Oh and yes I'm that loser who has a sweet car that lives with his parents!

02-18-2008, 09:57 AM	#89
pumaknight Second Lieutenant 4 Rep 280 Posts Drives: Currently Seat Leon Cupra FR Join Date: Jan 2008 Location: UK iTrader: (0)	I think it also comes down to the need vs want ratio. A lot of people need a car but they want it to be a BMW. :biggrin:. A "Need" is a must have to sustain life. Items such as food, shelter and water are considered "Need" items, along with electricity and gas. In the modern age, a car could be considered a "Need" item as well. These are all items that allow basic quality of life. Everything else should really be classed as a "Want" item. We all "Want" a nice car, a big house, a holiday in the Carribean, but do we really "Need" them? Debt tends to be brought about to sustain a "Want" life style, and for most becomes a quick tool to feed the insatiable "Want" without apparent consequences. Indeed, the OP was about a want, not a need. If it was a "Need" we wouldn't be offer advice on a $40k+ car. But as with all things in life, it comes down to choices and consequences - but I could go on about those for hours.....so I will stop.
	Appreciate 0 Quote

02-18-2008, 02:47 PM	#102
edge350 Junior Cheeseburger 56 Rep 370 Posts Drives: Join Date: Dec 2007 iTrader: (0)	Don't do that to yourself. Have you read some the stuff under the presidential election thread? Some of these fuckers are CRAZY! __________________ The 1-series is compact, endlessly involving, and absurdly fast...It is also more fun than a caffeinated circus monkey. - Automobile. Crimson Red/Terra 135i, delivered 4/19/08, traded in 9/8/08. Recovering addict, still a fan.
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02-19-2008, 12:21 PM	#106
XM_Rocks Captain 63 Rep 688 Posts Drives: 2016 GTI, sold my E90 N54 Join Date: Sep 2007 Location: Austin, TX iTrader: (0)	The 25 year old in me says: Do it... you only live once. When I was 25 I had ~ 30% of the income (married now) I have today and I had a brand new Audi TT... after that I bought a new S2000. I enjoyed every second of it! Nothing like a single young guy in a flashy car. The 30 Year old in me says: Contrary to the calm being exuded by the FED the four horseman of the US economy apocalypse are at our door knocking. We may be in for some rought times. In the real world job can be here one day and gone tomorrow. Plus buying a $38K car you will suffer ~$10K in depreciation in 2 years. If you have more than $96,000 in student debt I would pay that off. Not by actually paying it off but building money in a safe liquid savings account earning ~ 4.5%. When you have enough to pay off your loan account and have about 6 months of bills saved in that savings account take the money and pay off the student account. Then you will have a rainy day fund. Then go out and buy the 1!
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02-19-2008, 10:12 PM	#107
C4talyst Private First Class 14 Rep 191 Posts Drives: 2000 VW Jetta Join Date: Dec 2006 Location: Washington D.C. iTrader: (0)	Hey Apex, who's the chick in your avatar...she looks very familiar.
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02-24-2008, 04:36 AM	#108
Chop79 Second Lieutenant 8 Rep 293 Posts Drives: Join Date: Feb 2008 iTrader: (0) Garage List 2008 135i [0.00]	So..... What did you decide? __________________ 2008 135i Alpine White, Black'ette/High Gloss, Sport, CA, Heated Seats, iPod Adaptor, Premium hifi, Sirius, BMW Assist
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02-24-2008, 09:45 AM	#110
Bdh821 Major 44 Rep 1,265 Posts Drives: 2021 M550i Join Date: Feb 2008 Location: MA iTrader: (3)	Just do what I did. Move back with your parents and buy the car cash. It sucks for the mean time but I did that for 2 reasons. 1 to pay cash for my 1er which I am doing. And 2, I'm also saving for a house/condo that I hope to buy later this year. At the same time I'm only 22 which is why I can justify moving back with them. And since the real estate market is just crashing, I figure by the time I am ready to buy, the market will be completely dead... Oh and yes I'm that loser who has a sweet car that lives with his parents!
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