Quote:
Originally Posted by TESLAASTRO
No, 25% is a guideline, not a rigid reality....doesnt matter what your expenses are though, since those are ever changing, emergencies happen....the roof could cave in, requiring 30k for a new one.....your what ifs are not reality based......of course anyone can do whatever they want, and Lord knows they do.....however, regardless of monthly expenses, buying a car that is, for example, 50% of ones gross household income is exceptionally irresponsible.....to put it plainly, it is 'mortgaging your future'.....Sure, you may be making your payments, but something has to give, and since the younger the buyer,statistically the more the % of income will be spent, it will probably be the 401k, the IRA, the life insurance, the college fund, and the 3-6 month emergency fund that suffers....afterall, you think you're going to live forever ..no, you'll never lose a job.....who cares about retirement when youre 29???...it's a tough thing when you're friends, relatives, and neighbors drive realllllllly nice cars....sh--, the temptation....
I really love this topic.......
|
Your making a huge generalization. If you don't have kids and don't care about a 401k... and realize that when you die, if you owe nothing or are $400k in debt... you win!
Obviously thats not the mojority of the populace. But not everyone shares your ticket to success.