 thegeekPremium
join:2008-02-21
right here
kudos:2
 ·Suddenlink
| reply to Koil
Re: auto financing I'm not a trust fund baby, nor do I make millions of dollars. But I have close to a year's worth of salary in easily accessible investments. My job security is pretty good, but you just never know.
I could technically buy a car with cash but I'd rather finance it for 2-3 years and improve my credit. My credit isn't perfect as I wasn't always as smart with my money as I am now.
It doesn't take a trust fund or millions in salary to save up 6-12 months worth of pay. What it does take is knowing the difference between needs and wants. Too many people think that the fastest internet is a need. Or the complete cable lineup is a need. Or eating out every night is a need. I've lived by the rule of pay myself before paying anyone else for the past 10 years. You wouldn't believe how easy it is to do if you just start doing it. |
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 KoilPremium
join:2002-09-10
Irmo, SC
kudos:1 | said by thegeek:I'm not a trust fund baby, nor do I make millions of dollars. But I have close to a year's worth of salary in easily accessible investments. My job security is pretty good, but you just never know. But I'm pretty sure you're not just starting out your career, either. I think the missing variable in this discussion is age. While those financial tips from the likes of Suze are the right answer in an optimal situation, when you're just starting out in your career, trying to buy a house, start a family, etc...it's not always possible to save that much, or at all, honestly. I'm not saying that I've run the numbers and I am living at my peak efficiency and there is no room for me to improve, as I'm sure that is far far from the truth. What I am saying is that the possibility of me being able to have around 50-60k (my salary) in the bank right now....just not possible....maybe given time for the money that I can save to be invested and grow, sure...but they present it as it needs to be done yesterday for your families financial future and safety.
said by thegeek:I could technically buy a car with cash but I'd rather finance it for 2-3 years and improve my credit. My credit isn't perfect as I wasn't always as smart with my money as I am now.
It doesn't take a trust fund or millions in salary to save up 6-12 months worth of pay. What it does take is knowing the difference between needs and wants. Too many people think that the fastest internet is a need. Or the complete cable lineup is a need. Or eating out every night is a need. I've lived by the rule of pay myself before paying anyone else for the past 10 years. You wouldn't believe how easy it is to do if you just start doing it.
Our biggies in our house are eating / going out. We waste so much money that way. Other than that, we're not too bad, I don't think. We do have a DVR cable box, but no premium content, and our ISP is through TWC as well, as RoadRunner. I'm trying to convince the wife to completely cut the cable cord period, and just keep the internet, as we rarely ever watch live TV, and I can download the shows that she wants to watch for free or very close to it. So yes, you're right...there are things that I am sure everyone can do to reduce cost, and probably should do.
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My Blog - Raising Connor Updated - 11/03/1 |
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KoilPremium
join:2002-09-10
Irmo, SC
kudos:1 | reply to Caddyroger
Sorry for derailing the thread...I'll shut up now. |
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thegeekPremium
join:2008-02-21
right here
kudos:2 Reviews:
·Suddenlink
| reply to Koil
Even starting out it is possible. You just have to realize that a 5 year old used Ford will suffice instead of the shiny new Audi. And the 75 year old 1500sqfter will give you shelter just as well as the 5 year old 3500sqfter. Saving is fast and it takes time to get the nice stuff. Too many people think saving should take time and you need the nice stuff right away.
I'll stop derailing this thread now too!  |
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| I've found that the dealer can almost always beat what you can get if you have decent credit. Typically they get a low end rate from their banks which is the lowest the bank will finance you for. The dealer sets the actual rate higher and then splits the profit with the bank.
When I bought my last car in 2009 it worked this way and they lowered the rate to cover the increase in the gap insurance I wanted to take (but didn't want an increased payment).
And on the other stuff. Buying a new car may not make "financial sense" but it has piece of mind. I don't have to worry about the car; it's new and under warranty for a couple years. I don't have to worry how the previous owner took care of it, etc.
A house is almost always a loosing proposition in the end. Think about all the $$ you pay in interest, repairs, upgrades, etc. Don't forget your time. Probably more than you'll ever get out of it when you sell. I know I always wonder if buying a house was a smart thing. Could be better to rent for about the same $$ and let someone else deal with it.... |
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 TearAbiteD'oh
join:2001-07-25
Rancho Cucamonga, CA
kudos:2 | said by itguy05:A house is almost always a loosing proposition in the end. Think about all the $$ you pay in interest, repairs, upgrades, etc. Don't forget your time. Probably more than you'll ever get out of it when you sell. I know I always wonder if buying a house was a smart thing. Could be better to rent for about the same $$ and let someone else deal with it....
..Drifting further off topic now, but it does relate to "finances", so here I go...
Historically, buying a home was almost always a WINNING proposition. I bought my first house in 1997 for something like $120k.. I then rode the wave of the housing boom, selling that house for $250k, buying another house for $310k, selling it after two years for $650k, then buying our current house for around $720k .. of course, the next day the market took a dump and now the house is only worth around $500k .. BUT, luckily we put down enough cash (from the sale of the other homes) that we still owe far less than it's worth.. We know (hope) that in a few years, the value will go back up, since historically, it ALWAYS has.. Sadly, it didnt work out this well for many people..
Anyway - buying a house is usually a good thing to do - just dont buy at the "top" of the bubble.. Now is actually a decent time to buy because prices are bottoming out.. Only problem is right now no bank will loan you any money because they are still hurting from that "we'll give money to anybody" phase that they finally realized was not such a good idea..
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I always say: Choose the OS that is right for YOU and don't worry about what anyone else says unless they are paying for it.. |
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