How much of your salary should go to a car payment?
05-18-2006, 04:13 PM
#32
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Originally Posted by jonp
You only live once man.
Don't let people fool you with all this "save up for later" stuff all the time. Everyone I know that has money has it because they got windfalls from somewhere. Either their house appreciated to the point where they have 300k in equity, they had a death in the family where there was an insurance/estate, or someone retired with a big pension and realized they should spread some joy around to people because life is all about having a good time while you're here.
Don't let people fool you with all this "save up for later" stuff all the time. Everyone I know that has money has it because they got windfalls from somewhere. Either their house appreciated to the point where they have 300k in equity, they had a death in the family where there was an insurance/estate, or someone retired with a big pension and realized they should spread some joy around to people because life is all about having a good time while you're here.
It is unwise to waste $$ on a car when you already have a nice one, especially if you aren't investing any of your $$ yet. You do only live once, so don't f up your future for instant gratification... unless she's super hot!
Originally Posted by jonp
By the time you can save up 20% down payment for a house in the Bay Area you could have made that much money in appreciation/tax write offs to refinance. A house used to be the only big thing people needed to save money up to buy, and with the way the housing market is in our area these days I'd say to just keep renting if you're getting it cheap. Yeah, I won't be able to potentially cash out in a few years, but I also won't be stuck with a house that won't sell because everyone is trying to cash out at the same time while in a plateau. Houses have been staying on the market longer and longer lately. I don't see that getting better anytime soon..especially since this season is supposed to be the best for home sales. My best friend is stuck in a house that has 6 others like it in the same neighborhood all for sale. They've been trying to sell for months now. I don't see that getting better anytime soon, and with the way bankruptcy laws are now you can really get youself into trouble if you get in too deep. The housing here is just a big risk now and I don't see these 700k 50 year old homes appreciating much more in the next few years.
Some people always make money no matter what the market does. If you think the market is going to dive, place your bets my man and cash in when it happens. The stock market averages around 15%, or you can get close to 5% in CDs. With cars, it's a safe bet you'll lose 50-80%
05-18-2006, 04:16 PM
#33
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Originally Posted by atc5
To further this point, keep in mind that many homes (50% range) have been bought in the last 4 years w/ interest only ARM's.
This means that soon, these mortgages will now increase considerably as interest rates go up, AND the fact that they will now become due to paying off principal in addition to interest.
Combine that with again, interest rates going up, fear of inflation, the stock market, and the housing market, things are going to become tighter for many families.
I'm not a doom and gloom type, but it's simply overwhelming sometimes thinking about complicated buying a home can be in an extremely high demand area.
This means that soon, these mortgages will now increase considerably as interest rates go up, AND the fact that they will now become due to paying off principal in addition to interest.
Combine that with again, interest rates going up, fear of inflation, the stock market, and the housing market, things are going to become tighter for many families.
I'm not a doom and gloom type, but it's simply overwhelming sometimes thinking about complicated buying a home can be in an extremely high demand area.
05-18-2006, 04:22 PM
#35
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Originally Posted by HellaDumb
Just remember that in 10 years the STI will be a pile of ****. Look at a 10 year old M3 and tell me how much P**sy that car would get you today.... no more that I could get without the car 
.
.
05-18-2006, 04:52 PM
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[QUOTE=HellaDumb]unless you're buying undervalued commercial property./QUOTE]
Yeah, and good luck trying to find one of those.
I think Robert Kiyosaki is really because all of the folks that have bought his books, tapes, seminars, and stuff.
Yeah, and good luck trying to find one of those.
I think Robert Kiyosaki is really because all of the folks that have bought his books, tapes, seminars, and stuff.
05-18-2006, 05:11 PM
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Originally Posted by pink-i-wagon
If your goal is to get P**sy with your car then a subaru should not be your first choice. Women who go out with you for your car are gold diggers. Better start saving for a newish 911 or Ferrari (cat nip).
Gold Digger: like a *****, just smarter.
05-18-2006, 05:13 PM
#38
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Originally Posted by wombatsauce
Gold Digger: like a *****, just smarter.
05-18-2006, 05:20 PM
#39
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HA! I wish I could buy a house right now! Ive got savings and 401K, but a house would have to be wayyyyy down the line. Its so expensive around this area, rats!
hmmmm...if I bought the sti...I could live in it..that would save me on rent
but I dont think the gf wouldnt like that!
hmmmm...if I bought the sti...I could live in it..that would save me on rent
but I dont think the gf wouldnt like that!
05-18-2006, 05:31 PM
#40
helladumb is hellasmart. personal finance is a b1tch. most don't understand it, those that do retire early or will be able to retire .
real estate in the bay area, in fact most of the country is scary right now. the next couple of years will break alot of folks.
real estate in the bay area, in fact most of the country is scary right now. the next couple of years will break alot of folks.
05-18-2006, 05:40 PM
#41
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Originally Posted by subie OCD
HA! I wish I could buy a house right now! Ive got savings and 401K, but a house would have to be wayyyyy down the line. Its so expensive around this area, rats!
hmmmm...if I bought the sti...I could live in it..that would save me on rent
but I dont think the gf wouldnt like that!
hmmmm...if I bought the sti...I could live in it..that would save me on rent
but I dont think the gf wouldnt like that!
Even if I were to only have a house payment, I wouldnt be able to afford a house around here. 600-700k for a 1400sqft **** hole is just insane. Im renting for now and saving/waiting for the market to get to rational numbers. Theres no way these highly inflated prices can stay. In 4 years, the car will be paid off, Ill have a grip more saved, will be making more money, and hopefully the houses that are 700k now, will be in the 500k range. That is when I'll jump into the market. Jumping in now is suicide. Many more of the baby boomers will also be seeing their homes in the next 5 years in favor for more low-maintiance types of living situations, so hopefully the market will flood with available property.
I know someone who thought it would be a grand idea to buy a 550k town home, is already in over his head after a month, and has to sell now, and even after a month, a single month, he wont get what he paid for it.
05-18-2006, 05:52 PM
#42
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Originally Posted by WillisW555
Originally Posted by HellaDumb
unless you're buying undervalued commercial property.
I think Robert Kiyosaki is really because all of the folks that have bought his books, tapes, seminars, and stuff.
The commercial market isn't nearly as tapped as the residential market.
05-19-2006, 12:46 AM
#44
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Don't do it Matt. In all honesty, it's not worth it. I was so eager to upgrade from my 02, and you know what, it didn't make me as satisfied as I thought it would. Went through 3 sets if JDM wheels, with 3 different sets of new premium tires. The money never stops flowing out, because there's always something else you want to do to the car. And you know well know about my $1k tire drama, which btw, is not due to tramlining. It's a tire defect or perhaps wheel issue.
05-19-2006, 01:47 AM
#45
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me, i am gonna be patient and save my money until i could get the STI. I do not like the conventional banking system (interest).
if i had lot of money, i will make a bank without interest. learn form those mid-east bank. BOA, WAMU and Wells Fargo for sure would have a hard time to compete.
if i had lot of money, i will make a bank without interest. learn form those mid-east bank. BOA, WAMU and Wells Fargo for sure would have a hard time to compete.