Financial Gurus Step Inside

[CM581978]

Most recently, I had to sell my Shelby GT in order to free up a bit of equity due to financial reasons. While that came in handy, I am now cruising around in a 10 year old focus and would have $0 to put down on a car. I feel like this is a question a 15 year old would ask, but realistically, what is the proper way to save for a new car or large purchase? Not sure if the pay yourself first logic works here, but I also have expenses such as mortgage, credit cards and your normal expenses. :ford: I even considered leasing being that I wouldn't have to put down much but after 36 months, I would have nothing to show for it.

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[paul123]

Most recently, I had to sell my Shelby GT in order to free up a bit of equity due to financial reasons. While that came in handy, I am now cruising around in a 10 year old focus and would have $0 to put down on a car. I feel like this is a question a 15 year old would ask, but realistically, what is the proper way to save for a new car or large purchase? Not sure if the pay yourself first logic works here, but I also have expenses such as mortgage, credit cards and your normal expenses. :ford: I even considered leasing being that I wouldn't have to put down much but after 36 months, I would have nothing to show for it.

since finances are tight, I would just keep driving the focus. If there is anything else that can be tightened up, do that. Money in the bank > Mustang. Unless you are under 22 :headbonk:

 

[evo8904]

since finances are tight, I would just keep driving the focus. If there is anything else that can be tightened up, do that. Money in the bank > Mustang. Unless you are under 22 :headbonk:

I agree! If your finances are tight, just wait on the mustang. It will be more enjoyable when you don't have to worry about the payment.

 

[lazarus870]

Good ETF or mutual fund

 

[Khyber]

and you're gonna get a thousand opinions but put nothing down and get a good rate(what 2.5 or less right now? you missed out on 0% back in aug/sept) and if you can afford it and it doesn't change your life then do it.

 

[BBB]

Stack on more debt. Sounds like a no brainer

 

[Endokendal]

I take it from your post that you are not putting anything away for retirement? IMO, that's a must before thinking about buying a new car. There ain't going to be any such thing as social security left when most of us get to retirement age.

Oh, and the fundamentals of financial planning are simple... Spend less than you earn. Adjust your lifestyle to fit your income. That is all.

 

[Higgs Boson]

spend less than you make.

edit: dang it, endokendal you got me

 

[MagneticA]

Budget. Know what you take in and what you pay out in every aspect of your life. Step one is to figure it out on a month by month basis. Then do it for an entire year (as different months will require more/less payments. Once you know your yearly expenses, divide that by 12 and that'll be your monthly budget. This alleviates suddenly having to come up with more $ every now and then to cover your nut.

Within your budget, you should have a car payment/upkeep expense - even when your cars are fully paid off. Example - the note on my new Neon 13 years ago was $250/month. Once I paid it off, I took that $250 and invested it for my next car (Mustang). Using this budget and the benefit of time (something it feels like you don't have) I got my new car with no stress on my budget. The key is to get ahead of today. Picture where you want yourself to be in the future and set a plan to get there using your money to earn you money.

If you only see today, you will always be playing catch up. Not that there's anything wrong with that, but it can be frustrating. There is seriously nothing more empowering than financial freedom and the knowledge that it can happen regardless of your income.

 

[50hhh]

Save up some and get a 2011-14 GT.

 

[CB]

Do the opposite of what government does with our money and you'll be fine

 

[Endokendal]

Do the opposite of what government does with our money and you'll be fine

:clap2::clap2::clap2::amen:

 

[Braski]

Don't ever strap yourself for a toy, unless you are single with no kids.

 

[Sammzway]

Put away $500 or even $100 (whatever you can afford) away each month. Then in two years, buy whatever you can afford cash with the pile of money that's saved. Even if it means an older GT. That'll be your toy until either
A) you make more money and have a sweet setup for retirement.
B) marry a doctor whose medical school loans are paid off.
Or C) win the lottery

If you can't do none of the above then continue to drive the older model toy you have.

 

[Lowrider]

Put away $500 or even $100 (whatever you can afford) away each month. Then in two years, buy whatever you can afford cash with the pile of money that's saved. Even if it means an older GT. That'll be your toy until either
A) you make more money and have a sweet setup for retirement.
B) marry a doctor whose medical school loans are paid off.
Or C) win the lottery

If you can't do none of the above then continue to drive the older model toy you have.

LOL...In reality, I don't think it is worth saving at least $2,400 for 2 years to buy a used car let alone $12,000....OP would rather finance from the get-go but that seems like a no option with no down payment and tight financials. So he is better off driving the Focus and stay debt free.

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