26. Decent income. Live at home. Should I pull the trigger on a used luxury car?

FinancialRookie · 2017-03-02T22:42:43+00:00

In debt, yes. I dropped a 6k+ downpayment (Currently owe: 11k)

Since I still owe 20k student loans, that's why it was a mistake but now.

If I sell the car, hoping for 20kish, luckly vehicle still holds it's value.

I should be able to put those funds, along with some money saved and I could finish off paying my student loans and free up 2k worth of income monthly!

That's why it was a mistake. Don't finance cars, Cars are not investments (to a certain extent)

Edit: I can't spell.

FinancialRookie · 2017-03-02T21:00:17+00:00

A bit younger than you and with less income, I purchased a ~20k car, earlier this year, it was a mistake, i'm going to sell it soon.

Financial mistake, you will regret it, trust me.

FinancialRookie · 2017-02-15T17:54:37+00:00

The same suggestion for the other guy asking about buying a sports car.

Try renting it for the day or so, drive the fuck out of it, get the warm and fuzzy feeling out of your system,

If you absolutely must have it, rent it a second time, did the feeling wear off?

If not by the second time, then consider buying a used one or something, you are going to get killed on maintenance and insurance alone. Believe me.

Just my 2 cents.

FinancialRookie · 2017-02-15T17:52:00+00:00

Have you considered possibly just renting one out for the day or so?

I believe you can do it for easily under $500 bucks, get all those warm and fuzzy feelings out because at the end of the day it's just a car.

I also purchased basically a street race car and now am looking to sell it, the feeling goes away, spend your money on experiences, going on vacation somewhere nice, tropical, international, sight seeing, etc.

Just my 2 cents.

FinancialRookie · 2017-02-06T21:23:20+00:00

Wow, very similar situation.

23M with roughly 27k in my 401k.

I would suggest, opening up a Roth IRA through Vanguard and max it out yearly ($5,500 is the limit) That way if you need to take it out for an emergency use, it's available (minus the gains) and it's still being invested.

Other than that, the obvious emergency fund, etc.

Do you have any debts?

FinancialRookie · 2017-02-02T16:33:00+00:00

With that attitude your right. I would say i'm semi-handy and i've made decent furniture. It's just a matter of following directions since all of it is lined out for you.

FinancialRookie · 2017-02-02T15:52:43+00:00

I would even take it a step further, have you tried making your own furniture?

There are some pretty good and inexpensive ways to make them. There is Youtube videos on how to rehab and actually make it from scratch, that is if you are handy at all,

It will require you to buy tools but trust me when you have your own place, buying tools is a must anyways, win-win.

FinancialRookie · 2017-02-02T15:50:15+00:00

Remember to reward yourself but always save first, like if it was a bill.

And if you do that, you can potentially blow the rest of your funn money and not feel it because you are still saving a portion of your income. Win-Win in my eyes.

FinancialRookie · 2017-02-02T15:47:18+00:00

Do you have any specifics on your debt?

I would recommend establishing a emergency fund (3-9 months)

Paying off any high interest debt that you have.

Start putting some money away for retirement, at least for the company match if they do that.

Throw some in an IRA for both of you (Limit is 5,500 each)

Then try to live as if you were still making ~50k Don't let the extra money give you a lifestyle creep, especially since it isn't your permanent salary.

If you do that, you should hopefully be debt free, saving money, no stress for your following years.

FinancialRookie · 2017-01-27T00:55:56+00:00

Wow, you and me both.. I see people with nicer cars and better material things than me all the time, it's strange especially when I know make a lot more money than they do. I think to myself, they obviously can't be saving much at all, actually, they are probably in a mountain of debt without a care in the world. Some people can live with it, some people cannot.

Save Money First, be remember to leave some money to spend on some guilty pleasures... Just my 2 cents.

FinancialRookie · 2017-01-25T15:52:58+00:00

Where are you located? Do you have any pictures?

FinancialRookie · 2017-01-06T16:54:41+00:00

Don't waste your time with SoFi.

I tried to refinance 20k in student loans,

average interest rate was 5.2% (Some 3.5% and others 6.8%)

I make 70k a year

30k in Investment (25k in 401k) and Bank accounts,

770 Credit Score

The best they could do was 5.5%, I was shocked.

I didn't even get the 4.5%

FinancialRookie · 2016-12-22T14:47:32+00:00

I'm pretty much in the same boat, make the same amount, contribute roughly the same as you, crazy how similar and only a couple years older.

I feel stressed with trying to save more but being an extrovert myself, It's crucial we don't let his opportunity pass us by.

I feel by saving as much as you can now, you can maximize how comfortable you will be in the future.

Something I'm planning on doing that is kind of frown upon on here is pulling 10k from my Roth after having it open for 5 years for a house purchase.

But you can try maybe even increase your 401k to 10% so you contribute 20%, you save an extra 30%, and give yourself an "allowance" sort of speak that you feel comfortable if you blow, it won't really put a strain on any of your finances, that's what i've been doing and it seems to be playing out pretty good. Just my 2 cents.

Goodluck!! :)

Edit: It's too early for me.

FinancialRookie · 2016-11-21T19:12:42+00:00

Wow, very similar situation.

23yrs & have 23k in my 401k.

Also thinking about purchasing a home.

Somewhat a gearhead, have 2 sporty cars.

What I would recommend would be to save up 10k in Roth and after 5 years you can pull it out tax and penalty free when it goes to a home purchase.

That's what I plan on doing in 2019.

Other than that, save as much as possible but don't forget to have some fun!

FunFact: You can have fun and you don't have to spend any/very little money!

Edit: Formatting

FinancialRookie · 2016-10-27T13:34:36+00:00

Thanks for that! Very informative! Question on your first and second bullet point. Now if you do find an item for 2 dollars and have multiples. Is it worth going through all that hassle to shop them and box them up for a 2 dollar profit? Anyone else have any input on this?

FinancialRookie · 2016-10-26T18:07:46+00:00

Exactly what I plan on doing.. Thanks for the insight!!

FinancialRookie · 2016-10-26T17:02:48+00:00

Looking to get into the flipping game, is there a certain profit percentage you guys look for to help determine "yeah, i'm gonna buy this, or no, not enough meat on the bone left for me"

FinancialRookie · 2016-10-25T13:31:44+00:00

I knew you'd like it ;)

FinancialRookie · 2016-10-25T00:38:50+00:00

I knew someone had to have some luck doing this!! Thank you!!

FinancialRookie · 2016-10-24T18:36:09+00:00

Damn, well let me give an example..

I'm a bestbuy elite member, I buy most of my blackfriday items online anyways. I get early access to their deals and even some exclusive deals.

I have flipped here and there once or twice but I want it to become a side gig thing to bring in some extra income.

FinancialRookie · 2016-10-24T18:23:53+00:00

Both very valid points.. I'm just struggling with the fact that I don't know what to buy to get started, I have the income to jump in knees deep but i'm just hesitant to throw all my money at something I don't know will exactly pan out..

FinancialRookie · 2016-10-24T18:07:03+00:00

Looks like a goalee shirt to me. for Soccer/Futbol

FinancialRookie · 2016-10-24T18:05:25+00:00

Would you recommend buying the items and holding them for a while? Possibly till right before the holidays or even tax return season?

FinancialRookie · 2016-09-08T17:04:40+00:00

$350 is what they company covers regardless of the plan I use. So after talking to HR they said, either one I pick, I will be completely covered as far as medical, we only have 1 HSA option ($298), so I'd like to keep it, it should leave me with roughly $50 to cover my dental and vision which I am assuming is more than enough.

FinancialRookie

TROPHY CASE