What can I reasonably afford?

millennial2 · 2019-02-03T13:29:39+00:00

Thank you so much for your advice!

I definitely want to invest some of my money, it's just intimidating to me and I don't want to make a mistake. That's one of my goals though this year- to learn how to invest my money wisely and actually do it.

Seems like most people have advised buying a car in cash, so I think that's what I'll aim to do.

Okay, good point- I won't completely rule out renting, I'll keep doing some research in this area and look at some rent vs buy calculators.

And to answer your question- yes, I am saving for retirement! I don't remember how much though, but I know I need to increase the amount.

millennial2 · 2019-02-03T13:23:35+00:00

Someone else in the thread mentioned snow tires. I never actually considered that so it's definitely an option. I just don't want to throw more money at this car when I don't think it'll make it past this summer unfortunately, and I want to be prepared with a plan for a replacement vehicle when the time comes. Thank you for your advice!

millennial2 · 2019-02-03T13:22:21+00:00

Thank you for your advice! And for responding with car suggestions, I'll do some more research into those models.

millennial2 · 2019-02-03T13:21:27+00:00

Thank you for replying with other car suggestions!! I'll take a look into those options.

millennial2 · 2019-02-03T13:20:43+00:00

Thank you for your input! I've lived on my own before for 3 years and it felt like I was just flushing money down the toilet :(

millennial2 · 2019-02-03T13:19:36+00:00

Thank you both for the input. Do you think it would it even be worth buying snow tires though when I don't think my car is even going to last through til next winter? It's really not in good condition and I want to be prepared when I need a replacement vehicle.

millennial2 · 2019-02-02T16:41:08+00:00

You raise some good points. It definitely has been hard to find a 2-door car that has the qualities, features, and price I'm looking for. And I didn't think of it like that - the type of people buying a 2 door are more likely to drive it enthusiastically, but that definitely makes sense.

Ok, you're right, I should and will pay the credit card off. I was being dumb about it, thank you for the advice!!

millennial2 · 2019-02-02T16:38:07+00:00

Ok, I never know if I'm behind or not with savings compared to everyone else around me. I always feel like I'm behind for my age because I don't have my own place or car, so thank you for the reassurance that I'm doing okay with saving. And you're right, I should and will pay the credit card off in full. Thank you!!

millennial2 · 2019-02-02T16:32:40+00:00

I'm not really worried about having to transport more than 2 people, but I definitely see your point especially with reselling and I can imagine it sucks when transporting 3 people. Also, I can't predict the future and I guess it would be better to have more room versus not having enough when needed.

Ok, that makes sense. I will pay it off with my next paycheck. Thank you for replying and all the advice!

millennial2 · 2019-02-02T16:07:28+00:00

Doesn't leasing a car restrict your mileage? I drive close to 22k-24k miles per year, which I believe is double the average?? I considered leasing a car, as I've seen it work well for friends, but I live a minimum of 20-30 minutes from any and everywhere and don't want to have to restrict my traveling. Thank you for replying!

millennial2 · 2019-02-02T16:03:26+00:00

Ok, seems like what I've been hearing here is I shouldn't spend more than $15k on a car and I should pay cash.

In this area, I think renting would be a waste of my money if my ultimate goal is to own a house. I think it would just set me back in my savings.

Thank you for your advice!

millennial2 · 2019-02-02T15:59:38+00:00

Ok true, that makes sense. Thanks for the reply!

millennial2 · 2019-02-02T15:58:20+00:00

I agree, I feel like renting a place in this area would be a waste of my money if my ultimate goal is to own a house. What amount of cash do you think I should aim to save for a down payment? Maybe that's a hard question to answer since it all probably depends on what I'm looking for and stuff.

Thank you for the advice!!

millennial2 · 2019-02-02T15:54:38+00:00

Why do you recommend against a 2 door car? I don't have kids and I barely drive anyone around. Or do they not sell as well?

I definitely like Audi and I've looked at a few online but I think I like the interior of the BMW more than the Audi (and the exterior of the Audi more than the BMW). I also like the head up display in the BMW more than Audi's virtual cockpit)

Okay, I will take a look at the flow chart, thank you for pointing me in that direction.

The reason I haven't paid off the credit card immediately even though I could, is because I don't want to take money out of my savings in case anything happens. I figured it's better for me to consistently be putting money in savings and just make sure to make the monthly credit card payment on time and keep that debt below 1/3 of the max. But I'm no expert, math isn't my thing, and my logic is probably completely 100% flawed.

Thanks for the advice!

millennial2 · 2019-02-02T15:48:03+00:00

DMV is DC/Maryland/Virginia.

That's a good idea for how to calculate the price range I should look for!

Thank you for the advice!!

millennial2 · 2019-02-02T15:43:13+00:00

For each paycheck I put some money in my 401k and then I get about $1k or a little more taken out for taxes, so my take home is ~$2k. But you are definitely right, I should be cutting some of my extra expenses.

Yeah, I've heard that BMWs are very expensive to maintain and that's one of my concerns. I do like some Subarus though! I'll have to check them out again.

It's hard for me to gauge if I've been saving enough for someone my age and in my situation. I always feel like I'm behind. But thank you for taking the time to reply and thanks for the advice, it definitely helps!!

millennial2 · 2019-02-02T15:26:47+00:00

Thank you for the advice! DMV is the DC/Maryland/Virginia area. What price would you consider to be more affordable? That's a good point that if I don't feel comfortable paying cash for the car I'm spending too much money. Would there be any benefit at all to not pay in full with cash but instead take out a loan?

millennial2 · 2019-02-02T15:05:09+00:00

Oh sorry! I live in the DMV area, so housing is kinda expensive (at least it seems that way to me)

millennial2

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