[ejheverest]

You can never beat the time value of money. Always have an emergency fund(3-6 months of expenses). Pay yourself first!!!(automatic withdrawal from your checking account into a-IRA account, 401k, or brokerage account) and still have fun.

[Ryan323i]

Just curious, what were some of your approx salaries when you bought your new BMWs? I had to sell my 2000 323i to get a more reliable car to finish college, and now that I am a few weeks away from graduating (still got one more year for my MBA), I am hoping to get back in a BMW within the next few years.

[TurboFan]

My rule of thumb is not to buy a car that is more than 1/3 my salary, and I generally look to keep it to 1/4 my salary.

[Placey]

I myself find myself ina restructuring plan. I finished my education in 12/05, was making good money in the city and bought a new altima at the time.
about 10 months later, left the job in the city due to the amount it was costing me to commute ($30/day). Took a job outside of the city closer to home, making less money and slowly adjusting to it.
Now im 23, because of the type of business im in, i dont have a steady paycheck, yet at the end of the year its been consistant at about 60-70 range

I'm in the process of selling the altima and cutting my losses for a BMW.
This is the first step that will help me save money, as i pay 400 a month on the altima, and i will be paying half that for the new car but will be a lease.

With the new car I will feel more comfortable going to meets and getting more business for modding/repairs, to help bring in an additional income.

I am however forced to get another vehicle for practicality and winter months, which i might be getting an 89 325IX through barter which will help save some money.

My fiance is graduating next month and currently looking for a junior accounting position, so hopefully that will help my financial situation

[Ryan323i]

Originally Posted by TurboFan

My rule of thumb is not to buy a car that is more than 1/3 my salary, and I generally look to keep it to 1/4 my salary.

What about for someone with no kids and no student loans? I have heard the 1/3 of salary before and while that is an excellent figure to shoot for, I don't think I can wait that long to be back in a BMW I am sure some of you guys can relate. I realize that I will be paying more in interest by dragging the payments out but it will be worth it to me.

[itsxtian]

Originally Posted by Hawkeye

The only thing I don't understand is why you think you get any more money by cashing a check than when it is direct deposited... it is the same amount and it is much easier for most people to check the amount online. Plus I save a couple bucks a year more than you do by not wasting gas to go deposit my check in the bank

This is very true, it's the exact same amount. I think it's just the psychological thing. A lot of people with direct deposit may not even look into their account and trust that the money went in. If you physically have to deposit your check, you're more likely to catch overdrafts of fraudulent actions in time.

Originally Posted by DarkRyan323

What about for someone with no kids and no student loans? I have heard the 1/3 of salary before and while that is an excellent figure to shoot for, I don't think I can wait that long to be back in a BMW I am sure some of you guys can relate. I realize that I will be paying more in interest by dragging the payments out but it will be worth it to me.

It depends on your cost of living. I think you have to figure out how much you are spending on rent, gas, food, utilities and more a month. 1/3 is hard to say if 1/2 of your money is already going to rent.

[TurboFan]

Originally Posted by DarkRyan323

What about for someone with no kids and no student loans? I have heard the 1/3 of salary before and while that is an excellent figure to shoot for, I don't think I can wait that long to be back in a BMW I am sure some of you guys can relate. I realize that I will be paying more in interest by dragging the payments out but it will be worth it to me.

Go used for a CPO. Don't burden yourself with a car payment now, there are going to be excellent investment options coming in the next few months and years. The carnage from this downturn will provide outstanding investment/buying opportunities for those with cash on hand.

Originally Posted by itsxtian

This is very true, it's the exact same amount. I think it's just the psychological thing. A lot of people with direct deposit may not even look into their account and trust that the money went in. If you physically have to deposit your check, you're more likely to catch overdrafts of fraudulent actions in time.

www.balancemycheckbook.com

Use something like Quicken or whatever. Works as well, if not better. You also generally get your money a day earlier with DD.

[Ryan323i]

Originally Posted by TurboFan

Go used for a CPO. Don't burden yourself with a car payment now, there are going to be excellent investment options coming in the next few months and years. The carnage from this downturn will provide outstanding investment/buying opportunities for those with cash on hand.

Oh I wasn't planning on getting one now, although that would be awesome if I could afford it! I will be full time in a government accounting position at the end of May right after graduation and was planning to wait at least another year or two and then try to buy new if I can.

[DreDre]

Will graduate BS Chemical Engineering in 6 weeks
short term...
- I need to get a new car when I graduate and will probably buy an '08 Accord Coupe (upgrade from current 11 year old coupe hehe)
- I am spending waayy too much on my apt, but I was out of options. Ideally, I would like to pay ~500/month but will be paying 850 and thats just the rent
- Gotta pay off some minor student loans
- Travel the country before I start work. I will probably drop 2k on this but I need to have some fun during the last month-long break I will have in a while
Long term...
- I will definitely be maxing out my 401k and possibly get an IRA b/c I know the importance of that shit. Personal Finance class FTW
- Saving for a house. Hopefully I can get in and get a good deal w/ the housing market the way it is.


Everyone is different though. I would say just figure out what you can afford to satisfy your needs and then allocate extra money according to what you are really passionate about (short/long term goals)

[Hawkeye]

Originally Posted by DreDre

Will graduate BS Chemical Engineering in 6 weeks
short term...
- I need to get a new car when I graduate and will probably buy an '08 Accord Coupe (upgrade from current 11 year old coupe hehe)
- I am spending waayy too much on my apt, but I was out of options. Ideally, I would like to pay ~500/month but will be paying 850 and thats just the rent
- Gotta pay off some minor student loans
- Travel the country before I start work. I will probably drop 2k on this but I need to have some fun during the last month-long break I will have in a while
Long term...
- I will definitely be maxing out my 401k and possibly get an IRA b/c I know the importance of that shit. Personal Finance class FTW
- Saving for a house. Hopefully I can get in and get a good deal w/ the housing market the way it is.


Everyone is different though. I would say just figure out what you can afford to satisfy your needs and then allocate extra money according to what you are really passionate about (short/long term goals)

With the market look at buying a townhouse/condo. I am building a new townhouse (2 bed 1,500+ sq ft and pretty loaded) and I am paying about $700 a month after PMI (had to take 100% loan).

I am up in the air about cars. I am a car fanatic and I couldn't just not buy a nice car, it was a present to myself. I do think I am paying too much right now though. It would have been much easier to have just held out for a couple years than it is to give the car up now though.

edit: Or you could just have your sugar daddy help you out

[DreDre]

Originally Posted by Hawkeye

With the market look at buying a townhouse/condo. I am building a new townhouse (2 bed 1,500+ sq ft and pretty loaded) and I am paying about $700 a month after PMI (had to take 100% loan).

I am up in the air about cars. I am a car fanatic and I couldn't just not buy a nice car, it was a present to myself. I do think I am paying too much right now though. It would have been much easier to have just held out for a couple years than it is to give the car up now though.

edit: Or you could just have your sugar daddy help you out

I agree on the townhouse/condo topic. I should have put that in my short term goals because I could see that happening in the next year. Im not feeling confident that I know what part of town I want to be in and need more time to figure that out before buying. I heard too many stories about people buying right when they started their job and then finding out that they wanted to be on the other side of town. That would be a bad thing since I probaby would loose money on the sale. But yeah, I definitely agree and am anxious so stop throwing money away on an apartment. On the cars - its kind of hard for me to justify not getting a nice one too (for me, a new accord coupe is nice) b/c ive been dreaming about rewarding myself with a car when i graduate for a long time. Also, its something i could see being much more feasible and fun now than 10 years down the road. (and i am also a believer in having fun while you are young!)

p.s. lol on the sugar daddy comment. I cant deny that i love being driven around in that sweet car.

[itsxtian]

btw, Get Rich Slowly is a great blog for those interested in financial stuff!
http://www.getrichslowly.org/blog/

[karliejai]

Originally Posted by Comet

I say put 60% into your savings, and the rest into fun...
live in your budget range...

buying cars they cant afford is not bright...

60% SAVING?!?! thats nuts.