One thing you're supposed to learn at college (sooner if you're lucky) is to never buy a car on credit. So if you got the cash and you wanna buy yourself a 40k dollar car for some reason then go for it!
No. Paying 40k for a car if you don't earn so much that it doesn't put a dent in your bank account, is just crazy. We've had a 5k$ car for the passed 6 years or so, and it's stilly pretty much in perfect condition, and it's pretty badass (a 325i 1990 BMW). A 40k car today will be worth much less in 4 years or so, and it will become outdated and "meh" much sooner than that. Infiniti cars and 350 Zs were more popular than coffee around here a few years back..now it's like you own a Pentium 4 PC.
If you really wanted that car, you'd have to form your budget so that, while being able to stay alive, you'd be able to save enough money. I don't think buying an expensive car should be one's first priority coming out of college, but that's just me. I'd be more concerned with finding an apartment that fulfills the bare necessities and setting up my budget so I can save as much money as I can and still live comfortably.
The key to getting anywhere with your money is forming a budget.
Rollback Post to RevisionRollBack
I hate the way you cling to ignorance and pass it off as innocence
Considering you even have the money to buy the car, you need to set further money aside for when that car has any sort of problem cause that can easily stack up. If I ever bought that car (which I never will because it doesn't do anything for me), I would probably only take it out of the garage once a month.
I never got the hype behind cars. Like...
Whatever makes you happy though. I just hope that, once you actually sit in that car, you figure out its inner workings and really get to know it because if you want to get it fixed, it would probably benefit you to have some knowledge.
Rollback Post to RevisionRollBack
I hate the way you cling to ignorance and pass it off as innocence
Ask a question like that and you'll get a different answer from everyone. You need to understand the rules of money and most important cash flow, what is known as fiduciary responsibility.
Assets feed you and liabilities eat you.
Poor people buy liabilities they want (occasionally on sale) with their money and live paycheck to paycheck
Middle class people buy liabilities they want (occasionally on sale) with their money and on credit, they too live paycheck to paycheck
The rich or aspiring to be, buy assets that are always on sale which return passive cash flow to them in the form dividends, rent, etc. or things that will appreciate in value and can be sold for a profit later. They do this until their passive income exceeds their paycheck plus all of their expenses by at least 1.5 times. They then quit their job and focus solely on passive income and when it's feasible they let their assets pay for the liabilities they want
The easiest time of your life to break free of a job and do item 3 is at your current age when you are young and single. There is no right or wrong answer, it's just a matter of deciding what you want and how far ahead you want to plan. Do you want a $40/K liability you have to pay on month after month or do you want buy an asset that will generate $40/K a year in passive income regardless if you work or not?
BTW I wish I had known what I am telling you in my 20's, if you do it right you can easily have a much, much nicer Italian sports car before you are 30.
Ask a question like that and you'll get a different answer from everyone. You need to understand the rules of money and most important cash flow, what is known as fiduciary responsibility.
Assets feed you and liabilities eat you.
Poor people buy liabilities they want (occasionally on sale) with their money and live paycheck to paycheck
Middle class people buy liabilities they want (occasionally on sale) with their money and on credit, they too live paycheck to paycheck
The rich or aspiring to be, buy assets that are always on sale which return passive cash flow to them in the form dividends, rent, etc. or things that will appreciate in value and can be sold for a profit later. They do this until their passive income exceeds their paycheck plus all of their expenses by at least 1.5 times. They then quit their job and focus solely on passive income and when it's feasible they let their assets pay for the liabilities they want
The easiest time of your life to break free of a job and do item 3 is at your current age when you are young and single. There is no right or wrong answer, it's just a matter of deciding what you want and how far ahead you want to plan. Do you want a $40/K liability you have to pay on month after month or do you want buy an asset that will generate $40/K a year in passive income regardless if you work or not?
BTW I wish I had known what I am telling you in my 20's, if you do it right you can easily have a much, much nicer Italian sports car before you are 30.
This is certainly an interesting post. I guess my question to you is which assets are you referring to? I mean not everyone wants to buy real estate and manage it. I'm an iOS developer, and I'd much rather work on contracts or my own apps for the rest of my foreseeable future rather than use that money to buy land and then have to spend all my time upkeeping and doing business deals. Granted I'll have decent money to save either way.
Well all buy things at some point we can't really afford. I just think if I was making 60k a year and move beyond the obsession of fancy sports cars and get into other things with my money. I have a sports car now which is fairly sensible as far as sports cars go, yet hardly sensible in how much I'll have paid for it by the time I've completed my payments.
Sometimes though we don't care about the economic argument. Sometimes you just want a thing that makes you happy. That's all consumerism is. And we have vast powers of rationalization to buy things we can't really afford, yet make us happy.
This summer I took a loan out from my 401k to build a brand new computer. You wouldn't believe the things I said to justify this action. But there's actually not that much dissonance in my head over it today. I love my freaking awesome computer and it was worth the money I took from my retirement fund. Of course, my retirement plan mostly involves moving to Turkey so it's not like I'm totally flying by the seat of my pants here.
I can be quite the enabler when someone asks if they should buy something or not. But usually with computers. "Of course you should buy those two SATA 3 flash drives and RAID your computer! It's an investment man! Future proof that mofo!"
Cars though...they can be so expensive and lose their value so very fast. But as long as you're not seeing it as an investment and instead as a splurge then sure man go for it.
My VW GTI was 26k dollars. It's an awesome car and I love it and I will drive it to the ground until it works no longer.
This is certainly an interesting post. I guess my question to you is which assets are you referring to? I mean not everyone wants to buy real estate and manage it. I'm an iOS developer, and I'd much rather work on contracts or my own apps for the rest of my foreseeable future rather than use that money to buy land and then have to spend all my time upkeeping and doing business deals. Granted I'll have decent money to save either way.
The specifics is where one can get into trouble and disagreement since before one invest they should really understand what they are investing in. If you listen to the news or those ignorant shams called financial planners then they will tell you that old worn out lie; diversify, diversify, diversify.
Warren Buffet I think said it best "Wide diversification is only required when investors do not understand what they are doing.” Obviously everyone when they first invest have no idea what they are doing.
I am not a legendary investor, I don't day trade, and I really don't like risk. I was in a .com (I work in IT) in from 1997 to 2001 and had $3.2 million in preferred stock I knew nothing about investing then. Long story short I learned preferred stock wasn't always preferred since no one could sell their stock until June 28th 2001, and we had to report it to the SEC because it was considered insider trading. All the .com's were going down in flames and I was stuck watching my 134,000 shares drop from $24 a share to .30 cents before I could sell a single share. All my options were worthless. In the end I made a whopping $28,568.32 (my day of infamy), that pretty much made up for the pay cut I took for stock.
I was angry at myself for being so ignorant about investing so I set out to educate myself on investing and read a lot of materials, of those that helped the most in the beginning was Robert Kiyosaki and Warren Buffet's books. Kiyosaki in particular in his writings gives you a foundation to use your own head to educate yourself, as he calls it increasing your financial IQ.
The major trends are easy to see coming a mile away in slow motion, take the financial crisis, Kiyosaki for example wrote a book in 2002 and Richard Duncan wrote on 2005 on the looming housing bubble destined to bust. You will hear a lot of people say something like "well yeah if you cry doom and gloom long enough you are bound to be right eventually". These people don't know how to read trends or understand economic history. They also don't understand that when a bubble pop's it takes 20 years for the industry to bounce back in field that popped. Real estate won't come back for 20 at least years, real estate for rentals are good now, but you again really have to know what you are doing.
In short my personal approach in this economy is play it safe, I'm staying out of the stock market (the only real investors left playing are institutions now, you will lose against them), that also means I'm not keeping my money in a 401K's or Mutual Funds since most of those are chasing stocks on Wall Street. I prefer to stick my money into the basics. During the depression people still bought soap, food, toiletries, cosmetics, etc. So I buy undervalued commodities, and precious metals, after the last shoe drops in this financial mess we are in I will likely invest in companies that make the basics and emerging economies.
I invest in these thing only because I understand what I am investing in and what phase of the cycle they are in, I know what drives them and when the tide is turning against them long before they peak out and I get out long before they peak out. I apologize if I didn't give the specifics you might have wanted to see here, but hopefully I conveyed the most important point to educate yourself first and foremost and then you'll know where to put your money with confidence. Look into Robert Kiyosaki's books, he's a great place to start.
In addition to investing I'm also investing in equipment to educate myself on that I will use in an imaging company I will start in the next 2 years after my agreement with the company I currently work at ends, unless they throw me a nice bone to keep me on, then I may put the company on hold, we'll see. If starting a company isn't your bag, then get into a small growing start up (as long as you can see easily how it makes money, hopefully it is when you join) and make sure you get stock along with a good paycheck, it may pay off huge for you. Despite my .com experience, I was able to find another start up a few years later I was able to get shares in, I'm there now. The company just sold, I have to say at a time when so many people have so much they can legitimately complain about, I can't.
I make about 75k a year and I wouldn't be able to afford what it costs here.
wtf? you just contradicted yourself? or did i just miss the joke?
i think it might be a mistake on his part or something or a typo w/e..
What you guys talking about? He is perfectly clear, where he lives(out of US, prob) a nissanZ goes for a lot more than 40k, so much more that even earning 75k a year, he can't afford it.
Its the same for me, here in Brazil a 370Z goes for about R$350k, which is about $190k US, its ridiculous.
Get real, folks, the diablo you all knew is dead, a few years ago i said right here in this forum that D3 had a pretty good chance of being blizzard first bust (i was flamed to death ofc), and what you know, its not even beta and its already looking that way.
What you guys talking about? He is perfectly clear, where he lives(out of US, prob) a nissanZ goes for a lot more than 40k, so much more that even earning 75k a year, he can't afford it.
Its the same for me, here in Brazil a 370Z goes for about R$350k, which is about $190k US, its ridiculous.
That's insane, I wouldn't pay that much for a Z even if I were Bill Gates.
My parents are insurance agents and they always see kids just out of college(under 5 years) go and buy a new or expensive car(over 15k). The kid usually goes broke soon after. Because there are other costs the kid doesn't see, and not just in the car. So I would say no, don't buy that car.
http://www.youtube.com/watch?v=0_g6RAixOdM&feature=related
oh yeah its 40k.. with tax.. 41 42k..
Siaynoq's Playthroughs
i think it might be a mistake on his part or something or a typo w/e..
The key to getting anywhere with your money is forming a budget.
I hate the way you cling to ignorance and pass it off as innocence
so what?
Considering you even have the money to buy the car, you need to set further money aside for when that car has any sort of problem cause that can easily stack up. If I ever bought that car (which I never will because it doesn't do anything for me), I would probably only take it out of the garage once a month.
I never got the hype behind cars. Like...
Whatever makes you happy though. I just hope that, once you actually sit in that car, you figure out its inner workings and really get to know it because if you want to get it fixed, it would probably benefit you to have some knowledge.
I hate the way you cling to ignorance and pass it off as innocence
Assets feed you and liabilities eat you.
The easiest time of your life to break free of a job and do item 3 is at your current age when you are young and single. There is no right or wrong answer, it's just a matter of deciding what you want and how far ahead you want to plan. Do you want a $40/K liability you have to pay on month after month or do you want buy an asset that will generate $40/K a year in passive income regardless if you work or not?
BTW I wish I had known what I am telling you in my 20's, if you do it right you can easily have a much, much nicer Italian sports car before you are 30.
This is certainly an interesting post. I guess my question to you is which assets are you referring to? I mean not everyone wants to buy real estate and manage it. I'm an iOS developer, and I'd much rather work on contracts or my own apps for the rest of my foreseeable future rather than use that money to buy land and then have to spend all my time upkeeping and doing business deals. Granted I'll have decent money to save either way.
D3 Channel: OnetwoD3
Sometimes though we don't care about the economic argument. Sometimes you just want a thing that makes you happy. That's all consumerism is. And we have vast powers of rationalization to buy things we can't really afford, yet make us happy.
This summer I took a loan out from my 401k to build a brand new computer. You wouldn't believe the things I said to justify this action. But there's actually not that much dissonance in my head over it today. I love my freaking awesome computer and it was worth the money I took from my retirement fund. Of course, my retirement plan mostly involves moving to Turkey so it's not like I'm totally flying by the seat of my pants here.
I can be quite the enabler when someone asks if they should buy something or not. But usually with computers. "Of course you should buy those two SATA 3 flash drives and RAID your computer! It's an investment man! Future proof that mofo!"
Cars though...they can be so expensive and lose their value so very fast. But as long as you're not seeing it as an investment and instead as a splurge then sure man go for it.
My VW GTI was 26k dollars. It's an awesome car and I love it and I will drive it to the ground until it works no longer.
Siaynoq's Playthroughs
Exaggerate much.
The specifics is where one can get into trouble and disagreement since before one invest they should really understand what they are investing in. If you listen to the news or those ignorant shams called financial planners then they will tell you that old worn out lie; diversify, diversify, diversify.
Warren Buffet I think said it best "Wide diversification is only required when investors do not understand what they are doing.” Obviously everyone when they first invest have no idea what they are doing.
I am not a legendary investor, I don't day trade, and I really don't like risk. I was in a .com (I work in IT) in from 1997 to 2001 and had $3.2 million in preferred stock I knew nothing about investing then. Long story short I learned preferred stock wasn't always preferred since no one could sell their stock until June 28th 2001, and we had to report it to the SEC because it was considered insider trading. All the .com's were going down in flames and I was stuck watching my 134,000 shares drop from $24 a share to .30 cents before I could sell a single share. All my options were worthless. In the end I made a whopping $28,568.32 (my day of infamy), that pretty much made up for the pay cut I took for stock.
I was angry at myself for being so ignorant about investing so I set out to educate myself on investing and read a lot of materials, of those that helped the most in the beginning was Robert Kiyosaki and Warren Buffet's books. Kiyosaki in particular in his writings gives you a foundation to use your own head to educate yourself, as he calls it increasing your financial IQ.
The major trends are easy to see coming a mile away in slow motion, take the financial crisis, Kiyosaki for example wrote a book in 2002 and Richard Duncan wrote on 2005 on the looming housing bubble destined to bust. You will hear a lot of people say something like "well yeah if you cry doom and gloom long enough you are bound to be right eventually". These people don't know how to read trends or understand economic history. They also don't understand that when a bubble pop's it takes 20 years for the industry to bounce back in field that popped. Real estate won't come back for 20 at least years, real estate for rentals are good now, but you again really have to know what you are doing.
In short my personal approach in this economy is play it safe, I'm staying out of the stock market (the only real investors left playing are institutions now, you will lose against them), that also means I'm not keeping my money in a 401K's or Mutual Funds since most of those are chasing stocks on Wall Street. I prefer to stick my money into the basics. During the depression people still bought soap, food, toiletries, cosmetics, etc. So I buy undervalued commodities, and precious metals, after the last shoe drops in this financial mess we are in I will likely invest in companies that make the basics and emerging economies.
I invest in these thing only because I understand what I am investing in and what phase of the cycle they are in, I know what drives them and when the tide is turning against them long before they peak out and I get out long before they peak out. I apologize if I didn't give the specifics you might have wanted to see here, but hopefully I conveyed the most important point to educate yourself first and foremost and then you'll know where to put your money with confidence. Look into Robert Kiyosaki's books, he's a great place to start.
In addition to investing I'm also investing in equipment to educate myself on that I will use in an imaging company I will start in the next 2 years after my agreement with the company I currently work at ends, unless they throw me a nice bone to keep me on, then I may put the company on hold, we'll see. If starting a company isn't your bag, then get into a small growing start up (as long as you can see easily how it makes money, hopefully it is when you join) and make sure you get stock along with a good paycheck, it may pay off huge for you. Despite my .com experience, I was able to find another start up a few years later I was able to get shares in, I'm there now. The company just sold, I have to say at a time when so many people have so much they can legitimately complain about, I can't.
D3 Channel: OnetwoD3
lol
What you guys talking about? He is perfectly clear, where he lives(out of US, prob) a nissanZ goes for a lot more than 40k, so much more that even earning 75k a year, he can't afford it.
Its the same for me, here in Brazil a 370Z goes for about R$350k, which is about $190k US, its ridiculous.
That's insane, I wouldn't pay that much for a Z even if I were Bill Gates.
I need to glow in front of my friends! awwww