How do you afford the Mods?
#47
Originally Posted by frog
dont always work though, with the current economy u may not be getting that 8% u have a better chance currently throwing it in 3month cds yielding a mizley 4%. i shoulda through all my money in a cd when they were yielding 7.25-7.75%(dont remember) for 3months.
If you want to put your money in 120 consecutive 3-month CD's over 40 years go right ahead. I'm talking about a 40-year investment, not a 3-month investment. 8% is modest over that period. It's a self-perpetuating wealth.
All I am suggesting is don’t go in debt and you can have all the toys you want. Loans cost you money, saving pays you money. I guess it just too logical.
#48
#49
Only loan I have is on my car (still owe around 18k). After reading this thread makes me want to just work on paying it off. I have some money saved up that i was going to spend on mods, but like i said I just might put it towards my car. I have an excellent paying job and can afford just about anything a 20 yr old wants including my G. bump for this thread
-dumaG35
-dumaG35
#50
#51
Ill bet none of the people who say buy what you can afford to pay cash for now have a house in Southern CA-
I put a ton of money in my 401K- but when your house payment for a entry level home is $3500 a month (thats on a 30 year fixed) - after putting 20% down-
There is not alot of money left over to be able to pay off 40K cars in a year or two-
People say I could just move out of state- but SO CAL>>>>>>>>>everywhere else..LOL
Budget and keep to that budget- thats what I do-
I only pay cash for mods as well-
I put a ton of money in my 401K- but when your house payment for a entry level home is $3500 a month (thats on a 30 year fixed) - after putting 20% down-
There is not alot of money left over to be able to pay off 40K cars in a year or two-
People say I could just move out of state- but SO CAL>>>>>>>>>everywhere else..LOL
Budget and keep to that budget- thats what I do-
I only pay cash for mods as well-
#52
Originally Posted by GNN60GT500
Ill bet none of the people who say buy what you can afford to pay cash for now have a house in Southern CA-
I put a ton of money in my 401K- but when your house payment for a entry level home is $3500 a month (thats on a 30 year fixed) - after putting 20% down-
There is not alot of money left over to be able to pay off 40K cars in a year or two-
People say I could just move out of state- but SO CAL>>>>>>>>>everywhere else..LOL
Budget and keep to that budget- thats what I do-
I only pay cash for mods as well-
I put a ton of money in my 401K- but when your house payment for a entry level home is $3500 a month (thats on a 30 year fixed) - after putting 20% down-
There is not alot of money left over to be able to pay off 40K cars in a year or two-
People say I could just move out of state- but SO CAL>>>>>>>>>everywhere else..LOL
Budget and keep to that budget- thats what I do-
I only pay cash for mods as well-
#53
Originally Posted by EWG35
It's called, not buying a car that you cannot afford. I paid off my '07 G sedan in January. I've been told for a long time not to buy any car you cannot afford to pay cash for. Most people are slaves to their car loans. Pay off all of your debt and you'll be amazed at what you can afford.
The average car loan in America is $385 per month. If you never had a car loan, paying cash and invested that $385 every month in an average mutual fund earning 8% per year you'll have nearly $4,000,000.00 in 40 years, for just the amount of a small car payment! That seems crazy but it's true.
Oh, and I almost forgot I'm married with two sons and a 15 year mortgage, half paid off after 5.5 years. Saving, not spending is it the key to wealth. I'm thinking about buying I-forged wheels, just waiting to find the perfect wheel. Oh and of course I will only pay cash.
The average car loan in America is $385 per month. If you never had a car loan, paying cash and invested that $385 every month in an average mutual fund earning 8% per year you'll have nearly $4,000,000.00 in 40 years, for just the amount of a small car payment! That seems crazy but it's true.
Oh, and I almost forgot I'm married with two sons and a 15 year mortgage, half paid off after 5.5 years. Saving, not spending is it the key to wealth. I'm thinking about buying I-forged wheels, just waiting to find the perfect wheel. Oh and of course I will only pay cash.
Also for the people that pay cash for there cars, they get a better deal by paying it off in one lump sum as opposed to financing it for long periods of time.
Originally Posted by EWG35
I owned a house in San Diego before moving back to KC. I was on the 11th green of Carmel Mountain Ranch (Capewood Lane) and I have always paid cash. I currently own my car - no loan to anyone. I love SD but my family is in KS. The trade off nice weather or seeing your fam, I pick the latter. You are right houses have gone way up in So Cal. I bought for $225 in '95, sold for $750k. Not a bad investment. But try SF or NY, So Cal is like a walk on the beach. My sister live in NY, and my wifes best friend lives in SF. Suck to have to pay that much but that the price you pay to live there.
Last edited by kidistight; 03-05-2008 at 08:59 PM.
#54
Originally Posted by EWG35
It's called, not buying a car that you cannot afford. I paid off my '07 G sedan in January. I've been told for a long time not to buy any car you cannot afford to pay cash for. Most people are slaves to their car loans. Pay off all of your debt and you'll be amazed at what you can afford.
The average car loan in America is $385 per month. If you never had a car loan, paying cash and invested that $385 every month in an average mutual fund earning 8% per year you'll have nearly $4,000,000.00 in 40 years, for just the amount of a small car payment! That seems crazy but it's true.
Oh, and I almost forgot I'm married with two sons and a 15 year mortgage, half paid off after 5.5 years. Saving, not spending is it the key to wealth. I'm thinking about buying I-forged wheels, just waiting to find the perfect wheel. Oh and of course I will only pay cash.
The average car loan in America is $385 per month. If you never had a car loan, paying cash and invested that $385 every month in an average mutual fund earning 8% per year you'll have nearly $4,000,000.00 in 40 years, for just the amount of a small car payment! That seems crazy but it's true.
Oh, and I almost forgot I'm married with two sons and a 15 year mortgage, half paid off after 5.5 years. Saving, not spending is it the key to wealth. I'm thinking about buying I-forged wheels, just waiting to find the perfect wheel. Oh and of course I will only pay cash.
you guys burning on debt is not 100% realistic.. sometimes debt is extremely useful and MUST be used, it's why even the wealthy don't always buy homes cash. cars it's slightly different because the payments are much higher BUT if you expect a rise in your income in the coming months it makes perfect sense to lever yourself as much as you can.
The basic question is is YOUR discount rate higher than theirs? A car loan with 10% interest makes alot of sense if you anticipate your income growing by more than 10% a year: that means that the money you get from the loan TODAY is worth more to you than the money you're going to be paying back, since you're poorer when you receive the loan than when you pay it. of course, there's always the danger you fk up but...I dont fk up.
your car payments magic path to millions doesnt really work either. if you invested the amount of a car payment for the rest of your life true you'd be balling BUT where would you get teh cash to pay for the car in the first place? if you had that cash, you'd probably have opportunities to use that cash in ventures more profitable than purchasing a vehicle. BASICALLY the rule is this: if your car payments are 10% interest, then you should borrow the money if and only if you can make more than 10% with what the cash amount of the car would have been. throughout the entire time you keep in mind the volatility of your investment and you make sure to have a constant revenue stream that can handle the car payments without any risk of default. I ADMIT, for 99% of people this is not the case but I just think it is a bit disingenuous to leave the details out.
that said.. i cant afford mods because I spend hundreds of dollars a week on f'ing FOOD. seriously food kills me, everytime i'm running under budget a big dinner comes up and there goes $200. wow and dont even talk about club bills...$500 here $1500 there, all for a single night of drinking. if I stay away from clubs for a month i'd definitely get my car hooked up with at least intake-exhaust, if not more. what's a guy to do
EDIT:
Originally Posted by naughty240
Im in the payed for mods with credit card boat. Tryin to turn that state of mind around now. Cut up your credit card and save for the mods thats what im gonna start doing. Got my G for 18k and allowed my self to spend a couple grand.
Last edited by rocaveli; 04-01-2008 at 03:09 PM.
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