I drive a 2001 Saturn SL1, Got it for 2K cash was driven by an old lady. It’s got 4 doors, four wheels and a trunk. What else do you really need? If I can manage to keep it on the road for 4 years it will cost me $41 per month over those four years. My insurance on it is $304 per year. Thats $25 bucks a month, and because it gets right around 30 miles to the gallon and gas has dropped in price, I’m currently spending between 20 and 25 bucks a month on gas.
So at the very top end of driving it costs me $91 per month for a fine mode of transportation. I bring home over 2K per month, so that leaves a lot of extra money for other interests.
[quote]goochadamg wrote:
jehovasfitness wrote:
I forgot your 19.
If you saved $2k/yr till the age of 27 and stopped there, assuming a decent return on your investment you would have millions in retirement by retirement age.
The 8 initial years gives you 20,053.13, at 5% compound with an annual addition of 2k a year. Lets save that for 40 years @ 5% compound - that’s a net total of 141,173.81. Not even close to millions.
jehovasfitness wrote:
Compare that to someone at the age of 27, that saves $2k/yr till retirement, you would still end up with less money.
40 years of 2k/year, at 5% compound is $253,679.53
I’m confused … ? Did you mean 2k/year without any interest?[/quote]
5% is rather low don’t you think. I believe Dave Ramsey uses 12% return, which is pretty generous but doable
I don’t have a figure for 1969, but in 1970 the Dow as about 700. Let’s say that’s what it was in 1969. It is today about 8450. So that is a factor about 12 times in 40 years, or an average capital gains of 6.4%.
But that is not counting dividends paid.
However that is not enough to get you up to the 12% figure. Don’t know what it would get you to.
Of course if there are a lot of risky funds and you look for the ones that performed best, some will have figures such as 12% or better. But one should expect that such investment will, for every year that performs better than the index, will also have a roughly-counterbalancing time of performing worse. That’s how it is – that’s why it’s risk.
Or one might stumble into a Madoff who pays out that amount year after year…
[quote]Vegita wrote:
My insurance on it is $304 per year. Thats $25 bucks a month, and because it gets right around 30 miles to the gallon and gas has dropped in price, I’m currently spending between 20 and 25 bucks a month on gas.
So at the very top end of driving it costs me $91 per month for a fine mode of transportation. I bring home over 2K per month, so that leaves a lot of extra money for other interests.
V[/quote]
Damn. I pay $215 a MONTH on insurance. Damn young age. Which brings me to my hijack…
Why does women’s insurance costs drop when they turn 21 but men’s only drop when we’re 25?
With $14/hour (part time), I’m pretty sure you can afford much better than a 370z. How about a Dodge Viper? $10,000 down? How about a Porsche 997 GT3? Don’t be a pussy. How can you show your potential clients that you’re a successful PT if you drive a classless 370z?
[quote]Paste42 wrote:
Vegita wrote:
My insurance on it is $304 per year. Thats $25 bucks a month, and because it gets right around 30 miles to the gallon and gas has dropped in price, I’m currently spending between 20 and 25 bucks a month on gas.
So at the very top end of driving it costs me $91 per month for a fine mode of transportation. I bring home over 2K per month, so that leaves a lot of extra money for other interests.
V
Damn. I pay $215 a MONTH on insurance. Damn young age. Which brings me to my hijack…
Why does women’s insurance costs drop when they turn 21 but men’s only drop when we’re 25?
Sorry OP I had to. /hijack
[/quote]
Men’s won’t drop at 25 unless you’re married. Otherwise I believe it’s 28-29 yrs old.
[quote]jehovasfitness wrote:
Paste42 wrote:
Vegita wrote:
My insurance on it is $304 per year. Thats $25 bucks a month, and because it gets right around 30 miles to the gallon and gas has dropped in price, I’m currently spending between 20 and 25 bucks a month on gas.
So at the very top end of driving it costs me $91 per month for a fine mode of transportation. I bring home over 2K per month, so that leaves a lot of extra money for other interests.
V
Damn. I pay $215 a MONTH on insurance. Damn young age. Which brings me to my hijack…
Why does women’s insurance costs drop when they turn 21 but men’s only drop when we’re 25?
Sorry OP I had to. /hijack
Men’s won’t drop at 25 unless you’re married. Otherwise I believe it’s 28-29 yrs old.
[/quote]
If you saved $2k/yr till the age of 27 and stopped there, assuming a decent return on your investment you would have millions in retirement by retirement age.
Compare that to someone at the age of 27, that saves $2k/yr till retirement, you would still end up with less money.
Read that over and over again till it finally sicks in, and I just made you a millionaire.
One person saves only for 8 or so years and stops, the other saves for 40 yrs and never catches up.
I wish to GOD that someone had told me this when I was that age.[/quote]
People did…but we never LISTENED…we were not going to grow old…we had no responsibilities…we were the blind KINGS of our world.
We have to think here what is a 19 year olds priority list??
Getting chicks
Getting Chicks
A car helps get chicks
A car makes you look cool, so you can get chicks
People on the road will respect you and think you are the “Bomb”…with a new cool car.
Gym or Partying
Food
school
work
It looks like for a 19 year old, it could really work out!
Bottom line, I laugh at dweebs that are super young driving either dads car or something that straps them for all they have. How many 20somethings are out there who pay 500 bucks for their car and rent a shithole apartment? Having a car seems to take priority over a good home or woning a home.
How about the guy that buys a 1,200 dollar POS and puts 3k of rims and 5K of stereo equipment?
To young people, the car seems to be the sign that you have “Made it” in life…until they get a bit older…
To me, it’s a point a to point b deal.
I find it laughable that many people drive the cars they drive for 'Status" and respect from people they don’t even know, and will probably never see again.
That Z is a waste. Go to Carmax and get a 2 year old lease return if you need a status mobile.
[quote]heavysession wrote:
So im a 19 yr old college student and i have two jobs bout 25 hours per week soon to be as a personal trainer. I have always been into drifting and the import scene for a while now, so im thinking of buying a 370z its new 2009 and the base price is at 29,000 but if i pay a down payment of 10,000 to 14,000 would you consider this a good idea…or is this an unethical idea, im young so im not very financialy savvy. haha
but seroiusly any feed back would be good[/quote]
I’d worry about school and probably get a dictionary ASAP.