So I need some help planning the rest of my life, tell me if there is an...

PackManBrainlure
PackManBrainlure

So I need some help planning the rest of my life, tell me if there is an obvious fault in the planning I'm currently doing cause right now I'm doing a lot of googling but not understanding.

So when I graduate, I will be single man living modestly in a one bedroom one bath apartment for 900-1000 dollars a month in Austin, Texas. I will be going into a tech job there so the net salary should be about 3.5k a month after contributing to a Roth Ira and 2% into a 401k (or whatever the company will match up to.)

Groceries, bills, gas, insurance and misc services (running off averages) should shave off almost 1000-1.2k.

So this leaves me with 1300-1.5k dollars I would not be using on essentials a month.

Now I have two intermediate goals.

The most important to me is to set up a safety net of sorts to use in emergencies (maybe 40k or so is when I stop contributing to it)

My next goal is to buy a nice Mercedes Benz worth 65k because I really want one. I don't want to finance it because I don't like to have debt, it makes me uncomfortable.

With an excess amount of money of 1300 (maybe 1000 if I want lots of disposable income) and a small chunk of cash (like 5 grand) saved already how would I be able to achieve these goals within a reasonable amount of time.

If any of my math is flawed please point it out.

And so here is my question, after this much research: How do I allocate my "investing budget" (if you will) of 1000 a month into my goals? Are they unrealistic to achieve in less than 10 years?

BinaryMan
BinaryMan

@PackManBrainlure
No, 10 years is a very very long time, people make and lose hundreds of thousands in 10 years.

No one saves for a car for 10 years lmao, you'd be dumb to do it.

AwesomeTucker
AwesomeTucker

What should i be looking at putting the money in?

Fried_Sushi
Fried_Sushi

@BinaryMan
less than 10 years

obviously not near 10 years just for the car but i want to buy it with cash (I do not like debt) somewhere around the 5 mark for the car and 2-3 mark for the cushion savings with the savings allocated first.

Now the issue is that is the extent of my planning, what should I put my money in to get the maximum returns i need within a shortish timeframe like that before moving it somewhere less volatile?

Methshot
Methshot

So I've looked at peer to peer lending, and it looks very attractive to me. I like the low interaction-high reward aspect of it which seems perfect for myself.

Evil_kitten
Evil_kitten

goddammit op

iluvmen
iluvmen

@PackManBrainlure
I respect the fact that people have differential goals however
I'm a broke college fag that wants a 65K Benzo because it's pretty

Man, fuck you if you're asking for investment advice. I bought a fuckin brand new Subaru Outback for my wife a year ago for 23K and I bought my own LBZ Duramax Diesel truck for work for 21K with 70K miles on it (will go well over 500k miles)

Wasting money on dumb car shit like that which has no real value other than flash is a surefire way to get yourself raped, also, I'm betting you're not a fuckin grease monkey, so, you won't be working on your own shit. Guess what the service rates are like at import shops VS domestic shops.

If you want to figure out how to manage your money, start by thinking about how to fucking not waste 10s of thousands of dollars on nigger rich bull shit like luxury cars.

t. a guy with 50 grand cash, 250K in the market that I manage myself, and a 300K house that is fucked off way up a river way the hell out of town because i hate god damn people.

lostmypassword
lostmypassword

@Evil_kitten
im an ignorant, literally no one has taught me anything about growing my money aside from the "live frugally and save for retirement and ull be a millionaire by 40 :^^^^^)"

what they didnt teach me is how to invest my money wisely, always saying "investing is for ur retirement :^))))" and as a result my money has been sitting in a savings account I had since I was a kid and I want to move it to where i can actually grow it tangibly.

unless p2p lending is a bad meme that I don't know about.

TreeEater
TreeEater

@PackManBrainlure
OP why would you put so much of your life into owning a car? As a percentage of your resources that single item will be what 30%?

How much value will owning it add to your life?

Carnalpleasure
Carnalpleasure

@lostmypassword

dont p2p anything - it's a fugazi, you know what a fugazi is?
graduate and get an offer in writing with a salary and sign it
did you pay your student loans off?
don't invest 2% of your income into your 401k at 21. live like a broke faggot and save your money (make sure your fund choices aren't shit - study this). ignore these daytrader threads on Veeky Forums pitching stocks
learn about actual investing before you graduate
dont invest in anything you dont understand
don't buy a $65k mercedes you nigger - especially when you're making sub 100k a year - you'll look like a tool

SniperWish
SniperWish

@PackManBrainlure
OP I want you to do something. Write all these goals down on a piece of paper. Everything from potential salary to expenses etc. Once you feel like you've covered everything on that paper I'd say add an extra 1k to the expenses (yearly) and deduct 1k from salary(also yearly). Then go to your nearest convenience store and find the biggest bottle of Jerfen's lotion you can find. (Please don't be a Jew and buy the small bottle). Then take that paper you wrote everything on and drench it in Jergen's sweet silky sludge. Then shove that paper really far up your ass (the further the better) and prepare your anus for the pounding life is going to give you because in a few years when you shit out that paper and unwrap it. You're going to see all your dumbass planning didnt mean shit because you're working with hypothetical situationals and you dont know how hard youre going to get boned when life smacks you in the face with its almighty shlong.

Also Benzos are shit cars you're a tool for wanting one.

WebTool
WebTool

@iluvmen
Similar to how you have a house in the hills, I dont really need or want one in the near future (I don't plan on having a family), but I do want a nice car.

I could say that you wasted 300k on a house (I'm not) because that's what you wanted, right?

I want an upgrade from my base camry and I'm setting a fucking goal for it, I'm not going to pay any loans for it. That's what I want.

After I acheive these goals I will Mr Krabs my extra income in something secure for when I actually do want to move out of whatever apartment i am in.

I can perform basic maintenance on my car, it's not that hard.

These calculations are not hurr im in 200k of debnts in san fran but i want a lambo how do i money, they are for when I do get a stable tech job in a relatively low cost of living area.
-----

By the way, my parents paid off my college so I won't have student loans to worry about, if that is a factor.

RumChicken
RumChicken

op we're saying this harsh shit from experience - you're better than that

ZeroReborn
ZeroReborn

@PackManBrainlure

My next goal is to buy a nice Mercedes Benz worth 65k because I really want one. I don't want to finance it because I don't like to have debt, it makes me uncomfortable.

Are you fucking stupid bro.

You come for investment advice and you want to toss down $65k in hard cash on a fleeting asset that rots and decays every year and loses 12% of its value by the simple act of changing ownership to your name?

Get the fuck out of here and sort your shit out. Once you do, come back and ask a serious question.

GoogleCat
GoogleCat

@Carnalpleasure
no, fugazy, it's a fake
that's the plan
parents graciously paid for them
alright, I ignore these people anyways
like take a class? Where else can I learn?
good advice
I like cars that go fast and are nice, I'll get a m3 instead :^)

Thanks for not memeing.

@SniperWish
Ill get an M3 instead then.

StrangeWizard
StrangeWizard

@WebTool
Yeah, but, this 2800 square foot house with a huge fuckin wood stove in it keeps me and my family protected and it has appreciated in value in the location it's in.............a car is just something niggers measure their dicks with that lose value over time.

whereismyname
whereismyname

@GoogleCat

Here's a tip from someone who was disillusioned by sporty cars: unless you're getting some hand-made, carbon-fiber bodied track vehicle, all cars are shit.

They're basically all the same: a pressed sheet metal unibody chassis with some shit mass-produced motor whose design is over 20 years old, with the same shit axles, the same rotting exhaust and brakes and suspension.

Any sub-$200k car is just a tool: find one that is easy to repair (preferably learn to DIY most of the service stuff) and put the money where it counts.

Illusionz
Illusionz

Ok, so maybe spending exactly a years worth of average income on a rapidly depreciating asset IS a bad thing.

what should I save for? Retirement? When can I do that?

Supergrass
Supergrass

@Methshot
P2P lending looks good, but you have the possibility of losing everything, as most loans are unsecured.
So far it has a decent track record and there is a pretty low rate of defaults however it hasn't been around for very long at all and no one knows how it will perform in a economic downturn.
If GFC 2.0 hits and you have a bunch of money in loans there is a good chance it won't get paid back, and unlike the banks the government won't be bailing you out.

Raving_Cute
Raving_Cute

@Illusionz

your employer and the US Government provide you with options and incentives every year to contribute funds towards your retirement which receive a beneficial tax treatment

Nude_Bikergirl
Nude_Bikergirl

Have you done the math of what this car payment will do?

You are going to be car poor to the max with financing.

Buying it with cash is actually a great goal. Not because it will keep you from financing, but because it will give you time to mature, and by then I can promise you that your priorities will have changed dramatically by then.

See if you still want it by the time you have 65k saved up.

MPmaster
MPmaster

@Illusionz

Tax-free investments. When you're older and still wanting to get the most out of life, you're gonna thank Christ you put that 65k into some appreciating asset like a mix of growth stocks and bonds which are now worth $300k and paying you a monthly tax-free dividend and interest which you can practically live off of.

In fact you're lucky boy. What I wouldn't do to go back 10 years and slap my retarded younger self across the face. You have a tremendous opportunity.

King_Martha
King_Martha

@Raving_Cute
so assuming everything goes my way (yes @SniperWish
, I know it's not likely to go EXACTLY as I'm planning) do I just squirrel away the extra 1000 or so in some stable fund? What should I look at for safer investments for the long term with the ability to pull from it in the event I want to make a purchase like a house?

takes2long
takes2long

@Nude_Bikergirl
Yeah I wanted to finance it over 4 years but then I realized that means I'd be the Benz's bitch for 4 years, and what if I lost my job? I'd lose it, so thats why I wanted to pay in cash.

w8t4u
w8t4u

@King_Martha
make a purchase like a house?

That's when you take the $65k you would have spent on a Mercedes and put it towards a down payment on a house.

Don't worry about where to put your money right now - when the time comes and once you see all of your options laid out in front of you it'll make a lot more sense

Carnalpleasure
Carnalpleasure

@w8t4u
Alright, where can I educate myself to see which investment type is right for me? Ive been reading about the different types but the descriptions my as well be in Latin.

Emberburn
Emberburn

@w8t4u
I dunno, I'm sitting here with $55K in savings with everything laid out in front of me and none it seems like a good option.

Then again, where I am $55K isn't even a down payment on a house.

Evilember
Evilember

I don't want to finance it because I don't like to have debt, it makes me uncomfortable.

And here's where everything you said turned to shit.

Why do people will liquid millions still finance their cars and homes?

Once you know the answer to this then you can continue.

LuckyDusty
LuckyDusty

@Evilember
Time value of money

I know this. I do not want to let other people have financial power over me.

CouchChiller
CouchChiller

@MPmaster
Sound advice.

If you have the opportunity to, max your Roth IRA out every year, if you don't you're really fucking yourself.

The only time I'd advise against this is if you're sure you're going to die sub 60

ZeroReborn
ZeroReborn

@CouchChiller
Yeah I subtracted 480 bucks a month from my paycheck in the first place to max the roth ira by the end of each year.

Ill live forever, I am a god.

Garbage Can Lid
Garbage Can Lid

Yeah Mercedes are really hot. I'm 18 and almost have one because after college I was given some cash to "get myself a nice car". Going to get pic related.

anyways, your best bet is going to be leasing a car. as long as you have a steady income there really shouldnt be any problem. Saving for a 65k car when you cant afford it is silly.

Lord_Tryzalot
Lord_Tryzalot

@PackManBrainlure
Am I being rused?

MPmaster
MPmaster

@Garbage Can Lid
Saving for a 65k car when you cant afford it is silly.
This doesn't make any sense, can you elaborate what your meaning is?

farquit
farquit

@MPmaster
It makes perfect sense. If OP has 1.3k-1.5k on essentials he's not using a month, he's instead going to be putting it in a savings account so that in 3+ years he can afford the car.

Or he could put a small down and get the car now while still having extra money on the side leftover.

(usually people lease expensive cars esp mercedes if you dont know)

likme
likme

@farquit
Buying a car for $65K at all is silly when you earn less than that a year, paying it in cash doesn't make it any sillier.
I know people usually finance expensive cars, even when they make a lot of money, but that's usually because it's easier as they probably don't have 60K+ sitting around in cash, but is probably tied up in other assets, not because financing is a better deal.

As suggested by an above poster her should just save up for it over a few years because by then he will have grown up enough to realise that's a really bad idea to waste more than 100% of his annual income on a car.

kizzmybutt
kizzmybutt

@farquit
Imo leasing is for people who flaunt their ones at least if I would have ownership of mine if I got one

Emberburn
Emberburn

@likme
Buying a car for $65K at all is silly when you earn less than that a year, paying it in cash doesn't make it any sillier.
It's not the fact you're paying it in cash. It's the fact you're paying for it in parts, because like you said, most do not have 65k in the bank at once.

I know people usually finance expensive cars
Financing a car is fucking retarded. If you don't have the money in the bank, but instead it's tied in "assets", the last thing you should be fucking buying is a new Mercedes.

@kizzmybutt
Whatever you want. Have fun saving 3 years for your car.

Firespawn
Firespawn

the hell is wrong with all of you? whats the point of a new car, when you can get the same car mostly, used for a year or 2 and the price will be 20k less, it will look the same, and most likely perform the same while costing FUCKIN 20K LESS

BlogWobbles
BlogWobbles

@Firespawn
Pretty much this, OP if you're set on a Benz, start saving now, and in a few years the same model you're looking at now will be down >30% in price with an extra few thousand miles.

BinaryMan
BinaryMan

@BlogWobbles
Yeah I'm already thinking new is a bad idea I'll just get a lightly used one that's already deprecated.

Soft_member
Soft_member

@King_Martha
Alright since you took it like a champ I wont be a dick.
Both my friends are dumbnuts who "bought" really expensive cars. They put a down payment and both of them are coughing up near to 800$ a month for their cars. Insurance included. The cars are a G37x and IS 250. Both nice cars but now since both of them are trying to get married (and dont rule this option out because you will never damn know for sure if youll be single) they are struggling mad balls to make enough money to pay for a wedding and their cars and expenses. So I say unless you got all that money or a badass monthly payment, dont do it. Also, if youre a car enthusiast then you must know that the minute you drive a new car off the lot, it begins losing value. Everyone knows that.

And second of all. Save money. Dont save it for something to buy just damn well save it. You never know what might happen that you'll need an emergency fund for.

whereismyname
whereismyname

@Soft_member
Yeah I wanted an enthusiast luxury car because I wanted a "last car I'll want for a while" so I can have a nice ass car for 15-20 something years until it breaks down into scrap and by then I'll have matured and gotten more sensible tastes.

I know it's a shitty investment which is why I wanted to cough up straight cash for it so I'm not tied down by people jewing me for more money.

But my 6 year old camry still has at least 10 more years on its effective life so by then I'll have enough money for whatever I want when I actually do need a new car.

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