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College Grad - Need Finance Advice

brainhippie

New Contributor
Jul 9, 2018
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I'm a recent college grad with no debt; recently landed a 80k a year job that's going to give me tons of experience. I'm currently paying $1,150 for an apartment, and I've recently bought a used Nissan 370z since it's a car that I've wanted to get. This monthly cost comes down to $375 a month to finance and $125 for the insurance. Probably the biggest investment I have made so far; I've been told good and the bad, that showing banks that you can pay off a loan can build trust and decrease future interest costs.

Any ideas on my decision?
 
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mike24601

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Good job on graduating debt free! My philosophy when it comes to education is to try to get it free or nearly free. I wouldn't call your car purchase an investment, because in the end it's a depreciating asset and will only lose money from here on out. But if it makes you happy, it's certainly not overextending your income, just don't let your salary lead you astray like it does to so many people. Over the coming years, if you keep up an on time payment history, this loan will help out a lot in building your credit. Later on, you might need that credit to help you secure money for other business ventures.
 

The Abundant Man

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Jul 3, 2018
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80k/12=6,666.66/month

1,150+$375+125=1650

You have 5016.66 left

You also have to take in gas($120/month for me) +ultilites(unless included in rent + food(200 or more) etc.

Also, a car is not an investment. You have to pay for gas and any maintenance + taxes. Asset my but. Also value depreciates over time.

Rich Dad Poor Dad explains why homes and cars are not assets. Remember assets(gives money)/liabilties(takes money)

Stick with the basics then invest/save the rest.

But yeah go enjoy your vehicle.

Yes if you do pay off loans, it shows banks that you are responsible enough for other things like paying a mortgage for a home.
 

ZCP

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A car is not an investment. Try to use the money to create something that will pay for the car. Then you get it for free while still owning the underlying asset.
 
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InspireHD

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Don't fall into the trap of building your lifestyle around your income. You don't need to eat out at fancy steak restaurants every weekend or try to impress people because you have money. You don't need to buy a house that will suck up all of your time and energy. You don't need to throw your money around because it's burning a hole in your pocket. Just be careful about thinking you can afford "something". Before you know it, your expenses will be equal to your income and you'll feel stuck.

If you're here, you're probably interested in starting a business? Great. Keep renting for as long as you need to. Save, save, save and use those savings toward fastlane businesses. Make a mistake? Oh well. Save some more and try again.

Don't rush into buying a house because it's part of the checklist of life. Don't let anyone tell you you're stupid for not buying a house.

It doesn't seem like the car you bought will be a problem. Understand that it's not an investment and you'll be fine. Listen to what others have said. Paying off the loan on time will help your credit score. The credit score is usually what determines whether you're a high risk or not so with a great credit score, they can offer lower interest rates.
 

MTEE1985

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Max out your 401k, invest in some low cost ETF’s, and stick the Starbucks...sorry couldn’t help myself.

Add me to the list of confused. At first glance you sound like you’re looking for justification for buying the car? What are your long term plans and goals in life? Give a more complete picture and you’ll get more complete responses.
 
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socaldude

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I personally never got a high-paying job out of college.

If I were in your position I would hoard cash like crazy until I can get a business going.

And cut my expenses down to the bare essentials.

I feel like in our society we put too much importance and pressure on "building credit".

95% of people use credit to get themselves miserable in the form of "payments".

It's the beginning of the slowlane trap of bills and jobs.
 

The Abundant Man

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I personally never got a high-paying job out of college.

If I were in your position I would hoard cash like crazy until I can get a business going.

And cut my expenses down to the bare essentials.

I feel like in our society we put too much importance and pressure on "building credit".

95% of people use credit to get themselves miserable in the form of "payments".

It's the beginning of the slowlane trap of bills and jobs.
View: https://www.youtube.com/watch?v=0Co1Iptd4p4


View: https://www.youtube.com/watch?v=w7rewjFNiys
 

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