Hello- I posted the below to /advice, but I’m hoping I can get more responses here. Thanks.
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Hello. I’m new to Reddit, and not sure if this is the right place to seek advice. I’m looking for some guidance on my next financial move.
TL;DR - is it irrational and irresponsible of me to buy a $50k car (even with this amount saved and can buy with cash) when I’m looking to buy a home in the next 6 months? In addition to the 50k, I also have 20% saved for mortgage down payment + 5% closing cost and no debt.
I have been fiscally responsible for the past decade, and have been saving like crazy. For personal reasons, I have been living with my folks, which has allowed me to save what I have. Now, I am ready to make some big financial moves, but am afraid I’m being rash. I am eyeing a new car that I like, but I’m afraid it would be irresponsible to spend this much on it when I’m also looking to buy a home. What would be your advice?
Debt - none (paid off student loans, both undergrad and grad, and no credit card debt) Saving - $50k for car, 20% mortgage down payment and 5% for closing costs, extra money for home maintenance, + money for extra cushion Emergency Fund - six months factoring in projected mortgage, Home expenses, living cost Retirement - 401k with company match, maxed Roth IRA yearly (for about 6 years), company stocks, HSA. This amounts to about 15% of my yearly income that is put towards retirement. Earnings - around $95k/yr Age - late 20s
I don’t know if my income justifies that expensive of a car, no matter how much I want it (which I really do). I’m not sure if I should put this money to the house and just follow the 10% rule and buy a $10-15k car?
I spent so much of my adult life saving that I want to reward myself, but don’t want to screw my self over by doing so. What else am i not taking into account for these large purchases?
Thank you for reading.
Submitted October 04, 2017 at 08:34AM by AdviceFinder3 http://ift.tt/2knwsj8
