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    #16
    Originally posted by tripods68 View Post
    YOU ARE DENIED!

    Pay off your student loan first. Until then you are DENIED.
    Ok, how about this. Same situation of mine, but we want to spend $3500 for more education which will increase a salary and give greater long term benefits. It would be paid for in cash right now out of our savings.

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      #17
      Originally posted by project15 View Post
      Ok, how about this. Same situation of mine, but we want to spend $3500 for more education which will increase a salary and give greater long term benefits. It would be paid for in cash right now out of our savings.
      Approved. Money spent which leads to a higher salary is worth it, and $3500 isn't killer. Go get your education....make it so.
      "Praestantia per minutus" ... "Acta non verba"

      Comment


        #18
        Originally posted by project15 View Post
        Ok, how about this. Same situation of mine, but we want to spend $3500 for more education which will increase a salary and give greater long term benefits. It would be paid for in cash right now out of our savings.

        Education is broad. Is this for a 4-year degree, grad school, or a certification of some kind related to your specific job?
        Got debt?
        www.mo-moneyman.com

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          #19
          Longtime lurker.....can I afford it?

          I am a longtime lurker, so here goes:

          I would like to buy:
          A new-to-me (used) car = $19K

          Here's the money:
          Age: 30
          No kids, single
          Monthly income: $3,600 take home
          Rent: $950
          NO Car Payment, current vehicle has been payed off for 4+ yrs
          NO CC debt
          Roth IRA: $8K
          401k: $5K
          IRA (rollover from previous job): $38K
          Savings: $49K

          How would I be paying for it?
          From savings and then selling current vehicle for $8K....so out of pocket approx $11K

          Let me know if I can afford it. Thanks

          Comment


            #20
            Originally posted by CanIAffordIt? View Post
            I am a longtime lurker, so here goes:

            I would like to buy:
            A new-to-me (used) car = $19K

            Here's the money:
            Age: 30
            No kids, single
            Monthly income: $3,600 take home
            Rent: $950
            NO Car Payment, current vehicle has been payed off for 4+ yrs
            NO CC debt
            Roth IRA: $8K
            401k: $5K
            IRA (rollover from previous job): $38K
            Savings: $49K

            How would I be paying for it?
            From savings and then selling current vehicle for $8K....so out of pocket approx $11K

            Let me know if I can afford it. Thanks
            Pulling $11k from savings leaves you with $38,000 . . . almost 10 months of net INCOME, so safely what, 20 months of expenses or so? That's still a reasonable emergency fund.

            I'd say you are approved unless there is some other large purchase on the horizon (real estate).

            Comment


              #21
              Originally posted by red92s View Post
              Pulling $11k from savings leaves you with $38,000 . . . almost 10 months of net INCOME, so safely what, 20 months of expenses or so? That's still a reasonable emergency fund.

              I'd say you are approved unless there is some other large purchase on the horizon (real estate).
              I agree, it seems you can afford it. Two things, though... Do you need a new car right now? If your current car is working for you well, there's little reason (IMO) to ditch it for something else. A car still worth $8k probably still has a few more years in it. Also, a little light on the retirement savings... How much (% income) do you contribute to retirement each month? I might suggest increasing that amount.
              "Praestantia per minutus" ... "Acta non verba"

              Comment


                #22
                Originally posted by kork13 View Post
                Do you need a new car right now?
                While I agree completely that this is a very good question, Suze doesn't focus on if the person SHOULD buy the item but rather if they can AFFORD to buy it (though she certainly will comment on things she finds unnecessary). There is nothing wrong with having some wants in your life if you can afford them.

                I'm with you kork13. My car isn't worth $8,000. It is more like $3,500 or so if I'm lucky and I'm not planning to replace it any time soon.
                Steve

                * Despite the high cost of living, it remains very popular.
                * Why should I pay for my daughter's education when she already knows everything?
                * There are no shortcuts to anywhere worth going.

                Comment


                  #23
                  Originally posted by disneysteve View Post
                  While I agree completely that this is a very good question, Suze doesn't focus on if the person SHOULD buy the item but rather if they can AFFORD to buy it (though she certainly will comment on things she finds unnecessary). There is nothing wrong with having some wants in your life if you can afford them.

                  I'm with you kork13. My car isn't worth $8,000. It is more like $3,500 or so if I'm lucky and I'm not planning to replace it any time soon.
                  HEY! I APPROVED IT, DIDN'T I?!?! No, I just tacked those two thoughts on as a follow-on thought.
                  "Praestantia per minutus" ... "Acta non verba"

                  Comment


                    #24
                    Thanks for the replies.

                    Yes, the IRA is little low, but it was $55K when I rolled it over 18 months ago... Oh well, at 30 yrs old, I have time on my side and hopefully things will turnaround.

                    I contribute $500 per month (13.8% of take home) to my Roth and $300 (8.3% of take home) per month to long term savings (online savings acct).

                    I have no 401k company match so I do not contribute to the 401k. As soon as my company switches the match back "on" (which was previously 5% for me putting in 5% for a total of 10%), then I will jump back in and contribute.

                    Yes, I do recognize this car is a "want" not a "need".

                    Comment


                      #25
                      Originally posted by CanIAffordIt? View Post
                      I contribute $500 per month (13.8% of take home) to my Roth
                      OT, but remember that the Roth limit is $5,000. Your $500/month will have it maxed after 10 months. Don't over fund it, and make sure to put the final $1,000 in savings, too, even though you can't put it in the Roth.
                      Steve

                      * Despite the high cost of living, it remains very popular.
                      * Why should I pay for my daughter's education when she already knows everything?
                      * There are no shortcuts to anywhere worth going.

                      Comment


                        #26
                        I want to play also! I want to spend $4k on carpet - out of savings.

                        Net monthly income: $4400/mo
                        Mortgage: $1003/mo
                        Phone bill for 3 phones: $120/mo
                        Cable and internet: $112/mo (I only have 1 choice for cable/internet service out here)
                        Car Ins: $42/mo
                        Utility avg: $250/mo
                        15% of Gross goes to 401k
                        $300 extra a mo. goes to additional mortgage payment
                        $1000/mo goes to cash savings (until I get a year's worth of salary saved up, currently at $21k)
                        $200/mo goes to Roth IRA
                        $100/mo Son's college savings (he already has the prepaid tuition plan)
                        $50/mo goes to daughter's gas money while in college

                        So, can I go ahead and get the new carpet? Or should I wait until I have the full year's worth of salary saved?

                        Comment


                          #27
                          What I want to buy:

                          Solid Gold Toilet - 30 lbs gold @ $100/oz = $480,000

                          Me:

                          50 somthing TV financial adviser, author

                          Single, snappy dresser, nice tan

                          Take-home - $2 million a month

                          Savings/Assets - $25 millioin

                          How am I paying for it? American Express Black Card, of course!

                          Comment


                            #28
                            wincrasher - First, that should say $1,000/oz, not $100.

                            Next, if you earn $2 million/month and you are in your 50s, you should have a whole lot more than $25 million in savings.

                            I think you'll have to be content to do your business in a traditional porcelain model for a couple hundred dollars at Home Depot.

                            DENIED.
                            Steve

                            * Despite the high cost of living, it remains very popular.
                            * Why should I pay for my daughter's education when she already knows everything?
                            * There are no shortcuts to anywhere worth going.

                            Comment


                              #29
                              Steve,

                              I spend alot of my money on fancy jackets. Plus that tanning is not cheap either.

                              Comment


                                #30
                                Originally posted by wincrasher View Post
                                Steve,

                                I spend alot of my money on fancy jackets. Plus that tanning is not cheap either.
                                Come on. You live in Florida. Don't you have sun there?
                                Steve

                                * Despite the high cost of living, it remains very popular.
                                * Why should I pay for my daughter's education when she already knows everything?
                                * There are no shortcuts to anywhere worth going.

                                Comment

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