Hey Guys, I'm looking into buying my dream car pretty soon. This car is a milestone in my life and I have been dreaming of it ever since I was a child.
Now the reason why I am posting today is to have a general Idea of what choice I should make. So Currently I am working a 9-5, Have $1800 at the end of every month left over, and 10k In Savings. I am looking to buy a car ($800 or less a mon.) and also get into real estate.
I am going to be a real estate agent next year and that should help me gain more money to invest. So Should I wait on the car or just buy my dream car and eventually invest.
This post has been removed.
Think of where the dream car will be in value in ten years versus the starter home or a rental property. Visualize the car--with some wear and tear, an old model, needing repairs. Now see the house-- just pick a spot off I-5 there someplace in a decent neighborhood.
Run the numbers. You might donate the car to charity rather than pay the expensive (insert pricey repair)... Meanwhile, the house or rental is up in value (maybe even 50-100K).... the rental maybe even paying you monthly...
You just got the basic lesson in appreciating assets.... buy them (the ones that put money in your pocket) not the ones that take money out every month.
The little place we sold in 2004 there in Stockon had tripled since the early 90's (granted it was the height of the bubble) but even modest appreciation will get you there...
Stay away from the quickly depreciating items (like nice cars) if you can early on in life. Maybe see if you can focus the dream towards the first rental or investment (like an index fund) or first home.
Listen to the podcasts like BP, Dave Ramsey, and read books like the Millionaire Next Door (not so many fancy cars there.... I think a gently used F 150 was among the most popular among persistent accumulators of wealth)... Put the money where it will grow not go away... and you will be set for life.
Lease the car under a corporation and its a write off. As far as the job, I'd keep that job with that extra $1800/mo surplus and use that to invest in RE. You'll spend about 5 hours a week (if that) on RE investments. For your situation I wouldn't suggest getting the RE license, not really worth it.
Hi @John D. , have you read Rich Dad Poor Dad by Robert Kiyosaki? He talks about how we should first buy income producing assets, and then let your assets pay for things such as nice cars, vacations, boat, etc. Let your assets buy your liabilities. Taking the slower, and smarter, route will only make your dream car that much sweeter.
You guys are right, I should save, purchase a property and then have the cashflow paying for the lease of the car!
Sucks, but im going to put the dream off for a little for a more comfy life.
Thanks guys, My friends are terrible influences
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing