After making the thread about buying or leasing a used or new car, I realized that it's practically impossible for a person my age to afford a brand new Lexus, even just the basic model (is250, or now, the ct200h).

I know that many here have mentioned that when buying a new car, less than 25% of your total income should go towards the car, correct?

My future thought on this, is that when I'm making some serious cash, 35% of my Income will go towards a house mortgage, and 25% towards a car. Leaving 40% of my income for utilities, bills, food, and miscellaneous.

I'm also starting to think that not everyone here is around my age...

Anyway, without further a-due, how old are you, and what car do you drive?

I'll start:

23 Years Old, 1990 Lexus LS400.

 

30 yrs old.

2007 GS350 AWD-Loaded
1996 Integra Gs-r (mods/turbo)..don't drive it but can't get myself to part with it.

Both cars paid cash.

 

18 yrs old with a 2001 lexus es300, but since i am going to college and will not bring a car with me, i might sell the es300 and pick up a fiat spider convertible or porsche 914 for the summer or whenever i am in town who knows

 

I am in my 20s with an IS250.

Barring the fact that I bought young (and spent almost all of my money into the car payment and ownership costs), I believe one should look at car ownership based almost like a business.

Your income
(the money to keep you alive like bills)
Your available spending income

(the money you can spend on house)
The free money you have

Now the free money you have can be spent on luxuries, vacation, or car.

But keep in mind that like all business, you should have a net income (or net cash if you want to get specific).

What this 'net cash' does is:

1) Going to bail you out of emergencies if you lost your job or your limbs
2) Going to pay expenses between your paychecks so you dont go into the red
3) Having the 'net cash' accumulate every year is essentially saving up for retirement

If you can answer #2) with confidence for the next ten years, that with (for example), 5k in your bank account is enough to cover gap in paycheck and expenses, then feel free to spend as much as you want on your car as long as you have 5k in the bank and you will not go bankrupt (if youre not saving for retirement of course lol).

 

I am 23, and have a 2008 IS350. I bought the car brand new when I was 20. I saved up for four years. Payed off the car in late 09'.

 

How much did you save up in 4 years?

 

Congrats on being financially responsible. it's nice to see in a world so keen on debt... You might want to check out some financial forums on the web to further assist with budgeting and etc. creditboards.com has helped me tremendously over the years!

You mention 65% of your future income going to cars/bills in the future... you may want to carve out as much as you can and throw it into your retirement (401k, IRA's, etc...). You're young and can take full advantage of compound interest over the years. Your retirement could be ENORMOUS if you play it right and start now (or as soon as you can). Not to mention have a rainy day savings account of 6+ months worth of expenses in the bank.

Good luck on your endeavors! We have all been or are currently there right with you

 

Well, I have an iPhone app called, DebtFree, and I'm using that to pay off my bills.

I'm 42.13% paid off towards my Wells Fargo card, 9.74% towards the State, 20.26% towards Chase (29.99% APR), 67.38% towards CareCredit, and 13.41% towards Chase. The last one is the one that's hurting me the most, cause the balance is $3k, and with 29.99% APR.

44.86% of my entire debt is towards that card.

All in all, I'm 38% paid off towards being debt free. I will be debt free in 2013, with saving $1,167 in interest, and paying off early by 1 year and 10 months. Cause I'm using the snowball method.

I don't know anything about Compound interest, and retirement plans. I want to retire when I'm 50-55 years old. Plan to just work as a Firefighter for 20 years before retiring.

 

29.999% ?!?!?!?!?!?!? DAAAAMMMMNNNNN!!!! You could borrow the money from the mafia for less

 

You're talking about retiring at 50-55 yet I don't know what age you are right now but seems pretty well on the way to be bankrupt with all those credit cards. I mean you are happy right now with 38% toward being debt free and I freak everytime I see my credit card bill of $500 (and my interest rate is 8%) which is being payed every month. lol

 

Lol, yeah. I ****IN Hate CHase!

Minimum payment. $114. I send them $150. $72 towards my bill, $78 towards interest. And it's been like this for over a year. :'(

I wish I can get a loan to pay off this debt, but no bank wants to give me a loan.

:/

 

I'm not near bankruptcy. I can start working full time even with the job I have now, and be debt free pretty quick. I will be out of debt by July 2013. That's a little over 2 years from now.

Also, the highest bill I get is $114. Not $500. I'm pretty sure you're in more debt that I am, but you have a great apr, which I wish mines was like that too.

I owe a total of $6,700. I know guys who are $80k in debt, and my dad is almost $200k in a debt (home loan).

My debt isn't as big as others, it's just me not making a lot of money and the high apr that's making it look bad.

 

I feel your pain. When I left graduate school back in the day I had no cash to start up. This resulted in some huge credit card bills. I ended up selling my first house and paying off some of my student loans and all of my credit cards. It was liberating to say the least. Now I freak out to use them on anything. We just moved so I ended up buying new carpet and new appliances so I am back in the hole but I am dropping about 4k a month to get that thing paid down very quickly. I cant stand to even see the statement in the mail

 

^You're dropping $4k a month on bills? Holy ****! I'm about, $600 in bills a month, I think.

But that sucks that you had to sell your house. When it comes to student loans, I don't plan on having any, or having very little. Fire Academy is $1,700, and Paramedic School is $1,000. I also want to go to Fire Truck Academy which is $700. So all in all, it's less than $3,500 towards these Academies. This is not including the 2 years of school at CSUN when I transfer, which I'm assuming is going to be another $10-$20k. But I'm hoping to get scholarships and so on.

 

Maybe around 10K a year. No frivolous spending, just essentials. I used to manage a theater