Am I overspending?

Si_chRis · Sep 19, 2019

Zeffy94 said:
The inverse to what you describe is that some of my friends went to college, ended up buried in debt, and they make far less than I do. My sister has a degree and she makes barely more than I do.

I’d be more inclined to think about college if the system weren’t so heavily corrupted and moral less but that’s not the topic I’m here to discuss.

The advantage that your friends and sister have over you is that they are way more marketable than you are if they were to lose their jobs tommorow, and be able to find another job with a comparable or much higher salary. That alone is worth it to some people. Higher education is not just college, there are other options out there such as certification programs which cost drastically less than college that only take months to complete, not years.

You asked a public forum for advice given your current situation, and I think many of us have given a variety of decent responses on how you can move forward.

Best of luck to you on whatever path you chose, just keep in mind we're all just strangers from the internet.

krees · Sep 19, 2019

Zeffy94 said:
Besides, a stupid piece of paper is barely worth anything in my eyes, minus a few fields.

College is an investment in yourself. If you aren't willing to invest in you, then why would a company invest in you. I think you are gambling on this job being your career. That's all your eggs in one basket. What happens if this company goes belly up? At least a college degree makes you more desirable/valuable to any company. Right now, you are just hoping (betting) that the company sticks around till you retire and that no one comes along better qualified for your job. That kind of short term thinking got you into your current pickle. I think I'd start doing things differently in the future if I were you, starting with investing in yourself over a car or house. Just my honest opinion.

Zeffy94 · Sep 19, 2019

Si_chRis said:
You asked a public forum for advice given your current situation, and I think many of us have given a variety of decent responses on how you can move forward.

Best of luck to you on whatever path you chose, just keep in mind we're all just strangers from the internet.

I agree that there have been a lot of responses in this thread, and the fact they are so varied is what I wanted. Because it forces me to not only think of a decision, but think of a decision and the resultant actions that lie down the road. I put myself in this situation, what’s the way out? Is there truly a way out? How do I prevent it in the future? These are all questions that have multiple answers swirling around in my head from reading the responses here.

The more I think of what I want to do the faster it changes and it’s that fact which will drive me to choose a decision or mentally exhaust myself in the process.

God knows how long it will take me to come up with an answer, I’ve known about the problem for quite some time and it took me months to even discuss it. Ugly truths are the worst truths...

ez12a · Sep 19, 2019

Degrees aren't the end all be all these days. Sure they can help but aren't required to be successful.

Coding bootcamps have put a few of my friends into developer positions. One of which dropped out of college and did terribly in class in HS but scored well on the SAT. (So he's actually pretty smart, but the cliche didn't apply himself). Took one of the earliest bootcamps and was able to land a job very quickly.

He now works in the bay area making good money, traveling to Singapore and Hong Kong for work trips. Raced motorcycles his spare time.

The downside is though that college grad developers are still bringing more to the table, and he sees it. But still, he's successful by any measure.

Z06Chris · Sep 19, 2019

It's pretty simple.
Either keep the car and barely get by while living with your parents for the next 5+ years or sell the car and save a bunch of money to end up house poor after closing.

WELCOME TO ADULTHOOD

:cloud:

Acordova70239 · Sep 19, 2019

Zeffy94 said:
Hey guys, when I bought this car 18 months ago, the hype surrounding the purchase and the heat of the moment may have caused me to put myself in a fairly bad place. The reason is due to the fact that when I was budgeting the car, I was really planning for my 2017 coupe to fetch at least 21K - it fetched about 16K, and to compensate I threw a bit more money down (almost 14K) on the purchase so I could "afford" the monthly payments. (My original plan had $450ish... after taxes it was close to 40K and then the negative equity pushed the price to close to 47K, which is where I threw the cash down to bring it to something more affordable) Afford is a relative term here. I am paying $526.37 a month for 72 months. I had read that I should not be pushing a loan out this far, but I really wanted the car. Plus, all the hassle of getting the dealership to get it in, ugh, I felt obligated to do it, even though a part of me was like "that's way too high of a payment". I also did not factor in how much more I'd be spending on fuel compared to my 2017 coupe.

A little background about me... I'm 25 years old, with a stable job but I still live at home. I don't plan on living here forever, but I would rather live at home compared to living in an apartment (sorry, that kind of living just doesn't suit my tastes, not to mention rent up here isn't really cheap). I am fortunate to be able to live at home, but I have to contribute to the bills and such (around 700 a month). So, what I've been saving up for (slowly..) is a down payment on a modest sized townhome, within the next 3-4 years hopefully. My job nets me a salary of $48K before taxes, which should increase over the next year because it was mentioned to me more or less that a promotion is coming. But that's still months away, so I'm operating on 48K before taxes.

Well recently, it just feels like I'm burning through cash left and right. So I took a few hours to deeply analyze all my spending, and I would be partially right about that. Between the monthly payments and fuel costs (which is about $34 a week because even with 28mpg a small fuel tank don't hold anything), I'm spending almost $700 a month to own the CTR. Now, in terms of emotions, I'd say it was totally worth it, considering the times and smiles the CTR has given me. But ultimately I have a habit of focusing on the present and not the future.

My car related expenses are about 25% of my monthly income, and that's not including the thousands I've spent on tires, modding my exhaust, and two insurance deductibles. It's honestly a lot.

One of the things I could do - not that i even want to think about it - is trade this in for something that might not kill me financially and wouldn't totally suck my soul out. (Don't really know what that is but...) The only reason I figure that I can do this is because the resale value should still be high enough to close my loan without earning me negative equity. Or, I could try and refinance, but my fear is the maintenance that is creeping up will still be pricey. At least I don't need tires again this year...

Anyone have any advice? This is the only place where I can feel like I can actually get advice so I'm hoping someone has insight on what is best. This is a really special car and despite all the pains I love it dearly still, but at the same time I don't want to be stuck at home at 30 years old. I'm also in no risk of defaulting any time soon; I have a decent amount in savings I keep for emergency funds. Plenty in there to keep me afloat even if I lost my job.

Im actually in a very similar situation like yours. Im 23 and I've had this car for a year now. When I got the car I was going to take on basically the full loan of the entire value of the car but instead of paying interests my mom decided to put 25k down and I pay her instead of giving away money on interests. Owning the car I am spending about $700 a month on it. I have burnt through all my money and worst part is I quit my job as a server and didn't have a job for like 3 months. The car is cosigned with my mom and yes I am willing to say I am riding on mommies money although I was handling all the payments monthly. The car was still taking up the majority of what I made every month and I was stressed through the roof that I had a breakdown and was going crazy. I came to my mom to tell her I want to sell the car and have a fresh start. She recomposed my mentality because when I got the car I was determined and had a strict mindset on what tasks I needed to do to have the ability to pay for something like the Type R because whether she helped me or not I was going to buy this car. I currently found a job at Fedex that pays $15hr. Yes that is nothing compared to what others here are making but if you condider your situation you have the advantage of being young and building a crazy good credit score that will in the future allow you to purchase a house. I now have a plan on breaking down my money monthly. A week of work = car costs for the month. Second 2 weeks= Save about(800 untouched straight to bank). Last week of month spending money but use as little as possible and save the rest. For our situations if we are being honest a lot of our money goes on stupid stuff like mods and spending money outside on food and such. Cook at home, buy water by the gallon instead of small water bottles and all that will go away. Basically live like you are broke and you will have money. I basically confronted my situation mentally and know that if I sold the car I would be out of owning the Type R, all the payments and stressing would have been for nothing. I now know that I want to keep this thing and WILL have it payed off in max 3 years. But that will require a lot of not sending on stupid things to clear my debt. I All in all I'm glad I did this at a young age because now more Tham ever I know the value of money and how a loan can destroy you. Imagine being 30-35 having all adult expenses and then jumping into a debt this big. That would be a million times worse.

ez12a · Sep 19, 2019

Bro... Getting a $35k car is definitely not a car a server can afford. No offense.

Your mom is amazing and you should thank her everyday.

This culture of slaving away and working multiple jobs barely able to own a luxury has gotta stop. That and spending above ones means.

charleswrivers · Sep 19, 2019

OP... I'd pretty well said my piece, bit I just want to add if the place you work does offer money for college or certifications, jump on it.

I'm on shore duty and in 2 years in my spare time have taken college courses which were paid for by TA and I only have to cover the cost of books. I'm 1 class away from completing an accredited Bachelor's of Science. Even if I don't work in that field, it's a low level engineering degree that'll open doors. If I'm up against someone else with all the same work experience and skillset but have a degree... well... I have that over them.

Be careful getting stuck in things too. You may be marginally educated but highly skilled. The problem is you've already shown you not only have said skill set but that you'll provide your labor for a bargain... based on your lack of education to demand more and your belief there's upward mobility by staying put and getting your due. This may come off harsh, but we're all trying to give you good advice: Why would I pay someone more money to do a job he's already willing to do for peanuts who, while he has the skills to do it, doesn't have the education to do it... or more? Why not continue getting the bargain?

I wish you luck. I agree getting saddled with massive debt is bad... but any opportunities you have through your current employment or for grants.... I'd highly encourage you.

Before I got in the Navy, I was making something like $10 an hour working at a grocery store while going to community college and renting a house with my best friend. Life was ok... but I think back now at the co-manager, who got profit sharing and make $60k... or the store manager who made $100k... and I thought that was so much money, that they had made it. Yeah, well both those guys no longer are working there because they got canned and that grocery business is in decline. They were asking me to stay and take on a low level manager position for a meager raise even after I went in to enlist... to back out and I said no because I didn't want to get stuck doing that job... even if it meant I could eventually make a decent living.

Funny... even as a poor enlisted man, I make as much as that store manager did... and love my job.

Don't be afraid to think big. Why work a second job or wait around for a raise that may take years... or never come? Make yourself the most valuable commodity to the work force you can be and put yourself out there. If you think this company values you and you're underpaid, voice it. If they aren't willing to pay you what you think your worth... see employment elsewhere. It can be a process that may take months... even a few years, to bolster yourself to be right for another, better job... but don't be afraid to do it. Don't waste years waiting for something to never come when you can be working towards a better plan B if plan A (this promotion) never comes.

krees · Sep 19, 2019

ez12a said:
Degrees aren't the end all be all these days. Sure they can help but aren't required to be successful.

As a manager for a software firm, I concur that college isnt the silver bullet but given 2 equal candidates, 1 candidate having college and the other not...I'm choosing the college grad every single time. To me, college is more than education. To me, college means education, dedication, discipline, and grit. There are exceptions but folks who don't have a degree have to work so much harder.

Zeffy94 · Sep 19, 2019

My company does tuition reimbursement... meaning they will reimburse me up to a certain % depending on the grade I get. My average for 12th grade math, at the "stupid" level, was about a 65.7. If i don't get a C or higher, I'm on the hook for the entire bill.

I'm not willing to expend my savings for something that can put me straight in the hole. If that means being less marketable, well so be it I guess. School brings back such bad memories of how I struggled in math class and all of the dark memories I've gotten away from. I'm in some program at work that basically recognizes star talents and provides me with additional training... so there's that. I have a fluent knowledge of a lot of programming languages and failing that my friend has a side gig making games that I can dedicate more time with. I dedicate only a small amount of time but he compensates me for my work, but it's not anything I can consider a constant job right now.

I will talk to my manager about the salary... he's acknowledged it before, and even told me he thinks I'm underpaid (considering I've written "software" that has allowed my company to make millions...) but I agree that I will only be kept at bay for a finite time before I look elsewhere.

NapalmEnema · Sep 19, 2019

Zeffy94 said:
Well, being crammed into an extremely compact living space surrounded by other people is something I dislike. Plus not having direct access to your own appliances potentially.

That’s why I want my own house (or at least a townhouse)... I’m more isolated and when I lived in my old townhouse complex in NJ it was quiet and peaceful.

My friends live in apartments and some of the things I hear are literally not even remotely desirable to me. Not to mention they piss away money on the lease they never get back and don’t even own the place. At least with a mortgage you can build equity in the property.

New new plan - MOVE OUT OF NJ and other punitively expensive states - find a job and a new life elsewhere - Keep CTR and enjoy life where you actually get to live one instead of working non stop to scrape by like you have to in NJ / NY / CA.

MOVE

tinyman392 · Sep 19, 2019

Zeffy94 said:
The inverse to what you describe is that some of my friends went to college, ended up buried in debt, and they make far less than I do. My sister has a degree and she makes barely more than I do.

I’d be more inclined to think about college if the system weren’t so heavily corrupted and moral less but that’s not the topic I’m here to discuss.

Granted you're in a decent position in a salaried job, I'd consider you lucky to be where you are right now without said degree. Very few can make it as far as you have without one, but it does happen. Keep in mind that if you do it correctly, college should not burry you in debt, though it's becoming more of the norm. It is an investment in yourself with the idea that you'll land a job that will allow you to pay it off in 10 years (my loan repayment is less than 5% my net income).

Keep in mind that the degree offers you a few things: 1) possibly getting a better paying job (pay also includes benefits), 2) possibly getting a job that pays average, but doesn't require nearly as much work (whether physically, mentally, or emotionally or a job that is flexible), 3) possibly getting a job that you'll enjoy doing, 4) larger selection of job opportunities. The best case is when you get all of them.

Many people feel like the general ed courses (the stuff not related to your major) that you're required to take for your associates is a waste of time (I actually ended up enjoying a lot of those courses, but that's beyond the point). And the reality of it is that you're not always going to be working 100% in the field you study, so the ability to learn about another field, even just get the basics of it, becomes very important. My background is in math and computer science, but my actual job involves me applying data science (my background) to biology (not my background). It does require me some idea of how the biology works and to be able to learn the biological material. I'm not expected to be an expert on it, but still expected to be knowledgable enough to field questions and know what I'm talking about. Note I had no formal biology courses during my undergrad and 99% of my grad (literally one 1-credit course). The ability to learn new fields does open up job opportunities since, in today's day and age, cross-disciplinary positions are a thing and very relevant. The ability to shift laterally can land more job opportunities as well.

Gansan · Sep 19, 2019

Just wanted to say to OP, I commend you for reaching out to get opinions and advice. This will not only help you, but potentially others who might read this later and maybe didn't know how or who to ask about this kind of stuff.

Zeffy94 · Sep 19, 2019

Gansan said:
Just wanted to say to OP, I commend you for reaching out to get opinions and advice. This will not only help you, but potentially others who might read this later and maybe didn't know how or who to ask about this kind of stuff.

It's a hard decision, but I see no reason to make it on my own. I'm sure there are others here who might be in the same boat, and at least they have a frame of reference to see possible solutions for them as well. If it ends up helping other people then I'll be happy regardless of the outcome in my situation.

Acordova70239 · Sep 19, 2019

ez12a said:
Bro... Getting a $35k car is definitely not a car a server can afford. No offense.

Your mom is amazing and you should thank her everyday.

This culture of slaving away and working multiple jobs barely able to own a luxury has gotta stop. That and spending above ones means.

Can a server pay for it yes, I worked with people who had to pay $1800 in rent living alone. So I know as a server you can pay for things but being able to pay for something doesn’t mean you can afford it and thats a lesson I’m glad I learned at a younger age.

Am I overspending?

Si_chRis

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krees

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Zeffy94

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ez12a

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Z06Chris

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Acordova70239

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ez12a

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charleswrivers

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krees

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Zeffy94

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NapalmEnema

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tinyman392

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Gansan

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Zeffy94

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Acordova70239

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