Financial advice

So I just wanted to ask some financial advice from some of the older/more experienced fellows on this forum. I'm a 23 college student who is expecting to graduate this coming May. Buying an m3 has always been my dream and I am hoping to get one sometime in the future. However, I have a little bit of loans.

I paid off ~150k (with a little help from my parents) and have about 50k left to go. When I graduate, I'll be making ~$66/hr full time but hopefully pick up more shifts ~50-70 hrs/week while I'm still young and capable of this. I'm not sure what this equates to after tax deductions and everything else but I'm hoping to pay off my loans as fast as possible but would buying a fully loaded m3 while trying to pay my loans off be a bad financial move for my future? I wouldn't have much other payments to worry about besides my loans and paying my parents back (interest free ofc) and will be living with them for a bit to save some money. I'll probably only use my money for paying everyone back and my m3 payment plus going out every now and then and the rest will go to my savings. Or should save my money for things that are bound to be a problem soon (a house, marriage, investing, etc)? This may be a stupid question with responses along the lines of "just do what you want" but I'd rather not make a rash decision and end up regretting it later on (probably won't regret it while driving it tho).

Oh, I'm also leasing a subaru impreza (POS) for $160/month and still have two years left on it.. I don't know what to do about that either haha..

TL;DR :: 23 years old graduating this year needing financial advice from wise folks. $66/hr ~50-70hr/week. 50k in loans + $160/month for my current lease. Bad idea to buy an m3 sometime this year?

[Knicks_fan2]

Of course it's a bad idea to get the M3, but the task here is pretty simple. Put together a line by line budget and see what you will be taking home post loan payments (estimate your own target payoff) and all other expenses and see if you are comfortable adding a car payment + dealing with the negative equity (assuming that is the case) on your impreza. Imo, you should probably wait but whatever.

[Bluex]

Originally Posted by bloading

Or should save my money for things that are bound to be a problem soon (a house, marriage, investing, etc)? This may be a stupid question with responses along the lines of "just do what you want" but I'd rather not make a rash decision and end up regretting it later on (probably won't regret it while driving it tho).

Listen, you'll get such a range of responses here.....so i'm going to get in on it now before it goes all over the place, lol.

I think you've answered your own question right above.

You *know* what you probably should do, but your love and want of this car is making you think "but, but, but....if I do this....maybe".

You most likely will want to get married, build up your portfolio, save for a house...the mere fact you've mentioned this already shows that you're already thinking that way. These things WILL come up. Having an M payment, will put a damper on those things.

When I was your age I wanted an M as well...but now that I can afford it without having to make any justifications, I feel like I can enjoy it all the much more.

You're going to get lots of YOLO's here saying just do it....but go with your intuitive gut instincts, they're not leading you wrong IMHO.

Good luck!

[Woodengun]

Conservative personal financing:

Hold 6-12 months take home income in easily accessed assets (savings, short term CD, money market, maybe some in large corp stock).

Max your 401k contributions.

Invest $100+k into equities or other volatile securities or hire a personal financial advisor to help you invest/grow your money.

Then splurge - home, car, vacation, hookers and blow....

Less conservative - spend as you want.

[jballs16]

^ what he said

[Fahrvergnügen]

If I were you, the most important thing for me would be to move out of my parents' place. I know living there might save you money and you might have to rent a place for a year or two, but it's time to grow up. It seems like you have a decent job and a car to use already so why wouldn't you want to grow up and live on your own? After you move out, I would give it 3-4 months and assess your normal budget (loans,rent, food, entertainment, subaru payment, etc.) and then decide if you can afford $1,000 / month for a car.

[BMWJ]

Only you can prioritize how you would like to save / spend your money. We can't tell you what is right.

[Tisaksen]

Graduate, and get the supposed job. Once you have your job, work for a few months and make sure you enjoy it/succeed at it. Then calculate your monthly income and subtract all your expenses including your college debt payments. If you can pay everything AND your M car after all that, while still contributing to savings, 401k etc... then its probably plausible. Otherwise youre running the risk that if you lose your income, you M3 will go from a toy to a burden, and its not an appreciating asset.

We all wanted our M cars badly, but securing your financial future is much more important. Work now so you can play safely later. Thats my best advice to you.

Best of luck with your last few weeks of school!

[secretariat]

First of all it's not 66K, he wrote $66.00 an hour. S o for argument sake lets say 66 x 40 x 52=137,280.00 a year. You are 23 so going out every now and then is BS. You will be going out a lot more. Is there a girlfriend around or are you working on that. If no girlfriend than I don't think you have to worry about marriage just yet, your tooo young to even think about marriage. You should be thinking about getting out of your parents house. Save your money for that.

My advice to you is to forget the M3, there will be plenty of time for a nice car later on. I know this is harder said than done. Look for a really nice pre-owned vehicle 2011-2013 and save all that cash. M3's are not going to disappear. Save your money.

[Woodengun]

I started working at 14 in a bicycle shop. Worked there 4 yrs of high school and first summer after starting university. Prob made 20-25k total over that time. Paid essentially 0 taxes - only social and medicare. Spent about half and invested the other half. I drove a $500 beater chevy station wagon in high school lol. My estimate (because I moved money between different investments and kept adding a bit as I worked during undergrad years). By the time I was 27 and finishing grad school that $10k was now $100k.

Invest. Invest early. You can hold less cash as backup in case you lose job. You can only do $5k/year into 401k. But invest and invest aggressively since you are young.

[BigDog]

Speaking with experience, I would suggest skip the YOLO attitude.... greed and the desire to have a lot of nice stuff right away is not going to give you satisfaction. Work hard today, such that tomorrow is relaxed.

You'll get your M3 and then some, just not today... today you work

Tomorrow it'll be waiting for you, and you won't have to second guess the affordability

[MKParris]

Originally Posted by Woodengun

Conservative personal financing:

Hold 6-12 months take home income in easily accessed assets (savings, short term CD, money market, maybe some in large corp stock).

Max your 401k contributions.

Invest $100+k into equities or other volatile securities or hire a personal financial advisor to help you invest/grow your money.

Then splurge - home, car, vacation, hookers and blow....

Less conservative - spend as you want.

This...sans the illegal activities.

[MKParris]

Btw, I have worked very hard in my career and and just now getting my M3...I have a house, significant invested assets, emergency fund and my daughter's college is paid for. I have driven a base 2011 accord for the last year in order to save up for this car.

If I bought a depreciating asset like this car when I was younger, I often wonder if I would have been able to achieve the same things.

At the same time, this is now the icing on the cake so to speak since I am really comfortable with how everything else is.

[hellrotm]

Just wait. You won't regret that decision.

[chmura]

Originally Posted by ChicagoM4

If I were you, the most important thing for me would be to move out of my parents' place. I know living there might save you money and you might have to rent a place for a year or two, but it's time to grow up. It seems like you have a decent job and a car to use already so why wouldn't you want to grow up and live on your own? After you move out, I would give it 3-4 months and assess your normal budget (loans,rent, food, entertainment, subaru payment, etc.) and then decide if you can afford $1,000 / month for a car.

Actually I would give the opposite advice.

Live with your parents for as long as you can and save as much as you can while living there.

I lived with my parents up until 29 yrs old. Then moved out when I purchased a brand new $650k house. Living on my own I would not be able to purchase a house so soon in my area.

Of course if you are making $66/hr and living in a Austin Texas you can probably buy a house right after a few months starting work.

[Damasconian]

You've waited a whole half decade of your life to get a dream car? What's the hold up son, get that car this weekend.

You cant afford this car by any measure taken. Get out of debt, buy a home, invest in your future. After all that, buy this car.

Many of us are well into our 30's and have waited a lot longer to get this car than you have. It will be so much sweeter when you can buy this car with little financial regret. If you buy it now, you'll regret it later.

Millennials want everything yesterday. As a gen-X'er, that makes me feel old and sad.

[buildbright]

Remember your only 23 so you couldn't have wanted an M3 that long. This one of the first mistakes doctors make after med school. Debt loading. The issue is not the M3 it's everything combined. Wait atleast two years before buying this car imo. The more you save now the more you can have later. It could lead you to a Ferrari or equivalent later in life.

[8600RPM]

If you can't tell your take home pay after tax and mistake tax deductions for income tax rate than it seems you aren't ready for a whole lot. Perhaps start with doing own laundry and work up to the M!

[Fahrvergnügen]

Originally Posted by chmura

Actually I would give the opposite advice.

Live with your parents for as long as you can and save as much as you can while living there.

I lived with my parents up until 29 yrs old. Then moved out when I purchased a brand new $650k house. Living on my own I would not be able to purchase a house so soon in my area.

Of course if you are making $66/hr and living in a Austin Texas you can probably buy a house right after a few months starting work.

If that worked for you then that is great. I was merely suggesting what I would do if I were the OP. Everyone's post-college situation is different obviously, and for me, even if I could live with my parents, I would turn down the offer. Living on my own in my early/mid 20s was/is an invaluable experience that no amount of money / assets could match. Looking at life as "destination-bound" has never been my prerogative, it has always been the journey.

[infamousdiz]

Originally Posted by bloading

So I just wanted to ask some financial advice from some of the older/more experienced fellows on this forum. I'm a 23 college student who is expecting to graduate this coming May. Buying an m3 has always been my dream and I am hoping to get one sometime in the future. However, I have a little bit of loans.

I paid off ~150k (with a little help from my parents) and have about 50k left to go. When I graduate, I'll be making ~$66/hr full time but hopefully pick up more shifts ~50-70 hrs/week while I'm still young and capable of this. I'm not sure what this equates to after tax deductions and everything else but I'm hoping to pay off my loans as fast as possible but would buying a fully loaded m3 while trying to pay my loans off be a bad financial move for my future? I wouldn't have much other payments to worry about besides my loans and paying my parents back (interest free ofc) and will be living with them for a bit to save some money. I'll probably only use my money for paying everyone back and my m3 payment plus going out every now and then and the rest will go to my savings. Or should save my money for things that are bound to be a problem soon (a house, marriage, investing, etc)? This may be a stupid question with responses along the lines of "just do what you want" but I'd rather not make a rash decision and end up regretting it later on (probably won't regret it while driving it tho).

Oh, I'm also leasing a subaru impreza (POS) for $160/month and still have two years left on it.. I don't know what to do about that either haha..

TL;DR :: 23 years old graduating this year needing financial advice from wise folks. $66/hr ~50-70hr/week. 50k in loans + $160/month for my current lease. Bad idea to buy an m3 sometime this year?

What job pays 66 an hour with no experience?

If you are making that much you are good to go buy the car and live at home stay there as long as possible, you know its time to go when you would rather live in a dumpster then listen to your roommates getting it on.. haha. On a real note MAX OUT YOUR DEFFERED COMP OR 401K cant stress that enough.

Everyone talks of a house marriage and kids crap like that, if you don't do it now you may never get the opportunity for 20 years. there will always be something to hold you back. That's how I felt about kids, I will never be ready so now or never(I got 2 by 29 FML). pay 2k a month in daycare your car lease will never feel so bad.

Meet alot of loose woman and go to Vegas....Christ I love Vegas

I would say if you are making 130k+ you already made good decisions already spend it, enjoy. Worry about tomorrow...tomorrow

DO NOT BUY A HOME (now anyhow you don't know if you meet someone and relocate, thing is a money pit and stupid and I can argue that with anyone

And I leave quoting Thoreau, "Everything in moderation" did he say the exactly maybe not be fucker has wisdom

[Arcoril]

Originally Posted by ChicagoM4

If I were you, the most important thing for me would be to move out of my parents' place. I know living there might save you money and you might have to rent a place for a year or two, but it's time to grow up. It seems like you have a decent job and a car to use already so why wouldn't you want to grow up and live on your own? After you move out, I would give it 3-4 months and assess your normal budget (loans,rent, food, entertainment, subaru payment, etc.) and then decide if you can afford $1,000 / month for a car.

Housing is ridiculously expensive in California especially if you're in the Bay Area, Los Angeles, Orange County, or San Diego. A one bedroom apartment in a decent area with good amenities can easily be in the 2-3k/month range.

Maybe it's because both of my parents were immigrants, but I've never really understood the need to move out as soon as someone turns 18. In Europe and Asia it's really not uncommon at all to see multi-generational households and children who continue to live with their parents (and grandparents) even after getting married and even when they have the financial means to live on their own. There's a lot to be said about sharing expenses, sharing responsibilities, and enjoying home-cooked meals together.

I think that with high student debt, rising housing costs, and flat wage growth, moving out isn't as much a part of growing up as it used to be for young people. If he's got a good relationship with his parents and they're not overbearing, I don't see any issues. I think he should take advantage of the good thing he's got.

[smithf80]

What job are you making $66/hr at right out of college? Out of curiosity.