how do you all manage money that goes into your car?
- Thread starter fivespeedsteed
- Start date
i always use cc too, but the monthly balance is always "0" pay that **** off as soon as you put it on.
2 kids and a mortage trust me next to no budget at all, so when i had some top end damage after missin a gear at the track with a 125 shot of juice and the week before i disconnected my window switch wasn't always sprayin, so when i missed a gear rpms went up quick lol, 130 thousand miles on motor and perfect body and interior gave me the desicsion to attack 401K why not it was shrinkin right before my eyes so i helped it out lol not lookin back on it at all im happy as hell with my 333ci stroker. i guess no golf clubs comin later thats alright i always played hockey and contact sports golf wasnt gonna cut it anyway
have borrowed against my 401k, but never taken out of it. i like borrowing b/c all interest is paid back into the 401 account.
actually i borrowed against it too but left the bare minumun in the account so who knows whats next
Never had a credit card here, good thing in that I have no debt, bad thing that I have no credit. But I am 20 and as a college student I pretty much am living paycheck to paycheck right now. I calculate what my paycheck will be, subtract my bills, subtract parts I want to buy, and see if I will have enough money left over that I can save or use for spending money, if not I just dont buy anything.
Your situation is a little different as you already have the money, I would just set a certain amount of money aside for the car, I'd say ok I am going to set aside 700 for the car. Knowing me I would have to set the number lower because I know I am actually going to spend more then that, so If I say I am going to set aside 1500, I may end up spending 2000 later on. If I say I am going to set aside 700, I may end up spending 1500. I would do that to trick myself, because if I set money aside for the car and spend it in a month or 2, in 6 months when I want to buy something else I will feel guilty for spending more money, so thats why I'd set the number lower then what I think it will be, while not over doing it later on. Gotta have some kind of control.
Your situation is a little different as you already have the money, I would just set a certain amount of money aside for the car, I'd say ok I am going to set aside 700 for the car. Knowing me I would have to set the number lower because I know I am actually going to spend more then that, so If I say I am going to set aside 1500, I may end up spending 2000 later on. If I say I am going to set aside 700, I may end up spending 1500. I would do that to trick myself, because if I set money aside for the car and spend it in a month or 2, in 6 months when I want to buy something else I will feel guilty for spending more money, so thats why I'd set the number lower then what I think it will be, while not over doing it later on. Gotta have some kind of control.
Well, my budget has not worked very well for me this year. I didn't expect the amount of maintenance I'd have to do on the Corvette. It just all kind of came at once, and I'd spent around $3,500. The real killer was the a/c system which I decided to replace in entirety and do it right rather than do it over again. All told it cost me about $1,500, but the original misdiagnosis of it by a ****ty shop named Cool Car Air in Columbus, GA cost me another $300 and fixed absolutely nothing. The rest of the work on the vette I even did myself, but nice tires are expensive.
Anyway, I budget my money to pay not only my current bills, but I also stash away $200/month for repairs, and a certain amount for each annual or 6 month payment that I have to make. Doing it this way makes paying for christmas gifts, and car insurance, new clothing each year, and all of those other predictable events easier when the time comes. I also budget myself $200/week for allowance (pays food, gas, etc...), and I allocate $300 for groceries and pet stuff (for my dog). After the bills, annual expenses, food, and allowance, I look at what's left and decide how much I want to save (put into stocks, and mutual funds) and how much I want to blow on fun and my car.
There is one caveat to consider, first. I have an extremely stable and secure job (active duty military), and an awesome low-interest (7.75%) credit card with a high limit. So, I can get away without having the often quoted 3-6 months of "emergency savings." My investments, although not exactly liquid also give me a bit of flexibility should something big happen. If your situation is a little less stable, then you should always build an emergency fund that you do not touch unless absolutely necessary, first. With all the money towards the Corvette, I have a $4,500 credit card bill to pay down, but my only other month to month bills are my rent and my cell phone. So, I should be able to pay that down to 0 over the next 3-4 months.
Anyway, the overall key is to handle your responsibilities first. Then, spend fun money afterwards. Putting yourself in significant debt just to spend fun money is the worst idea and a inevitable ticket to the poor house. Be smart with your money.
Chris
Anyway, I budget my money to pay not only my current bills, but I also stash away $200/month for repairs, and a certain amount for each annual or 6 month payment that I have to make. Doing it this way makes paying for christmas gifts, and car insurance, new clothing each year, and all of those other predictable events easier when the time comes. I also budget myself $200/week for allowance (pays food, gas, etc...), and I allocate $300 for groceries and pet stuff (for my dog). After the bills, annual expenses, food, and allowance, I look at what's left and decide how much I want to save (put into stocks, and mutual funds) and how much I want to blow on fun and my car.
There is one caveat to consider, first. I have an extremely stable and secure job (active duty military), and an awesome low-interest (7.75%) credit card with a high limit. So, I can get away without having the often quoted 3-6 months of "emergency savings." My investments, although not exactly liquid also give me a bit of flexibility should something big happen. If your situation is a little less stable, then you should always build an emergency fund that you do not touch unless absolutely necessary, first. With all the money towards the Corvette, I have a $4,500 credit card bill to pay down, but my only other month to month bills are my rent and my cell phone. So, I should be able to pay that down to 0 over the next 3-4 months.
Anyway, the overall key is to handle your responsibilities first. Then, spend fun money afterwards. Putting yourself in significant debt just to spend fun money is the worst idea and a inevitable ticket to the poor house. Be smart with your money.
Chris
yeah see ive already got the money i have to make due with like mob said. im pretty sure im just gonna take cash out every other friday, then i get paid on the other fridays so that will be my money. i find it interesting to see how everyone divides it up though.
I have nothing to buy for the stang now, so after my bills and weekly spending allowance, it all goes into savings, 401K, stocks, and other investments. To be honest, i want to save a TON of cash the last 6 months of this year as i really want to get into a house next spring/summer.
When it comes to managing money, funding hobbies etc...different strokes for different folks. Everything mentioned seems to follow the school of thought, if you have the cash and can afford it, buy it. If you don't have the money, you wait till you do. Period! Cc used for buying stuff for your hobby=BAD! I say hobby cause that's what building these foxes are, a hobby. With the exception of a few "special foxes" these cars are money pits. We put all this money into these cars because we all love them for more reasons than one. Cars are the WORST investment possible (next to boats). With the economy as bad as it is right now, and all the uncertainty that goes along with it..I have put the mustang on the back burner for the time being. I don't care how much money you make/have, or how secure your job is, dumping money into a mustang is not the smartest thing to do right now. Now if your mustang is your daily transportation and your clutch goes out, you have to fix it so you can get your butt to work/school...I get that! I don't always practice what I preach lol, but I do my best! Save money! There is nothing like jumping into your mustang and feeling with the seat of your pants what your recent monetary investment has done to your car. But at the same time, having money in savings, IRA's, stocks, bonds, (your pocket!!) feels better. Make a priority list, and put the mustang at the bottom (if it's a hobby)
67coupe
Founding Member
FastDriver hit the nail on the head.
First and foremost for me is the emergency fund. If you own a house, this should also be your first priority. I have a over 6 months expenses in savings and a couple more in checking. Next is 401K. At my age, 28, I have a lot of time for my money to work for me. Also, my situation is a little different from most. Mechanical Engineer, single, lots of discretionary income after bills.
I've actually used credit cards for all of my major modifications (for both the home and the car). They were all interest free for at least 1 year. I paid them off in full before the interest free period expired. I looked at this way. The payment fit perfectly into my monthly budget and it was a great way to increase my credit rating. Went from 700 when I bought my house to 780 now. There is nothing wrong with credit cards. You HAVE to read the fine print and be disciplined when using them.
I've just recently changed jobs and relocated. My house is still for sale, so even though I have plenty in savings, all modifications are on hold.
As soon as the house sells and I pick one up in the new town, 347 + 185's + custom cam.
Will hopefully go from a carport to a real garage!
First and foremost for me is the emergency fund. If you own a house, this should also be your first priority. I have a over 6 months expenses in savings and a couple more in checking. Next is 401K. At my age, 28, I have a lot of time for my money to work for me. Also, my situation is a little different from most. Mechanical Engineer, single, lots of discretionary income after bills.
I've actually used credit cards for all of my major modifications (for both the home and the car). They were all interest free for at least 1 year. I paid them off in full before the interest free period expired. I looked at this way. The payment fit perfectly into my monthly budget and it was a great way to increase my credit rating. Went from 700 when I bought my house to 780 now. There is nothing wrong with credit cards. You HAVE to read the fine print and be disciplined when using them.
I've just recently changed jobs and relocated. My house is still for sale, so even though I have plenty in savings, all modifications are on hold.
As soon as the house sells and I pick one up in the new town, 347 + 185's + custom cam.
Will hopefully go from a carport to a real garage!
credit cards are great if you use them the way they are supposed to be used. putting crap on them and saying you'll pay it off later when there is no reasonable way you can is insane. I prefer to use my 401k as my "emergency" fund. At 30(still relatively young) I am putting 30% of my weekly check into it as well as another substantial amount into my savings account which does not get touched. the rest of the money pays the bills and I am left with about 20-30 dollars each week that I can spend on beer or whatever the hell I want. If I want something for the car or anything else I save for it or work a little overtime.(I hate that word) if worse comes to worse and I lose my job or my house burns down I have the money in my savings acct and my 401k that I can use to float on until I get things squared away.
Shaolin Crane
Banned
1990Coupe
Founding Member
I opened an ING Direct online savings account for my car fun...I have it set up to automatically withdraw $150 every 2 weeks from my bank account, and since my checks from work are direct deposit on the same day I never see that 150 anyways, so I budget what I have, NOT including the 150. Gives you a small cushion to budget less than what you actually are getting...And I use the hell out of my credit cards, but pay them off nearly every month.
This one is my fave. Spend money on what makes you happy, you go to work every day for 8+ hours and bust your ass so you can come home and spend that cash on what makes you feel good. In the end, that is what money is for- spending.
Beasty306GT
Active Member
Im gonna drop 3-4 grand to swaping motors this winter then ill be done spending money on it for a while. So far everything ive done to it i have bought little by little ...i got over 10 grand into the car with buying it already..ive had the car 2 years now
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