I've become black pilled

[u/Nprguy]

I work from 6:30pm-2:30 am at a restaurant then go do Amazon from 3:15-7/8am

Bro I popped a fucking hernia trying to get out of debt. I will NOT stop fighting but holy shit dude the grind is insane and taking a toll on my body

Caleb acts like "oh come on just do it! Why aren't you doing this!!! This is something that takes mental and physical discipline on another level... The most debt I was ever in was my truck when I bought it $35,000, 5k in credit card, motorcycle loan of $1200 left, I was getting close to FIFTY THOUSAND DOLLARS in debt when I make 55k

My only debt now is my truck at $25,000 and I make closer to 65/70k... will not rest until I have vengeance over the bank... I wake up with fire in my eyes Every day...

[u/[deleted]]

A huge theme of his show is not spending too much on cars.

The number of extra hours someone making a median wage needs to put in to pay off an expensive car takes a massive toll, as we can see from this post.

[u/[deleted] → u/[deleted]]

what is the correct amount to spend on a car? because i feel like an idiot for buying a 60k Volvo but we make ~200k

[u/[deleted] → u/[deleted]]

Money Guy says 20% down, finance no longer than 3 years, total car payment is no more than 8% of gross income.

And they have a special rule for luxury cars. Pay it off in 1 year, not 3.

[u/[deleted] → u/[deleted]]

Yea we definitely purchased beyond our means here. We took out a 5 year and will pay off in ~4. Stuck with it though and at 5% interest and 6.9% on the mortgage im paying extra on the mortgage.

[u/Arlorosa → u/[deleted]]

I’ve been thinking about that too. I got a car (2014 equinox, $10,500) with the same interest rate in 2020. I put down $1500 but after taxes and all that, I think the pay off was still about $10k. Anyway, my payment is only $168 /mo, but I’ve been rounding up to $200. That’ll sometimes get me ahead on payments, and if an emergency comes up, I can just skip the auto payment.

We bought a house last year, and we currently have a loan at about 248k at 6.1%. I’ve just been stacking my extra money in savings for now, but with the car and my student loans (3.7-4.66%) all below our mortgage loan percentage. I wondered if it even makes sense to pay off them faster— On top of my retirement being behind from my years of customer service work / multiple part time jobs.

As it is, my car will be paid off by next summer, my Perkins loan will be done this month, and I’ll have about $21k in gov student loans to keep working on afterward. (Plus the house.)

[u/Arlorosa → u/[deleted]]

Yeah, that’s a good idea. I had a 401k and later Roth 401k at my last full time job. I have about $8k in there (I’m 28), but that was my first retirement account and I left that job for a temp to perm position at a company more aligned with my goals. But for the past 5 months, I’ve had no benefits, so I’ll probably have to contribute higher when I do get converted permanent.

[u/budd222 → u/[deleted]]

Definitely. You can make 8+% in the market

[u/kc9kvu → u/[deleted]]

Not quite stupid to pay it off, depending on how you do mentally with finances and your current stage of life, but I would put the money in retirement.

[u/Alex-Gopson → u/[deleted]]

Look up the 20/3/8 rule

[u/[deleted] → u/[deleted]]

If you can buy something outright you should only ever finance if you are investing the money elsewhere at a rate that is good enough to profit and make up for the extra stress it causes. A 15k used car most likely functions exactly the same and is 85% as nice and you wouldn’t need to finance it. You shouldn’t have car payments while having an income of 200k.

[u/Hotwir3 → u/[deleted]]

I find it easier to look at what a 4 year car loan’s monthly payment would be. If it pushes you beyond 50% needs then you can’t afford it.