02-21-2013, 02:06 PM | #1 |
Lieutenant
133
Rep 571
Posts |
How much Debt to income do you feel is a safe amount
My wifes not thrilled on the new m5 purchase beacuse its alot of money and we dont need a new car. I just really really want a new car
So how much of your total monthly income do you think is ok to have going outward. Including everything, house pmt, cars, food, insurance, misc fun items. I made a budget and we have to spend about 35% of our gross income to pay for all bills and general living costs, if i get the m5 it would be about 38% And some how i manange to spend another 50% on stupid crap and misc stuff Just looking for advice.
__________________
|
02-21-2013, 02:19 PM | #5 |
Lieutenant
133
Rep 571
Posts |
Ya after tax income.
__________________
|
Appreciate
0
|
02-21-2013, 02:32 PM | #6 |
Second Lieutenant
15
Rep 246
Posts |
Only you can figure that out. I would tally up your total static payments each month that you have currently (ie utilities, car payments, mortgage/rent, school loans etc.) Pretty much anything that you absolutely HAVE to pay each month. Factor add in anything that can be cancelled (like cable/internet). These are extra funds that you could get back if you absolutely needed to. Anything else is spending cash. If you feel that you can live comfortably while still making payments on all of the essential stuff, then you'll be ok. If you are spending more each month, then you will have to change some spending habits. If you absolutely can't afford it, then you'll know.
|
Appreciate
0
|
02-21-2013, 02:35 PM | #7 |
Colonel
1648
Rep 2,494
Posts |
I'm dedicating about 60% of my current monthly income to paying off accumulated debt.
Granted, I probably have a relatively low salary compared to you cats because I'm young, and I'm also trying to be very aggressive with paying my debts off, which is why I'm putting such a large chunk of my income towards it. My loan on my car is only 15% of post-tax income. Factor in insurance and it is 22% |
Appreciate
0
|
02-21-2013, 02:39 PM | #8 | |
Lieutenant
133
Rep 571
Posts |
Quote:
__________________
|
|
Appreciate
0
|
02-21-2013, 02:47 PM | #9 |
Colonel
440
Rep 2,136
Posts |
|
Appreciate
0
|
02-21-2013, 02:50 PM | #10 |
Enlisted Member
1
Rep 40
Posts |
I'm a financial advisor...
After taxes... First set aside $ for all medical expenses for the year (co-pays, deductibles, premiums, etc.) Second set aside at least 15% into long-term savings (IRA, etc.). More if you are saving for a house or to pay for kids' college. Live off the rest (disposable income). If you want to spend more on a car than on something else, have at it. I personally feel that my monthly capital cost for a car (depreciation or lease payment, as the case may be) should not exceed 1% of annual disposable income. ie, if I make $50k after taxes, savings and medical costs, then I would not buy a car(s) that depreciates more than $500 per month. If I need two cars, that's $500 total. |
Appreciate
0
|
02-21-2013, 02:53 PM | #11 |
Lieutenant
133
Rep 571
Posts |
Ya i do ok, but yet i manage to spent it all. The more you make the more you spend, its a fact of life
__________________
|
Appreciate
0
|
02-21-2013, 03:09 PM | #13 |
Colonel
99
Rep 2,323
Posts |
Some woman just dont understand these things, a man has to have its toys. Its like telling her that her engagment ring cost too much, I am sure they will disagree.
|
Appreciate
0
|
02-21-2013, 03:30 PM | #14 |
Captain
64
Rep 733
Posts |
My car + ins makes up 18.8% of my post tax income and everything else is 34%. Luckily I'm a single guy with no kids so I like to frequently splurge on mods and going out. Ah well, you gotta enjoy life right?!
__________________
2011 BMW 335i E92 Vermillion Red, 6MT [SOLD]
2008 BMW M3 E92 Alpine White, 6MT |
Appreciate
0
|
02-21-2013, 03:35 PM | #15 |
Jumping Jack Flash
329
Rep 1,692
Posts
Drives: 2021 X3 M40i
Join Date: Nov 2012
Location: California (east of Sacramento)
|
Pay cash. Forget about debt.
__________________
2021 X3 M40i: M Sport Differential, Adaptive M Suspension.
Previous BMWs: 1971 BMW 2002, 1973 BMW R75/5, and 2011 BMW 335d Previous Other Vehicles: '67 Cougar, '70 911e, '86 Jetta Diesel, '05 and '12 Foresters, et al. |
Appreciate
0
|
02-21-2013, 03:54 PM | #16 |
Lieutenant
52
Rep 471
Posts |
|
Appreciate
0
|
02-21-2013, 04:08 PM | #18 |
Colonel
245
Rep 2,705
Posts |
|
Appreciate
0
|
02-21-2013, 04:09 PM | #19 |
Brigadier General
90
Rep 3,731
Posts
Drives: BMW S1000XR
Join Date: Jun 2011
Location: Gilbert, AZ
|
Dont forget college tuition if your kids are young. My daughter's tuition (room and board) will total to $180,000. Thank god she will be done next year (4.5 yrs) and thank god my youngest will be on scholarship. That is where my M5 has gone GL.
__________________
BMWCCA member |
Appreciate
0
|
02-21-2013, 04:15 PM | #20 | |
Captain
63
Rep 628
Posts |
Quote:
You will get a lot of advice from the planner you are meeting with, so that is a good idea. Do some research on the fees he charges though. More than likely he is going to put you in an aggressively diversified asset allocation and rebalance every so often, all while skimming a 1-2% return off of your total return. You can easily keep up with this yourself with a quick read of a couple of books and keep that 1-2% to yourself, which can make 100s of thousands of dollars difference at retirement. If you want to dig into this more, check out this site http://www.bogleheads.org/forum/view...18bca9fddb5635 |
|
Appreciate
0
|
02-21-2013, 04:23 PM | #21 | |
Lieutenant
43
Rep 497
Posts |
Quote:
Yea making that kind of money, you should be going to a financial advisor. An advisor can't do much with my 70k a year. |
|
Appreciate
0
|
02-21-2013, 04:43 PM | #22 |
Captain
26
Rep 741
Posts |
I heard the last gen of m5s have some crazy (like $10k) repair bills once they get off warranty for silly little things... Yeah, you're covered for the next 9 months, but then what?...
__________________
Jet black e92 6mt 335xi:
18" BBS RGRs, KW v1, ESS Stage 2 flash, VRSF 7" FMIC, VRSF downpipes, JG Mods m-tech front, mtec V3 AEs, BMS OCC, hardwired valentine 1, p3cars gauge, amber delete, sport seats, factory oil cooler. |
Appreciate
0
|
Post Reply |
Bookmarks |
Thread Tools | Search this Thread |
|
|