Quote:
Originally Posted by JDMDreams
I just ran the math $600000, 30y at 5.5% is $3,383.44 a month, when rates goes down to 4.25% it's down to $2,938.61. also switch your payments to weekly if you're not already on it. You should save at least $2-3xx a month vs monthly.
|
His problem is not his mortgage. He’d be paying more in rent if he were to move out, his part of the mortgage is 33% of the $600K. I’m 100% with Gerbs on this, you need to work on your financial literacy like ASAP don’t just shrug it off. I’ll break down your expenses with guesstimates:
Gross income - $60K, after taxes net about $3.5K a month give or take a couple hundred.
Expenses:
- mortgage $2k (being generous, based JDMdteams it should be $1.5K for your portion)
- Car payment $500-$600
- Car insurance $200
- Gas $300
Just the total of the above expenses is about $3K. That leaves you with $500 a month for food and everything else. You’re spending 33% of your net income a month on car expenses, not including maintenance and car mods. That’s not it my man. It doesn’t matter if you think you deserve it or not. You deserve to take transit at that point let alone a $40K car. The car owns you at this point and you don’t own the car.
I’m pretty sure you’re starting to slowly accumulate credit card debt living on $500 a month with $90 in your bank account. One major expense and you’ll be stuck in a snowball of debt.
If you really need a car, there’s no problem buying a Honda Fit, those are capable track cars. You can reduce your car expenses by 50% if you do that. Wouldn’t it be more rewarding driving a slow car fast at the track. My friend is literally a dentist and makes 3x your income, he drives a 1999 Accord and everyone gives him shit about it. He doesn’t care, the people judging him aren’t paying his bills.
You need to take control of your finances now. Increasing your income is a good start but not your solution. 3-5 years from now when you’re making $100K+ and your cars older, “I deserve a nicer car, 2030 M3”, “my partner wants this”, “I can’t live with my parents anymore, I need to buy my own place”, and so on. You’ll let life style creep take over.
Also one last note. Don’t write off travelling in your 20s. Travelling with your closest friends in your 20s is something you shouldn’t take for granted and will be hard to replicate when everyone’s older and have their own commitments. Good luck man, just take responsibility of your finances and stop having excuses for yourself of you’ll find yourself in a worst situation in your 30s.