Some financial advice for a graduating college student who has saved up for a new Tacoma :D

Put the $18 grand in an IRA (maxed out for 2017 and 18) put the rest in an index fund. Get your Tacoma loan through your credit union for 2% and your home when you find a good place to live.

Now you have 3 things that traditionally go up in value...a home, the market and a Taco.

 

Is everything you read right?

 

I have my degree in Finance. I worked as a Financial Advisor at Merril Lynch for a while. I'm no more qualified to answer this question than anyone on here. You need to know how to spend your money. If you aren't sure, you aren't quite ready to spend it. Keep researching until you KNOW that's what you're going to do, just have to find out how to do it.

This quote...

Is probably the best advice on this forum. I went from $5.75 / hour to $17.50 in 2004 for my first "real job". I bought so much crap I just paid it off 2 years ago. Happens to everyone if you're not careful, even someone who FOR A LIVING told people how to spend their money.

But here's the lowdown.

1. Keep things simple. Never buy food on an interest bearing item like a credit card. For that matter never buy anything disposable with anything other than a debit card of cash.
2. You'll find if you have too much stuff and too much debt you'll feel the weight of the world on you like nothing else. It's suffocating.
3. If you really want something, and it's somewhat expensive, envision yourself using it for a week if you have the patience. I've backed out of so many things because I realized I just wanted it, didn't need it.

Side note, best quote I ever heard while a FA:
"When someone experiences a want, it becomes a need."

4. A house isn't a good investment always. People tell you to do that because it's the middle class way to build a little wealth. A house also crushes you with interest payments up front if you don't put down enough. Not to mention PMI, property taxes...and most importantly as a young person, it's not very liquid. Say you get a spiffy job off in another city. Welp, prepare for a hassle of selling a house, realtor fees, etc. Hopefully you'll make enough in the short while you've had to house to cover that in equity, but you likely don't, and you didn't make much headway with principal because of lopsided interest payment.

My point: Do what you want, but know that you'll never likely be in as strong as a financial position as you currently are RIGHT NOW in another other part of your life unless you realize that single fact now, and use that position to keep yourself in power. Getting back up the mountain is a BITCH.

 

These trucks are pretty bulletproof in the 1st and 2nd gens. Can’t speak for the 3rd gens, just know what I read here lol. Anyways I’d consider a few more miles. If it were me

I made the mistake of putting my eggs in one basket straight out of school. House + plus 2 brand new cars that cost over 40,000. I’ll be 25 in may but my house is now paid for. As for the cars, I sold one and took a huge loss. Needed a personal loan to pay it off. The other one is my wife’s and we’re in the process of having it bought back for lemon law issues. Now having said all that my credit score looks fantastic but it was beyond tight for us. We had to buckle down and just barely scrape by some moneys. Plus now I’m a couple weeks away from turning in my 2 week notice to go to electrical lineman school

I wish I jhad listened to stuff like I this thread when I was straight out of school lol

 

Unless you’re making stupid money, having 80k in cars and paying off your house in 4 years is literally impossible. Im two years out of school, make great money and I’m definitely not even close to that.

Anyways, buy something cheap. I’m car poor right now and I can’t wait to get rid of my bmw. Buy a house and build equity, worry about a nice truck later.

 

Being 22 is awesome, as long as you don't have a wife, kids, mortgage, and endless other crap that some have at that age.... ok before the shitstorm starts hear me out...no one on this forum knows your goals, living situation, future prospects as far as job longevity....if you plan on staying in the same town you grew up in, buy a house ( some people just never leave or want to)...if you don't know where you want to live or where you'll end up rent an apartment/ townhouse/ or get a roommate... as far as truck go find the best you can even if you spend the whole 18k remember its just money and you can't take it with you and some people don't make it to retirement age...fact of life...retirement and IRA's and investments are good and worth it but if it were me to do over again I would spend $10-$12k on a truck find somewhere to live ( apartment close to work as i could manage or stand) furnish said place to live THEN invest the rest...ultimately its up to you but life lessons suck in the worst way and don't be in a rush to be tied down but stuff that can be obtained later in life...rent a place, travel the world knowing if it breaks you don't have to rush home and fix it or save for it...enjoy life man you only get 1 go at it....

 

I getting at if you have a buffer don’t blow it. We weren’t paying a huge house payment and ended up vehicle poor because of it


Never tried to imply I was making awesome money. Not my intended point. It is possible however when you go to school on scholarships. I didn’t pay a dime to go to school. The money that was set back for me to go to school on was 35,000 courtesy of my parents. 35,000 cash + Borrowed 20,000 to finish the house. 4 yrs later the 20,000 loan is paid off. Own the house and acre of land free and clear. Now granted I don’t have a huge house but it works for me and wife

 

Now that makes sense. My parents paid for my college, so I don’t have student loans. Just CC debt and car payments. 55k for a house? I’m looking at 250k minimum to find something even remotely livable for me.

 

Hold off buying a house; yes that was not in your original post. Mortgage ties you down (~ 5-7 years) and seriously limits your options. Get a second gen; pay all in cash. You will need to add auto insurance and taxes (sales and property).

 

It’s a little house for sure. Right 800 sq ft lol but a good starter house. The housing market around here is no where near as steep as Dallas is. Just by guess

 

It was just a joke.

 

2 words...Tiny house. Its the RTT of homes.

 

Dude... I want this.

 

No, that means you can’t afford it.

The only scenario this makes sense is if you get 0% financing

 

+1. A house isn't always the best answer. Can't take a house with you and a Tacoma will take you any where.

 

I got 0.9% my parents got 2.9%.

They did half cash, and have north of a million in there 401k, I guess they can’t afford it either huh?

 

@BakingEggs sounds like you should be asking your parents how to do it best instead of a bunch of people on a forum....sounds like they have the best part of life figured out..good luck bud, by the way whatever truck you end up getting post it man

 

Are we talking about your established parents or are we talk about you, a new graduate?

Listen dude, you asked for advice. You don’t have to take anyone’s advice of you don’t like it. At the end of the day, it’s your money, you can do whatever you want with it. Sounds like you’ve already made up your mind what you’re gonna do since you apparently have life figured out. Good luck bro.

 

Not the case, but if you’re going to come at me with a blanket statement I just felt like
I had the right to counter it.

Won’t be buying a new Tacoma, parents say do it, I feel like my money is better put elsewhere.

Thanks for the advice.

 

Let me ask for advice, and then when someone gives it, be an ass about it. Makes sense.

Then again, I see you just joined the site, so you have lots to learn.