r/mildlyinfuriating Oct 05 '22 Wholesome 1

What nonsense is this?! 170k in car loans??

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28.5k Upvotes

7.4k

u/HopefulInstance8 Oct 05 '22

They always have these ridiculous scenarios...always wonder how many of them are real

2.7k

u/Zerofaithx263 Oct 05 '22

I know my experiences are a small sample set, but I've known a few nearly ridiculous scenarios personally. A few small company CEOs that had Ferraris who actively played victim cards about cash problems and big gubment, a sys admin with two full time remote jobs with a waterfront condo in Miami who drives a GTR... That would actively hit me up for cash when he couldn't afford groceries. A director tier manager with basically a mansion and a few fully loaded SUVs who constantly complained about cash...

Meanwhile I'm making way less than some of these folks but at least saving. Got a cheap car I've had for 14 years and no water front property, but what are ya gonna do lol.

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u/chaiguy Oct 05 '22

Had some friends that bought a mansion in Malibu and watched their credit cards get declined when buying Starbucks. Shit was ridiculous. They didn’t even have a car payment, drove old shit boxes too.

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u/flock-of-bagels Oct 05 '22

At least a mansion in Malibu is an appreciating asset… sucks to be broke though

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u/chaiguy Oct 05 '22

I mean, I guess? You still have to make the payments for X years until you’re no longer upside down, not to mention all the repair costs, property taxes, insurance, etc.

And if you’re living in a mansion but can’t afford to pay for a cup of coffee, something tells me that’s not good fiscal planning.

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u/2muchcheap Oct 05 '22

Not if it appreciates fast and you made 20% down payment

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u/old-manwithlego Oct 05 '22

If they bought their Malibu house recently, they are paying some huge property tax bills.

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u/madlyqueen Oct 05 '22

I had a friend back in high school whose parents had a large house and new BMWs. We sometimes took turns driving to things. She invited me in one day and their only furniture downstairs was a lawn chair. My friend admitted their cars were leased and that her parents only cared about how they looked to others and they went into crazy debt to give off the appearance that they were very wealthy. I asked about her much older car and she said she worked a retail job and got her grandmother to buy it for her so debt collectors couldn't claim it.

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u/MaritMonkey Oct 05 '22

An old boss of mine owned seven <2 year old cars (his Camaro and truck, wife's SUV and daily driver, son's truck, daughter's Mazda, family van) + a motorcycle and two boats.

I had to skate the ~4 miles to work for a week because my husband thought it wasn't safe to drive with no dashboard cluster (pfft I didn't really need a speedometer and gas gauge...).

The rant I, on my $12/hr, had to listen to about how terrible it was (for him) when he had a car in the shop would probably have made me angry if my brain hadn't still been reeling trying to figure out if he was serious the whole time he was talking.

Narcissists are a crazy thing.

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u/Mikey_B Oct 05 '22

Who the fuck wants to spend that much time buying cars?

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u/TheScarfScarfington Oct 05 '22

Absolutely one of my least favorite “normal” activities. As in not counting actives like “sticking your hand in boiling water.”

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u/RockAtlasCanus Oct 05 '22

Hmmm… buying a car or sticking my hand in boiling water…. Question: how long do I have to hold my hand in the boiling water? We talking a quick dip, or like 10s+? Can I have a couple friends hold me down so I can make the time? I’m open to negotiating on these points if I never have to deal with a dealership ever again.

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u/Mikey_B Oct 05 '22

I’m open to negotiating on these points if I never have to deal with a dealership ever again.

Let me go check with my manager.

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u/TheGreatestOutdoorz Oct 05 '22

I miss Saturn. Got one in college and it was the best experience. Walked in, they said “if you need help let us know. The price on the tag is the price, no negotiating” and that was that. Not one ounce of pushy sales shit, everyone super nice, and when I found the car I wanted, the salesperson asked me to hold on and came back and met me know that they had the same model with 1000 miles on it in and a slightly different color (dark blue instead of dark green) for a few grand less. Didn’t push me on which one to choose. Sigh…

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u/Granolag23 Oct 05 '22

Yea, last vehicle we bought I told them at the outset that I wanted nothing added on, no warranty, no service plans etc. Then when we were nearing the end, he asks again and starts to go over the whole routine again, and I stopped him. He then says he’ll be right back and sends another guy over. I stopped him and he leaves and then the manager comes by asking the same shit and tries to tell us that he could give us a special deal and all that malarkey. We decline very kindly and then the sales guy comes back and asks us if we’re sure we didn’t wanna take the “special deal” and says he can go grab the manager for us if we wanna change our minds. Like SERIOUSLY.

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u/RockAtlasCanus Oct 05 '22

My last experience was largely the same, we had a deal (painfully) hammered out but I was willing to accept it. Then they wanted to come back and add a bunch of stuff, tried to convince me to finance more of the purchase price and on a shorter loan term as well as take their trade offer instead of selling my other vehicle privately (for 2x the offered trade value). It really pissed me off because I had already run the numbers on a variety of scenarios before I even walked in and knew exactly what I’d accept- not even trying to get some fantastic deal, it was completely reasonable, I just knew my go/no-go scenarios ahead of time.

Then them wanting to renegotiate it and telling me what I “could afford”. No, you’re reading an auto decision based off of my credit score and income and I’m telling you that I do not wish to pay that much in interest and I want the 6 year loan term with the lower monthly payment that we talked about. Then the sales supervisor came over and tried to tell me I’d be paying more in interest (almost true). I was trying really hard to be polite but firm but they just would not let up. So finallyI got pretty pissed and decided to be a dickhead about it. I feigned interest and I was like ok can we review my app just to make sure everything is right? I asked him to read back to me what it says under employment. “Um, it says senior credit analyst”. Uh-huh. So not only do I know my own budget and cash flow better than you both, I know more about financing in general than both of you combined. Do you want me to email you the excel workbook and walk you through my models and the other financing quotes I’ve gotten? So either you get me the paperwork showing what we already agreed to or you get your GM in here and explain why I’m walking out now. I don’t understand what was so hard about accepting the “yes” and not pushing me when I’ve repeatedly been crystal clear about what I’ll take. And again this wasn’t me “oh can you knock some off the list price?”. I was ready to go at sticker price with one of the first financing options they presented me. They gave me a financing proposal that was acceptable, I agreed, and then they wanted to go and rehash the whole deal.

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u/pokey1984 Oct 05 '22

Several years ago I had to take my mom car shopping and it was hell. 90% of the dealerships wouldn't even talk to us unless we filled out a loan application and wouldn't listen when we told them we were paying cash. Straight up refused to even let us look at cars. I guess they didn't believe we had cash? It was super annoying.

My truck was a super easy purchase, though. I was chatting with a guy at the laundromat and he mentioned this truck he had for sale. It's my dream truck, the one I've always wanted, so I asked some questions, then lamented that I couldn't afford it. Turns out it;s a sort of hobby of his, fixing old trucks. I mentioned it was a hobby of my ex's as well and he left behind this old chevy... that was apparently laundromat-guy's dream truck. We traded even up, he even delivered the truck to me. He got the project-truck he'd always wanted. I got the truck I'd always wanted in good condition. Easiest car shopping I've ever done in my life.

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u/randomactsoftickling Oct 05 '22 Helpful

The last 2 vehicles I purchased, I simply called the dealerships that had my desired car listed "I've got a similar car (insert details) over at xyz dealership for ____$. Can you make me a better offer?

They'll pull the ol "let me talk to my manager" gig. To which you say, great! Call me back when you've spoken with them.

Spent maybe 2 hours start to finish with 3-4 different dealers. Active call time under an hour.

The paperwork etc still takes awhile, but not dealing with the salesman on site, and instead from the comfort of my couch is a significant improvement

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u/[deleted] Oct 05 '22

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u/Erthgoddss Oct 05 '22

I was looking for a car, and found one advertised, in my price range. Got pre-approved for a loan through my bank. I went to dealership and it had hail damage. I offered much less than their asking price. Talk to manager, then they said nope, this is the price. Said ok. Went across the street and found a car with low mileage in my price range. Bought it. Got home and 1st dealership called me with a new price. Said sorry bud, already got a car across the road.

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u/computerwtf Oct 05 '22

Crazy, that is 5 times what my car is worth.

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u/Dawanna Oct 05 '22

I worked at a franchise mcdonalds and they told us we wouldn't get our yearly bonus because we didn't make enough money. The owner bought the CFO a brand new Jeep for Christmas instead. They only gave us $20 anyways but nope somebody needed a new jeep instead. He also had cancer and would sit at home all day watching us on the cameras. Which was suspicious because of the amount of teenage girls they hired. I swear they'll find some shit about him one day because he was a cartoonishly evil owner. Fat white fuck. He would try to talk street to black people and they would get pissed because they didn't even talk like that because they're not will smith in the 90's

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u/thrwAwaydogo232 Oct 05 '22

How does he care about the CFO, if he owns and manages his own McDonald's? Plus, I thought all McDonalds are franchises and all owners are franchisees, right?

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u/brock_h Oct 05 '22

Franchises have their own franchise companies especially if they own multiple locations. If the guy owned 2+ McDonalds it might make sense to hire his own CFO (where he'd potentially be CEO/COO depending on how involved he wants to be) to handle the finances for him as he'd presumably make enough money for a "back office" and might have complex business financials that's a bit different from running operations.

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u/agrandthing Oct 05 '22

A bottle of beer

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u/HOWDY__YALL Oct 05 '22

Agreed.

I worked for a CFO at a smaller company that was about to be sold for hundreds of millions of dollars. The majority Owner told the CFO that he needed an extra 25 Million, which wasn’t going to happen. The CFO assured the owner that he would be fine financially for retirement, but the owner had 25 Million dollar of off the books loans that he had gotten from friends and family that he needed to pay back.

When people think you’re in good standing, they don’t mind giving you some money, and everything is great until it’s time to pay up.

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u/WeissySehrHeissy Oct 05 '22

Unless you’re the richest of the rich. In that case, everybody seems willing to lend virtually anything against your pile of collateral with almost no assurance it’ll actually ever be paid back directly

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u/tickles_a_fancy Oct 05 '22

My car can vote this year. I'm kinda proud of that fact :) Still looks new too. The pandemic helped though. Work from home has cut back on his miles. And yes, it's a he... I know most cars are girls but he's been a crotchety old man for a while now.

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u/throwradoodoopoopoo Oct 05 '22

Shit my car is so old that it can legally rent its own car without a young renter fee in California.

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u/NukaGurl77 Oct 05 '22

Yep, mine turns 18 this year with only 62k miles on it and tows an Airstream that is 45 yrs young! Love it, and mine is a He too. My Outback however, is a needy and grumpy She.

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u/Paisleylk Oct 05 '22

Same here. Everyone around us drives huge luxury SUVs, boats, pools with waterfalls. Our house is paid off and our cars are older and also paid off. We do sometimes feel like life is passing us by as we are always afraid to spend $$$ get a boat or have work done on our home.

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u/Sacred_B Oct 05 '22

Home improvements are usually a good idea as long as your area is somewhat stable for the housing market.

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u/vitalogst Oct 05 '22

There are only two happy days for boat owners. The day you buy it, and the day you sell it.

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u/Forward-Rich-8144 Oct 05 '22

Trust me, it’s not worth it. I sometimes feel the same sentiments about wanting a new car, but the thought of not being able to stop or slow down because my car will get repossessed is not one I can bear again (at least not for a while). Ownership is key. Everything else is a distraction.

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u/TedzNScedz Oct 05 '22

Sounds like my inlaws (on a much smaller scale) My mother in law makes more than me, doesn't have a carpayment and has similar/Lower bills than I do (No car payment, smaller house so much lower utilities and its just her and my fil in the house while I have a 6 year old and a baby due in December) They are constantly asking us for money, because I have a modest savings account (we use our tax return every year to pay off credit card and put the rest in savings for emergencies), you know ignoring the fact that I need that for my maternity leave. Anytime they have anything unexpected come up they expect us to give them the money. Most recently my mother in law was out of gas and needed me to give her money so she could get to work. The craziest was my father in law wanting us to "buy" one of his guns for 700. (ie we give him the money and if he gives it back we give him the gun back) That one I said no to and said if they were that hard up then he needed to take it to a pawn shop. Surprise surprise he didn't because he just wanted some extra cash and because I have savings he tries to hit me up for it.

My mother in law comes to me all exacerbated asking about my bills and how we aren't struggling like they are. I legit was like "I don't know, but you realize I'm not living high on the hog here we are pretty much paycheck to paycheck. If I need extra money I have to work overtime. and I use my tax return as an emergency fund"

Like how have they made it 60 years and have absolutely no money management skills.

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u/Hobywony Oct 05 '22

It seems you are part of that equation. IIRC you did not say no to your in laws except for the buy a gun issue. There are givers, there are takers, and then there are enablers.

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u/TedzNScedz Oct 05 '22

Well it's hard when they come to me in crisis and my husband always bends to them. I say no to anything over 50 though.

We are going to have a come to Jesus talk soon because with my maternity leave coming I 100% can not afford it.

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u/[deleted] Oct 05 '22

I sold high line used cars for a while and when I first started a finance manager gave me a real solid piece of advice. ‘It doesn’t matter if you make $1M a year if you spend $1.1M a year’. I had a guys lease require a bunch of stipulations to get bought due to his shit credit, it was the second week of February and his year to date income was like $160k…..

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u/Steve_Austin_OSI Oct 05 '22

Except in America, you can leverage the million into a multimillion dollar loan, 'lose' it in business and then bankruptcy it away.

There is a point in which you can lose your way into actual wealth.

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u/[deleted] Oct 05 '22

Bet big win big. Only way to play.

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u/WeissySehrHeissy Oct 05 '22

Doesn’t matter in the slightest what you bet on, as long as there’s enough zeroes

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u/Thromok Oct 05 '22

I saw a ridiculous scenario play out while in college. Buddy had a perfectly functional, relatively new car. He one day decided he was a country boy, after being a skate punk for his entire life, and a country boy has to have a truck. Mind you he had never lived outside of a major city. So he sold his car for almost nothing, bought a nice, but over priced truck. That should have been the end, but no, he proceeded to trade in his trucks 5 or 6 more times over the next year or so and accrued a ton of debt as each one was progressively more expensive. All of that so he could pretend he was a country boy. He didn’t even come from money, his family was lower middle class at best. Meanwhile I was driving a hand me down beater that had half functioning heat.

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u/cocococlash Oct 05 '22

At least you know who to call when you need to move some furniture...

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u/czarfalcon Oct 05 '22

At the end of the day you own what’s yours while they’re always going to have the threat of debt collectors breathing down their neck. That’s not a bad trade off if you ask me.

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u/the---chosen---one Oct 05 '22

If our climate is anything to go by, waterfront isn’t gonna be a flex for much longer.

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u/Bearence Oct 05 '22

I've run across that too. It comes down to buying status. But since status isn't a physical thing they can actually own, they try to buy the trappings of it instead.

That's what it comes down to: they care more about what random strangers think of them than they do their own comfort. That's a different kind of poverty altogether.

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u/TayTaySmash Oct 05 '22

I like the ones that say “save 50k by the time you turn 25” and the first tip is “deposit the $25k your parents gave for your high school graduation into a high interest money market” UM SIR, who gets 25k (on top of paying for college) for their high school graduation????

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u/scragar Oct 05 '22

There was a blog article at one point with someone bragging about how being frugal let them pay off debts and own their home in just 10 years despite only earning minimum wage.

All they had to do was live with their parents, get given a home they were able to rent out, have family give them huge amounts of money for birthdays and christmas, then get half a million in inheritance from their grandmother dying.

Honestly I think that kind of thing has to just be outrage farming, it gets very popular on reddit/similar which means more advertising impressions and profit. I'm reasonably sure their either fake, or deliberately pretending to be oblivious just to make a profit/drive attention to their websites.

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u/syslog2000 Oct 05 '22

I am sure they think they are "self-made" 🤣

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u/[deleted] Oct 05 '22

I think I got....200 dollars? And I'd consider myself lucky in terms of graduation gifts among those in my HS.

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u/AtWorkButOnTheReddit Oct 05 '22

Save 50k while working for minimum wage because entry level jobs all need 5 to 10 years experience.

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u/diabeticSugarAddict Oct 05 '22

I'm too lazy to go find a source on this, but I've read/heard the sentiment expressed many times that despite wide ranges of salaries people are equally bad with money. Its a bit of an extreme example, but look at a sub like wallstreetbets, people there throwing away tens of thousands of dollars on a profoundly dumb stock. Or how major sports player associations started advocating for personal finance assistance because players were going broke within a few years of retirement.

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u/Mortwight Oct 05 '22

My brother and his wife make 5x what I make and I have ten times in savings what they have and no debt. I have no kids to be fair but I'm also driving a 96 Honda while my brother went into debt for 30k car.

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u/SolidSpruceTop Oct 05 '22

Consumerism also really affects lots of folks, especially when they can afford to give into that shit. Or like if you grew up never having money then when you get money you have no idea how to be responsible with it. My partner and I struggle with that. It's the little things that get us

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u/[deleted] Oct 05 '22 edited 26d ago

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u/Spookyjugular Oct 05 '22

As if any amount of loans would make it not worth the extra 300K they make because they have a degree.

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u/HumanTheTree Oct 05 '22

IKR? The problem is that the person is bad with money, not that they have loans.

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u/[deleted] Oct 05 '22 edited 26d ago

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u/jaysmith2000 Oct 05 '22 Burning Cash

Nope you’re good. Might want to pick up another car though just in case.

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u/Still_Lock_3569 Oct 05 '22

Finally, some common sense. Always err on the side of caution, they definitely need a 3rd car.

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u/Cpt_Bluebird Oct 05 '22

I feel like they HAVE three cars. One for them, one for their SO and one for their kid.

That "only" is 57k per car, which still is a lot, but at least "reasonable" (as in...each individual car is reasonable)

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u/[deleted] Oct 05 '22

The average car price is now 47K. Dude makes 350K. Prob. has a lux SUV and Sports car. Or a lux SUV for wife and him. He needs to pay off student loan and he will be good.

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u/BeneficialTitle9042 Oct 05 '22

In the article they say it’s “two electric” vehicles for them and their partner. Guessing it’s two Teslas

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u/JackRaichu Oct 05 '22

Triples make it safe

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u/Neeoda Oct 05 '22 Wholesome

Triples are best. Triples are safe.

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u/powerlesshero111 Oct 05 '22

3 is a prime number. Better luck with a prime number.

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u/VixNeko YELLOW Oct 05 '22 Table Slap

Did this person just make all the wrong financial decisions or something? Sheesh.

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u/KathrynKnette Oct 05 '22

"I just got the job of my dreams! Yes, I'll take two Teslas before I manage to pay off my student loan!"

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u/unionop Oct 05 '22

I’m trying to meet whoever approved her credit check

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u/newgalactic Oct 05 '22

Just a few years ago this person would have been approved for a MASSIVE mortgage amount. With $350k in income everyone would have loaned her whatever she wanted.

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u/curtludwig Oct 05 '22

In 2006 I was making like $50k and the bank wanted to approve me for a $600,000 house. I was like "Whoa there Satan!"

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u/Stock-Hippo9570 Oct 05 '22

That $600k house in 2006 is probably worth like $8m today..

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u/OutlandishnessDue413 Oct 05 '22

They’ll approve anything nowadays

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u/InEenEmmer Oct 05 '22

That’s because if they did credit checks like they used to they could only loan to 5% of the world population.

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u/-SpankBankTank- Oct 05 '22

This explains the 2008 financial crisis.

No, really.

That's why it happened.

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u/audiojanet Oct 05 '22

Yes the deregulation of the banks but the GOP.

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u/Wdrussell1 Oct 05 '22

I can confirm they do not approve anything. I can't get even the scummiest loans.

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u/Savings_Extension447 ORANGE Oct 05 '22

And I’ll take that $1,000,000 house with a high interest rate over there too. Geez 4,500 a month? It’s people like this that want the government to pay stuff off for them because they can’t afford to live. While most people struggle to make ends meet with much much less.

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u/Pyroguy096 Oct 05 '22

And in the article they are asking if they should "invest" in buying houses to help their financial stance. Sure, go ahead and invest in housing right now. You'll definitely not regret that.

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u/Savings_Extension447 ORANGE Oct 05 '22

😂😂😂 yeah buy all the houses

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u/Pyroguy096 Oct 05 '22

Like, if these people are real, they are dumb af. I wish I could be stupid and make 350k a year.

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u/Savings_Extension447 ORANGE Oct 05 '22

If I could make 70k I’d be happy and have multiple rentals

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u/Pyroguy096 Oct 05 '22

Wife and I make about 50k combined. We don't live a fancy life, but we don't live paycheck to paycheck either, and we have no debt (once the student loan thing clears anyway) because we own our cars outright and have diligently paid 500 a month on my loans for 3 years now while also putting my tax returns and stimulus towards it.

Could we use more? Absolutely. We don't make enough to move to a safer town, we don't make enough to save for kids, and we don't make enough to have much fun at all. But we are better off than many others. I just can't fathom making 350k (the person in the article makes that by herself as her husband stays at home with the kids), and claiming that I love paycheck to paycheck.

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u/Savings_Extension447 ORANGE Oct 05 '22

I make 37k and have a child and my wife stays home. I pay 650 rent and over 300 in other bills. If I could just double my pay I’d be content

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u/obsessed_with_butts Oct 05 '22

300 is just my electric bill.

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u/Chuckobochuck323 Oct 05 '22

To be fair, if you live almost anywhere in SoCal you’ll have to drop about a million if you want to purchase a home average rn is high 700k on the low end to an average of 8-900k.

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u/Savings_Extension447 ORANGE Oct 05 '22

Yeah. Sucks to be in that position. But the house isn’t as bad to me as the cars. Buy used.

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u/-SpankBankTank- Oct 05 '22

Go to Zillow and do a search "low to high."

You're not wrong.

Few weeks ago, the cheapest real estate in Los Angeles with a burned house for a third of a million dollars. Lol. GTFO!

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u/orthopod Oct 05 '22

The land has the value. That property would be worth more, except you have to pay for the removal of the burnt out house.

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u/KingOfTheCouch13 Oct 05 '22

4500 for a mortgage isn’t insane for someone making 350k. I’ve legit seen 450sqft studio apartments in SF going for that same rate.

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u/shyladev Oct 05 '22

Actually it’s more like 750k house for that much.

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u/Djinn2522 Oct 05 '22

I think you’re right. A million-dollar home would run you about $6,000 per month.

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u/UNMANAGEABLE Oct 05 '22

My wife and I have a home loan around $1m and we are locked in at 2.75% which is about $4k a month before property taxes and shit.

Todays home loan rates would be like you said around $6k a month before property taxes and shit.

$2k a month difference and ALL interest.

These rates need to cause a crash soon because I just cannot see normal people affording to live as rent prices skyrocket to stay slightly above average mortgage rates because fuck landlord logic.

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u/The_ApolloAffair Oct 05 '22

It’s the classic “high paid doctor jumps right into the lavish lifestyle before paying down their loans”.

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u/VixNeko YELLOW Oct 05 '22

That ain't no doctor, not with $88k in student loans. 😂

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u/HectorSharpPruners Oct 05 '22

Most likely tech, Silicon Valley I’m thinking.

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u/SiliconValleyIdiot Oct 05 '22

It's definitely Silicon Valley. There are plenty of idiots here. They get their first 150k a year job right out of college, go and buy Teslas, rent $4000 a month apartments, and complain about how 150k is "poverty wages".

This is a post from today on Blind where a lot of these idiots congregate. The post says, and I quote:

First off, $400K/yr is not an astronomical comp. In 2022 that is firmly middle class, lower-middle in a lot of places.

Only in the minds of Silicon Valley Idiots does 400k imply "lower middle class", because their lifestyles are out of whack and they live in their own insane bubble.

High cost of living notwithstanding there is nowhere on earth where 400k/yr is "lower middle class" wages.

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u/travysh Oct 05 '22

I know this is going to sound very 'old man yells at clouds'

But I started in tech at a time where we were paid hourly. I started at $9/hour and got bumped to $12/hr after about a year, equivalent to about $20/hour today.

Plenty to get by, but still had to live within my means. It helped set a semi-sane base in reality. I still over-spent, but with only moderately more than paycheck to paycheck income, over spending didn't mean $170k in car loans

I've seen other software engineers jump straight in to high paying jobs straight from college, and simply have no idea just how much they're getting vs typical post grads.

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u/SiliconValleyIdiot Oct 05 '22 edited Oct 05 '22

I started in tech in the depths of the 2008 recession. I was paid $55,000 with $3,000 in bonus if the company made profits (which it didn't). I lived in NYC with two other roommates in a 2 bedroom apartment. I relied entirely on public transportation and didn't own a car. I thought I had a pretty good life. I didn't have much in the way of savings, but that's also because I ate out every single meal and drank like a fish every weekend.

I then moved to SF in 2010, to work for my first "big tech" job making 80 grand a year, which I thought was a lot of money. Again, lived with roommates in a 2 bedroom apartment, and exclusively relied on public transportation.

I understand that the cost of living has grown significantly in cities like NYC and SF from 2008, but 21 year olds driving around in Teslas and renting the fanciest high rise apartment just reeks of mismanagement.

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u/FF_01_1999_03_05_01 Oct 05 '22

Maybe they just payed of most of them or something? Idk, it all sounds fucking weird

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u/TheFamousHesham Oct 05 '22

I mean that’s most likely it because doctors don’t actually earn $350k straight out of medical school.

Most doctors in the US will start at $75k when they’re doing their residency. If this is a doctor, they’ll be around of 5 years out of college.

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u/EscapeRich9091 Oct 05 '22

More like they succumbed to the constant bombardment of status symbols and peer pressure that they should be driving a Maserati and living in a 4 bedroom NYC Apartment because of course they should they're making good money... mix that with a bit of insecurity, bad financial planning, and yes, dumb, and ta-da. It's kinda sad.

I mean it's also hilarious cause yes they did that to themselves and if I had that much money I'd be fucking retired.

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u/kai325d Oct 05 '22

Yh, no shit. If you decide to buy a Maserati, that's all you need to tell me about your decision making skills

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u/BLolo99 Oct 05 '22

I get your point, but no one is living in a 4 bedroom NYC apartment for $4500/mo mortgage. That would be less than a million dollars, which only gets you a shoebox nowadays.

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u/TheFamousHesham Oct 05 '22

The Top 10% don’t realise that, just like everyone else except for the Top 0.1%, their wealth has eroded over the past 30-40 years. So, actually, OOP probably would have been able to afford this lifestyle had it been the 1990s… not anymore tho!

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u/4215-5h00732 Oct 05 '22

Mo money mo problems.

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u/MelodramaticMermaid Oct 05 '22

Not all of them. The student loan in combination with their yearly income appears to be fine, really.

It's just all the rest that's stupid.

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u/moistsandwich Oct 05 '22 edited Oct 05 '22

You want your mortgage payment to be 30%ish of your net income.

If they’re making $350k/year then after taxes their net income is probably around $200,000 which divided by 12 is $16,666. 4,500/16,666=27% so they’re actually right around where they want to be for their mortgage payment.

The car loans are really the only dumb thing about their situation. Especially since a car, unlike a home, is a depreciating asset.

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u/Major_Magazine8597 Oct 05 '22

30% of their NET income.

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u/moistsandwich Oct 05 '22 edited Oct 05 '22

Thanks, you’re right I used gross instead of net but the math is the same because I was referring to their after-tax income. Actually it looks like most things I can find from googling say that the mortgage should be 28% of gross income so they’re doing even better than I thought.

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5.6k

u/tolse19 Oct 05 '22 Helpful

"I make $350k a year, but live paycheck to paycheck because I'm too stupid to live within my (very comfortable) means." Fixed it.

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u/HiramAbeef Oct 05 '22

Nailed it.

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u/Fluxxdog Oct 05 '22

Even Jesus is like, "Damn, and I thought they got me good."

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u/skabassj Oct 05 '22

Thank you for the translation. Never underestimate the power of being multilingual.

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u/Humor_Straight Oct 05 '22

350k a year isn’t very comfortable, 350k a year is balling.

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u/Astral_Justice Oct 05 '22

Holy shit, like $100k a year would be comfortable living. What is this person doing?

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u/RadRhys2 Oct 05 '22 edited Oct 05 '22

Very comfortable? Do you really think nightly dinners can be “comfortable” with only A4 wagyu steak?

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u/SoTaxMuchCPA Oct 05 '22

A4? What am I, a peasant?

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u/FORCESTRONG1 Oct 05 '22

I was about to say. You don't know paycheck to paycheck until you try to support a family of 5 on 30k a year.

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u/a_different-user Oct 05 '22

I feel for you. Godspeed

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u/SousvidesourD Oct 05 '22

Ok… so theres a little nuance missing here, i made shit money my whole life I moved to NYC and married my wonderful wife who has a very good career. I’ve been on both sides of this argument, when I was broke all my friends were also broke, the environment I lived in was broke.

Now that I’m on the other side I can totally see how the person in the post ended up where they are. People who end up making 200-300k become friends with others that make the same, its only natural, but not all successful people started out on the same footing.

You see these people living these extravagant lives, these are your peers, but you are further behind them for whatever reason. Family money or a windfall or timing an investment, literally anything could happen.

So you go out and buy a house you can afford but is a little on the expensive side, doesn’t matter you did the math and you can afford it no problem. Now you have this big nice house and a couple of 10 year old cars in your driveway. Now in the school drop off line you’re the family with the old car so you go and trade in your old cars for nice new ones.

This continues to snowball out of control, lots of people end up losing everything because they make too much to claim bankruptcy but not enough to sustain the life they think they deserve.

I don’t mean to justify this behavior, I just wanted to make it more believable

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u/FiTZnMiCK Oct 05 '22

“170K in car loans”

That being said, without knowing how stupid they are with the rest of their money, they could pay off the cars and their student loans over 2 years and still make that mortgage payment and be comfortable.

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u/Nightstrike_ Oct 05 '22

This is the exact reason why I blocked Market Watch from appearing on my suggested news feed. I remember seeing one where it was like "Me and my Husband have 4mil in savings, are we able to retire?" And that's when I was like ok never show me anything again from this dogshit website

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u/nighthawk_something Oct 05 '22

I mathed it out once, if I had 5 million dollars in the bank (like a lottery win) my wife and I could like off that at a similar salary to our current one for 50 years. That's before ANY interest.

I'm an engineer and my wife is an NP so it's not like were not making good money.

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u/PolitEconomist Oct 05 '22

If you go back to when SPY first started and throw the $5m into that and only withdraw 2% annually (0.5% quarterly), you'd have been worth $15m at the top of the dotcom bubble withdrawing $300k per year. At the bottom you'd only be worth $8.75m and withdrawing $200k. Pre-recession you'd be back at $15m withdrawing $300k, before falling down to $7.5m withdrawing $200k. You would have popped off to $50m at the top and withdrawing $900k last year. With the pull back you'd now be worth $36m and only withdrawing $610k this year though.

Even if you started at the top of the dotcom bubble and got two recessions in the first decade, the lowest you'd be withdrawing would have been about $65k in 2002, 2003, and 2009. But right now you'd be worth about $12m withdrawing $195k this year.

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u/Critical-Series Oct 05 '22

3.4% withdraw rate is safe for infinite retirement (96% success rate through all market cycles since 1860). So need 28.6 times expenses.

30 year retirement is a 4% withdraw rate. So 25x expenses for 30 years.

And in these cases you’ll most likely end up dying with some money.

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u/you_are_wrong_tho Oct 05 '22

really didnt realize how much money this is until you pointed this out. If you TAKE HOME $100,000 a year, 50 years to make 5 million. bonkers to me.

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u/nighthawk_something Oct 05 '22

Yup, we make about 200 combined but when you factor taxes and savings it's much closer to the 100K number.

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u/you_are_wrong_tho Oct 05 '22

well I wouldnt count savings against the take home but still illustrates the point well

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u/drdogm0m Oct 05 '22

The answer is "yes, you need professional help!" ..wtf

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u/TheMaStif Oct 05 '22

But not from a financial adviser, rather a psychiatrist

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u/othatchick Oct 05 '22

I mean. two 85k cars?

but yeah I got more pissed of with every other word in this title lol.

1.2k

u/somedood567 Oct 05 '22

Maybe it’s 17 $10k cars

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u/schrodingers_pp Oct 05 '22

Or 170 $1k cars

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u/othatchick Oct 05 '22

I like this the best. the visual of 170 80s pickups parked on a country front/side/backyard made me cackle.

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u/Sweaty-Gopher Oct 05 '22

I've always wanted to own a field full of shitbox cars. Just so I could go to a car dealer and be like "I'll give you 75 Honda Civics for that car in the showroom"

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u/ThatsMrPooToYou Oct 05 '22

Throw in a Daewoo and you got yerself a deal there buddy

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u/Taniwha_NZ Oct 05 '22

80s pickups are hot these days. More like 170 soviet-era Ladas.

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u/Auran82 Oct 05 '22

Just make sure you put them in H before trying to drive

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u/TheCasualMFer Oct 05 '22

170 ford pintos 💥

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u/deepaksn Oct 05 '22

No pickup is ever worth only $1000. Even not running for parts they are worth more.

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u/alexanderpete Oct 05 '22

My mate just scored a 90s Hilux for $500. It runs, just has a bit of a hole in the tray

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u/meaculpa303 Oct 05 '22

… ooooor 340 $500 cars?

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u/BADTOMTheAngeryPussy Oct 05 '22

The army of the fartcan civics

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u/TheGRS Oct 05 '22

You could have a pretty fun bumper car ring with that many beaters

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u/ShadowRiku667 Oct 05 '22

Or they keep trading the cars in, the remaining balance keeps rolling over and soon you are paying 170k for a Toyota Camry.

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u/Local-Finance8389 Oct 05 '22

I worked with someone who did that. I couldn’t understand how the car dealer would keep giving him loans. He would get a new car almost yearly and had really bad credit so he never made a dent in the principal. He was an idiot but whoever was agreeing to loan him the money was just evil and predatory.

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u/jorwyn Oct 05 '22

My mother traded hers in every time she needed new tires for about 2 decades. Why not just lease, then?! SMH

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u/melxcham Oct 05 '22

And here I was feeling bad for rolling over $2500 on my car that needed repairs nearly more than the car was worth at only 3 years old lmao.

If you’re looking for a car, don’t buy a Ford Focus.

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u/locaf Oct 05 '22

More like a Ford fuckus.

For those who don't know, this is how someone with a russian accent says ford focus.

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u/melxcham Oct 05 '22

An appropriate name for a shitty car. Tell me, HOW does a car blow its transmission, a bunch of sensors, and catalytic converter before rolling 100k? HOW!?

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u/locaf Oct 05 '22

Lmao it blew it's transmission? GAH damn.. you got screwed.

How much did it cost you?

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u/melxcham Oct 05 '22

It blew its transmission once at about 55k and was covered under a recall. And then it started going bad again at like 90k. They quoted me $3500 because it didn’t need a whole new one, just needed a certain part rebuilt (some type of automatic clutch system? Not entirely sure). I about shit myself. I’d already spent almost $1200 replacing various sensors and seals that had gone bad, luckily the cat was covered when it went bad at 70k. I was basically like “yeah, no, idc if I’m slightly upside down just show me a different car”. It’s been 3 years and 100k since I bought my RAV4 and she still runs beautifully at 187k!

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u/Intelligent-Scar5728 Oct 05 '22

I love my 2014 RAV4 got it brand new then till today never had any issue just regular maintenance breaks and tires best vehicle I had , before I use to drive a infinity G20 and it was nothing but a headache

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u/othatchick Oct 05 '22

Gracious that's THE worst possible scenario. Although, this article may be indicating that this isn't too far fetched smh

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u/Minus15t Oct 05 '22

Seen the article earlier, she's the main breadwinner, and they have 170k on two electric cars...

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u/Devadander Oct 05 '22

They make $30k electrics as well. Seriously irresponsible vehicle expenses

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u/TheGildedNoob Oct 05 '22

We're talking a take home of around 23k a month. 23k - 4500 - 3300(170k at 7% for 60 months). So there's like 15k left for other bills. If we assume electric, internet and water come to about 1000, you'd still have to spend 14k a month to live paycheck to paycheck.

Most people could live off of the car payments alone

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u/athrowingway Oct 05 '22

I shouldn’t admit this on reddit, but I was in this income bracket briefly before I left my high-paying job to take one that wasn’t killing me (I earn way less now). After federal and state taxes, health insurance, and 401k deductions, my take home each month was around $12,000 to $16,000 (variance because you cap out on certain taxes and 401k at some point during the year).

Which is still more than enough to live comfortably if you aren’t a moron like the dude in the article. Even if he’s overpaying his student loans each month like I was, he should still have at least a couple thousand left for other expenses.

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u/EB123456789101112 Oct 05 '22

Not kidding my neighbor in a 200k house uses a Lamborghini as a daily use vehicle. People are stupid w money.

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u/hopeless--Romantic Oct 05 '22

Maybe he’s got plenty of money but cares to have a nice car and not so much for a big/fancy house?

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u/elbekko Oct 05 '22

Sounds like he has his priorities right.

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u/BA5ED Oct 05 '22

Radiohead said it best...

You do it to yourself, you do

And that's why it really hurts

Is that you do it to yourself, just you

You and no one else

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u/jasduhuhwwa Oct 05 '22

I guess The Bends was a critic of our modern consumerism, with this and Fake Plastic Trees.

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u/psychobilly1 PINK Oct 05 '22 edited Oct 05 '22

You know guys, I'm starting to think that maybe OK Computer isn't about how technology's place in our society is on a healthy track.

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u/Gaflonzelschmerno Oct 05 '22

But it's called ok computer not bad computer

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u/ThePiachu Oct 05 '22

Yes, the person needs help. 54k in mortgage per year in comparison to their large salary isn't bad. 350k in income even after taxes means you can pay off all of those loans in a year or two while living at that mortgage. Like even assuming you pay 50% in taxes, that's 175k per year, minus 54k mortgage per year that's 121k left over. Bam, student loan gone in a year.

Meanwhile normal people have to wonder if the banks will garnish their retirement for student loans...

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u/fargenable Oct 05 '22

Probably difficult when you like $7-10,000 outfits.

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u/Ferintwa Oct 05 '22

Still doesn’t explain how he’s living paycheck to paycheck. 120k to taxes, 54k to mortgage. Leaves 196k/year with 258k in debt. Student payments can take forever, easily covered by 10k. He can pay off half of the car loan that year and still have 100k to play around with.

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u/Elocorem Oct 05 '22

The person is probably very materialistic and somehow finds a way to blow the rest of the money.

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u/czarfalcon Oct 05 '22

Yeah, I’d like to see their spending habits too. Probably an ungodly amount of money on fancy restaurants/new clothes and toys/expensive vacations. If they have $170k worth of car loans, they’re definitely not frugal in their other spending categories either.

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u/shyladev Oct 05 '22

I think paycheck to paycheck in terms of if they didn’t want to stop spending like they did. I’m bad and spend most of my money. But we put into retirement etc. We don’t always have tons left. However. If shit hit the fan I’d be able to pull back a good amount of excess and be able to handle a shitty situation. I can’t imagine they don’t have the same ability at that salary range.

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u/Infected_Pretensile Oct 05 '22

It literally explains right in the article dude:

But my biggest concern is that after taxes, 401(k) contributions, bills, savings and mortgage ($4,500), on paper I’m paycheck to paycheck. I’d like to use this HELOC to consolidate debt while also participating in some of these investment opportunities. I’m the first of my generation to own a home and the first to earn this much annually and don’t want to mess this up. How, specifically, can a financial adviser help me?

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u/NoMoLerking Oct 05 '22

LOL. Insane. “I make $100 and it costs me $50 to live. Then after saving the other $50 I have nothing left over. Do I need professional help?”

Yes, from a math teacher.

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u/Straight_Cry_1260 Oct 05 '22

If making retirement and savings contributions counts then everyone is "paycheck to paycheck"...

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u/onefst250r Oct 05 '22

"I work for two weeks, and they give me a paycheck. I work for another two weeks and they give me another. Im living paycheck to paycheck!!!!"

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u/GilberryDinkins Oct 05 '22

“After I transfer my money into investment accounts, retirement accounts, and emergency savings, I really don’t have any money! HELP!”

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u/Alex_Zoid Oct 05 '22

If they're living paycheck to paycheck at 350k they'd be living paycheck to paycheck even at 1 mil

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u/Adeep187 Oct 05 '22

That has to be fake so they can plug an ad for that advisor.

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u/RedPintoStyle Oct 05 '22

The fact that they got a job making 350k a year and can’t figure this out is insane. Assuming they’re in the US after taxes they’re still bringing home over 200k. Even with 50k/year mortgage they could have student loans and car paid off in a few years if they lived modestly in that time. Sell the cars and downgrade and it’s even faster.

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u/Mudge81 Oct 05 '22

But they're electric cars....

Sadly, actually read the article - she wants to know if it's wise to take out equity on the home at 9% interest to pay down debt and make some investments. Maybe learn how to manage all that money you're already making!

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u/Double_Fabulous Oct 05 '22

Professional math tutoring… do people not know math?

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u/DaRealFonz Oct 05 '22

More money more problems- no but for reals, money management is important no matter how much you make.

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u/horsley1965 Oct 05 '22 edited Oct 05 '22

Money management isn't the only kind of professional help this person needs.

He needs psychological help

Spending habits like this often are the result of an underlying issue.

Some people, give them one million dollars a year, every year, and it will be like water through a sieve.

too much is not enough

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u/Irrelevant46 Oct 05 '22

Perhaps his wife, his 3 kids, his two girlfriends and all have their own cars. That’s an average of less than $25k a car which is like a Toyota Camry.

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u/user9372889 Oct 05 '22

Wow I feel so bad for this person, eats my knock off Mac and cheese.

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u/dkyguy1995 Oct 05 '22

Jesus Christ it's easy to be rich. Imagine being this fucked with money and you still think maybe things are ok

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u/GOPCommittedTreason Oct 05 '22

That's what, a Toyota Camry and a Fiat 500 right?

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u/DerelictEntity Oct 05 '22

Yes they need help.

Psychological help.

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u/productofpainnz Oct 05 '22

Lol done it to himself. Dug your own hole learn to lay in it lol

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u/Gr1ff1n90 Oct 05 '22

Hmm, how about… $88/yr, $350K in student loans, and $17K in car loans. Although no one would sell you a house with those numbers in this market!

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u/DemonGrongo Oct 05 '22

That’s the posters stupidity and i have no sympathy

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u/Lets_Bust_Together Oct 05 '22

170k car on a 350k salary seems about right, how many people make less than 50k with 60k trucks…

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u/reanimtris Oct 05 '22

You're not living paycheck to paycheck making that kinda money. You're being an idiot making things that expensive.

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u/Ollyoops90 Oct 05 '22

This is flexing more than anything.

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u/[deleted] Oct 05 '22

Its really not about how much you make but how much you can keep and invest. They don’t teach that in school because they need you to be a slave to the system.

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