Wise or Unwise

[egxflash]

I bought my first house around that time. Was in my mid 20s in 2008. I was making around $45k/yr and had a brand new S2000 in the garage. I don't know how the hell I even made that happen.

Haha I was making about the same at that time! I sure as hell did not have an s2k though. That's still one of my goals at some point - to own an s2k. It's just super tough justifying what they're going for these days. I had a 2003 Mazda 3 hatchback with the 5spd. That was a pretty fun car.

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[Stan23]

a lot of us have been down that path. When I was 23, (2nd job out of school) I had around 40K (from stocks) burning a hole in my pocket - I bought a new 2001 M3 which was marked up to 65K. Everyone including my boss and parents suggested I take that money and buy a condo instead, but I didn't and enjoyed the hell out of that M3 at my prime enthusiast driving age.

In hindsight, I should have bought the house as I could have parlayed that into other houses, etc.. which would have led to my dream cars down the road, but I didn't take that path. I would never tell anyone what to do, as I remember vividly no one could have convinced me otherwise back when I was 23 to buy that house.

 

[Acropora]

a lot of us have been down that path. When I was 23, (2nd job out of school) I had around 40K (from stocks) burning a hole in my pocket - I bought a new 2001 M3 which was marked up to 65K. Everyone including my boss and parents suggested I take that money and buy a condo instead, but I didn't and enjoyed the hell out of that M3 at my prime enthusiast driving age.

In hindsight, I should have bought the house as I could have parlayed that into other houses, etc.. which would have led to my dream cars down the road, but I didn't take that path. I would never tell anyone what to do, as I remember vividly no one could have convinced me otherwise back when I was 23 to buy that house.

Man even if you just left that $40k in the market, you’d have so much right now. Getting a cool car when you’re young is awesome but so is having a ton of money work for you when you’re older.

 

[Stan23]

Man even if you just left that $40k in the market, you’d have so much right now. Getting a cool car when you’re young is awesome but so is having a ton of money work for you when you’re older.

of for sure, but try telling that to my 23 year old self! haha.

 

[Rhorn]

Absolutely true. And the value proposition takes a nosedive too when you're talking about a brand new Type R or Type S vs say, a Civic Hybrid. Let's be real here, these cars are overpriced for what they are in the first place.

Color me pessimistic though, but I don't really know if OP is going to follow the sound advice in here or he's just fishing for validation in several sources until he can find someone that tells him to buy the car anyway.

Nobody comes unless they want a CTR full stop.

 

[C10_75_Bill]

I would say No to buy the car and No to buy the house. Keep saving as much as you can and start investing it in the stock market in a low cost index fund that mimics the S&P 500 if you don’t know how to pick stocks. Make that money grow for the house down payment or the car.
Depending where you live it may or may not make sense (ever) to buy a house. But what it makes sense is to make your money grow and live below your means. Good luck!

 

[Robo7]

I know how this feels. I was a car enthusiast who in their 20s decided to save and invest instead of buying the exciting cars at the time. I was poor growing up and I saw my parents make poor financial decisions constantly and I knew I did not want that financial stress in my life. It was a bit depressing driving my old, slow, cheap, but paid for vehicle but I did that for 15 years. I won’t lie, at the time it sucked, but in hindsight it was the best decision I ever made. I’m by no means rich now, but I’m comfortable. If I had spent $30k on a new car 15 years ago, I would be $100k poorer today, or $650k poorer when I eventually hit retirement age. Compounding is your friend but you have to start yearly and hold on for a long time. I wouldn’t buy a new car if I were in your shoes (and I once was), but that is just my opinion.

 

[FL5golfer]

Don't buy the type R and don't by the house. Interest rates are still too high as well. Put the extra savings you have into an index fund, like VTI and let that money grow. The Civic Si is still a great car!

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