Hey guys,
I have a question about "real life." I am graduating with my Bachelors in a couple of days and I am wanting to buy a new car. I was blessed to be hired at a respectable company making $40,000 a year with a $3,500 signing bonus. Medical, dental, and a host of other obligations are included in my salary but I listed them in the following list anyway.
How much, and I know this is hard and will be a rough estimate, do I need to live on? I am wanting a new car and everyone is saying that I can't afford anything more than $17,000 or $18,000 right out of college. I beg to differ. I've made NUMEROUS spreadsheets on how much I will need to live on (factoring in EVERYTHING I can think of), and I have plenty to pay a $500 car payment and insurance. Is there something I am missing? I don't live the lifestyle of the rich OR famous, I am a humble, money-saving guy, and I want a really nice car. The payment wouldn't be anything less than $500 on the car I want, so let's let that stay static.
I guess the main point of this thread is to list all sorts of financial expenses/living expenses I may not be seeing. Here is a list of what I have so far (listed on a monthly basis):
Apartment Rent 600
Internet 50
Cell Phone 30
Car Insurance 200
Gas 200
Water 50
Electric 50
Heat 30
Car Payment 500
401k 200
Medical Insurance 100
Dental Insurance 50
Savings 300
Food 300
Student Loans 400
Total 36720
I realize there are many "unforeseen" financial obligations that may arise, but I even put back money for that as well in my spreadsheet (in "Savings"). Can a recent college graduate, living in an apartment in North Carolina, afford a $500 monthly car payment right out of college? Why or why not? Is there anything missing in my list? Is anything grossly over/under-exaggerated? Remember, I am a newb to all of this, I've never lived on my own (besides on campus in the dorms for 4 years). Please help!
PS: Cars are a passion for me. I wouldn't be buying it "just because." I've wanted a nice car for a long time, and driving 80s models POSs is getting old. Thanks guys!