Author Topic: Help me figure out priorities....  (Read 2079 times)

dtp1987

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Help me figure out priorities....
« on: April 06, 2014, 06:58:45 AM »
My wife and I's income will be in the 40-50,000 range this year after taxes. Self-employed, and business continues to grow each year.

We are both 26, and are in major need to start saving. We are finally going down to 1 car now, which is about a $400 a month savings with insurance! But my wife currently has a 2013 CRV lease with is over $400 a month. The lease ends at the beginning of 2016. 

My question is, if we can set aside 10 to 15,000 dollars a year right now, what should we do with the money? Should I start a regular savings account to start putting money into buying a car outright after her lease is over?

Its hard when you've spoiled your wife for so long! She wants a new or close to new car. And living in New England, we need a car that is good in the bad weather. Especially if we are down to 1 car.

Any tips?

gecko10x

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Re: Help me figure out priorities....
« Reply #1 on: April 06, 2014, 07:11:54 AM »
Sometimes you can transfer you lease to someone else.

If not, start saving now to buy out your lease when it's up. (Assuming you like the car) This way you're buying a used car that you know the history of- no surprises.

CarDude

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Re: Help me figure out priorities....
« Reply #2 on: April 06, 2014, 07:29:47 AM »
Get rid of that lease as soon as you can. You don't have to get rid of the CR-V entirely; they're good safe little SUVs. However, try to make that the last car you ever lease. And remember, if you do decide to sell it, there's a whole lot of space between a modern vehicle like that CR-V and cars made even in the 2000s when it comes to structural integrity, so don't go all the way to the other end and buy a Corolla that'll crush your loved ones into sardines. Middle path and all that.

Thegoblinchief

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Re: Help me figure out priorities....
« Reply #3 on: April 06, 2014, 07:54:24 PM »
Do you have a 401(k) or IRA?

Are you and your wife contributing to a Roth?

Unless the answer to both questions is yes, your annual savings should not be for car purchasing. Compounding needs time more than anything.

What will be the purchase price of the CRV after the lease?