How to justify money spent at young ages?

Smokey1226

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I know this kind of topic comes up every once in awhile but im looking for insight from the elders!

Looking back, how can/do you justify how much to spend being young exp on this type of expensive hobby? Luckily ive been very money smart growing up but with being young and haveing some big purchases coming up (house/condo/ect) the thought of having a huge downpayment to throw down and have chum change morgage payments sounds awesome!

On the other hand, Racing/Build cars/Going fast/loud turbos is just in my blood and really would like to go full bore into a car. But i already have a really nice truck, i could swing both the car and the truck and slowly mod up the car but that would leave me with no where near the kind of down payment i would like to have. However im still a good year and half or so away from buying my house.

Lets hear some feedback from the older guys/gals

Before i get questions, I NEED the truck for a business i own so selling it is out of the question. Due to putting a large amount down on my truck my payments are cheap.

I work 3 jobs (basically 3 careers but 1 is just slowly building up, the other is dead in the water aka Real Estate)
 
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x NOODLES x

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I'm 26, and there is no REAL justification for blowing money when you're young.

But almost everybody does it.

You'll enjoy cars and truck s just as much when you're older, so it comes down to want you wanna do. Enjoy it now and later, or just later.
 

PowerWheels

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Some now, and some later is the best plan. Just keep it within reason. You need to enjoy life and you could die tomorrow.
 

Smokey1226

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I guess the thing im scared of, is being surrounded by business life style, i would hate to have money tied up into stuff when some great opportunity comes along and i cant jump on board because of having stuff tied up.

The only way to have that option open, is to have extra money set aside. But with that i wouldnt be able to have all kinds of toys.
 

acrod

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you can't take all that damn money when your dead, and you don't want wait so long you are too old to enjoy it. Be smart about it and don't get in over your head and you should be able to have some fun now and later.
 

Rochard

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I'm 39 years old and I when I look back I made a lot of financial mistakes.

The first one was my first Mustang, a brand new 1995 GT. The payments were $450 and combined with my other bills - credit card bills - my debt keep rising. I decided to buy a 66 Fastback and restore it, all on credit. A year later I was so far in debt that I needed to use my credit cards just to survive. I ended up in bankruptcy. I was able to keep the 66 Fastback because it was "not roadworthy" and not legal to drive because it wouldn't pass smog. I was also able to keep my GT because it was a lease and not a purchase. I walked away from about $30k in debt.

What I should have done was kept the car I had - a brand new Mazda MX3 - and instead of buying the Mustang that killed me with payments, I should have saved my money and bought the condo I was renting. My mortgage would have been off set by my room mates, and I would have been cash positive every month instead of slipping deeper into debt. On top of that, I would have had an investment that would have paid me out hundreds of thousands of dollars four or five years later (the condo was located in Danville, California).

Don't invest you money into cars. It's a waste. Yeah, you'll be the coolest cat on the block with your loud exhaust and your doing 3.5 seconds from 0-60. But the truth is that doesn't make you any better than anyone else, and the people who know better look at you and say "Dumb kid blowing his money on stupid stuff".

The housing market sucks right now. Houses will never cost less than they do right now; Now is the time to buy and it's really a buyer's market. Buy a decent house now and live in it for a few years, and watch the value go up. I bought a house in Phoenix for $220k in 2002 and three years later when I sold it I made a cool $250k profit or so - the house doubled in value in three years. Granted, you won't be seeing that kind of a profit any time soon in today's world, but would you rather throw money into car that will never return your investment, or put your money into a house / condo that will go up in value in the next ten years?

Let me put it this way.... Which is more impressive to a twenty-five year potential girlfriend - A fast car or someone that owns their own house?
 

Smokey1226

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It sounds like you and I are a lot alike. I could of had MANY fast cars by now but i have passed on all of them, simply because of people around me buying them and seeing how much money they have thrown away to this point. Granted, they are a BLAST and we have fun all the time with them. I am ok with waiting for my cars, knowing i have extra cash laying around when i need it.

Also about the housing market, i know all too well as i sell Real Estate as well, and have seen some amazing prices on some nice houses. I would love it if i could buy a nice house in the next 2 years and have a couple of good buddies move in and pay rent.
 

JSpeed

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Be SMART with your money by saving and investing as much as possible... but at the same time you need to ENJOY your life. You are young only once. Dont miss it.
 

Smokey1226

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Be SMART with your money by saving and investing as much as possible... but at the same time you need to ENJOY your life. You are young only once. Dont miss it.

I agree 110%, and when this same convo comes up at home someone will always say something along those lines....but in all honesty what does being young and only living once have to do with spending money on money pits when in reality (exp todays world) if you dont get ahead now, you'll never get ahead down the road. Obviously, anything can happen but working at our Gas Station i get to people watch a lot and have learned the people who lived the "im in the fast lane, im going to die tomorrow, spend any dime i have" lifestyle back 15 years ago are still fighting just to stay afloat in todays market.

Its super hard to justify to me, i want my drag car real bad, but thats where my Econ background comes into play and says there are a LOT better things to spend that money on right now.
 
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JSpeed

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I agree 110%, and when this same convo comes up at home someone will always say something along those lines....but in all honesty what does being young and only living once have to do with spending money on money pits when in reality (exp todays world) if you dont get ahead now, you'll never get ahead down the road. Obviously, anything can happen but working at our Gas Station i get to people watch a lot and have learned the people who lived the "im in the fast lane, im going to die tomorrow, spend any dime i have" lifestyle back 15 years ago are still fighting just to stay afloat in todays market.

Its super hard to justify to me, i want my drag car real bad, but thats where my Econ background comes into play and says there are a LOT better things to spend that money on right now.

You are correct but the point of my post is "Moderation". I think being happy is really important. A nice car gives me a LOT of satisfaction. I could drop 30 grand and build it into a twin turbo monster but that would be stupid financially and hurt me down the line... and make me unhappy later anyway. I spend enough on it to keep myself satisfied and no more.

Everyone has one thing that gives them a lot of pleasure and satisfaction at the end of the day. For guys like us its the car. I think its important not to deny yourself that... yet always keep in mind that the more you invest NOW the FASTER you will have a pile of cash to build your ultimate dream car.

Its all about self control and forcing yourself to be financially responsible.
After 30 years I have learned. I am making serious efforts to be financially secure in the future.... so no twin turbo monster but yes quick street car. :beer:
 

SUPERCHARGEDV8

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i think its just me but....i usually spend my money on fun stuff,motorcycles,jetski,drag mustang,lightning,big tv,labtop......but then again thats just me....i guess u could say i saved money when i was young-er......no stress botherin me....money comes and goes...if its fun im in..
 

Sonic_GT

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I feel that its ok to have some fun with your money when you're young and have less responsibilities. Just be smart about it. I'll be getting married in December and I'll have to take on more responsibility but I'll be close to finishing school and so will my fiancee. My GT will be paid off in Feb. '09 so I won't have a car payment to deal with. My point is, I think its ok to have SOME toys now as long as you can afford it. Its a good feeling knowing that I'll be starting off with one less financial burden. :beer:
 

Bullitt995

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I only spend money I have sitting in the bank. I'll gladly go hungry to feed my car some race gas. But I'm completely insane.
 

lowflyn

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I'm 22...been watching the housing market for a while and just waiting on the right opportunity to come up. I also owe just under 17k on the 03 and bought a 1990 7up today as well. I might spend money but I'm also saving more than I spend on a monthly basis...
 

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