Just placed my order and I'm kinda freaking out

[dcmdon]

Gordon Ramsey also says to cut up your credit cards and use debit cards.

Which is PURE IDIOCY.

Debit cards - your money.
Credit cards - someone else's FREE money. Provided you have the discipline to pay your cards to zero every month.

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[dcmdon]

This thread is making me rethink things and maybe putting me at ease? Anyone with some experience let me know your thoughts, please.

Me and my wife make a six figure income at the moment (last year adjusted gross was $115,000) and when my wife returns to work I think we’ll be in the 150 ballpark.

We have no debt outside of a $300 monthly obligation on her car ($12,000 payoff). I’m planning to sell my Xterra, pay off her car and carry a note of roughly $750/month on a JTR.

We have a roughly 6 month emergency fund at the moment much like Mr. Ramsey recommends - I fully agree on trying to pay cash for everything - when possible and not paying interest on luxury items like vacations and electronics we want “now”! I am also actively contributing to my retirement, roughly 12% of my take home pay.

Our expenses are extremely low. We live in a small studio apartment attached to a family member’s home. They have no desire for us to leave unless we want to. Our total expenses for rent and utilities including cell phones and internet are $785.00. This circumstance isn’t ideal for most, but we love our family and live pretty simply.

COVID has us at home, saving roughly 60% of my paychecks.

However, we are also looking to buy a house, as we enter our 30’s next year. I’m getting very sick of living in this small studio and want my own areas to relax and enjoy. Maybe have a family? Who knows….

I believe that carrying this note is well within our means. But admittedly, I was a big believer in the Ramsey system until I of course, go out of credit card and student loan debt. I think that and the not having a “fully funded emergency fund plus down payment and closing” for our house until Q2 of next calendar year has me a little frustrated. The housing market is also insane, it will slow down and I feel prices will correct as interest rates do… meaning I can get cheap money for the Gladiator now and pay the right price for the house.

At the same time, I feel I work very hard for my money. You don’t trick anyone into paying you 6 figures - you earn it in my opinion and along with earning that comes a six figure income level of work related stress.

My 10 year old Xterra we bought second hand has needed $2,000 in repairs and maintenance (mostly parts as I’m pretty handy) in the last month. It won’t keep bleeding my like this forever, it is simply a a machine and needs maintenance. It’s been a great vehicle. But….Adding break downs to the stress of my job and other obligations has me just wanting to get something newer, cooler…. I’m getting the “I make too much for this problem” feeling.

Dave makes me think I’m entitled, lazy and stupid. I think I’m just a millennial whose finances got in order right as the pandemic started. A lot unravel I know, but thoughts?

TLDR; make a ton of money, low expenses, no other debt, need to buy a house but yolo and maybe Ramsey is slightly wrong on this?

It sounds like you are on a good path.

If it were me, I'd buy a house before I'd spend 55k on a truck that is a "want".

I bought my first hose in 1991, at age 25. I was making 40k/yr. The house cost 157,000. I drove a $2500 car. And as an aside, the year earlier I bought a $3500 shotgun.

Roll all that around for minute. I drove a cheap car that I knew how to fix because I was busy saving up for a house. I was making good money for my age. But still not much. I was single so I didn't have a wife matching my pay.

The gun seems like an extravagance except for that thing I mentioned earlier. Guns don't depreciate. In fact, this gun was purchased at quite a good price for what it was. Now its worth about $12,000. And despite the fact that we make a lot more these days, I'd never buy a $12,000 shotgun. I still carry and shoot it every year bird hunting.

Going back to you. If you make 150k/yr.

Your gross income is $12,500/month. So your mortgage payment should be in the 2500 per month range to keep everything manageable.

If you figure 2000 per month principal and interest with 10% down you should easily be able to do something like this.

450k house.
45k down
5k closing costs
400k financed for 30 years at 3.5%

You are looking at $1800/month principal and interest. With taxes and insurance you should be under $2500/month.

If you can put 20% down, you will get a better interest rate and eliminate the chance of paying PMI.

I hope all this helps.

The key philosophy I've used all my life is to be very very cautious when buying an asset that depreciates.

If it holds its value or appreciates, its less of a big deal because you can always get out of it without incurring a loss. Like that shotgun I bought in 1990 for $3500. If at any time over the last 30 years I needed the money, I could have always sold it and turned it into cash. With no loss.

 

[trailless]

Gordon Ramsey also says to cut up your credit cards and use debit cards.

Which is PURE IDIOCY.

Debit cards - your money.
Credit cards - someone else's FREE money. Provided you have the discipline to pay your cards to zero every month.

Credit card debt can get serious rather quickly, the negatives of a 20% APR... It can even hit people that are really disciplined, for example an emergency happens and they just can't seem to get out of debt. So for a lot of people, NEVER using credit cards is probably great advice.

For me? I LOVE MY POINTS. I'm all with you as I put any expense, even all business expenses, on a credit card. I've racked up so many points in just 2 years that I can on a 2+ month vacation through Europe solely on points. Never paid a single cent in interest on those credit cards either.

 

[Jefe1018]

Gordon Ramsey also says to cut up your credit cards and use debit cards.

Which is PURE IDIOCY.

Debit cards - your money.
Credit cards - someone else's FREE money. Provided you have the discipline to pay your cards to zero every month.

Credit card debt can get serious rather quickly, the negatives of a 20% APR... It can even hit people that are really disciplined, for example an emergency happens and they just can't seem to get out of debt. So for a lot of people, NEVER using credit cards is probably great advice.

For me? I LOVE MY POINTS. I'm all with you as I put any expense, even all business expenses, on a credit card. I've racked up so many points in just 2 years that I can on a 2+ month vacation through Europe solely on points. Never paid a single cent in interest on those credit cards either.

I found Dave when in debt. His system works. I’ve paid off my high interest debts using his system. It’s a dangerous game to play with credit cards if you aren’t disciplined.

I personally use a card that gives me 2% on every purchase and 3% on travel. To me that’s worth it. Since March, I’ve earned $600 in cash back. Not much, but 2% of something is better than 0% of nothing.

It sounds like you are on a good path.

If it were me, I'd buy a house before I'd spend 55k on a truck that is a "want".

I bought my first hose in 1991, at age 25. I was making 40k/yr. The house cost 157,000. I drove a $2500 car. And as an aside, the year earlier I bought a $3500 shotgun.

Roll all that around for minute. I drove a cheap car that I knew how to fix because I was busy saving up for a house. I was making good money for my age. But still not much. I was single so I didn't have a wife matching my pay.

The gun seems like an extravagance except for that thing I mentioned earlier. Guns don't depreciate. In fact, this gun was purchased at quite a good price for what it was. Now its worth about $12,000. And despite the fact that we make a lot more these days, I'd never buy a $12,000 shotgun. I still carry and shoot it every year bird hunting.

Going back to you. If you make 150k/yr.

Your gross income is $12,500/month. So your mortgage payment should be in the 2500 per month range to keep everything manageable.

If you figure 2000 per month principal and interest with 10% down you should easily be able to do something like this.

450k house.
45k down
5k closing costs
400k financed for 30 years at 3.5%

You are looking at $1800/month principal and interest. With taxes and insurance you should be under $2500/month.

If you can put 20% down, you will get a better interest rate and eliminate the chance of paying PMI.

I hope all this helps.

The key philosophy I've used all my life is to be very very cautious when buying an asset that depreciates.

If it holds its value or appreciates, its less of a big deal because you can always get out of it without incurring a loss. Like that shotgun I bought in 1990 for $3500. If at any time over the last 30 years I needed the money, I could have always sold it and turned it into cash. With no loss.

Thank you for the kind words and for taking the time to type this all out.

I’m looking to purchase a home, right now I have 8% (for a down payment and closing costs) on a $340,000 house. Navy Federal Credit union lets me get away with 5% down and no PMI. That would put my mortgage payment at roughly $1,500.00 (taxes in Nevada are dirt cheap as is insurance). Up until the pandemic craze, $340,000 was plenty of house in Las Vegas.

I also have an additional 4ish months of expenses as an emergency fund. I’d be putting down$6,000. I’d take away from these funds a bit to finance the Jeep - but within months it would be replenished or better.

Emergency reserve - check
Housing down payment and closing - check
800 credit score - check

Buying a JT before a house seems silly and I see that, but the times we are living in are pretty unprecedented. The house boom needs to come down, I might not be as smart as others in finance or similar industry but eventually interest rates need to rise, supply will increase and the governmental protections for those who have not been able to pay their rent or mortgage will also end. It could be a year or 6 months, but the market needs to correct in my opinion. I might as well sit back flush with cash and a sweet JT in the mean time.

I will not lie, it sounds good when I say it but when it comes time to putting ink to paper it does scare me.

 

[trailless]

I found Dave when in debt. His system works. I’ve paid off my high interest debts using his system. It’s a dangerous game to play with credit cards if you aren’t disciplined.

I personally use a card that gives me 2% on every purchase and 3% on travel. To me that’s worth it. Since March, I’ve earned $600 in cash back. Not much, but 2% of something is better than 0% of nothing.



Thank you for the kind words and for taking the time to type this all out.

I’m looking to purchase a home, right now I have 8% (for a down payment and closing costs) on a $340,000 house. Navy Federal Credit union lets me get away with 5% down and no PMI. That would put my mortgage payment at roughly $1,500.00 (taxes in Nevada are dirt cheap as is insurance). Up until the pandemic craze, $340,000 was plenty of house in Las Vegas.

I also have an additional 4ish months of expenses as an emergency fund. I’d be putting down$6,000. I’d take away from these funds a bit to finance the Jeep - but within months it would be replenished or better.

Emergency reserve - check
Housing down payment and closing - check
800 credit score - check

Buying a JT before a house seems silly and I see that, but the times we are living in are pretty unprecedented. The house boom needs to come down, I might not be as smart as others in finance or similar industry but eventually interest rates need to rise, supply will increase and the governmental protections for those who have not been able to pay their rent or mortgage will also end. It could be a year or 6 months, but the market needs to correct in my opinion. I might as well sit back flush with cash and a sweet JT in the mean time.

I will not lie, it sounds good when I say it but when it comes time to putting ink to paper it does scare me.

What are you looking at financing the house for? It should be close to 2-3%, nothing higher than that. Anything closer to 2% is basically free money with inflation.

Housing prices have gone insane the last couple years. My house has gone up close to $300k in value in the past 2 years alone. I want to sell to take advantage of the appreciation but that only means that I have to buy in this stupid market...

 

[VolatileA]

What are you looking at financing the house for? It should be close to 2-3%, nothing higher than that. Anything closer to 2% is basically free money with inflation.

Housing prices have gone insane the last couple years. My house has gone up close to $300k in value in the past 2 years alone. I want to sell to take advantage of the appreciation but that only means that I have to buy in this stupid market...

Sell strength, buy fear.

You could easily rent right now with a fraction of the profits from the sale and wait for the trough.

 

[trailless]

Sell strength, buy fear.

You could easily rent right now with a fraction of the profits from the sale and wait for the trough.

True. I could rent out for over $1k profit a month. Even buy another place with an interest rate of $2% over 30 years. It's a crazy time right now.

Honestly though, I just want my Jeep... also for XRP to hit some new highs after the SEC lawsuit.

 

[dcmdon]

I found Dave when in debt. His system works. I’ve paid off my high interest debts using his system. It’s a dangerous game to play with credit cards if you aren’t disciplined.

I personally use a card that gives me 2% on every purchase and 3% on travel. To me that’s worth it. Since March, I’ve earned $600 in cash back. Not much, but 2% of something is better than 0% of nothing.



Thank you for the kind words and for taking the time to type this all out.

I’m looking to purchase a home, right now I have 8% (for a down payment and closing costs) on a $340,000 house. Navy Federal Credit union lets me get away with 5% down and no PMI. That would put my mortgage payment at roughly $1,500.00 (taxes in Nevada are dirt cheap as is insurance). Up until the pandemic craze, $340,000 was plenty of house in Las Vegas.

I also have an additional 4ish months of expenses as an emergency fund. I’d be putting down$6,000. I’d take away from these funds a bit to finance the Jeep - but within months it would be replenished or better.

Emergency reserve - check
Housing down payment and closing - check
800 credit score - check

Buying a JT before a house seems silly and I see that, but the times we are living in are pretty unprecedented. The house boom needs to come down, I might not be as smart as others in finance or similar industry but eventually interest rates need to rise, supply will increase and the governmental protections for those who have not been able to pay their rent or mortgage will also end. It could be a year or 6 months, but the market needs to correct in my opinion. I might as well sit back flush with cash and a sweet JT in the mean time.

I will not lie, it sounds good when I say it but when it comes time to putting ink to paper it does scare me.

If you are prepared to buy a house as far as debt to income is concerned and down payment, then buying the jeep is fine.

your point about riding out a possibly inflated market is a really great point that I hadn't thought of.

I am very very conservative and it sounds to me like you have everything lined up.

Moving forward the stupidity would be to flip the car every couple of years. Though jeeps depreciate less than most. If you plan to keep it for a while, then this is definitely within your means.

 

[dcmdon]

Sell strength, buy fear.

You could easily rent right now with a fraction of the profits from the sale and wait for the trough.

Another really great point. Buy a house now and rent it out for a year. Hmm.

 

[badger719]

The people who put a small percentage down on loaded 60k rubicons and then immediatley dump an additional 5 grand into a lift and tires they will never use are the ones who always lose out. Especially if they roll negative equity into the loan and/or sell the vehicle after a year or two and eat the (still steep) depreciation costs.

These trucks get expensive very quickly. I am going with a base Sport and building it up when I can. Not everybody needs a 2.5 inch lift and 35s right away.

 

[dcmdon]

The people who put a small percentage down on loaded 60k rubicons and then immediatley dump an additional 5 grand into a lift and tires they will never use are the ones who always lose out. Especially if they roll negative equity into the loan and/or sell the vehicle after a year or two and eat the (still steep) depreciation costs.

These trucks get expensive very quickly. I am going with a base Sport and building it up when I can. Not everybody needs a 2.5 inch lift and 35s right away.

I have always told friends that they should not expect to get a dime out of any mods they make to their cars. Though it seems that well done mods on a jeep pay back at least a little of what you put in.

If I get a Gladiator, it will probably be a Mojave because I've found that to drive considerably better than the others on the road and allows me to get the options my WIFE wants. She wants it loaded. I don't care as much. But I'm not against it.

An overland with a set of take off Rubicon or Mojave wheels and tires and a limited slip will meet my needs. I MUST have all wheel drive. So that pretty much means that I need to order it.

My hesitancy with the Gladiator has been that its almost too slow for my tastes. If I can get a 2022 in 4xe, its a no brainer. If I can't, I'm still leaning towards it because though I normally keep cars for 6-10 years, if I want to flip it in 3 or 4 years, the fantastic resale value will prevent me from getting hurt too bad. I have a sneaky feeling that in 3 or 4 years we will have some high powered hybrid engines available as well as a Bronco pickup.

 

[869 KPH]

Buying a JT before a house seems silly and I see that, but the times we are living in are pretty unprecedented. The house boom needs to come down, I might not be as smart as others in finance or similar industry but eventually interest rates need to rise, supply will increase and the governmental protections for those who have not been able to pay their rent or mortgage will also end. It could be a year or 6 months, but the market needs to correct in my opinion. I might as well sit back flush with cash and a sweet JT in the mean time.

I agree it would be hard to do this, but yeah waiting on the market to at least stabilize sounds like a good idea. Too bad you can't buy a house at 8% under invoice too!!

Get the JT and then use it to find the perfect house in a few months to a year (?) - park it in all their garages until it looks just right.

 

[MDPensFan]

I had a coworker that was a Dave Ramsey disciple. Made very good money, drove a car that was a hand me down from his in-laws, considered going out to lunch to be very wasteful and indulgent. His wife finally badgered him into taking a nice vacation to Italy and he was miserable the entire time. We always joked he still had half of his first pay check in the bank or stuffed under his mattress.

That's all well and good. He undoubtedly has more money in savings accounts and any other investment vehicles than I do. But they have no kids. He'll pinch pennies until the day he dies, then the local cat shelter will get a giant donation in his and his wife's names. The saving of money and being frugal is the payoff for him, but that seems counterintuitive to me. The purpose of working hard and saving money, investing, etc. are to: 1) provide security for your family and 2) have a little fun before you croak.

Dave Ramsey is great for the young kid up to his eyes in student and credit card debt. Most adults just roll their eyes at his fanatical positions on debt (even low or no interest debt).

 

[EdRosa]

Been there , they told 6 weeks wait , came after 4weeks .. anxiety builds up ?

 

[KJ Jeeper]

This will be my first car payment in over 20 years, so I'm breathing into a paper bag right now.

Just got a VON for my '21 JT Rubi Sarge Green.

Dealer says it's not really possible to track your own order online anymore. Is this true?

The only other new car we've ever bought between my wife and I, was my '98 Moss Green TJ. Figured the Sarge Green was appropriate.

I tried the Jeep Chat and the websites listed in the "order tracking" thread but it seemed neither worked.

I would love to be able to track status online without having to bug the dealer for updates constantly, is that possible?

FYI I got it through the Koons group buy, 6% below invoice, 6.5% when my TL membership matures.

Darel

I felt the same. And I’ve never paid over $40,000 for anything but my house. Hope the excitement takes over for you. It did for me. Love mine - it took 6 months from order - and it just helped increase my excitement after the sticker shock wore off.

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