Sponsored

Ford Bronco Savings Plans

pat86323

Badlands
Well-Known Member
First Name
Patric
Joined
Jul 26, 2020
Threads
8
Messages
168
Reaction score
230
Location
Flagstaff az
Vehicle(s)
1994 bronco xlt
Your Bronco Model
Badlands
Clubs
 
I don't mean to beat you up or anything. You can do whatever you want, but here's an example for anyone else considering doing the same:

You make $25 an hour and your tax rate is 25%

You work 4 hours for a total of $100 and you get to put all of that into your 401k since its pretax funding.

You take out a loan for $100 and now you have to pay it back.

Since you pay it back with after tax funds you have to work roughly 5.25 hours to pay back the $100 you borrowed. Not including any additional interest thats just the principle.

Don't take out loans or touch your 401k unless its an absolute emergency.
But, let's say for argument, that you don't get the best interest rate (I should, but we will see) and finance 20,000$ at 3% interest, all of a sudden, that extra .25 hours to pay the money to that money back to myself, seems less of a problem to me, when you end up paying a considerable amount of money into interest to the bank.
Sponsored

 
OP
OP
Mountain Goat

Mountain Goat

Black Diamond
Well-Known Member
First Name
Tyler
Joined
Jul 26, 2020
Threads
3
Messages
200
Reaction score
434
Location
Virginia
Vehicle(s)
'01 BMW 325i, '17 VW Alltrack, '20 Nissan Versa
Your Bronco Model
Black Diamond
I don’t do anything like that, and I’m an accounting controller for a large company. In fact, your spreadsheet doesn’t make much sense to me. In addition, it’s not necessary if you’re living well within your means, as you say. That’s the whole essence of living well within your means, so you’re not spending time making a poorly formatted Excel sheet on a damn Nissan Versa.
I'll take your comments under advisement. I think putting away $750 a month to save for a new vehicle is pretty respectable, but maybe I'll hold out a little longer if I'm not able to improve on that.
 

siggy

Well-Known Member
Joined
Jul 7, 2020
Threads
0
Messages
56
Reaction score
85
Location
Kansas City
Vehicle(s)
2013 Jeep Wrangler
Your Bronco Model
Undecided
I'll take your comments under advisement. I think putting away $750 a month to save for a new vehicle is pretty respectable, but maybe I'll hold out a little longer if I'm not able to improve on that.
Not judging your spending or saving habits. It just made me smile you went through the mental gymnastics on a Versa, that’s all ?
 

Dlerojo

Badlands
Well-Known Member
First Name
Dan
Joined
Jul 19, 2020
Threads
3
Messages
225
Reaction score
841
Location
Seattle, WA
Vehicle(s)
Outback
Your Bronco Model
Badlands
But, let's say for argument, that you don't get the best interest rate (I should, but we will see) and finance 20,000$ at 3% interest, all of a sudden, that extra .25 hours to pay the money to that money back to myself, seems less of a problem to me, when you end up paying a considerable amount of money into interest to the bank.
Sure lets use that argument. You take out a loan of 40k from your 401k to buy a Bronco. Sweet! Since you have to pay that 40k with after tax funds and just assuming your tax rate is 25% still, that will cost you $53,333 to pay back not including any interest and also not including any market gains on that 40k you could have received.

If you take out a loan from a bank for 40k at 3% interest and 72 month term you will pay a total of $3,758 in interest over the loan term.

I'd take the bank loan any day. The rules for 401K's are designed to deter people from taking money out of them until retirement. The penalties from loans and withdrawals are super high. That's why it should only be used for emergencies.
 

PR4X4

Active Member
First Name
Jake
Joined
Jul 14, 2020
Threads
2
Messages
34
Reaction score
69
Location
Puerto Rico
Vehicle(s)
Jeep Wrangler TJ and Toyota Rav4
Your Bronco Model
Undecided
Controversial take, but if people were rational they wouldn’t buy anything on credit. No need to create a spreadsheet to figure that out. We like to pick on certain types of credit like student loans and say if they weren’t available college would be cheaper. While true if you couldn’t finance a house for 30 years or a car for 84 months and had to pay cash those things would be cheaper too.

With that said if the Bronco or a jet ski or whatever makes you happy buy it. There’s no debters prisons the worst that can happen is the thing is taken from you. Rich people die just like poor people, but for gods sake take it easy with the spreadsheets.
 

Sponsored
OP
OP
Mountain Goat

Mountain Goat

Black Diamond
Well-Known Member
First Name
Tyler
Joined
Jul 26, 2020
Threads
3
Messages
200
Reaction score
434
Location
Virginia
Vehicle(s)
'01 BMW 325i, '17 VW Alltrack, '20 Nissan Versa
Your Bronco Model
Black Diamond
Not judging your spending or saving habits. It just made me smile you went through the mental gymnastics on a Versa, that’s all ?
I just refinanced the Versa to pay it down in 24 months so I can get used to a Bronco sized payment, while simultaneously putting aside an extra $750/month. That's why the spreadsheet exists, not on behalf of the Versa! lol
 

Bladerunner24

Base
Well-Known Member
Joined
Aug 1, 2020
Threads
2
Messages
184
Reaction score
240
Location
Earth
Vehicle(s)
97 expedition, 67 camaro rs, 89 bmw 535i
Your Bronco Model
Base
Clubs
 
Wow , but at least your doing due diligence. I figured if I work one day of overtime a month it will cover most of payment. I figured mine won't come til 2022 so I got time to save
 

Major_Bullsteak

Base
Well-Known Member
Joined
Jul 22, 2020
Threads
2
Messages
413
Reaction score
1,116
Location
Alabama
Vehicle(s)
Chevy ZR2 Bison, JK Wrangler
Your Bronco Model
Base
Clubs
 
That's my goal as well. I try to live well within my means, have fully paid off college loans, put a lot of money into my house, and am well on my way to squaring away retirement. But I'm still young and dumb to an extent and want to enjoy the Bronco while I still have younglings around to enjoy it with, so sorry Dave Ramsey ??‍♂
Pay cash for the Bronco and Dave will be happy.
 
OP
OP
Mountain Goat

Mountain Goat

Black Diamond
Well-Known Member
First Name
Tyler
Joined
Jul 26, 2020
Threads
3
Messages
200
Reaction score
434
Location
Virginia
Vehicle(s)
'01 BMW 325i, '17 VW Alltrack, '20 Nissan Versa
Your Bronco Model
Black Diamond

Toccoa

Big Bend
Well-Known Member
Joined
Jan 30, 2020
Threads
82
Messages
6,002
Reaction score
30,401
Location
USA
Vehicle(s)
Isuzu Rodeo Sport
Your Bronco Model
Big Bend
Good eye on the typo. Yes, that is the goal (and I'm realizing this post made me look a little dumb, but oh well).
I think it’s cool that you shared it with us. You’ve got a dream and a plan to make it happen. Nothing wrong with that. ?
 

Sponsored

Major_Bullsteak

Base
Well-Known Member
Joined
Jul 22, 2020
Threads
2
Messages
413
Reaction score
1,116
Location
Alabama
Vehicle(s)
Chevy ZR2 Bison, JK Wrangler
Your Bronco Model
Base
Clubs
 
I just refinanced the Versa to pay it down in 24 months so I can get used to a Bronco sized payment, while simultaneously putting aside an extra $750/month. That's why the spreadsheet exists, not on behalf of the Versa! lol
Hey man you do you. Everybody has their own rationalizations and methods to justify large purchases like that. Some folks need to see it on paper or spreadsheet. Goals should be written down in some format to help keep you accountable and to achieve them in my opinion.

Speaking of writing it down, I've got 5 pages of notes and snippets of info that I've learned from the pages of this forum. So I appreciate you all and ask that you keep giving your opinions and thoughts on all the subjects around here. Lord knows there are plenty of them.
 

Ocnorb

Black Diamond
Well-Known Member
Joined
Aug 1, 2020
Threads
2
Messages
134
Reaction score
347
Location
Western NY
Vehicle(s)
2023 Ford Bronco Black Diamond 2-door Sasquatch
Your Bronco Model
Black Diamond
Clubs
 
Nothing wrong with tracking financial goals - however it works for you, do it! This spreadsheet is a little obnoxious though, IMO, I'd get a migraine trying to figure this out. I simply budget my money using YNAB (You Need A Budget). But it's a lot of work too. I got BRONCO as a goal on there and currently saving $500 per month towards it. I aim to put 50%+ down on my new Bronco, hopefully a 2dr Velocity Blue Black Diamond Sasquatch. Whew, what a beautiful mouthful that is. Like a handful of skittles.

I just refinanced the Versa to pay it down in 24 months so I can get used to a Bronco sized payment, while simultaneously putting aside an extra $750/month. That's why the spreadsheet exists, not on behalf of the Versa! lol
You should instead take some of that Bronco payment money aside and throw it at your Versa instead. pay the Versa off ASAP, and you'll pay less interest.
 

Indominus49er

First Edition
Well-Known Member
Joined
Jul 17, 2020
Threads
2
Messages
116
Reaction score
227
Location
Las Vegas
Vehicle(s)
Alfa Romeo, Honda
Your Bronco Model
First Edition
Wow that's impressive. Good job sir!! ?
I just buy what I want. You only live once
 

atx_chance

Badlands
Well-Known Member
First Name
Chance
Joined
Jul 1, 2020
Threads
1
Messages
352
Reaction score
747
Location
Austin, TX
Vehicle(s)
Previous: 1993 Bronco XLT
Your Bronco Model
Badlands
Clubs
 
@Mountain Goat : I think your post was originally asking if people also like to nerd out and do similar budgeting. It doesn’t appear to be common but that’s cool - you do you! I have done similar spreadsheets if only to spend a bit more time obsessing about the bronco but from a different perspective. I remember trying to spin how buying a new Camaro back in 2012 made any financial sense. That was good fun.

I’m a CPA and your spreadsheet gets the job done just fine! I’m sure you’d have spent more time putting pretty formatting and spell checking if you knew you were gonna get torn apart like this, sheesh! Lololol
Sponsored

 
 


Top