Whoa, Nellie! Avg monthly payment > $700.

[Mud Dawg]

All good points in this thread.

People really gotta think about the importance of ratios (X percent of my income on housing, Y percent of my income on vehicles, Z percent of my income on saving, etc.) when it comes to making a plan for your money. If you are trying to address all the areas of you financial life, ratios must play a role or you are, by definition, going to neglect at least one area.

Regardless of how high the cost of housing gets, if you only make a certain amount of money and you violate your "ratio number for housing," you are going to fall behind in another category. As unfair as it might be, there are some places where you just have to make a certain amount of income to be able to reasonably afford a certain level of housing. If you don't make that income, you either have to lower your standards for housing or move out of the market. Being house poor while indignantly shaking your fist at the heavens doesn't really accomplish a lot for your overall financial health.

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[MadMan4BamaNATL]

I'd rank your point in the 'top 5' - but I think #1 is unrealistic expectations. The delta between cost of a loaf of bread in 1970 vs. 2022 is significant...but middle class 'lifestyle' differences are ginormous.

Always enjoy your posts, Jim; been a fan for over 2 years now.

Yes, middle class, the expectations of it, who’s in it, and what it really means is so different now than before 1970. Funny how back then a house, two cars, and some comfort and security on one income that wasn’t a doctor or character on Mad Men wasn’t so far fetched….. Strange days we’re a livin in.

Expectations are all over the board on this forum for many things, but that also gives us insight into the thought processes of our fellow countrymen and women. Everyone in the US wants to be rich and seems like everyone has antidotes , but the truth remains that most wealth is inherited and most of us will only be marginally better off than our parents; sometimes less with this inflation.

Basically, if you parents had money, then so will you. If they didn’t, you likely won’t have much more either. Social and income climbing is a myth.

However, prices are indeed taking most vehicles out of the hands of many Americans, then there’s the ADM and crap. This all makes people edgy as hell and it stokes fear for the future, that’s a bad mix. This Bronco purchase experience is just another example for many. Doesn’t matter whether or not I can afford mine or whatever, collectively we‘re being hosed.

 

[Mud Dawg]

Basically, if you parents had money, then so will you. If they didn’t, you likely won’t have much more either. Social and income climbing is a myth.

This may be true in the aggregate. But if an individual is disciplined, pays attention to what's going on, is wiling to learn and puts forth even an average amount of effort, this absolutely doesn't have to apply to them.

The American system is designed to separate you from your money. The earlier you figure that out and learn all the different methods out there to hold on to what you have, the sooner you will "have money."

 

[Carolina Jim]

collectively we‘re being hosed

LOL...that should be a new thread....or perhaps its own Forum

You're kinda difficult to figure out...your sig photo is 4-door...but you seem to come to your senses in the script & claim the stork is bringing you a 2-door. I'll write-off your apparent confusion to the fact you've yet to escape "Atlanta".

As to trying to understand everyone else, I'll just point out the fact that financial periodicals routinely run surveys/articles that >half the population can not handle a $400 unexpected expense, yet most people are spending money like the world will end before the bill arrives.

 

[TyGuy40]

I am so grateful I got my Bronco when I did. 20k down, at 1.6% interest rate. 5-year loan. Granted, the money I didn't spend on the car is tanking in today's markets, but my hope is it goes up in a year or two.

 

[MadMan4BamaNATL]

LOL...that should be a new thread....or perhaps its own Forum

You're kinda difficult to figure out...your sig photo is 4-door...but you seem to come to your senses in the script & claim the stork is bringing you a 2-door. I'll write-off your apparent confusion to the fact you've yet to escape "Atlanta".

As to trying to understand everyone else, I'll just point out the fact that financial periodicals routinely run surveys/articles that >half the population can not handle a $400 unexpected expense, yet most people are spending money like the world will end before the bill arrives.

Stork definitely has a 2 Dr on the way for me, at some point in the future. lol! I liked that pic of the Warthog/Raptor, so I just keep it there. A 2 Dr Raptor would have been mine for sure.

You're right, people are spending like crazy; that's largely aspirational and a multitude of wants. Most of the population certainly can not afford a $400 expense, thus all of the debt.

Thing is, wanting a Bronco or whatever, shouldn't put someone in the poor house, and it shouldn't be a situation where only the rich enjoy nice stuff. Any study of history can show what will happen when things become too far into the "rich only" direction. Unfortunately, we are almost there in this country.

Ironically, I guess I fall into that population of the haves, but I'm very sensitive to those who are not. It shouldn't have to be this way. Nothing has ever been wrong with being normal. Normal used to be a happy place to be in and normal is not $150K salaries or $700+ car payments.

A square job and a capable truck shouldn't be an aspiration, it should be the norm.

 

[Jdc]

$2000-4000 mortgage payment? Jeez.

We live on 5 acres. Private drive. Land that borders us can't be developed. 2K sq ft brick Colonial. Detached large 2 car garage and detached shop. I would have to add my mortgage payment and the Bronco payment to reach $2K a month.

My mortgage is over 2k a month and I live in an 1100 sq ft home, with a 2 car driveway and a small yard.

 

[Carolina Jim]

Nothing has ever been wrong with being normal.

Here's another way of looking at 'normal':

Peel away all the mumbo jumbo job-related requirements, and guesstimate what percentage of jobs in the USA really really really need more than 2 weeks OJT to adequately perform.

Then, look at how people with those jobs live here in the USA...and compare that to how similar workers live in other corners of the world.

 

[JerryC]

The American system is designed to separate you from your money. The earlier you figure that out and learn all the different methods out there to hold on to what you have, the sooner you will "have money."

Truth!
All made easier by " monthly payments", rent, mortgage, phone, Internet, utility bills, car loans, credit cards, etc...

 

[AK007]

Spouse and I are both retired. Traded an 11 month old Bronco Sport in for my BB bronco last Monday. Financed $29000 at 1.85% for 60 months. Total interest to be paid...$1380. I can live with that. I'll probably trade or sell within 2 years anyway. Being retired, monthly payments matter, but so does interest and length of the loan. If someone can afford high car payments, I'm happy for them. It's all about perspective. What's important to some isn't as important to others. Hopefully the next couple of years won't drain us too badly before there's a change.

That's a great rate, which banking institution if you don't mind me asking? And how long have you been with them?

 

[GeorgiaDawgs]

That's a great rate, which banking institution if you don't mind me asking? And how long have you been with them?

Got the financing through the dealership. It's a finance company called Robin's Financial. I've had one other car loan with them. Never had any issues. Don't really do any other banking with them at all.

 

[FormerJeepJunkie]

Truth!
All made easier by " monthly payments", rent, mortgage, phone, Internet, utility bills, car loans, credit cards, etc...

Because all these things are unique to America…

 

[JT58Bronc]

64, NOT retired, work full time, still have a mortgage. I wonder how some of you can afford over 400 a month payments, never mind 700 a month. Must be making huge income. I have a Basesquatch- had to have it- waited almost 2 years. I got it with cash and lot of equity for my trade in, which was paid off. I don't have a Bronco payment, don't make a huge salary- actually I can't afford to really drive my Bronco to work due to the gas prices and my long commute so I have an economy car. If I were to drive it every day my monthly consumption would be a whopping 500 a month. Fortunately my insurance is low on my vehicles. So I drive it on the weekends only. I have 800 miles on it after 3 months of ownership. When I retire in a couple of years I intend to work at an Autozone- just to pay for gas and insurance to drive the Bronco!

 

[Heffe66413]

The market is going to slow on everything. Interest rates are sky rocketing to cool inflation. Jobs are going to be lost very soon,recession is starting. Everything is going to nose dive except the very rich. Middle class will be hit hard. So yes this will absolutely cool the market in a few months. Probably see many people backing out of accepting Broncoswhen they arrive. Its bleak.

Well said

 

[Carolina Jim]

I have a Basesquatch- had to have it- waited almost 2 years

Some things in life transcend the concept of a 'possession' - and they become something akin to a life trophy or personal badge of honor. I think Bronco fits that description.

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