General truck financial question

[BrbGettinCoffee]

Hello, I am not sure if these kind of posts are off limits since it is basically asking about getting rid of a dodge for a chevy and may be forsaken lol. But, I know everyone here is supportive and maybe learned some lessons that could offer some advice. I have a 16 ram 1500 2wd 5.7l with 78k. I owe 13.7k and owe $360 a month. Recently graduated and got into a good paying career and me and the girlfriend are planning to move out late this year or early next year. The gf will be finished with radiology technologist in august and will make close to me so we are looking at homes for rent around 2-2.2k. My question with the truck is my dad loves it and will pay off the remainder of it and give me his 13 silverado 1500 5.3l 4wd extended cab with 183k on it plus 1.5k on top. This will eliminate $360 a month plus tires will be a bit cheaper as mine is lifted with 35s. He said he would cover cost of new tires and if the A/C craps out would cover that(it has a slow slow leak atm). After budgeting and guesstimating I am thinking after my bills(while splitting rent, groceries, utilities in half with gf) and keeping 1k a month to save ill have roughly $400-$500 a month in fun funds. My gf would probably have a similar setup give or take but definitely will be able to contribute close to that for savings. Is it unreasonable to keep the ram 1500 and just ride it till 200k or more to get its full worth. Or would the additional funds be appreciated? I do not know what to expect when it comes to living on my own(with the gf but still) and the unexpected expenses. Is 1k in savings and $400-$500 fun funds adequate and not living paycheck to paycheck? The only other benefit of my dads truck is that it is 4x4. My gf and I love kayaking and plan to do some camping at the natural springs here in FL after she is done with school when she has more free time. I feel like as long as I do not go off on any unmarked trails or areas that are caked with mud after rainfall the 2wd ram should handle fine given it has some all terrains on it and not street tires.

I am having a tough time since I put a 6inch rc lift, 35s, magnaflow muffler, 5"dual tips and pedal commander on it and I enjoy the way it looks obviously but I am nervous and anxious to live outside my means. I just want to be able to move out, have a decent emergency fund, good amount going into savings and still have some leftover fun. I am at 3yrs 2m with this girl as well and want to provide a comfortable life when we move out and not be stressed over expenses. Plus since the deal is with my father I know the maintenance history and it does run and drives well as of now.

 

[indept]

My first thought is keep the Ram. That said, $360 will eat up most of that fun money. When you did your budget, did that 400-500 include yearly spikes like clothes & shoes. Don't forget dinners out not to mention emergencies, getting a dog or cat & those costs.
Maybe take dad up on his offer, enjoy the extra money and buy another Ram when you stash enough cash.

 

[Jeepwalker]

That was a nice explanation. Kudo's for giving it thought. How you go about the next phase of your life really comes down to basic values. Some people get a pay bump and go out and spend it immediately, others plan things out and sacrifice in the short term for a longer-term gain. There's really no right or wrong. I don't even condone people who live in debt (I know a lot of others do) ...if that's how they choose to live.

But that said here are my thoughts ...and they're just opinions and please take them with a grain of thought:

1) Yeah take your dads truck and get rid of yours. The Chevy's are rock solid. Yer Ram could need expensive engine work if the cam goes out ..but who knows? All the lifted toys were great, but I would want a cheaper vehicle and save for a 'real' house. Start putting your earnings into some wealth, not check-to-check on truck toys. Again comes down to values, and only you know what you want.

2) Live cheap and don't move in with your G/F. I've seen ...I can't even count how many, live-in arrangements string along too long when they should have either broken up or gotten married sooner. Those I've seen rarely worked out. Find a cheap apartment (don't blow too much on a house now), and live separately till you figure out if you *really* love each other for basic reasons of compatibility, and *only* afterwards get married and THEN move in. Accept that there will be imperfections and you have to adjust to live with each other's imperfections and lovely benefits. Once you get married, the focus shift's to TEAMWORK. Then you can buy a place together. Live-in arrangements seem to think things will change AFTER they get married -- get better, stop doing this or that. Figure that stuff out in advence and take a leap. You still have a 50/50 chance it'll work. If you guys aren't right for each other, be brave in advance & call it quits and find other partners. I'm sure there'll be a dozen guys with the opposite advice, but that's mine based on 30+ years of watching live-in relationships or marriages fall apart sooner or later.

3) Live cheap and save for a legit house. Doesn't have to be real expensive. Pay it off as quick as you can. We paid our 1st house off in 5 years (actually less than that). It wasnt a McMansion. We forego eating out much and doing expensive things. Yeah, you can still do Kayaking and those activities and take inexpensive trips. Once your house it paid off, then so many doors are open bc you have no debt, no payments, and can change careers to something you really want to do ...& easier to accumulate savings. Maybe that trip far away, or you decide to start a business ??? Of course you don't have to go gang-busters on the house thing, but once you get a house that's your wealthbuilder. That or a pile of savings ...that works too. It's difficult to get ahead if you don't accumulate some initial money is what I'm saying.

But those are all part of a value-structure you might not subscribe to. But it's a certain perspective. I used to live check to check when I got out of college. The day my wife's parents (who didn't make a lot of money) just wrote a check and bought themselves a house cash out-right (from their savings) ...it really stopped me in my tracks ....opened my eyes.

Now might be the time to make some 10yr/5yr/2yr & 6mo goals and write them down on note cards. They're not written in stone, but the beginnings of a roadmap which you can tweak and adjust as you go. People don't generally take my advice anyway, so.... LOL. But Marriage is like taking care of your Ram/Chevy or any other rig: you have to give it maintenance on a daily/weekly and/or monthly basis. It's work that can be extremely rewarding. Trucks/houses, etc are fine but a good solid marriage & family can supercede all those others.

Best wishes

 

[Travelin Ram]

I think your dad is trying to help you out, and a well maintained GM 5.3 can likely go 300k miles. But other parts probably won’t, there will be maintenance costs in the next few years you’ll have that are higher than the RAM. So not all of that $360 is saved. You may buy a transmission for example. I would make a long term plan for my vehicle and include how it will be replaced at end of my ownership/ end of life. You’re close to breaking the debt cycle, do that and pay cash in the future and you’ll be in a better financial position for life.

You’re absolutely on the right track to budget every dime, including emergency funds and play money. Whether your numbers are adequate isn’t possible to know without the total financial picture, in other words those should be percentage based. $1k is not the same for someone making $35k vs $95k.

 

[Bigskyroadglide]

Take the deal from dad,
Make certain you actually put the funds away.

The gf is the fun, living together will give you more alone time, use it, save as much of the fun money as possible.

Remember what you don't use someone else will and should

 

[joesstripclub]

$1k into savings is a pretty big amount. You will accumulate a good sized savings account pretty quickly at that rate. My thought would be to take 100 to 200 extra and put it towards your truck payment so you can avoid paying some interest. That's a pretty cheap truck payment. If your truck doesn't have any issues I'd say keep it. See if you can find an apartment that saves a few hundred a month too instead of jumping right into renting a house.

 

[hershey]

Sounds like you've thought it out pretty well...the only thing I'd add is this living with the g/f thing... I know it is the 'current' way to go, but based on a 3 year courtship and 56 years of marriage, I don't think I'd do it...I've watched several breakups in my own family and they are messy....one went through 3 partners but now has a solid husband and two beautiful girls...another finally married a woman with 4 kids..successful but stressful...the third I'm watching....
But then I live under the old, outdated morality...

 

[znrh]

I tend to agree with the crowd suggesting that you go with the dads truck and his guarantee. He wants what is best for you guys. Your going to need every penny since living on your own isn't cheap. I would rent until you and your gf sample living together for at least a year. Once you take that leap you will pay through the nose on a divorce. If you do decide to get married, get a prenup to protect yourselves. Good luck!

 

[Jeepwalker]

...If you do decide to get married, get a prenup to protect yourselves.

That might not be a bad idea. Basically a road-map how things will be separated if the unspeakable should occur. I have a buddy going through a messy divorce right now. There's a ton of back n fourth bc each person's lawyers are trying to milk the other. I know one guy who he and his wife(ex) mutually agreed how to end things, and it was smooth, quick, and less painful. And they both moved on w/o a lot of trauma. But it seems to be rare.

But look around at people older than you who lived together and how many, and who stayed together. Get advice from people who have been married for a long time. So many people i know get their relationship advice from divorced people, or people in rocky relationships. My sister who's been married 4x claims to be an 'expert' at marriage. But at the end of the day it comes down to what you (and her) do. And you can control your actions better than anyone.

 

[secretoctopus]

My sister who's been married 4x claims to be an 'expert' at marriage.

Sounds like she's 4x the expert over anyone who's only been married once.

 

[yrraljguthrie]

$1000 + $200 a month at a historically low rate of 4% for 40 years is over about $240,000. At 6% it's very close to $400,000. At 41 years it's about $12,000 and $28,000 more.





















4

 

[man n black]

There is a really easy answer here.

As the OP and his GF are just graduating college and likely have the associated financial burdens...One of if not the easiest ways to get ahead is to reduce your monthly outlay and pay off the student loans as quickly as possible. Once unleashed from the early life financial burden of school loans the OP will have his pick of vehicles to purchase and afford easily and still have play money.

Congrats Grads!
Ch

 

[utley]

Dont be stupid and buy a new truck. DONT YOU DARE. Keep a truck under the 2018 rule and you'll be fine. These new trucks at the dealerships are basically rip-offs. With that said, you should probably keep the Ram. 183k on the odometer is asking for a vehicle that will nickel and dime you to death; go ahead and ask me how I know that one. If anything, ask your pap if he will let you have the option to buy it back from him whenever you can because the 2016 rams were pretty good.

At least thats my 2c...bout what its worth.

 

[BossHogg]

Or would the additional funds be appreciated?

I'm happy to share my advice from someone who has already traveled your path. I'm now retired and debt free with a nice monthly cash flow.

Save every nickel you can find for as long as it takes to scape up the money needed for a down payment on a home. Renting is simply the same as throwing money down the toilet. If you can stay with your parents, do it.

I raised five boys, and each one was offered a place to stay after they graduated so they could build up a down payment. They took advantage of this and left our home for their own in less than two years.

Set yourself up for success by making small sacrifices now, this is what I did. As I look back, those sacrifices were painful but only for a short time. I never paid a dime in rent, instead, I built equity in my home

 

[andymax]

I'd take the deal with Dad. The truck has already nickel and dimed him and yours will start soon. Take that money and at least half of your 1000/mo savings- so $860/mo- and immediately start either a 401K or an IRA. At a low rate of return that will be $1.25Million, or at an average rate or return that is over $2Million assuming you never increase your monthly savings contribution, which you should and likely will. Rent for as short a time as possible, start building equity in a home and don't relent on those two things. You will be AMAZED at how much easier other financial and life decisions become once you have those two things well established.

You are VERY SMART for thinking about this stuff now. Let your friends be the ones in the shiny new cars and ass deep in credit card debt...Dont do it....DO NOT...I promise you will be WAY ahead.

Good Luck!!

 

[Dinky]

Make the trade. You just got your career going and are making money. Time to turn and burn and grind it out. Pay off your student loans as fast as possible first. Considerate on living on a budget until you know your good. You will be able to buy a new truck later as in reality its Just an item. Living with financial stress is never good and will make life difficult.

I see too many young guys over extend for new trucks or cars. They consistently live Pay check to pay check and have nothing to dhow but their vehicle.

 

[osprey92]

Hello, I am not sure if these kind of posts are off limits since it is basically asking about getting rid of a dodge for a chevy and may be forsaken lol. But, I know everyone here is supportive and maybe learned some lessons that could offer some advice. I have a 16 ram 1500 2wd 5.7l with 78k. I owe 13.7k and owe $360 a month. Recently graduated and got into a good paying career and me and the girlfriend are planning to move out late this year or early next year. The gf will be finished with radiology technologist in august and will make close to me so we are looking at homes for rent around 2-2.2k. My question with the truck is my dad loves it and will pay off the remainder of it and give me his 13 silverado 1500 5.3l 4wd extended cab with 183k on it plus 1.5k on top. This will eliminate $360 a month plus tires will be a bit cheaper as mine is lifted with 35s. He said he would cover cost of new tires and if the A/C craps out would cover that(it has a slow slow leak atm). After budgeting and guesstimating I am thinking after my bills(while splitting rent, groceries, utilities in half with gf) and keeping 1k a month to save ill have roughly $400-$500 a month in fun funds. My gf would probably have a similar setup give or take but definitely will be able to contribute close to that for savings. Is it unreasonable to keep the ram 1500 and just ride it till 200k or more to get its full worth. Or would the additional funds be appreciated? I do not know what to expect when it comes to living on my own(with the gf but still) and the unexpected expenses. Is 1k in savings and $400-$500 fun funds adequate and not living paycheck to paycheck? The only other benefit of my dads truck is that it is 4x4. My gf and I love kayaking and plan to do some camping at the natural springs here in FL after she is done with school when she has more free time. I feel like as long as I do not go off on any unmarked trails or areas that are caked with mud after rainfall the 2wd ram should handle fine given it has some all terrains on it and not street tires.

I am having a tough time since I put a 6inch rc lift, 35s, magnaflow muffler, 5"dual tips and pedal commander on it and I enjoy the way it looks obviously but I am nervous and anxious to live outside my means. I just want to be able to move out, have a decent emergency fund, good amount going into savings and still have some leftover fun. I am at 3yrs 2m with this girl as well and want to provide a comfortable life when we move out and not be stressed over expenses. Plus since the deal is with my father I know the maintenance history and it does run and drives well as of now.

Hello, I am not sure if these kind of posts are off limits since it is basically asking about getting rid of a dodge for a chevy and may be forsaken lol. But, I know everyone here is supportive and maybe learned some lessons that could offer some advice. I have a 16 ram 1500 2wd 5.7l with 78k. I owe 13.7k and owe $360 a month. Recently graduated and got into a good paying career and me and the girlfriend are planning to move out late this year or early next year. The gf will be finished with radiology technologist in august and will make close to me so we are looking at homes for rent around 2-2.2k. My question with the truck is my dad loves it and will pay off the remainder of it and give me his 13 silverado 1500 5.3l 4wd extended cab with 183k on it plus 1.5k on top. This will eliminate $360 a month plus tires will be a bit cheaper as mine is lifted with 35s. He said he would cover cost of new tires and if the A/C craps out would cover that(it has a slow slow leak atm). After budgeting and guesstimating I am thinking after my bills(while splitting rent, groceries, utilities in half with gf) and keeping 1k a month to save ill have roughly $400-$500 a month in fun funds. My gf would probably have a similar setup give or take but definitely will be able to contribute close to that for savings. Is it unreasonable to keep the ram 1500 and just ride it till 200k or more to get its full worth. Or would the additional funds be appreciated? I do not know what to expect when it comes to living on my own(with the gf but still) and the unexpected expenses. Is 1k in savings and $400-$500 fun funds adequate and not living paycheck to paycheck? The only other benefit of my dads truck is that it is 4x4. My gf and I love kayaking and plan to do some camping at the natural springs here in FL after she is done with school when she has more free time. I feel like as long as I do not go off on any unmarked trails or areas that are caked with mud after rainfall the 2wd ram should handle fine given it has some all terrains on it and not street tires.

I am having a tough time since I put a 6inch rc lift, 35s, magnaflow muffler, 5"dual tips and pedal commander on it and I enjoy the way it looks obviously but I am nervous and anxious to live outside my means. I just want to be able to move out, have a decent emergency fund, good amount going into savings and still have some leftover fun. I am at 3yrs 2m with this girl as well and want to provide a comfortable life when we move out and not be stressed over expenses. Plus since the deal is with my father I know the maintenance history and it does run and drives well as of now.

My advice I would give my kids: Don't live together. If you have been together for 3 years, make it permanent. But if you do decide to live together, don't have joint accounts. I would say make sure any agreements (lease, utilities, etc.) are in both names, but I have seen that turn into a negative when a friend's GF decided to breakup, but remain in the house with the new BF, and old BF couldn't eat the remaining rent so had to stick it out until lease ended. Ok, all that said, I am all for not having a payment, but at 183k mi you have to expect ongoing maintenance expenses. I'd keep your truck. If you needed extra $, get a part-time job.

 

[BadHemi2014]

Excellent advice about having individual accounts. I say that advice is good even for married couples. My husband and I had joint accounts for a long time and it caused a lot of issues, now we each have our own checking and savings and then a joint account we put equal amounts in each month for paying utilities, mortgage etc.
I say don't live together only because I always felt that living on your own is an important step in becoming an adult, that's when you learn how to do everything in regards to keeping up a home whether it's owned or rented doesn't matter. You learn to be independent and not rely on someone else. However I get that it's financially difficult these days to do that.
My husband and I lived together before we got married, we've been hitched for going on 24 years now. Ugh that's a long time lol.
My most important advice, whether you live apart, together, married or not, don't make any babies! Not until way down the road, because kids are $$$$$$$ and will destroy all your well-laid plans.

 

[Jeepwalker]

That's interesting people's take on joint accounts. I'm just the opposite on the accounts isle. But it depends on how good your spouse is with money (or you). I say once you get married, go all-in and have one joint account. That makes you talk and plan about what your financial goals are. Which is a good thing. You need to be close to "on the same page" financially or you're in for a rocky marriage. And if one person isn't typically 'good with money' the other spounse who is, can (hopefully) become an inspiring person and help that person stay on track. (sounds good, but challenging to do)

OTOH, if one of the spouses are not on the same page in terms of spending habits/goals, then money can be a major point of frustration and arguments. Then maybe separate accounts is good. But IDK if that solves the root problem. If one hasn't saved a dime, the other will still bear more burden in the end. You both (OP) should discuss money and how to manage it before marriage and come to some agreement on what spending issues/concerns you have, and plan out a spending strategy/style in advance that fit's your personalities. Try to not let money be a ruining factor 7yrs down the road.

In fact, just type in to Google "Why marriages break up" and discuss with your future partner each of those factors and forge an initial plan in advance to help avoid those common pitfalls. I did with my wife (30+ years ago). It doesn't guarantee success, but if you two are so far apart, maybe its better to not set yourselves up for failure.

 

[gfh77665]

I am about to give you some advice that many will not agree with. Brace yourself.

I want you and her to focus on your and her LIFE, not specifically the truck. First with her, decide what level of commitment you two are making. Is it a "live together for the moment" thing, or "go all in, full commitment for life". I will advise anyone to stand before God and take a vow with her to honor your marriage for life. That's exactly the instruction God gives us, and any arrangement outside of that He does not approve.

Second, both of you should honor Him with with 10% of what He blesses you with. Full commitment in finances, too. He specifically tells us:

Bible Gateway passage: Proverbs 3:9-10 - New International Version

Honor the LORD with your wealth, with the firstfruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine.

www.biblegateway.com

Now, regarding the truck, understand whichever one you choose it is a depreciating asset. Invest in a home. In most cases, real estate is an appreciating asset. If you can afford $2000+ for rent you will never see again, you can afford a house. Build equity!

To summarize, honor God first, in marriage and finances. Then, prioritize investments in appreciating assets, a home. Start modest, you can trade up later. Third, invest for your and her future in the stock market. Add a little bit of every paycheck in a low cost SP500 Index Fund and with you being young you will be amazed how it will grow through the decades. Finally, do a cost analysis of the truck choice. Just don't let the truck choice be the "tail that wags the dog". Its a low priority. Doing your and her life right is so much more important.