If you had to pick just 1 car to keep, which one would you keep? (993 vs 740i)
03-07-2010, 09:06 PM
#76
Seared
Rennlist Member
Rennlist Member
Marriage is a team effort. It seems as if you are the one always making (or considering) compromises. That doesn't seem very balanced...
Andreas
03-07-2010, 09:15 PM
#77
Rennlist Member
Thread Starter
Steve - It sounds like you know what you need to do to get back in shape, or at least you are receiving some good advice. Here is a link to one person's (my cousin) blog where she tells her story of trying to cut her families debt. Her example may not make sense or apply to your situation but some of it is a good read, and will give you another perspective of someone out side of the P-car community.
http://mollyonmoney.wordpress.com/author/mollyonmoney/
Good luck.
Aron
http://mollyonmoney.wordpress.com/author/mollyonmoney/
Good luck.
Aron
Point taken. Taken, but I'm not sure what to do with it. I'm married to a very set in her ways, woman.
03-07-2010, 09:23 PM
#78
Addict
Rennlist Member
Rennlist Member
I also sell stuff (software) for a living for the last 6 years. And I've parted ways with my previous company a year and a half ago dropping incoming cash flow by, let's say, 90%+. However I think that once a successful sales guy can always be a successful sales guy. So if you decide to look around you'll find something and make it pay well (I've decided to go on my own and do it more for pleasure and future possibilities than cash right now, that's why the drop). However, not having a mortgage in this situation is a great mental plus, so I understand where you are coming from. And, thus, the suggestion to put 993 money and money market funds into paying off the mortgage.
03-07-2010, 09:38 PM
#79
Rennlist Member
Thread Starter
I'm very conservative financially and hate not having a reserve cash fund. However. Your house will have 100% equity. If something seriously messed up happens you can pretty easily get a HELOC on it.
I also sell stuff (software) for a living for the last 6 years. And I've parted ways with my previous company a year and a half ago dropping incoming cash flow by, let's say, 90%+. However I think that once a successful sales guy can always be a successful sales guy. So if you decide to look around you'll find something and make it pay well (I've decided to go on my own and do it more for pleasure and future possibilities than cash right now, that's why the drop). However, not having a mortgage in this situation is a great mental plus, so I understand where you are coming from. And, thus, the suggestion to put 993 money and money market funds into paying off the mortgage.
I also sell stuff (software) for a living for the last 6 years. And I've parted ways with my previous company a year and a half ago dropping incoming cash flow by, let's say, 90%+. However I think that once a successful sales guy can always be a successful sales guy. So if you decide to look around you'll find something and make it pay well (I've decided to go on my own and do it more for pleasure and future possibilities than cash right now, that's why the drop). However, not having a mortgage in this situation is a great mental plus, so I understand where you are coming from. And, thus, the suggestion to put 993 money and money market funds into paying off the mortgage.
Yes, that's what I'm thinking right now as well. Just because I haven't found that next great sales job yet doesn't mean I won't. I was made some very interesting offers this past 11 months, but I turned them down because I didn't see the upside back then to where we "needed to be". With one company, I was all ready to take their offer but after speaking to their top sales rep for 30 minutes I decided that this definitely wasn't the place I could make the money they claimed I could. In the interview they told me that I could certainly make $100k+ as people had done that in the past. When I talked to the sales rep, he laughed at that and said that he was tracking $65k for the year and that he was the top guy, and that he hadn't done more than $70k for the past 4 years. Ouch - glad they let me talk to that guy!
I hope your situation improves as well. I had to google HELOC. Never heard of that acronym before (A home equity line of credit (often called HELOC and pronounced HEE-lock).
03-07-2010, 09:55 PM
#81
I already put in my 2 cents early on in this thread.
But what I find intriguing is why is it so hard to let material possessions go? After all they're just possessions. Once it's gone you adapt pretty quickly and life goes on. I find it perplexing that we can become so attached to objects that in reality really have no bearing on who we are, or on our well-being in the larger scheme of things.
Why is it that the way we live and think is so tied into material pleasure? As I already said, having less can be a form of liberation. We don't need all the stuff we think we need. That's the job of advertisers; to make us think otherwise. Satisfaction doesn't come from ownership, satisfaction comes from the mind.
I'm not a Buddhist, but I know a bit about about Buddhism and the "noble truths." The second truth is that suffering is caused by one’s desire for material possessions, especially those that one cannot have at the moment. The final "noble truth" is that an end to suffering comes when the desire for material possessions also comes to an end.
It's unfortunate that in this society we determine our value by what we own. It's our "reward" for working hard, etc.. Creative artists don't value the object they've created as much as the process it takes to make the creation. That's what gives themselves value: their ability to create. If we aren't being creative in our lives, then we end up substituting that missing value with material possessions.
Again, best wishes to you. And I hope you realize that letting go can be a good thing.
But what I find intriguing is why is it so hard to let material possessions go? After all they're just possessions. Once it's gone you adapt pretty quickly and life goes on. I find it perplexing that we can become so attached to objects that in reality really have no bearing on who we are, or on our well-being in the larger scheme of things.
Why is it that the way we live and think is so tied into material pleasure? As I already said, having less can be a form of liberation. We don't need all the stuff we think we need. That's the job of advertisers; to make us think otherwise. Satisfaction doesn't come from ownership, satisfaction comes from the mind.
I'm not a Buddhist, but I know a bit about about Buddhism and the "noble truths." The second truth is that suffering is caused by one’s desire for material possessions, especially those that one cannot have at the moment. The final "noble truth" is that an end to suffering comes when the desire for material possessions also comes to an end.
It's unfortunate that in this society we determine our value by what we own. It's our "reward" for working hard, etc.. Creative artists don't value the object they've created as much as the process it takes to make the creation. That's what gives themselves value: their ability to create. If we aren't being creative in our lives, then we end up substituting that missing value with material possessions.
Again, best wishes to you. And I hope you realize that letting go can be a good thing.
03-07-2010, 10:02 PM
#82
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Steve,
Sell both cars and buy something that's more economical to run.
May I suggest VW GTI or TDI...Preferably used better with only a year or two old.
Wanted to recommend 996 for you but I think that's still luxury in this case.
Don't touch the 401k and remember you can always go back to 993 in future!
Listen to the wifey, she is the greatest asset here.
Sell both cars and buy something that's more economical to run.
May I suggest VW GTI or TDI...Preferably used better with only a year or two old.
Wanted to recommend 996 for you but I think that's still luxury in this case.
Don't touch the 401k and remember you can always go back to 993 in future!
Listen to the wifey, she is the greatest asset here.
03-07-2010, 10:03 PM
#83
After seeing many of my high-school peers who skipped college to get into the mortgage boiler rooms of SoCal fail miserably after their well of "fake" money dried up, here's what I suggest:
Don't sell your house. You said they were asking 1.27 when you initially looked at it and then dropped it down under a mil? How stupid are you going to feel in 5 to 7 years when your house creeps up above and beyond that asking price? How much BS are you going to have to hear from your wife if you convince her to move into some shack away from your friends/places you like to go out? As others have suggested, sell 993, BMW, watches, and buy a smaller, fuel-efficient utility car and throw a timex on your wrist. Take whatever's left over and that lazy 85 grand, and put it toward whatever gets your monthly expenses down the soonest and most efficiently.
Take a job. Any job really. Just make sure it's going to help that bottom line out, and actively look for a better position as well. I would also ask your mother-in-law to start paying up a little for the services your wife, who could be working and putting money toward your cash-strapped position, provides. This will take some tact, and obviously you need to bring your wife on board with you, but make sure you let her know that you sold your dearest material possessions to make it work, and it's time she take some initiative and speak to her mom.
Or, another option is to live "hood rich." Move into the shack, park your 993 in the driveway and water your lawn in Gucci robe and loafers with your expensive watch on your wrist.
Don't sell your house. You said they were asking 1.27 when you initially looked at it and then dropped it down under a mil? How stupid are you going to feel in 5 to 7 years when your house creeps up above and beyond that asking price? How much BS are you going to have to hear from your wife if you convince her to move into some shack away from your friends/places you like to go out? As others have suggested, sell 993, BMW, watches, and buy a smaller, fuel-efficient utility car and throw a timex on your wrist. Take whatever's left over and that lazy 85 grand, and put it toward whatever gets your monthly expenses down the soonest and most efficiently.
Take a job. Any job really. Just make sure it's going to help that bottom line out, and actively look for a better position as well. I would also ask your mother-in-law to start paying up a little for the services your wife, who could be working and putting money toward your cash-strapped position, provides. This will take some tact, and obviously you need to bring your wife on board with you, but make sure you let her know that you sold your dearest material possessions to make it work, and it's time she take some initiative and speak to her mom.
Or, another option is to live "hood rich." Move into the shack, park your 993 in the driveway and water your lawn in Gucci robe and loafers with your expensive watch on your wrist.
03-07-2010, 10:05 PM
#84
Race Director
This is the idea I like best. Use the $85k to pay off the $116k mortgage. We still have $35k in our checking account. I could (ARGHHH) sell my 993 to finish that payoff of the mortgage so we'd only owe $132 a month with our tenant's rent added in:
No Mortgage = $0 per month
Taxes and insurance = $932 month
Rent income from apt = $800 month
= $132 out of pocket
No more 993, but c'est la vie I guess to that. My wife definitely doesn't want us to spend this $85k savings reserve. If something gets messed up somehow, it's our catastrophe eliminator. I'll think long and hard about this idea. It would be a hard sell to her as well.
Holy ****e. I do see your point about the house being an albatross but letting go is hard. It's not out of the question, though.
No Mortgage = $0 per month
Taxes and insurance = $932 month
Rent income from apt = $800 month
= $132 out of pocket
No more 993, but c'est la vie I guess to that. My wife definitely doesn't want us to spend this $85k savings reserve. If something gets messed up somehow, it's our catastrophe eliminator. I'll think long and hard about this idea. It would be a hard sell to her as well.
Holy ****e. I do see your point about the house being an albatross but letting go is hard. It's not out of the question, though.
$35k in a CHECKING ACCOUNT? Come on man, that just silly.
Yes, using 85k+993 to pay off the mortgage is great and gets rid of your monthly cash outflow.
But then you are literally looking at $335k as you entire retirement savings. With the lifestyle you seem to enjoy, that ain't gonna cut it.
By refinancing your home or downsizing, you greatly reduce your monthly payment, while allowing you to keep your savings/emergency funds.
At the 5% you're gonna pay for a refi right now, its definitely worth it to keep that $85k invested.
While youre at it, cut your checking account balance to about 10k, and invest the rest.
03-07-2010, 10:24 PM
#85
Rennlist Member
I already put in my 2 cents early on in this thread.
But what I find intriguing is why is it so hard to let material possessions go? After all they're just possessions. Once it's gone you adapt pretty quickly and life goes on. I find it perplexing that we can become so attached to objects that in reality really have no bearing on who we are, or on our well-being in the larger scheme of things.
Why is it that the way we live and think is so tied into material pleasure? As I already said, having less can be a form of liberation. We don't need all the stuff we think we need. That's the job of advertisers; to make us think otherwise. Satisfaction doesn't come from ownership, satisfaction comes from the mind.
I'm not a Buddhist, but I know a bit about about Buddhism and the "noble truths." The second truth is that suffering is caused by one’s desire for material possessions, especially those that one cannot have at the moment. The final "noble truth" is that an end to suffering comes when the desire for material possessions also comes to an end.
It's unfortunate that in this society we determine our value by what we own. It's our "reward" for working hard, etc.. Creative artists don't value the object they've created as much as the process it takes to make the creation. That's what gives themselves value: their ability to create. If we aren't being creative in our lives, then we end up substituting that missing value with material possessions.
Again, best wishes to you. And I hope you realize that letting go can be a good thing.
But what I find intriguing is why is it so hard to let material possessions go? After all they're just possessions. Once it's gone you adapt pretty quickly and life goes on. I find it perplexing that we can become so attached to objects that in reality really have no bearing on who we are, or on our well-being in the larger scheme of things.
Why is it that the way we live and think is so tied into material pleasure? As I already said, having less can be a form of liberation. We don't need all the stuff we think we need. That's the job of advertisers; to make us think otherwise. Satisfaction doesn't come from ownership, satisfaction comes from the mind.
I'm not a Buddhist, but I know a bit about about Buddhism and the "noble truths." The second truth is that suffering is caused by one’s desire for material possessions, especially those that one cannot have at the moment. The final "noble truth" is that an end to suffering comes when the desire for material possessions also comes to an end.
It's unfortunate that in this society we determine our value by what we own. It's our "reward" for working hard, etc.. Creative artists don't value the object they've created as much as the process it takes to make the creation. That's what gives themselves value: their ability to create. If we aren't being creative in our lives, then we end up substituting that missing value with material possessions.
Again, best wishes to you. And I hope you realize that letting go can be a good thing.
And I totally agree with Andreas. In your situation, and especially given that your wife doesn't contribute economically, you need to tell your wife there is no more money for skiing and that all you can afford is a used FWD with good snow tires. But you have to lead by example and sell your two cars also.
Where I live $1M buys you a 1,000 to 1,500 sqft condo. It's all a matter of reference. You have to do your own cost-benefit analysis but given the current climate I would be hard pressed to think the value of your home will increase in the next two to three years. This is why I suggested you take the equity, invest it wisely and reassess when your situation is improved and stable. However, you also need to consider things like the potential for inflation etc.
03-07-2010, 10:29 PM
#86
Rennlist Member
Thread Starter
You guys are on a roll. I think I need to send each of you a check (if I could afford it 
) for your sage financial advice. So many great ideas, so many conflicting ideas. In the end, I'll take everything you wrote, pour over it again with the microscope of reason, sit back and reflect on it and think how it would change our lives, and make some moves. Definitely not going to rush into anything like some of you suggest.
) for your sage financial advice. So many great ideas, so many conflicting ideas. In the end, I'll take everything you wrote, pour over it again with the microscope of reason, sit back and reflect on it and think how it would change our lives, and make some moves. Definitely not going to rush into anything like some of you suggest.
03-07-2010, 10:39 PM
#87
Three Wheelin'
I already put in my 2 cents early on in this thread.
But what I find intriguing is why is it so hard to let material possessions go? After all they're just possessions. Once it's gone you adapt pretty quickly and life goes on. I find it perplexing that we can become so attached to objects that in reality really have no bearing on who we are, or on our well-being in the larger scheme of things.
Why is it that the way we live and think is so tied into material pleasure? As I already said, having less can be a form of liberation. We don't need all the stuff we think we need. That's the job of advertisers; to make us think otherwise. Satisfaction doesn't come from ownership, satisfaction comes from the mind.
I'm not a Buddhist, but I know a bit about about Buddhism and the "noble truths." The second truth is that suffering is caused by one’s desire for material possessions, especially those that one cannot have at the moment. The final "noble truth" is that an end to suffering comes when the desire for material possessions also comes to an end.
It's unfortunate that in this society we determine our value by what we own. It's our "reward" for working hard, etc.. Creative artists don't value the object they've created as much as the process it takes to make the creation. That's what gives themselves value: their ability to create. If we aren't being creative in our lives, then we end up substituting that missing value with material possessions.
Again, best wishes to you. And I hope you realize that letting go can be a good thing.
But what I find intriguing is why is it so hard to let material possessions go? After all they're just possessions. Once it's gone you adapt pretty quickly and life goes on. I find it perplexing that we can become so attached to objects that in reality really have no bearing on who we are, or on our well-being in the larger scheme of things.
Why is it that the way we live and think is so tied into material pleasure? As I already said, having less can be a form of liberation. We don't need all the stuff we think we need. That's the job of advertisers; to make us think otherwise. Satisfaction doesn't come from ownership, satisfaction comes from the mind.
I'm not a Buddhist, but I know a bit about about Buddhism and the "noble truths." The second truth is that suffering is caused by one’s desire for material possessions, especially those that one cannot have at the moment. The final "noble truth" is that an end to suffering comes when the desire for material possessions also comes to an end.
It's unfortunate that in this society we determine our value by what we own. It's our "reward" for working hard, etc.. Creative artists don't value the object they've created as much as the process it takes to make the creation. That's what gives themselves value: their ability to create. If we aren't being creative in our lives, then we end up substituting that missing value with material possessions.
Again, best wishes to you. And I hope you realize that letting go can be a good thing.
03-07-2010, 10:57 PM
#89
Steve
Unfortunately I would advise you to sell the house, cars, watches immediately. Sorry to be blunt but with your new income level you are just living beyond your means. You need cash and tapping the 401k should be your very last option. With a 5% real estate sales commission you should net ~$800k on selling the house, and cars. Rent a house for a year, buy a couple of certified pre-owned Japanese cars. Now you can breath. Hopefully a better job comes along and you can buy or rent a nicer house and eventually maybe treat yourself to another 993 as your situation improves. Best of luck to you.
Unfortunately I would advise you to sell the house, cars, watches immediately. Sorry to be blunt but with your new income level you are just living beyond your means. You need cash and tapping the 401k should be your very last option. With a 5% real estate sales commission you should net ~$800k on selling the house, and cars. Rent a house for a year, buy a couple of certified pre-owned Japanese cars. Now you can breath. Hopefully a better job comes along and you can buy or rent a nicer house and eventually maybe treat yourself to another 993 as your situation improves. Best of luck to you.
