how can a young couple on minimal full time wage afford immediately 2 cars they need for work

Discussion in 'Money Management & Banking' started by justine77, 21st Nov, 2020.

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  1. justine77

    justine77 Well-Known Member

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    yes and even not from their home but some singles save and have goals and others as singles were able to spend. and they did. . Its a clash in a relationship which may or may not shift.
    some of us learn fast to save in relationships even if not used to it beforehand. Others dont ever change. i'm unsure if Tom can open her to the idea of goals , owning a home etc
     
    justine77, 22nd Nov, 2020
    #41
  2. wylie

    wylie Moderator Staff Member

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    I would advise Tom to try to convince Mary that if they buy the house they are currently renting, their mortgage is covered by the rented section, which frees up money to be eating out once or twice a week.

    Perhaps he can do up a budget showing what's left over at the end of each week using both scenarios. Sometimes seeing a number on paper that can be used for discretionary spending verses a much smaller number on paper that will be left over if they buy the fancier house and fancier car will prove to Mary that she must compromise somewhere.

    This is not easy, and I know you are aware that you can suggest and guide, but the couple have to work it out between themselves.
     
    wylie, 22nd Nov, 2020
    #42
  3. wylie

    wylie Moderator Staff Member

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    Just read the rest of the thread and it seems they (both?) have asked for your advice.

    Perhaps Tom can say to Mary...

    "We both earn $1k a week (or whatever that number is). If we buy the house we are renting, the income from renting the downstairs part pays our mortgage. That gives us each our $1k to spend as we wish. You buy a two year old Corolla and I'll buy a ten year old Corolla. Don't worry about what your friends will think of my car. We each put $150 a week into an "eating out" account, and let's try to save the rest to put towards upgrading the cars in two years. See how much we can save."

    By the time Mary gets to the two year goal, she may be used to saving.

    I'd suggest they need to sort their spending out (housing, cars, eating out) before they have a child. That throws everything out the window because staying home (lose one income for a short or long time) vs paying child care, school fees all come into play.

    Mary sounds like she's a hard worker, and perhaps she feels entitled to spend her money how she wants. But it is a marriage - two people.

    The other thing I'd say (quietly) to Tom is... don't get pregnant until you sort this out. Too late once there is a child on the way. You think things are tough now? Wait until a baby comes along.
     
    wylie, 22nd Nov, 2020
    #43
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  4. justine77

    justine77 Well-Known Member

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    Thank you wylie thats really brilliant the points you have said .
    wow really really smart points there
    i knew the house had to be priority but i didnt think about how the first choice of the houses actually would give them money to pay for cars and other things thats really smart.

    Yes i think getting good financial advice for each choice for buying a car or house and for budetting, and hard clear numbers and benefits can help especially re house choice. thats a great point that the savings of one choice, can go for more living costs 1000 more a month in the case of house choices, unless they would pay more to the mortgage or find a middle way.

    i find sometimes people including myself have a fixed view and i've had people say to me ' ill say it a second time' and they explain calmly a second time what they are trying to get me to shift my view in and it does help. The first time you hear things you dont really shift, it might take a few times of hearing a new idea calmly before people listen or shift if at all.

    i was reading something about budgetting that said that you cant just make choices based on waht you prefer otherwise you would fast be heading to banikruptcy. some of us have grown up and changed to saving,, but its harder for some.
     
    justine77, 22nd Nov, 2020
    #44
  5. Shogun

    Shogun Well-Known Member

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    Shogun, 22nd Nov, 2020
    #45
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  6. justine77

    justine77 Well-Known Member

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    Thanks again wylie i'm really excited about your ideas. Brilliant
     
    justine77, 22nd Nov, 2020
    #46
    wylie likes this.
  7. Guest

    Guest Guest

    Do they both definitely need a car? Are there any public transport options or could an electric scooter, bike or other form of transport be enough for one of them during the week?

    $30-40k worth of loans to buy cars in a minimum wage household is bonkers.

    My wife and I both earn far more than minimum wage and when we last bought a car 6 years ago (only one in the household) it was a secondhand 2004 Subaru Impreza for $8k (cash), still runs great and looks clean.
     
    Guest, 22nd Nov, 2020
    #47
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  8. Angel

    Angel Well-Known Member

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    I too would give them a copy of Barefoot Investor, and then Butt Myself Out.

    WHY? Because they are 30 years old, both work full time and they need to work this out for themselves. Just because they asked you for help, Justine, does not mean one or the other will want to hear your advice. Best to remind them that they are adults now and they are both intelligent enough to do their own research. You cannot continue to spend your time, love and energy enabling one and saving the other.
     
    Angel, 22nd Nov, 2020
    #48
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  9. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    They sound like life renters. Renters often have nice cars (financed) and maybe a bike / boat etc. They are forever in a debt trap. They "need" their cars and yet lenders see car loans like a person without a job.And when they get close to paying it off they do it again and get the latest model. If they cant save while paying rent then what chance is there to escape. Especially if Mary has a baby....I would bet good money that they also have credit card debt.

    One of the best ways to escapae a debt trap is education. New jobs and careers that pay. But you have to invest in the cost and time first.
     
    Paul@PAS, 23rd Nov, 2020
    #49
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  10. money

    money Well-Known Member

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    Scott & Jaydee's advice are spot on. Did you have a chat with your friend Tom about their advice below? Tom should call it quits before a divorce happens down the line & kids comes along or before she takes him to the cleaners. No need for high maintenance money spenders who will send you broke when you are trying to save & build a future for yourself.

     
    money, 3rd Dec, 2020
    #50
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