I viewed this Friday's paycheck. This is the first paycheck my raise is 100% incorporated. My take-home increase by $137 per pay-check. Nice : ) I'm still contributing 20% to my 401K. 401K contribution limit in 2009 is $16,500. I thought about maxing this out, then, I decided not to do it.
Reason: I need to save for a car.
I drive 2004 Toyota Rav4 that has about 105K miles. Well, I am planning to drive it until it totally dies on me. However, I commute over 60 miles a day and not having a reliable car is out of question. So far, my lovely Rav4 has been super dependable, but you just never know with high mileaged car.
So, I decided to start saving for a new car, in case something happened to my Rav4. I was thinking about investing in two or three stocks (like GE or Citi) for next 2 years in Sharebuilder account (say, $100 per stock per month) and see how much it grows by the time I need to buy a car. I guess my return will determine what kind of car I can buy.
Or, should I resort in regular savings account??? I think this car should last at least two more years. (I drive about 20K miles a year.)
What do you think?
New paycheck and an idea about saving for a car
April 21st, 2009 at 07:30 pm
April 21st, 2009 at 07:49 pm 1240343393
I'd put it into the highest yielding money market account or CD that I could find.
Good luck! Great job on the 401k savings, too.
April 21st, 2009 at 08:59 pm 1240347551
Maismom has a great strategy. Every month that your car lasts, your payment on the next one is getting smaller. If you are lucky, you can have most of the money needed for another car before this one dies. Would it not be nice to have a new car with no debt to come with it?
As for "reliable" people use this word to justfiy buying any car they want. I am not talking about the poster here, I'm talking about many other people I've met.
In their mind only a certain type of car is "reliable"(the one they want) and that is it. They may not be able to afford it, but getting anything else means "not loving their children or caring about their safety" and such crp.
DH commutes 100 (well, 97) miles each day going 80mph on a nj stretch in a year 2000 sedan, and it is fine. Some people would insist on a Volvo or a Mercedes SUV if they had such commute to be "safe" and "reliable".
April 21st, 2009 at 10:19 pm 1240352395
April 21st, 2009 at 10:38 pm 1240353535
April 22nd, 2009 at 01:22 am 1240363368
April 22nd, 2009 at 02:40 am 1240368014
April 22nd, 2009 at 02:00 pm 1240408853
April 22nd, 2009 at 07:48 pm 1240429693
April 23rd, 2009 at 02:33 am 1240453991
I also agree with Nika about the "reliable" car thing. A car doesn't have to be new or low mileage to be reliable. My 1998 Camry has 117,000 miles and I'd drive it cross country tomorrow if I had the opportunity. Same goes for our 2000 Sienna with 110,000 miles. We drive that over 1,000 miles each way to Florida every year and will do it again in August. My medical assistant (who by far lives the farthest from our office of all the employees) drives a 1998 Corolla with over 300,000 miles.
April 28th, 2009 at 11:19 pm 1240960750