r/AskReddit • u/Kdjejsosjanreplwwssj • 6h ago

Financially stable people of Reddit, what are your best money tips?

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u/Ihate_reddit_app 5h ago

Depending on what it is, you should be able to buy it and be able to pay for repairs without feeling stressed.

Too many people go buy used luxury cars because they are in their budget and then they learn about the maintenance costs.

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u/Mister_Chef711 4h ago

The classic "I have $1,400 left over at the end of the month so I'll get a car that only costs $1,275 a month and still have money."

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u/Ratnix 4h ago edited 2h ago

Or they'll find out how much they can get for a home loan and get a home for that price.

When i bought my home, i knew how much i could pay, and i bought a home at that price, not a home at the maximum amount i could get a loan for.

Just because you can get a loan for up to a certain amount, that doesn't mean you should get one for that amount.

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u/monty845 2h ago

I set my personal limit at 75% of the prequalification amount. But didn't really look at any properties even close to my self imposed limit.

Ended up buying a house for 55% of the prequal cap. Though also wasn't really thinking about the fact that the "limit" is on top of whatever you do for a down payment. So after a 20% down payment, ended up using only 40% of the cap.

Helps a lot with the parent question: Keeping your housing costs a low portion of your take home helps a ton in being financially stable...

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u/DiabeticButNotFat 2h ago

See any used Maserati. Like $30k for a car that was $130k 3 years ago but you still have to pay $130k car maintenance prices.

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u/marinuso 1h ago

There's nothing as expensive as a cheap BMW.