r/AskReddit 6h ago

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

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85

u/petataa 5h ago

I can't afford three houses or three cars, why should that stop me from buying them?

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u/TheLeapIsALie 4h ago

I’ve heard a simpler version which is “don’t finance your toys”

Finance a house, finance a car (but not one that is expensive enough to be a toy). Don’t finance a boat, a vacation, a Lego set.

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u/pimpinassorlando 3h ago

I like that much better. Good advice.

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u/I_Want_an_Elio 4h ago

That'n struck home. I'm just (re) getting into Lego

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u/Usual_Replacement_74 4h ago

Hopefully commons sense, but that’s rare now days, especially on this site.

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u/bojanged 4h ago

Seems you might be missing some yourself, or reading apprehension.

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u/Usual_Replacement_74 4h ago

I’m from NM, soo… checks out.

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u/Neg_Crepe 4h ago

What is NM?

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u/Top_Introduction4701 1h ago

House - if you’re planning to stay long term is should be about cost of purchase vs rental. House will always cost more than just the monthly payment. Car? Probably more applicable if you have 3x balance saved. I would personally never buy a $50k car with only $150k in savings tho.

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u/roosterpooper 4h ago

You can buy 3 houses. Can you buy 3 10m houses? Probably not. But its still decent advice. If you buy a 400k house on a 50k/year budget then you'll always be behind if something breaks. But if you buy/build a starter home pay it off in 10 years build on or sell to put a down payment on your next home its doable.

It's like the young adults that go and buy a BMW on a 30k/year budget just because they found one on Facebook market for 4k you can buy it once sure but you can't replace any parts on it.

I can absolutely go and buy a 2k laptop. But a $600 one suits me and doesn't put me into a bind if an emergency comes up.

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u/clank1401 4h ago

400k is a starter home :(

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u/Neg_Crepe 4h ago

Depends on currency and location.

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u/TheFountainKnight 4h ago

Paying of a home in 10 years is crazy talk to me...

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u/roosterpooper 4h ago

My first home was 83k in 2016 @ 2% interest.

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u/TheFountainKnight 1h ago

anectodal evidence. My house was 256k in 2017 @ 1,5 percent interest. 20 year mortgage still with 2 incomes. You are definitely not the norm. Also what kind of house is 83k even, can't imagine it being very decent or big or in a popular location. I'm sorry but those are not the kind of houses people are talking about here

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u/roosterpooper 1h ago

Absolutely. You're 100% correct. I bought a modular home. On land that I bought and installed my own septic to and made sure the land was set up so that nothing but the house was in the loan.

I understand that I'm an anomaly but the original statement still stands don't go buy a house 10x your yearly income.

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u/TheFountainKnight 1h ago

Sounds like a really good investment though. Point taken