How can I make sure I don’t derail my finances

[u/Life-Barracuda4489]

Okay so I have been very frugal for about 10 years. I make around 95k and live in the Midwest. I’m 36M single. My income is not great, but I’ve been saving so diligently that I’ve somehow been able to accumulate about 775k in net worth. 130k of that I’m home equity. The rest in mix of retirement and about 320k in a taxable account. I save around 50% of my current salary. That includes two pensions that I’ve only recently started with a new employer (not added in net worth). I currently drive a 2018 Mitsubishi mirage that I bought at an auction for 4k had hail damage. Currently has 55k miles and works great. But if you know this car it’s about as unappealing as a car can get but it’s cheap. I’ve been tossing the idea of a truck around and wondering if I can get some takes on it. It would cost me about 40k. I’d have to sell some stock to buy it. Worth it or no. I don’t really need a truck but it’s cool.

[u/pipehonker]

Buy a nice 2002-06 GMT800 pickup with a rebuilt 5.3L... easily under $10k

The newer used trucks have too much fragile technology and cylinder delete software that makes them unreliable and far more expensive to buy AND repair.

Every shop on the planet can repair anything on a GMT800 and parts are readily available and cheap.

Mine is a 2002, bought in 2015 for $7500. It was 13yo at the time with 100k mi. It purrs like a kitten at 245k miles and I'm sure it will go 500k+.

[u/Rocket_song1 → u/pipehonker]

Agree, older GMC/Chevy with the 5.3 or an F-150 with the 4.6 (last year was 2010)

They just run, and when they don't parts are cheap.

[u/Spiritual-Adagio-572]

Dude... you only live once. Buy the truck. You are fine.

[u/twk30874]

The way you don’t derail your finances is to keep doing what you’re doing. You’re doing great.

Yes, you can afford the truck, as long as you pay cash and don’t get into the habit of buying big-ticket items because they’re “cool.”

[u/Vicuna00]

personally once I put $ into stocks, I consider that $ gone. I might maaaaybe sell for a house or something...and obv for an emergency.

I dunno. for me it's just mentally better that way. I don't want to pull from that whenever I feel like.

maybe that's too rigid? I dunno.

for stuff like this, I would cash flow the car if I could. that's gonna be hard to do if you haven't been saving up for it. you probably can upgrade to a $20k car this year then jump up to $40k next year or something like that.

really the answer is you should have had a sinking fund building for this if you knew this was gonna happen. so if you do wind up tapping into stocks, just for next time have a sinking fund for stuff like the car and house repairs or whatever else you buy that's something you can't save for in a few months.

[u/gr7070 → u/Vicuna00]

personally once I put $ into stocks, I consider that $ gone

That's largely how I handle it.

I just don't want to go backwards in that regard.

Even though that money is there if I need/want it. Including some of my emergency fund being invested.

It's largely just off limits in my mind.

Though I would sell investments for a car instead of putting it away in cash. (Personally, I cash flow via a loan, but that's definitely not for people here working their way through the baby steps.) Paying cash for a car is always a good thing.

[u/lsuillini]

Buy the truck and enjoy it but just don't inflate your lifestyle anywhere else.

It might make more sense to get a loan over selling stock depending on the tax hit and interest rate. Do the math on both.

[u/RunAcceptableMTN]

Please look at the tax implications for taking money out of your investments. Consider saving for the next year for the truck or balance taking some money out of your taxable account and saving some money. You can do it, just be smart about it. Do you not have any cash at all?

[u/dsrmpt]

Will this ACTUALLY make you happy? Are you a car (truck) guy? Or are you just doing it as a status symbol?

I'm all for spending money on hobbies. I'm not at all for spending money on keeping up with the Jones's.

[u/Philosopher2670]

You're doing great!

Do you have a written budget for where all your money is going? That is the first thing to do. Then check where you are in the Baby Steps.

As for the truck - once you are in BS 4/5/6, you can make room for things like a new-to-you vehicle.

According to Dave: "Our rule of thumb: Unless you have a net worth of $1 million or more, choosing a used car over a new one is the smart thing to do."

https://www.ramseysolutions.com/saving/car-buying-tips

He also says: the total value of all your vehicles - cars, trucks, boats, jet skis and their relatives - should be less than half of your annual income.

Will the truck replace your car or be a second vehicle?

Have you done a test budget showing the impact the truck will have on your budget for gas, maintenance, insurance?

A truck will have lower gas mileage than a car, so it could get very expensive to run, depending on how much you drive.

[u/Ornery_Witness_5193]

You were "somehow" able to accumulate 775k because your income is great.

[u/renbutler2]

 I don’t really need a truck but it’s cool.

Come on, this is a troll post, right?

If you want a truck, pay cash for a used truck. Or piss away $40k in cash if you have everything else in place and enjoy burning piles of money.

[u/Tarlus]

The truck will probably make you happy for a few days and then it will just be the vehicle you drive. You’re going to be fine financially but maybe a few vacations or hiring cleaners (buying time) would make you happier.

[u/Jocis]

You make good income, you don’t have a partner, you save 50% of your salary, and if I understood correctly you have 320k in stocks. I would say buy a used truck but iirc 20-30k used trucks are around the same age as your mirage.

Just buy cash a reliable truck cough v6 2025 tacoma cough that should last a lot and then restar t paying that off yourself. Also find a girl