Getting married, car buying and apartment by myself?

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Tbonerazor
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Getting married, car buying and apartment by myself?

Post by Tbonerazor » Wed May 30, 2018 5:37 pm

Hi ,

Full disclosure: i am getting married and now i am having cold feet. Not like the one men usually have. It is just being able to save enough after expenses.
Info about me: $93000 annual salary,
$20k savings
$2.5k invested in a taxable account so far
my future scenario: stay at home wife with my single income for the household
rent: $1500/mo
ballparks:
utilities: $150/mo
internet and phone: $150/mo
groceries: $600/mo
entertainment: $300/mo
Total monthly expenses: $2400/mo
I live in NJ.
How much should i spend on a car? I am looking to buy used from a dealer, 2014-2016 models in toyota/honda/mazda. Please include gas and insurance and maintenance costs. I don't have any points on license and so far my record has been clean.
My credit score is in the mid 700s and i intend to pay part cash (upto 7k if possible) and take loan for the rest to minimize the credit load. Is that doable?
The difference between a $1.5 k apartment and $1.2-1.3k apartment is a 25 minute and 45-50 minute commute respectively
The reason for my cold feet is i have been living with roommates and didn't have a car. My expenses came up to only about 1/4th my salary. Any other advice on bringing down the costs is also much appreciated.

Thanks,

GoldenGoose
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Re: Getting married, car buying and apartment by myself?

Post by GoldenGoose » Wed May 30, 2018 11:02 pm

You can pick up a 2018 Hyundai sonata SE for17k OTD that would last you many years. Buy new and drive forever. Don't worry about resale. Insurance would be the same compared to a newer used car.

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celia
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Re: Getting married, car buying and apartment by myself?

Post by celia » Wed May 30, 2018 11:24 pm

Are you planning on getting married but live in an apartment by yourself? That does not sound like a marriage that will last very long, IMO. Why get married, in that case?

Tbonerazor
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Re: Getting married, car buying and apartment by myself?

Post by Tbonerazor » Wed May 30, 2018 11:58 pm

Haha. I suppose I put the sentences wrongly :D I am moving to an apartment for which I will pay by myself since my now fiancé and me will live into the house after we get married :)

totallystudly
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Re: Getting married, car buying and apartment by myself?

Post by totallystudly » Thu May 31, 2018 12:47 am

If you are worried about expenses why is the wife not working

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triceratop
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Re: Getting married, car buying and apartment by myself?

Post by triceratop » Thu May 31, 2018 12:50 am

totallystudly wrote:
Thu May 31, 2018 12:47 am
If you are worried about expenses why is the wife not working
It's more likely than not that the OP will not have a wife. At least the way I read her sentence about being a stay at home wife. Otherwise, ignore this paragraph.

In any case, the optimal solution is not always to have a dual income household when possibly starting a family. The additional costs really do add up.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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celia
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Re: Getting married, car buying and apartment by myself?

Post by celia » Thu May 31, 2018 2:07 am

Tbonerazor wrote:
Wed May 30, 2018 11:58 pm
Haha. I suppose I put the sentences wrongly :D I am moving to an apartment for which I will pay by myself since my now fiancé and me will live into the house after we get married :)
Maybe you need to live by yourself in an apartment to get the sense of what your future expenses will be so you can start to get a handle on them. Is the "cold feet" due to financial uncertainty or something else?

Have you talked to your fiancé about finances, budgeting, and saving for a house? Have you both shared your assets and debts? Do you have common goals? That is where I would start. (You don't need to answer these questions in this thread. It is an action plan if it has not yet been done.)

truenorth418
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Re: Getting married, car buying and apartment by myself?

Post by truenorth418 » Thu May 31, 2018 5:31 am

Good for you for trying to understand the financial aspects of your marriage. As any divorced person could tell you, marriage, at its core and once you get past all the trappings of the wedding and Facebook photos, is a legal contract with significant financial and tax implications. Some of the implications could be good, some could be bad, you have to figure out whether it makes sense in your case. Good luck.

motorcyclesarecool
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Re: Getting married, car buying and apartment by myself?

Post by motorcyclesarecool » Thu May 31, 2018 5:54 am

So, to summarize, based on my reading of your post, on an annual salary of $93k, you’re worried that you won’t save enough money if your annual expenses are $28.8k? What are your savings goals? Are you willing to flex on those goals a little for the first few years of marriage?

From the numbers presented in your OP, I don’t see any personal finance crisis.
Tbonerazor wrote:
Wed May 30, 2018 5:37 pm
Info about me: $93000 annual salary,
$20k savings
$2.5k invested in a taxable account so far
my future scenario: stay at home wife with my single income for the household
rent: $1500/mo
ballparks:
utilities: $150/mo
internet and phone: $150/mo
groceries: $600/mo
entertainment: $300/mo
Total monthly expenses: $2400/mo
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.

motorcyclesarecool
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Re: Getting married, car buying and apartment by myself?

Post by motorcyclesarecool » Thu May 31, 2018 9:23 pm

T-bone, do I misunderstand?
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.

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celia
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Re: Getting married, car buying and apartment by myself?

Post by celia » Thu May 31, 2018 11:34 pm

If this thread is primarily a budget question, you also need to consider:

taxable savings--to be used on future goals like a house, vacation (make this a budget category so you are "forced" to "pay yourself first")
contributions to retirement plans
income taxes
medical insurance premiums, co-pays, deductibles (for each of you)
life and disability insurance (for each of you, sometimes available from your employers through payroll withholding)
transportation costs
clothing
household furnishings (if neither of you are taking any furniture with you)
discretionary spending money for each of you (make-up, toiletries, pet food/ supplies?, hobbies, haircuts)

Tbonerazor
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Re: Getting married, car buying and apartment by myself?

Post by Tbonerazor » Tue Jul 03, 2018 10:58 am

Hi Bogleheads,

Thank you for all your advice points. To address some broad concerns here:
1) my wife is going to be a stay at home person. This is due to various visa restrictions since she is from another country.
2) In my budget i haven't accounted for any expenses such as increased medical insurance. I am trying to get a quote with my employer.
3) i am planning to work with my employer for work arrangements to reduce transportation costs. Otherwise NJ Transit is pretty expensive. If i travel to office it should come to about $30 per day on the train + parking.
4) My main concern is saving for future such as a house, certain family responsibilities (parents +sister) etc before i can think of having kids.
4) Please help on any other factors i should consider.

Thanks again for all your help.

3funder
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Re: Getting married, car buying and apartment by myself?

Post by 3funder » Tue Jul 03, 2018 11:10 am

I'd put down 50% on the car and finance the rest, if you must. Since a car is not an investment, it makes sense to put down as much as you can. I wouldn't go above $17,500 or so (purchase price).

Dottie57
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Re: Getting married, car buying and apartment by myself?

Post by Dottie57 » Tue Jul 03, 2018 11:38 am

Tbonerazor wrote:
Tue Jul 03, 2018 10:58 am
Hi Bogleheads,

Thank you for all your advice points. To address some broad concerns here:
1) my wife is going to be a stay at home person. This is due to various visa restrictions since she is from another country.
2) In my budget i haven't accounted for any expenses such as increased medical insurance. I am trying to get a quote with my employer.
3) i am planning to work with my employer for work arrangements to reduce transportation costs. Otherwise NJ Transit is pretty expensive. If i travel to office it should come to about $30 per day on the train + parking.
4) My main concern is saving for future such as a house, certain family responsibilities (parents +sister) etc before i can think of having kids.
4) Please help on any other factors i should consider.

Thanks again for all your help.
Consider that as a couple, you will have 24k standard deduction. No itemizing necessary.

gotester2000
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Re: Getting married, car buying and apartment by myself?

Post by gotester2000 » Tue Jul 03, 2018 1:07 pm

Tbonerazor wrote:
Tue Jul 03, 2018 10:58 am
Hi Bogleheads,

Thank you for all your advice points. To address some broad concerns here:
1) my wife is going to be a stay at home person. This is due to various visa restrictions since she is from another country.
2) In my budget i haven't accounted for any expenses such as increased medical insurance. I am trying to get a quote with my employer.
3) i am planning to work with my employer for work arrangements to reduce transportation costs. Otherwise NJ Transit is pretty expensive. If i travel to office it should come to about $30 per day on the train + parking.
4) My main concern is saving for future such as a house, certain family responsibilities (parents +sister) etc before i can think of having kids.
4) Please help on any other factors i should consider.

Thanks again for all your help.
Why obsess over saving so much? Save as much as you can without affecting your family life.
For a happy married life - you cannot make a decision alone of not having kids till XYZ event is taken care of without consulting your spouse about it.

totallystudly
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Re: Getting married, car buying and apartment by myself?

Post by totallystudly » Tue Jul 03, 2018 2:25 pm

1) my wife is going to be a stay at home person. This is due to various visa restrictions since she is from another country
Why are you accepting this? You don't need a visa to start a small business and there are plenty of things she can do even working for a small business you start. Vending routes spring to mind or at home daycare.
For a happy married life - you cannot make a decision alone of not having kids till XYZ event is taken care of without consulting your spouse about it.
And why not? He is dealing with 100% of the liability, so he needs to make 100% of the decision on it.

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Meg77
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Re: Getting married, car buying and apartment by myself?

Post by Meg77 » Tue Jul 03, 2018 2:35 pm

You're doing fine! Rent of $1500 a month is affordable as it's 20% of your income. You have only been spending 25% of your income, so it's natural to have some anxiety around boosting expenses so much. But as long as you continue to save at least 20% of your income, you will be fine. Remember that your income should rise over time as your life gets more expensive (house, future kids, etc.).

I'd be tempted to just buy a $10K car in cash and avoid the payment. I drive a 2011 Volvo XC60, and it is in very good shape with only 50,000 miles. It looks very new because the models don't change much, but it's only worth about $11k just due primarily to the age and lack of certain modern features (no backup camera or GPS or keyless entry, but I do have heated seats and sunroof and extremely good safety features). There's nothing wrong with going back a few years to save some major money on a car. You can always upgrade later when you aren't as worried about expenses.
"An investment in knowledge pays the best interest." - Benjamin Franklin

Tbonerazor
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Joined: Tue Jan 02, 2018 2:50 pm

Re: Getting married, car buying and apartment by myself?

Post by Tbonerazor » Tue Jul 10, 2018 6:30 pm

Thank you so much for all your positive responses and thoughtful feedback. I ll take the various points into consideration while taking a big step in my life.

scottgekko
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Re: Getting married, car buying and apartment by myself?

Post by scottgekko » Wed Jul 11, 2018 2:29 pm

Tbonerazor wrote:
Tue Jul 03, 2018 10:58 am
Hi Bogleheads,

Thank you for all your advice points. To address some broad concerns here:
1) my wife is going to be a stay at home person. This is due to various visa restrictions since she is from another country.
2) In my budget i haven't accounted for any expenses such as increased medical insurance. I am trying to get a quote with my employer.
3) i am planning to work with my employer for work arrangements to reduce transportation costs. Otherwise NJ Transit is pretty expensive. If i travel to office it should come to about $30 per day on the train + parking.
4) My main concern is saving for future such as a house, certain family responsibilities (parents +sister) etc before i can think of having kids.
4) Please help on any other factors i should consider.

Thanks again for all your help.
What has your fiance been doing up until now for income? Without children, it makes little sense for a spouse to stay home when there is stress about finances....if you're banking $500k a year, she can do whatever, but less than a $100k in NJ...not so much...
That being said, you're budget isn't out of whack by any means, but anything she could contribute could be put directly into savings and help alleviate the stress you're feeling.

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