Reply to $14k net HHI - Budget Input

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[quote=Anonymous][quote]Fair point about the lease. I guess my position is that most people NEED cars. $1200 in payments for 2 cars seemed okay to me. I had $550/monthly car payment on a ~$30K car, [b]so $1200 seemed reasonable to me for 2 cars[/b]. It's true that you can get by with a much cheaper car, but 2 ~$30K cars aren't outrageous. Now, spending more than a car payment on "home supplies" (which includes makeup) per month - that's excessive. My husband and I go through paper towels and cleaning supplies like crazy, and even then, we spend about $50/month on such things. OP is likely lumping in Chanel makeup with "home supplies" which is why she's spending a ton of money. [/quote]

Personally, I think that's nuts.  But, say you're financing a $35,000 car 100% (which, when you're making $280,000, is irresponsible in and of itself, but never mind).  After 5 years, you know what you have?  A car.  A car that, properly maintained, will last at least 3 more years, and likely longer, and is paid off.  After 3 years, OP has nothing.

Car leases are useful in several situations - to keep monthly payments as low as possible; to allow a business to provide cars to employees to without taking on the burdens of car ownership; or for wealthy people who don't want to keep cars for more than 3 or so years before getting a new model.  OP is in none of those situations.  She couldn't afford to purchase the Mercedes SUV, but wanted it because her friends had similar cars.  The Audi apparently didn't have sufficient prestige.  So she leased the car.  This is not surprising, because it's entirely consistent, as you point out, with her other financial decisions.

I make a $700/month car payment too.  But I make it into a separate bank account.  From that account comes car repair expenses and, when the time comes, the funds to purchase a new car.  [/quote]

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