Food for thought...

At 20 years old if you open up an IRA with a little over $2000 you'll be a millionair at retirement if you never invest another dime.

Take the truck, delay some gratification, save and invest, get the S when you're 25 AND have a rich retirement.

 

I'm with LemonHead.
While I agree that you will enjoy the S2000, I also believe that it is important to think about the future. If buying the S2000 means that you're going to be living on a shoe-string budget, then you shouldn't get it. 20 is a good age to start investing. At the very least, invest in a good education, and put a little cash into a savings account, if you can.

Remember that your priorities may change. When I was 22 I opened an account with the specific intention of saving to buy a Porsche 911 for my 28th birthday. I just turned 27 and the account now has enough money to fund that purchase, but my priorities have changed, and now I've decided to "settle" for keeping the S2000 and invest in a house when I turn 28. It'll be a much better investment in the long run, and can offer me the opportunity to gain equity and increase my net worth.

If you're not already doing it, you might consider getting some software like Quicken or Money that can track your net worth. I do that, and it really motivates me to spend my money wisely, because I like to see my net worth increasing.

But, everyone has different priorities. The above comments are just my suggestions.

 

I got my s when I was 19 and now i'm turning 22 enjoying every bit of it even if it means paying a little over the norm for insurance. They way I see it is, "if you work hard you should reward yourself. "

 

im about to buy an S2000 myself at 19, insurance with full coverage will be 83 a month with AAA

 

[QUOTE]Originally posted by Got Lice?
i was really planning to buy a s2k by ths summer, but my father wants a new truck, so he wants me to put off buying the s2000 (he'll let me his old truck).

 

Barry... you're crackin' me up!

 

I tend to disagree with lemonhead. Not that I don't see the value of investing (I invest in an IRA as well). And when you retire you'll have a lot of money, but you can't buy back time, and you'll look back and say,

"I shoulda bought that car...sure I'd have a little less money now, but it would've been worth it."

I think if he can manage it, maybe put away $20-$50 a month, he'll be able to have the best of both worlds. As he increases his income, he can increase his investment.

Side note, my S expenses are teaching me to be very fiscally sound when it comes to consumption, which will pay off when I get promoted (military) next year and almost double my income. So it's forcing me to think about where my money goes. But....I definatley would not trade my S for ANYTHING!!!

 

In my opinion, $20-50 per month is not sufficient savings for someone who is driving a $30,000 car. I was saving more than that when I was driving a 10 year old Accord. If that's all you can afford to put back, then you need to be driving a less expensive car. If all you can save is $20 to $50, what are you going to do when your insurance rates go up? What are you going to do when gas prices continue to climb? What are you going to do when your friends want to go out for dinner? What are you going to do when you need to put new tires on the S2000?

Sure, an S2000 is great, but it's not any fun if you can't afford to keep it on the road.

I say if you can afford to buy the car and still invest/save, then you should get it. And by "invest and save", I mean that you should be saving at least the same amount that you are putting towards car payments. Otherwise... don't buy the car yet.

I understand that you can't turn back time, and that you only live once, and all that stuff... but at the same time, you have to learn to live within your means. If you can't afford to pay for the car and still save money, then you can't afford the car, and you'll probably have to end up selling it or having it re-possessed.

Anyway... in the end, no one can tell you what to do, we can only offer advice.

 

Icemn,

I completely agree with this portion of you post...

"you can't buy back time"

That's why people should invest while they're young. Unfortunately very few do and end up realizing the financial realities when they are 30 to 40 years old. A ten year delay ends up making it 20 times as hard to plan for their security at retirement.

Delayed gratification is a concept few people employ these days. Instead they act on impulse to satisfy their immediate desires and end up with a world of regret when dealing with the consequinces to their choises.

But if banking on social security and a meager pention at retirement is an acceptable plan then by all means, live for the moment.