I feel silly writing this. But, after a few comments/emails I’ve received recently because of this post, I feel like I need to. Believe it or not, the article in question – The Ideal Budget of a Single Guy – drives a large amount of the traffic to my site. This is primarily because it ranks #1 in Google for the search “Single Guy Budget” along with a few other key phrases. Given the article’s simplicity, I never expected it to be popular; nor did I expect it to be controversial.
The Ideal Budget of a Single Guy
In the post, I give an example of how a recent college graduate (24 yrs old) can budget around an income of $60,000.
There are 3 main points that I was trying to drive home:
1. Don’t budget around your gross income because, after-tax, you’ll have less money than you think.
2. Budgeting around 26 pay periods, rather than 24, will lead to automatic savings every year.
3. Regardless of what your expenses are, there should be money that is “leftover” which should be saved for future expenses.
The Controversy
Instead of focusing on what’s included in the budget, a lot of readers focus on what’s NOT included:
the all-too-common car payment.
In fact, one reader even asked:
“What kind of reliable car can you get for under $250 – $300 anyways?”
LOL!
Somewhere in Detroit, Henry Ford is laughing in his grave.
If…
A hilarious blogger, Mr. Money Mustache, manages to live without a car,
And I, A. Blinkin, drive a car with 160,000 miles worth approximately $3,000 – $4,000,
Then how is it that every other American cannot find another form of transportation without spending $250 – $300 each month?
Ever since the Model T was introduced in 1908, the debate has gone from “what’s the best way to get from point A to point B?” to “which kind of car makes me look the best?” At least, it feels that way. If a reliable car cannot be found for less than $250 – $300 and the average car loan is financed for 60 – 72 months, that’s a whopping $15,000 to $21,600.
There are only 2 possible explanations:
Option 1:
If everyone is spending $20,000 on a car, I assume they all have $20,000 sitting comfortably in their savings. And if everyone is following the 2 rules to car-buying and maintaining wealth, I also assume everyone is earning $200,000/year.
-OR-
Option 2:
Everyone is bat-shit crazy.
The Takeaway
If you aren’t fortunate enough to inherit a car from a family member, here is what I recommend:
Use public transportation to and from work until you save $3,000 – $5,000. It is unlikely that you’ll be able to obtain a car loan for a vehicle that is this old. So, you’ll have to purchase it outright (which you should anyways). Once you have saved this amount, purchase the car. I was able to find 3,000 reliable cars for sale under $5,000 within a small radius around my zip code, so don’t tell me they don’t exist. Check AutoTrader for cars in your area.
If you are fortunate to receive a car from your generous family, then hang onto it for as long as possible. Don’t feel obligated to purchase a new car once you pick up a steady income.
Buying your own car doesn’t make you look like an adult.
