I am turning 50 and my son will grad from college and I moved my biz to cheaper rent ect and figure with all my expenses of 2,000 a month gone should i buy a new car or put all the money in savings?I have my house paid off so really in good shape but dont have much in savings.
2007-08-07 04:07:36 · 6 answers · asked by jessy 3 in Business & Finance ➔ Personal Finance
Should you live it up, absolutely!
Should you buy a new car, probably not.
You've gotten to this point by being thrifty. If you don't have much in savings and close to 50 (congrats by the way, just turned 50 myself a few weeks back), then that should be your next area of focus. If you own your own business, then check into some of the savings plans that owning a business allows you to have. If you're a sole proprietor (or just you and your spouse), then look closely at a sole-401k.
Its more important to save for retirement then drive a new car. But its also important to celebrate life, so I'd take some of the money and spent it on something nice (vacation, big screen TV, whatever floats your boat).
I think you're going to find that even with less expenses, you never quite have enough money to stop thinking about saving and living frugally. I've been in the situation a couple of times (paid off the house and gotten a big raise) where a substantial money was freed up. And while $10-20K a year might seem like a lot of money, it still doesn't allow one to spend without thinking.
So focus on saving and building your retirement funds. And enjoy the new financial freedom.
Best of luck to you! Life is the journey.
2007-08-07 05:53:33 · answer #1 · answered by Dave 3 · 1⤊ 0⤋
you need to set up an emergency fund! first and formost!
once you have that then go hog wild!!!
but you should save up at least 3 months of your monthly salary! to fill in those what if ...
my partner and I did and we are glad a pipe bursted in our house and we had to front the money untill the insurance kicked in! yeah we got that money back but at that moment the plumber and floor guys woouldn't of did jacke with out some sort of down payment! it was a head ache but we had money to cover it.. so it was a wise choice on our parts!
we are almost 30
2007-08-07 11:58:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Unless you really need a new car, I'd put it into savings so it has some time to grow before you retire.
If you buy the car, put the rest of the money into savings.
2007-08-07 11:14:39 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
If you are 50 and have no savings (no 401k or pension?) you need to open a 401k or IRA and start putting in as much as you can if you want to retire.
2007-08-07 11:13:32 · answer #4 · answered by dmaniscool21 2 · 2⤊ 0⤋
ING has a good savings plan....safe and higher yields than a money market etc.
2007-08-07 11:20:58 · answer #5 · answered by Rein 5 · 1⤊ 0⤋
No look into a life insurance policy that will pay cash back in a few years.
2007-08-07 11:15:30 · answer #6 · answered by Anonymous · 1⤊ 1⤋