what would you do with $45k?

[Young Grasshopper]

some info about me:

29 years old
male
single(no gf either)
net monthly income $4100
renting 1 br condo at $1000 a month
leasing car @ $800 a month
total monthly expenses including bills, insurance, gas, going out $$, etc...$3000
cc debt-around $600
personal loan debt $1900
credit score 750+


i cant really afford to buy a decent house, i could get a decent 2br condo to either live in or rent out, but i hate moving and my 1br condo that im renting out has more then enough room. anyone have any suggestions? i just feel like the money just sitting there is not doing me much good in a low interest savings account. i am looking to start dating and settle down soon so having some property in my name might be a good idea. i just cant see myself living in a condo for more then 3-4 more years and reselling condos is a pain from what i hear. the thought of buying and renting one out is intriguing(as the owner of my condo is doing), but i dont know much about real estate.

 

[HAL9000]

Whatever you do, don't buy a car or something that devalues, savings account is a good idea, but I'd put it in an ISA.

 

[SAWYER]

hookers and blow before anyone else says it!

 

[Sukhoi]

Um pay off your debt. And stop leasing a stupidly expensive car.

 

[jingramm]

what car are you leasing for 800 a month?

 

[Young Grasshopper]

Whatever you do, don't buy a car or something that devalues, savings account is a good idea, but I'd put it in an ISA.

not buying a car, already have a mazda3 which i love and am gonna lease a 335is. if i had kids or was married no way i would be spending close to $800 on a car but im single and you only live life one right i don't drive that much which is why i am leasing.

 

[SAWYER]

Pretty crazy to pay 800 a month on something you don't use much

 

[Kadarin]

I'm in almost exactly the same situation as you; not enough to buy a decent house in my area, but otherwise have enough money for whatever. I'm thinking buying a condo and increasing my living space.

If you prefer not to do that, I'd suggest looking into more long-term investing.

 

[HAL9000]

not buying a car, already have a mazda3 which i love and am gonna lease a 335is. if i had kids or was married no way i would be spending close to $800 on a car but im single and you only live life one right i don't drive that much which is why i am leasing.

Yep fair enough, I also wouldn't use it to pay off debt, you should save it for a house or something, or at least the downpayment on something solid. I had £25,000 some time ago, I bought things it's down to 11. Shame. Don't make the same mistakes.

 

[dullard]

I'd do what the grasshopper should have done "put it away for later".

1) Pay off that debt. No reason to keep the personal loan when you have that much cash.
2) Bump up the 401k (or similar) to the max with a good mix of mutual funds (US and foreign, small and large, value and growth). Really maximize your tax savings, it is well worth it.
3) Figure out why you really think you want a $800/month car.
4) Keep $2000 (minimum) for emergencies.
5) Adjust insurances so that no emergency ever costs you more than that $2000.

When that is all started, decide if you want to save for a house or not. If you want a house, then keep it fairly liquid. CDs, savings, TIPS, or similar. If you don't then invest the rest. At your age, I'd be aggressive with the investments.

 

[gevorg]

The world is your limit. Can you think of any side business that your can do?


P.S. Having car expenses that are ~25% of your income is quite a waste, IMHO.

 

[gophins72]

i've always enjoyed saving via stocks/mutual funds. real estate can be a pain, if you can stomach it then it can be a good investment.

 

[Texashiker]

Pretty crazy to pay 800 a month on something you don't use much

Crazy to pay $800 a month for something your not going to own.

Hey OP, buy a good used foreign car with about $5,000 - $10,000, and put the rest into savings.

Then, take that $800 a month and put it into savings. By the end of 1 year, you should be able to re-coop the cost of the car / truck / suv,,, whatever you bought.

Keeping putting back that $800 a month. In 2 - 3 years you should have a nice down payment on a house. Or move to a market where you can pay cash for a house.

 

[rasczak]

get rid of the car, pay off the loan in 1 -2 months tops, save, save, save.

also, what could you possibly be doing to spend 3k a month? scale back on that stuff and you'll see your ability to buy a nicer car happen within a few months time.

 

[cerebusPu]

like other people have said, why do you have a personal loan for $1800 when you have 45K sitting in your account? stop paying interest on that thing and pay it off completely.

 

[BlahBlahYouToo]

you sound like someone i know.
is that $800/mo. going towards a 335i?

 

[Young Grasshopper]

the car is an expense(albeit an expensive one) that will keep me happy(havent even taken delivery yet, just ordered). yes i know its a waste of money but i love cars and putting down $30k in hard cash to buy it and keep the same lease type payments would be a waste as i dont drive that much(but enough to get a decent 30-36k miles during the lease period). i guess you can call it pleasure money. i got tired of saving money and needed something enjoyable for myself, and at the end of the lease i wont be in the hole 30k either. i do realize NOT leasing the car and saving the $800 would be a better idea but like i mentioned, sometimes in life you gotta live a little...besides, after 3 years the lease is over.

 

[Capt Caveman]

First, pay off you debt.

Based on the possible short-time horizon, if you decide to buy a home, stick the remainder into a short-term bond fund, money-market acct or CDs.

 

[Strk]

not buying a car, already have a mazda3 which i love and am gonna lease a 335is. if i had kids or was married no way i would be spending close to $800 on a car but im single and you only live life one right i don't drive that much which is why i am leasing.

Maybe my math is a little bit fuzzy, but how on earth are you spending $800 a month on a leased Mazda3? What did you ask for, the worst terms possible? Or is it more than one car?

 

[Texashiker]

yes i know its a waste of money but i love cars

EDIT


Why can't you afford a house? Because your wasting your money on toys.

 

[purbeast0]

i'd save a big chunk of it and use the rest on some really nice exotic vacations.

 

[Drako]

Personally, I would do a bathroom and/or kitchen remodel.

Oh, you mean what would I do if I were you.

 

[krunchykrome]

1st, get rid of that ridiculous lease!!!! $800/month to rent a car...why!!!???

2nd, stop renting and try to buy. Buy a condo if you can't afford a house. If you're credit and debt is as good as you claim, you should have no problems.

 

[Young Grasshopper]

EDIT


Why can't you afford a house? Because your wasting your money on toys.

i own a mazda3 which is fully paid for. i would never lease a car without owning one.

 

[SAWYER]

I came in to about 50k last year and decide just to out it all towards my house. Maybe not the best choice but now I only owe 13k on my house and I'm 32