I'm 24 years old I'm still in college because I started later. I've managed to save $50,000 and I have two options.
Drop that on a downpayment on a nice condo near my college or.. Rent an apartment and buy a nice luxury car.
- Buy out the condo and drop the 50 grand on that. Keep your current car.Vote A
- Rent an apartment.. buy a nice luxury car (BMW, Mercedes)Vote B
Most Helpful Girl
Id say keep the current car and buy the condo0
Most Helpful Guy
Neither. If you spend it, then it means you didn't save it. Saving means not spending. You should invest it, not spend it.
Buying a new car is throwing good money away. New cars are almost never a good investment. The only time you can justify a new car is if you place a very high value on your time. Most people can't do that. A luxury car is NEVER a good investment. That's pure spending.
Putting the money down on a condo might be a good investment, or it might not. It should be looked at as investment though. I haven't kept up with it, but I think in most places condos are not as good of an investment as houses. If you only plan on keeping it during your time at college, then it's likely not a good investment. If you plan on keeping it as a rental property long term then it might be OK, depending on the local market.
Unless you can justify it as an investment, and be realistic about it, then you should continue saving. Saving 50K and spending it is just as bad as saving 1K and spending it. Either way you spent it.
In my experience, people who develop good savings habits at a young age continue saving throughout their lives. Most people who develop a spending habit continue that also. The ones who save have a nice nest egg saved for retirement. The ones who spend are still working at 65-70 and wish they saved better..0