"Have You Ever Heard Me Tell Anyone To Get A Car Payment?"

Brought to you by the EveryDollar app. Start budgeting for free today. So, you know, my wife and I, we've been living sort of very conservatively. I'm a doctor in training and now I have a big contract coming up that's $650,000 a year. Way to go. She makes about, thank you. Um, she makes a hundred thousand dollars a year. Uh, and so we're projected to make seven 50 at the end of after a year of working. What kind of doc are you? Yeah. Uh, cardiology. Oh, wow. Good for you, man. You've worked hard. You've worked hard to get there. I'm proud of you. Thank you. Thank you. The training has been very arduous and I feel like I want a Porsche and my wife is in, uh, is in agreement to that, you know, I've deserved a nice car. I deserve a nice car. Um, the thing is, is I'm not sure if, if I can afford it. Uh, and so that's why I called in today. Okay. Do you have any money? Yeah. So I've saved up about $60,000, which is, uh, I would say like an emergency fund type situation. Uh, we own two homes. One is in Florida where I did the beginning of my training and that one is being rented out and it's, uh, generating $1,000 a month after all the taxes and bills are paid. Does it have a mortgage on it? Yeah, it does. It has $150,000 left on it. And in your current home, what is it worth? Uh, that one is $300,000 or it's worth about probably four 50. Uh, we bought it just a year ago and, uh, we have 300,000 left on it. So how much do you have in cash to buy your car with? Well, that's the thing. I'm going to get a sign on bonus, uh, between 75 to a hundred thousand dollars. So I wanted to, I wanted to use that to get the car. So you want to buy a $75,000 car? No, but the car itself is, I was thinking about a 200, $250,000 car. You remember that part where you opened the show, opened the call and you said, I'm a big fan. What about your, how many times, how much you've listened to the show? Have you ever heard me told anybody in any situation that you're going to car payment? Uh, no, no. You know, I know, I know you say don't do the car payment and I'm just, uh, I'm searching for, I don't know, some kind of approval or something because it's crazy. I'm not going to give you approval to do something stupid. I love you too much to tell you to do something stupid. You've done too good a job. You, the system. Now, listen, you've been a grownup for so long for just a minute here. You want to be a four-year-old and I'm not going to let you. All right. If you want to buy a $250,000 Porsche, I'm fine with that with your income, as long as you are debt-free and you have your emergency fund in place and you pay cash for it. I see. So I would probably wait a year or so until I'm what's the house in Florida worth? You said, um, it's worth about two 50. I'd probably sell it. Okay. Sell it. And then even if it's a cash flowing, you know, a thousand dollars a month is nothing. You want a $250,000 car, you make 750,000 and you're screwing around with 12 grand in Florida. Yeah. It's nothing. I got a property manager burning too many. Oh, bullcrap. It's not worth it. I would use that money to give my, to build my new life. You've you're, this is a new chapter. You just closed this other chapter. That house is part of it. And you're trying to act like it's some kind of smart rental property thing. It's not. And just, you know, start your life fresh. And if you want to buy a $250,000 car, you are able to do that when you can pay cash for it. Um, it's a lot, but you could do that. Um, and you deserve it when you can pay for it until then you don't deserve it. I deserve it because I work hard when everybody works hard. Okay. Your work has paid off beautifully. Again, I'm proud of you. You got an incredible income and you've worked really hard to get here. I don't doubt that, but, but working really hard to get to do something that doesn't, that's not financially smart is not a plan. I want to work really hard. So I want to hurt myself. No, that's not, that's not a reward for her working hard. No, I want you to get a nice car. I'll tell you what I would do. Uh, in the meantime, I'd put that house up for sale and I'd take some of that signing bonus and I'd go buy a used Porsche for cash. That's not the two 50 and get you one and enjoy the ride because honestly, they're, they're great cars. I've driven them. Most of them, including the two 51. And, um, the difference in the two 50, when you're driving it and the $75,000 version that's a few years old is not much. But the difference in the gastrointestinal distress when it hails outside is a lot. You want those doctor parking spots inside the parking garage? Yeah. The cardiologist spot inside the garage. Here's the other, another way to look at this with this income in one calendar year, you could have completely paid off your house. You could have no house payment. For the rest of your life. For the rest of your life. And if you give yourself six more months, you don't even have kids yet. I'm assuming you could have a fully funded, you could have $250,000 in cash, just ready for that kid to be born into, to go to college. Like you have an opportunity. If you will just drive a $100,000 Porsche. Yeah. Yeah. Drive a $100,000 Porsche. And if you can suffer through that, and for 24 months, you change the trajectory of everyone in your family. And Dave, I used to always tell grad students, whether they're med students, law students, if you will just. You're three to five minutes, three to five years early on this purchase. From changing everything. If you delay the purchase that long. And, um, and I know you've been working hard and I know you put in the hours and you're a smart guy or you wouldn't have been, you can't do this. You could take a heart out of a person and put another one in. Like you, you, you're obviously good at what you do, man. But dude, dude, dude, dude, two years and you change. Everything. And let's just be real clear. You called me and asked me if you could get a car payment. So, you know, we can't, we can't, you know, you're not that smart. I'm just kidding. No, dude, I, Dave, you, you know what? You nailed it. Cause I've been there. When it's like, I would go to all day as Dean of students. Then I would go to a crisis call in the middle of the night. And then I'd wake up. My grownup is used up. And I just want to get a bag of Twizzlers and some gummy bears at 4 AM on my ride home. And it's like, chase it with a Mountain Dew. Just be a grownup for a few more minutes. Right? Yes. You're right. My adult gets all used up and I just want to act like a kid. And you can do that. You can afford it. I can do it. But man, it just costs you just cost you. Yeah. That's a great way to put that, Dave. I've never thought of it that way. It's well, we all do it. I mean, we run, we it's. I've been under control. I've been under control. I just want to hit that guy. Right. And it's, it's, Oh yeah, that one. Yeah. And, but the, the, you know, and the, You never struggled with that. The cost of that. Yeah. I've been nice. I've been nice. I've been nice. He really needs his nose broken. But the that, that's a real thing. And that's what I'm trying to tap into with all these docs. Cause they get this doc. I, this thing is they do, they, they be, they're such a grownup for so long because I mean, while he's been doing fellowship residency, med school, you know, the guys he went to high school with a decade ago, started partying. Oh yeah. A decade ago. They're already in the lobby to see him. Cause their hearts are huge. Right. Cause they're about to explode. Yeah. And so he's, he's got an extra 10 years of being a grownup, but he also gets the payoff of six 50. That's right. So kind of $50,000 income. So, and I don't want a doctor who's underpaid. So I want my doctors to be paid by cardiologists as much as you can get away with. I want them to be paid a lot. So. Yeah. So I'm happy for you, Mo. And I'm just going to call on the grownup Mo. That's down inside there to stay alive for a couple more years. And if you do that, you're going to be in a lot better shape. You're going to enjoy the car more because it won't feel like a guilty pleasure. Instead, it'll feel like something you earned. Create your free every dollar budget today. The simplest way to budget for your life.