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#1
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Not actually relatives, but my serious girlfriend's sister/husband.
They are receiving 50k in $400/mo increments, and they plan to save up for a really nice BMW. However, as it is, they are renting an apt, have a 3 yr old, struggling to pay all the bills, in debt to their parents about $3500, and I think their annual salary is around 20k? (one is in school still). Possible pertinent info: their family is all bad with money, and they view me as some financial wiz I think; the sister/husband are planning on seeking my advice as to where to invest the $400/mo until they can afford the BMW. *Is there any tactful way to say that buying a BMW is the worst possible idea in the world? |
#2
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I would just show them alternatives, and the power of investing and compound interest.
Honestly, throw it into an ING or Emigrant account for them if all else fails. Them buying a BMW is about the stupidest thing I have ever heard. |
#3
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[ QUOTE ]
Them buying a BMW is about the stupidest thing I have ever heard. [/ QUOTE ] At least they planned to save up first. They could have just leased one with the monthly payouts. This indicates that the case is not completely without hope. Also, gerunds take the possessive ("Their buying..."). |
#4
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Yeah
basically state everything you just stated to them in a nice, non-condescending way and be done with it. As far as the money goes, how about a college fund for their 3yr old..after they pay off the $3500 they owe their parents plus any other debt they have? |
#5
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Some people are poor for a reason.
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#6
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[ QUOTE ]
Some people are poor for a reason. [/ QUOTE ] |
#7
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saying, "if I were in your position, an expensive car would be the last thing id buy. here are better options..."
if they need/want a car show them a more reasonable amount to budget and where they can funnel the rest of the money. |
#8
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You could work up some type of spreadsheet or something that explains what that $50K would earn in interest over 20-30 years. In fact, you could even use current bank CD rates if they are the type of folks who might find other types of investments too confusing. Then, show then the Kelly Blue Book value of a 20 year old BMW.
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#9
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Great advice for them; Live in the most expensive house you can afford, drive the cheapest car you can settle for.
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#10
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So they are getting $50k over 10 years? I doubt it will be enough to buy more than a used BMW in 4-6 years time.
Show them the options and only offer advice if you are asked. It's really none of your business how they spend their money. If they choose to squander it, then so be it. |
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