I would not finance a car. Financing a depreciating asset is rarely a great plan if you can avoid it. The car/interest rate market isn't exactly friendly at the moment.

Your insurance may have a network of repair facilities that will give a better quote on the repairs. It is in your interest to have the car fixed.

See the WIKI, and notice that learning to budget is a key life skill.

https://reddit.com/r/personalfinance/w/index

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Thank you! That means more than you know. I wish you the best as well :)

Excellent on paying the loans of asap.

I wish you all the best in your new endeavour(sic).

Hope all works out for you two. It really seems like you have everything planned out.

I think we are just talking past each other. I feel like I’m reading your points, they all agree with everything both of us are saying, and yet somehow they are presented as responses to my comment as if we are not in agreement.

It could be that I’m just not hearing it clearly over the deafening applause. ;)

ETA: 259 comes from 5.89% (589 bps) - 3.3% (330 bps) = 2.59% (259 bps). Likewise, 89 bps came from just the difference between 5.89% and the top end estimate of 5.00%.

No assumptions have been made about whether the higher yield vehicle is a savings account, only that it is not a US savings account at a bank (I.e. FDIC insured).

Savings account that we normally think of with banks are pretty low risk (and in the US, which is not what commenter in invested in, don’t yield 5.89%). It is specifically the safety of savings accounts that lead them not to yield 5.89% (in the us, for usd investments) currently. If you could get a true equivalent investment across currencies with all the safety of a US savings account that DID yield 5.89%, that would attract a lot of investment, which likely would drive down the rate due to the high demand. Alternatively, it might not attract investment because it isn’t equivalent (currency conversion costs, access issues, risk differences, etc).

While percentages are independent of currency, one reason a vehicle could provide more return is because of the currency. USD is a highly fungible and useful currency with a strong history of stability and operates as the global reserve currency. Russian rubles are extremely difficult to spend, so an investment opportunity in Russian rubles would need to provide a much higher rate of return than an equivalent opportunity in USD. Getting 100% returns restricted to rubles is, for most people, probably not as attractive as getting 3.3% in a US savings account. As a result, we wouldn’t just say that the 100% yield is better - currency matters. To relate it to your example, if the value of bottle caps was highly volatile relative to USD, such that 100 bottle caps is 100 USD last week, 50 USD this week, and maybe 150 USD next week, you would need additional return on your bottle cap investment that would cover the cost of hedging against USD / bottle cap fluctuations to have the return be comparable to a USD denominated vehicle. A more real world example might be if you had a crypto denominated savings account.

Finally, the comment that started this specifically referenced getting 3-5% returns in a savings account for someone living in NYC (and paying rent in USD). Hence all the context about USD and US savings accounts. Skepticism is being expressed that a cash equivalent investment that can be converted to USD to pay rent with the safety of a US savings account would really return 5.89%. That sounds suspiciously high. The theory proposed is that some combination of currency exposure risk, default risk, liquidity risk, or other risk that is greater than a IS Savings account is driving the yield up that high.

Found one already…Idk what part of upstate NY you’re from but I chose a zip code and found this on Autotrader. https://www.brattautomall.com/used/Honda/2005-Honda-CR-V-for-sale-Brattleboro-VT-aafe6f1b0a0e081d1f8c169e355e8fc2.htm

That’s a great price imho. They go for about $5k and up out here. 😒

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Love to hear about others in a similar situation. It’s tough out here lol. I’m probably going to delete those apps just so the temptation isn’t there! I know the fun/misc is low .. but I think it’s worth the sacrifice for a little and I’ll be living with a friend so I think I’ll be ok … I hope lol

Thank you so much you've taught me more about insurance my parents or my agent ever could have, I have a hard time comprehending all of these things at once but you put it in terms I could understand, I appreciate the info very much.

I wish lol .. unfortunately my office is in New Jersey and I have to go in every so often :/ hoping to get out one day.

I think I could work on my food budget .. but I like to eat healthy and enjoy cooking so I don’t want to restrict myself too much. I’ll have to test it out ..

The roommate has been a good friend for the past 5 years and she works full time. I’m not worried about her bailing but will definitely have a conversation beforehand about money and stuff!

I have 40k in private loans at 3.9%. Unfortunate but I’m accepted it and have a plan to have it paid off within 6 years maximum. My minimum payment is $275, but I do $500 to knock off a little more

If the dealership says it will take $2.6K to get it on the road again, a local independent shop can almost surely do it for much less. I'd get it fixed and keep driving.

This is the life experience I was seeking.

Thank you!!

Get the pay out from the insurance co. Buy a car, WITH CASH. Post on socials, let your friends know, etc and so on what you’re looking for.

It might not be new, it might have a ding or two but it’ll be yours, not the bank’s. Also your insurance premiums will be much lower than they would be on a new car. Especially with these interest rates. And the super inflated prices.

Look for an older used CRV, RAV 4, Tacoma or 4-Runner, even another Subaru. You really cannot go wrong with any of them. They’re all AWD/4WD. Just find one that’s been maintained.

If you need the “tech” parts of a newer car, just buy a new head unit. 😉

Think Granpa’s old RAV 4 or Outback that No one is using since he passed. Ask around. You’ll find something!

I’m in Colorado, so I get it. Those “needs” during blinding snow storms…🥴

We have a newer CRV now but before we had Crystal we had a ‘98 CRV we called The Beast. Bought it used, for $3000 cash and we drove Beastie all over Colorado, Utah, etc.

It was still going strong with over 300k miles when we sold it.

Anyways, we would put snow tires on the old CRV in the winter and we could get to almost anywhere, no problem.

My hubby even picked me up during a massive blizzard that shut everything down because I was stuck at work with the Camry, but “needed” to get home. It’s seriously bad out when they shut major roadways (and even side roads) down in Colorado bc of snow.

So he drove down a “closed” I-25 at 4:30 a.m. and rescued me from an uncomfortable stay at a coworker’s condo. He didn’t slide, get stuck, nothing.

In fact, we’re on the hunt for another older CRV now because it was fun to drive, cheap on gas, easy to fix and would go over these Colorado mountain passes in the winter/spring with no problem.

Get her the ring, not a new ride. Good luck. 🍀

Having exactly $0 to your name immediately after graduating actually puts you significantly ahead of the curve.

>I feel so ashamed & guilty about this because I spent so much money the past 4 years on shits and giggles when I should’ve been saving.

It's hard to beat the dollars/fun ratio of money spent on shits and giggles during your college years. You have your whole life to earn all the money you want, but all the money in the world will never buy you a single new college memory. If you had fun in college and made it out with a degree and $8k, you're rich beyond measure.

Yes, OK, but a savings account is pretty low risk - the bank would need to fail, and the government not bail them out, nor pay out for any form of insurance. In the UK for example the FCA protect bank accounts up to a certain threshold, I think £85k, for example.

Of cours,e the governmen could fail itself, too, but it's very unlikely.

> Since FDIC insured account are extremely low risk, they have lower return

No idea what this is, but sounds like US specific stuff, and the comment was made by someone not in the US, nor investing in the US.

>If there is a competing yield 259 bps higher

Higher... than what? Wheredid 259 come from?

>Certainly one difference is that it could be denominated in a less desirable/useful currency than USD

Percentages don't care about currency. As with a much earlier example, if you trade bottle caps for USD (or any other currency) then you get X back. If you have 10% more bottle caps then you would get 10% more USD (or whatever currency).

>If your non-us SA gets 5.89%, it is very likely that either currency differences or risk exposure or both are why.

It's much more important to talk about exchange rates over time, which you seem to not really be talking about. It could be that after over the year to earn the 10% more bottlecaps that the bottlecaps have suffered rom greater inflation than USD.... but it also might not be the case.

>This is different from comparing the rate across competing US HYSA, which I believe is what was being questioned.

Someone else in other comments mentioned a savings account at 4.7%, sure not the 5.89% but still high. Also, here it's definitely possible to get some pretty good introductory offers on savings account, and some people are happy to jump accounts to chase the offers.

As for your recap points:

1. Why are you assuming it's not a savings account? It might be. It might not be.
2. OK, but nobody ever said it was equivelant to a US Savings accounts. US savings accounts are not really relevant, so it seems irrelavant.
3. To my knowledge nobody suggested they should do anything but use a savings account, so I am not sure what relevance this is either.

That’s the point I’m trying to make. You are in the best position right now. If your dream home is 400-500k you can afford it now on your income with your current home equity.

It's not great that you blew that money, but if you have learned the lesson about balancing future needs with current wants and don't make this mistake again, you will come way out ahead from this experience, especially because you are learning it at 22. We've all made dumb mistakes, but the key is to not make the same mistake twice.

As far as how much money you actually should have at this point, the only thing you really need is enough to get yourself set up in your career and whatever your post-college living situation is going to be. By far the most important thing to have invested in at your age is your skills and future earning power, and it sounds like you've done that. Don't beat yourself up any more.

> What makes the most sense given the state of prices and the economy?

Fix your current car.

Keep a week's worth of supplies at home at all times.

Not really. Your vehicle isn’t “new”.

Your vehicle has comprehensive on it. That part of your insurance policy pays to repair your vehicle if it is damaged. You need that even if it is in storage. If a tornado goes through while you’re deployed, the vehicle is covered (more or less).

Then there is liability coverage. That is the part of the policy that covers you and damage you cause. Talk to your insurance agent for more details.

The gap insurance is an add-on to your policy that helps you to pay off your loan if the vehicle is totaled. Soon you won’t need to keep that.

I would take it somewhere else and see what they quote you. The dealership is very likely ripping you off.

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Most people graduate college in debt. You're fine.

I know people that graduated college at 22, no grad school, are now in there 30s and still paying them off. You're good. If you still keep in touch with high school friends or at least know of how things are going for your high school classmates, you'll soon understand how well you're doing. In a few years, when comparing yourself to your age group that also finished college around the same time, you'll see you're in a solid spot in life. In the professional world you'll be a 22 year old new employee with people that are like 35 that are new grads and went back to school and you'll better understand that you're in a solid spot in life for your age

I'm in a similar situation and it breaks down the same, except my "student loans" is a car payment. I think you have your head in the right place. Your fun/misc budget may be a bit low but try to lower that food bill to compensate. Door dash/uber eats will be your biggest enemy.