I came into a lump of money of $60,000 for a sponsorship in exchange to work with employer for 4 years. I had planned to divide the $60,000 among the 4 years & use it as extra income for each month. Is this a smart purchase? My dilemma is that I need a vehicle. I found 2020 Honda Accord with 54k miles for $19,500 out the door. (Already had it inspected) .. Is this a smart purchase? I already put a deposit down but feel anxious about it. This means I’ll only be to use about $38K of the $60 as income over the next 4 years because $20K for the car + about $2k for relocation costs. It still leaves me with an extra $791 each month. If I were to take on a car payment, it would be very high due to my credit history on top of needing full coverage insurance because of a financed car. These are really reliable cars & last thousands of miles so I figured this would be my best bet, to try to remain debt free as possible. Ill open up a small credit card to boost my credit after graduate and begin work. Ill gross about $63k (North Dakota) without overtime & without including the divided up sponsorship per month my first year. It’s about $73K with the added in sponsorship money & no overtime. If I do 2 overtime shifts per month, it adds an extra $14k onto my yearly salary, so I would basically be able to nearly put back into my savings. What I would be paying for this car in a year or less.
I am a 27-year-old female with a two-year-old toddler.
original posted by Mama_Mushie_1996 to r/personalfinance on Thu, 21 Mar 2024 11:42:25 GMT.