Large salary increase, wanting to move out and upgrade cars, possible?
I am 23 and still living at home with my parents. I make around 130 000 per year due to overtime. (Base salary is round 80k per year) I am on my first year. My take home is around 3200 - 3600 per pay check and over time is basically unlimited all year round and has been like this for the past 20 years and it probably will continue for the next 20 years (law enforcement.) I basically save close to 5k per month.
I have around 50k saved up and stored it away and pretend like I don't even have it.
I bought a new car ($600 / month) when I was working my other job when my take home per month was around 3000 per month.
Here's the plan ; I want to move out of my parents home and upgrade cars
$6400 take home salary
- $2200 (rent, parking utilities/internet)
- $500 (food)
- $1000 (car payment, insurance, gas)
- $750 (extra circular activities)
= $4450 (months total cost, which leaves me with $1950)
And now the bad financial move ; I would want to put $30 000 down on a $84 000 vehicle to bring the monthly costs to 1200 per month. Insurance on the new car would be 400/month and gas would be around 300 per month. This would total $2000 per month, so instead of $1950 savings per month I would be left with just under $1000 per month to put into my savings account at the end of the month.
I know it's not the best financial move, but I would move out and purchase this car around late spring of 2027 which gives me another 10 months of saving. I would still have the 50 000 stored away and probably that number would increase. I am only young once, I know the smart move is to save that money and keep my current car, although I am a car person and young once.
Can I still afford this move with $1000 leftovers per month?