R.E.: LOL!
KingKole: Yup! All part of the financial schedule, aka "Budget".
Finances...my newest hobby before the PT, so I enjoy talking about both extensively, both sharing knowledge and learning. I started investing one year ago this month, so I am fairly new at that as well.
To clarify:
My PT's sticker was $27,757, invoice was $23,300 or $23,800, I paid $21,500.
I could have paid cash, but that would have cost me dearly. Here is why: the best way to make money is off of other people's money. I borrowed $21,500 at 4.5%.
I kept the $21,500 in my brokerage account. As of this moment, I have earned 143% on my active trading of stocks, 61% on my entire portfolio over the past year (stocks and mutual funds). I blundered a bit this past week or two--normally my return is always around 75%. hehehe, the Market is probably the only place where you can regularly make bad mistakes and still make a killing.
My car loan interest rate is lower than my margin rate (5.45%), so the car loan money is cheaper and more irresistible. I am usually 90%+ margined. (A margin account is one in which you can borrow the same amount that you have, so if you have $2,000 in your account, you can invest $4,000 by instantly borrowing another $2,000. This gives you leverage to double your gains, but doubles your losses as well; I call it "amplify".) This means that $21,500 gives me $43,000 of buying power at an effective interest rate of 4.975% (4.5% on half for the car loan, 5.45% on the other half on margin). By having good control of finances, I have $43,000 working for me at zero cost to me (it is all borrowed!). Is that freakin' cool or what?
So, the bottom line, monthly:
$21,500 @ 61% = $1093
Car payment - $ 400
Surplus cash $ 693
Now, keep the cash in the account, month 2:
$22,193 @ 61% = $1128
Car payment - $ 400
Surplus cash $ 728
Can someone do month 60 for me? snittykitty?
Albert Einstein was asked, "What do you think is the greatest discovery of the twentieth century?"
He, the man who may have unlocked the secrets of the physical universe, replied, "Compound interest"!
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